how to attract capital in a changing world

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HOW TO ATTRACT STARTUP CAPITAL IN A

CHANGING WORLD

Baldwin Berges BD-Insider.com

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Being remarkable is no longer optional…

…because investors are faced with more opportunities than

ever before

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The world is a crowded & noisy place…

…make it easy for investors to discover you!

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Most ‘investors’ you meet are usually venture capital funds, private bankers,

intermediaries or family offices.

This means they usually have no final decision power.

They need to convince others to consider your opportunity.

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This means you need to equip them with compelling and comprehensive content

that will make that easy for them!

In other words you are giving the ‘investor’ a ‘mandate’ to represent you.

‘Compelling’ and ‘comprehensive’ also means that they don’t feel like they are risking their reputation as an advisor to

their investors.

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Equipping the investorApart from the ‘WHY’ of your proposition, there are 4 things investor absolutely need to know before they are confident to take things further

1 Execution2 Upside3 Downside4 Exit

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What I have learned after more than 20 years of working with investors

Even professional investors are mostly driven by emotion rather than rational thinking.

Fear & greed drive the decision making process (eg. buying high, selling low and FOMO).

Raising capital takes time and the only way to get results is by keeping the attention of prospective investors by consistently following up.

This business is personal because it depends on building trust between individuals

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The investment landscape is rapidly changing

Disintermediation: professional investors are losing terrain in an increasingly peer2 peer world.

The VC myth: venture capitalist have funded less than 1% of US startups. Most VC funds have barely even reached break-even over the past 15 years (Harvard Business Review).

Crowdfunding and angel investor platforms are enjoying exponential growth. These investors are essentially non-professionals.

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The investment landscape is changing very fast

Peer2Peer lending is one of the fastest growing industries today thanks to a low interest rate environment and mistrust in financial institutions

Conclusion: raising capital is increasingly about telling stories online that are easy to understand by non-professional investors!

Capital raising is moving online so the ability to stand out and become remarkable with digital content is key to successfully attracting capital

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So how do you keep the investor’s attention and curiosity alive?

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What can we learn from the true attention experts?

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The art of scriptwriting

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The power of stories

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Humans are more wired to consume stories than to read, write or even consume more abstract ideas or concepts

And guess what?

Investors are humans!

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There is a formula for telling stories that get attention!

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There is no story without characters

Business is personal

So, WHO are you?

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?WHY WE DO WHAT WE DO

19

MTPMassively Transformative Purpose

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Underdog power

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But our Story is way too Boring!

As long as there are interesting characters are involved, there are no bring stories

Making a lasting first impression

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Essential Story Elements

WHO MTP WHY

UNDERDOG UPSIDE

DOWNSIDEEXIT

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WHO

MTPWHY

UNDERDOG

UPSIDE

DOWNSIDE

EXIT

+ +

+

CALL TO ACTION

Presentation Structure

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WHOIntroduce the character(s) so the audience

can make a human connection.

Select the right visuals of the characters doing what they are best at.

VS

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Define the problem you are

Show the solution

MTPWHY UPSIDE+ +

Explain the MTP. What the future could be like with the solution?

Briefly describe how the solution will make money

What is the solution worth - size of market? money

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Why is solving the problem important to you and the world

Your challenge - what do you need to avoid the downside

UNDERDOG DOWNSIDE+

How will you execute when you get what you need?

What other challenges have you overcome? What did you learn from failure? Why is it relevant?

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EXIT

Clearly establish the financial perspective for investors

Short term exit strategy? Acquisition play, IPO?

Long term perspective. Will there be enough cash flow for dividends?

Not clearly establishing these expectations will make you and/or the investors unhappy

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The main purposeinitiate an ongoing dialogue

CALL TO ACTION

Capture the prospect’s email and get permission to continue

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Now that we have the investor’s attention

We need to provide them with the rest of our story

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From the investor’s point of view, preparing for an

investment is very much like a journey of discovery.

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The investor’s journey

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Equip!investors with insights to to make confident, well researched decisions.!

This is how we earn trust

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But how do we take the investor on this journey?

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Map the journey.

Reflect the journey with useful content

Build a sequence to deliver the content at the right time

along the journey

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Discovery Consideration Decision

Investment Decision

Investment case

Investment case

Investment case

Investment case

FAQ

FAQ

FAQ

FAQ

Shareable Audiovisual

content

Online/offline presentation

Online resource pages

The investor’s journey

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That’s why you need a system that will make the follow up a consistent

value-added experience for the investor.

Raising capital is usually a lengthy process that requires stamina.

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An automated sequence to keep an investor dialogue alive after the first

encounter.

Equipping the ‘investor’ with content that is easy to share with the final

decision makers

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The method in action

The trailer

The follow-up

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For more insights about this

visit BD-Insider.comBD-Insider.com

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Thank you!