What track record can you show when you are brand new? What’s the best way to start the capital raising process while learning and looking for deals?
This was a question that was on my mind as well. I appreciate you asking it.
The first step is to get educated on regulations. There are tight SEC regulation with regards to raising money. After you get educated, you can always create a sample deal that can be shown to potential investors. Start networking and continue showing your sample deals and stoke their interest. Then start building a contact list. When you get a deal, then you can reach out to these investors to raise capital from them. The biggest problem at this market peak is finding a “making sense” deal. There are abundant of capital looking for small number of “making sense” deals nowadays.
Make sure you know what exemption you will be using. Then learn the rules and follow them. Assuming that you will start out with a reg D 506B exemption, you will need to establish a significant financial business relationship with the investor prior to showing them a deal.
You also need credibility. This can be earned by finding some way to be involved with an experienced investor. You can piggyback on their credibility
Make a sample deal and say would you be interested in this type of investment.
Never ever pitch on the first date…
Everyone does that to me and its such a turn off.