Getting it right: Doing a successful capital raise during the coronavirus pandemic.
Two years ago, Aspen Capital Fund made an adoption toward remote work. While I occasionally commuted into our office, the standard was to work from home for everyone. In 2019, we made a widespread digital transformation to how we did business and more importantly how we connected clients to investors. We put our resources toward this transformation to maximize our digital tools (website, CRM, software, technology) and worked toward an “Optimized” (market leading) stage.
The business community is taking drastic measures in defense against the spread of the novel COVID-19; in-person meetings have lurched to a halt and companies are scrambling to operate in teams remotely and maintain business as usual. In August of 2019 integrated digital into the capital raise process, involving potential investors into a targeted investors network at all stages. As a result of that, the clients using our capital raise strategy are leaving others behind during the coronavirus epidemic, the gap is big, and it’s probably getting bigger.
This current environment will turn out to be a good test case for the next generation of how deals will get done. With companies forced into remote work behaviors, this will be an unparalleled opportunity for startups that are adopting a digital capital raise strategy in an accelerated time frame.
Investors are going to experiment with new processes for finding and doing investments. This is an opportunity to seize. Investors will have to get over “meeting founders in person” requirements. How they will vet opportunities during this time is through diligence over the internet.
Having a clearly defined online investor value proposition tailored to your targeted investor persona will help you differentiate your opportunity encouraging existing and new investors to engage initially and stay loyal.
By using digital deal making tools to we magnify our client’s opportunities to investors through marketing automation, expanding to a global reach and improving the overall quality of the marketing of the capital raise.
Some of the tactics for digital fundraising we use are maximizing the CRM functionality to manage the investor pipeline and the investor journey. We use links that can be embedded in text, email or webinar communications.
Transforming all collateral to be digital-first and including Aspen Capital Funds “Immerse and Converse” link behind an “INVEST NOW” button.
In times of uncertainty, prospective and existing investors will benefit from frequent, timely touchpoints and updates. We create an investor details page that tracks interaction and responses to these updates, so you know what communication is effectively moving investors through your funnel.
We offer increasing engagement -minimizing back and forth by ensuring all involved have access to information on investors and raise progress. We offer a robust partner data room that is available to investors 24 hours 7 days a week that offers Blockchain technology.
A business may take on digital transformation for several reasons. But by far, the most likely reason is that they must: It’s a survival issue for many.
All this activity is focused toward building one thing: TRUST. A digital capital raise works by enabling what it takes to get to know you. You must be able to build a high conviction and show how you will be able to show how value will be added in a time like this.
In a digital capital raise you can build trust through flawless follow up and communication, and by in including a high tough rate (it takes about 7 to 12 touches to get an investor interested).
Investors will continue to review deals and look at pitch decks and the data says they still are (according to DocSend data). How you up your email game and automate follow ups and give access to your information will be paramount.
It’s a numbers game (not volume)
According to the Startup Index you need to work on identifying 60-70 investors and have about 20 -30 meetings. If you are doing more than that it’s probably not worth your time. If you reached out to more than 70 investors and are getting no interest, you need to rethink your fundraising approach.
Get some advice
If you haven’t done so, have a talk with someone else outside of your circle. Schedule a drive thru call with Aspen Capital Fund.
Aspen Capital Fund
Aspen Capital Fund connects their clients with capital by helping them understand the underlying process and requirements of building a successful capital raise strategy.
The capital raise mentorship provides customized resources to build a compelling and complete capital formation campaign strategy. Get direct feedback and resources on how to improve your chances of meetings and deals. Incorporate investors into your network on all levels using successful marketing strategies that will reduce that friction and speed up your flywheel.
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