Decreasing the Likelihood of Dead Deal Costs
July 01, 2024
by a professional in Austin, TX, USA
We just had a searcher sign up with Mainshares who will NOT be using our investor base.
This is actually a misconception about our platform that I’m trying to communicate better.
Searchers… You do not have to work with our investor base if you do not want to.
Some of you are quite capable of finding investors on your own.
BUT…
I run into plenty of searchers who have an easy time getting many soft commitments, then struggle to actually fund the deal post-LOI.
Tons of reasons for this.
- Many investors are “industry agnostic” when you talk to them, but actually develop a narrow investment criteria when it’s time to ask for $50,000.
- While you run point on lender, legal, DD, and accounting processes after the LOI, you also have to run a formal investment raise. This is hard to balance and investors will want to see you’re organized. If you’re not, you will lose their confidence.
- Over a 6-12 month search process, investors can change their minds, or they will allocate their capital elsewhere, or adjust their strategy, or even get spooked by a specific deal term they are uncomfortable with.
These problems make managing investors difficult.
And if it’s your first time encountering these problems, your deal has a higher likelihood of failure.
Leading to tons of wasted energy and time.
We’re building our platform to solve the problems listed above to decrease that likelihood of failure, saving you from dead deal trauma (and fees!).
It’s my (biased) opinion, but you can have the best of both worlds if you bring your investors into our platform to execute the deal:
1) Work with investors you trust.
2) Allow Mainshares to help you succeed.
3) Access our investor base if anything goes awry.
from University of North Texas in Austin, TX, USA
from University of Utah in Salt Lake City, UT, USA