How To Plan For Raising Capital With Investors?

In order to plan a successful funding campaign, you must let enough investors know about your investment opportunity.

According to the Kugarand Theory of Investing, for every...

1 person who invests money,

3 say they'll put money in,

Your investment opportunity was shown to 15 investors before it was shown to the three investors who actually invested.

For example, if your company wants to raise $1 million and the minimum investment is $25,000, it needs 40 investors.

($1,000,000 / $25,000 = 40). For your company to get the 40 investors to put money into it, you will need to show your investment opportunity to 600 investors.

(40 times 15 investors = 600)

Use this formula to figure out how many investors you will need to tell about your opportunity.

How much money are you trying to raise?

B = How much is the least you can invest?

A/B = C

C = Number of needed investments

Now that you know how many investors need to hear about your investment opportunity, you can make the right plans.

Through strategic planning of your company's investment opportunities, investor relations campaigns let investors know about, create, and promote investment opportunities. Some things you can do to get noticed are:

1. News stories and advertising
2. Going to events for investors
3. Tailored events for investors

Investors are sent direct mail campaigns

Investors' email marketing campaigns

1. Phone calls from investors
2. Private, secure online investment portals with private investment information and due diligence documents
3. Web marketing
4. Articles of interest to investors
5. Websites where people can invest money

The following should be part of the investor relations campaign:

1. Use a mix of group presentations and one-on-one meetings with investors to give the client a chance to "tell their story."
2. Passive marketing to the interests of investors through email, press releases, and interviews on radio and TV.
3. A plan to keep investors up-to-date so they can see how things are going and turn a semi-interested investor into an interested and motivated investor
4. Direct mail to reach investors who don't respond to other forms of communication, based on where they live and what kind of business they like.
5. A simple way to tell investors about an opportunity so they will take the time to learn enough about it to be interested enough to spend more time learning more.
6. A central point of information so that investors can get information no matter how they first heard about the opportunity.
7. System to find out what investors are interested in and act on it

Visit www.launchfn.com to find out more.