Experiences raising traditional funds (things you wish you knew before)
September 12, 2022
by a searcher from Yale University - School of Management in Boston, MA, USA
Hi team,
I am finishing up my PPM and getting close to starting to raise my fund. I wanted to reach out to any recent searchers to see if they have any advice from their recent experiences (things that you wish you put into your PPM, best strategy for networking with investors, and/or whatever you think is important to know but doesn't get brought up too often).
thanks!
CJ
from IE Business School in Madrid, España
Work on the PPM for your own learning, it is important to interiorize what the model is about, why recurring revenue businesses in growing industries with high EBITDA into Cashflow conversion is key. Think about the search process and strategy. Don´t expect for investors to read the whole PPM.
Have a great PPT ready while pitching. It will help delivering the message. You should be able to clearly communicate the target profile that you will be searching for, sector and why they should invest in your search as opposed to others. At the end of the day, investors look for two things: your ability to find and close a deal and your potential management skills that will ultimately generate value while operating a business.
Be decisive and firm with your message. Commit to a schedule for the fundraising and generate FOMO among investors. You don't want to miss the boat -- get on board while you have the chance. This is how investors should feel after having a chat with you.
Also remember that this is a two-way street. Make sure to do the diligence on your potential investors. This is a long ride and aligning goals among partners is crucial.
Happy to further help if you need it.
Best of luck!
from University of Commerce Luigi Bocconi in London, UK