Need Capital? Start Thinking Like a Capital Provider
Understanding what investors are looking for, how they think, and how best to engage them is the proven path to success.
Capital is the lifeblood of any rapidly growing business. For a great many growth-stage companies, access to capital is an urgent priority, as well as a source of great frustration. At the growth-stage, where resources for expansion are vital, access to capital is likely more important than ANY other aspect of the business. No capital, no business.
Many Founders deeply dislike the process of raising capital. For them, time spent raising capital can feel like an unwanted distraction from building the business. Therefore, far too many Founders make the mistake of treating the capital raise process as an afterthought, inconvenience, and annoyance. This is the Mindset that leads to struggle and failure.
Very few people were born into this world great at raising investor capital
Unfortunately, however, investors both expect and demand that Founders excel at the task of raising capital. The problem is that very few Founders think like an investor, or even know how to.
Oftentimes, Founders simply lack the necessary investment expertise to effectively position the business for investors. In most cases, this leads to a lengthy, unorganized capital process – wasting significant time and investor money. Many Founders are painfully aware of their inexperience and lack of enthusiasm with the institutional capital raise process. But, with no other viable choice, they launch themselves headlong – and unprepared - into the process.
Sadly, the common methods most growth-stage companies employ for raising capital are misinformed, inefficient, and ineffective. Therefore, a great many struggle, or ultimately fail to successfully make the transition to institutional investors.
Adopting a Capital Mindset will lead to a more effective process and better results
The good news is that there is a fundamental, repeatable, and actionable Mindset that will lead to investor capital – every time. The Mindset is the real work. The hard work. The necessary work. The Mindset sets the stage for everything that follows The tactics without the correct Mindset will be ineffective and incomplete – and the results will reflect this.
Successfully raising investor capital is the result of understanding this Mindset. Mindset First. Tactics Second.
Investors tend to follow a binary approach. They see countless opportunities on a weekly and monthly basis. Their base assumption when looking at a company is that it is either ready for capital or not. In their opinion, most are not. As such, they reject 99% of the companies they meet.
However, operators know that growing businesses are not binary. There are infinite ways to adjust a business model and go-to-market strategy. Many growth-stage companies could and would attract institutional investors - if only key strategic improvements were made to the business.
Investors are simply too busy to help Founders understand what changes would make the company more attractive. It is the job of the Founder to understand how investors think - to adopt THEIR Mindset.
You No Longer Need to Do this Alone
The capital raise process can be quite lonely and frustrating. There is a lot of pressure riding on the shoulders of the Founder. The more allies a Founder has, the greater the chance for success.
Larger companies have Board Members, Capital Committees, Investment Banks, Placement Agents, etc. - all working together to bring in capital.
Yet most growth-stage Founders are forced into doing this essential work alone. We created the Capital Mindset Program to help those that are feeling alone in the process - and experiencing a challenge because of it.
You are not alone. There is a better way. Click below to learn how the Capital Mindset Program can assist you throughout the capital raise process.