[INSIDER CALL] Raising Money for your Project

[DeletedUser2]

Topic. Raising money for your project. From Noobs to Ninja level stuff.

I will go over the basics of why investors, why not, when to get it and what to expect. also, some experiences from the trenches of what its taken for me to raise over 90M over the last 15 yrs.

IF YOU HAVE QUESTIONS.... Please PM them to me, and I will make a list of questions to answer during the call. be as specfic as possible, and as clear as you can on the questions. thank you.

This call is at 3:00pm EST Friday March 22nd.

There are several options callers can use to connect to this conference call.

For this call we are using freeconferencecallHD.com.

First option is to dial in directly (long distance charges may apply):
(530) 881-1400
Access Code: 927495

Second option is to download the android or iphone app:
Android
iphone

Third option is to connect via the internet:
1. Go to HD Conferencing - Home - www.freeconferencecallhd.com
2. Under the label "Dial In Via our Flash Phone", select the box that says "Click here to launch".
3. You will then have the options to select the dial-in number, choose (530) 881-1400 enter 927495 in the access code box and then your name.
4. Once you select "Place Call" you will be directed to the conference call.



Z

 

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[DeletedUser2]

This site,
raising capital secrets, I did after I sold out in 2007.

I needed a break so I wrote this over a 6 month period mostly to get some of this info out of my head.

but I collected it and sold it for a while. Sometime in the next year or 2 I would like to redo this product and enhance it alot.

for the INSIDERS, here is a membership site I still have. I dont do much with the site now, but will at somepoint.


the site link

http://raisingcapitalsecrets.com/members/

To login.

User: Fastlane
pw: insidersonly

hope this helps. and btw, any feedback is certainly appreciated, as it will help me make this a better product someday..
PM me the feedback.

Dale


EDIT: Fixed. unlimited IP logins. your good to go.

 

[FastNAwesome]

You must spread some Reputation around before giving it to zen******* again.

THIS IS JUST A LONG THANK YOU NOTE: I remember getting accepted to the college. They told us to come the next day and bring all the documents, and of course - scholarship money. I was broke at the time, and had no one to borrow from.
Still I went to the college and just stood there in the hall. I knew, if I stay home, I'll lose for sure. Had no clue what to do, just knew I must be there and do SOMETHING.

And then it happened...they guy I met the day before comes in there with his dad. They invite me to come along with them but I say no. His dad, successful businessman and a really cool guy, (Chuck Norris type, with beard and all
figures something's wrong and pulls me to the side to ask what it is.

Full of shame, I told, I have no money to enroll, but I couldn't stay home. He takes me into his car, we drive to the bank, and he gives me the scholarship money + some pocket money!
I promised to pay back as soon as I save it up, and he says: "Sure".

When I finally saved up the money, I called him but he refused to meet me and said: "Never mind that, just make sure to finish the college, that's how you'll pay me back".
I kept that promise. Even through very rough times, droping out was not an option, promises are to be kept.

And now after this call I feel that same kind of energy, the obligation to act on this info, as that's the only way Zen's gift will make any sense - if we use it.

So, Zen, thank you again for the call, for the website, for the posts.

 

[AllenCrawley]

Zen has released the recording of this call.

[no longer available]

 

[LibertyForMe]

Here is a detailed summary I did of the call. I feel like I haven't added much value to the forum yet, but this was something that I knew I could help out with. Thanks Zen!

Just got done listening to a private conference call titled: “Raising Money For Your Project.” Below is a summary of what I learned from the call.

The first three major points that the presenter said were critical to know early on are as follows:

1) Investors only make money when they invest. Investors always have money floating around that is looking for a good home, and it is your job to provide a home for that money.

2) Deals have to be fair for both parties; an investor will just walk away if you don’t provide a good home for his money.

3) Investors want to feel like they are part of something big and important, they want to be able to brag to their friends and tell them about all the cool things they are doing.


The two most important skills that a person needs to have to raise money are as follows:

1) The ability to take a complex set of circumstances and details and then boil them all down into something easily explainable and easy to understand in less than 5 minutes. You should be able to explain what you do to an investor in a sentence or two. An example was given where an investor asked what Zen does, and he said “I sell things online.” He then elaborated by saying, “It costs us $45 to get new customers, and the value of a customer over 6 months is $150.” That is all the investor needed to know to want to be a part.

2) The ability to tell an extremely compelling story that grabs people at an emotional level. You know you are a good story teller when people interrupt you halfway through your story with excitement, asking how they can get involved. Go to toastmasters, read books about storytelling, learn about comedic timing and structure, etc.

The better you can succinctly describe what you do, and the better storyteller you are- combined with a valuable proposition to the investor, will allow you to give away less equity. In the beginning stages though, you should get investors that bring more than just money to the table. You want an older investor who has ‘walked the walk’, who is willing to answer questions, give advice, and provide connections.

DON’T BE GREEDY, especially in your first few businesses. People always want to know what is in it for them, so make sure your investor is well taken care of.

To raise money, you need to be willing to ask everyone for money, or if they know people who have money: you cannot be shy about this.

Cover yourself from a legal perspective. Talk to attorneys to make sure you are in the clear, and to learn what you can and cannot say.


Ask these questions before looking for investors:

1) Is this deal worthy of investment, and would I personally invest in this deal?
2) Am I worthy of an investment?
3) Am I a good steward of money, and will handle the investment with care?

If no, re-evaulate the deal.

Bootstrapping is often too slow, it is ok to bootstrap for a couple of months, but access to capital gives you a lot more speed.



QUESTIONS:

Q: How do you raise capital for real estate?

A: Raise the money 6-9 months in advance! You should be continually cultivating your contacts and investors, so when you find a good deal, the people you know are already expecting it and will jump at the opportunity to invest.



Q: If I have been in business a long time, will that hurt my chances of raising capital?

A: No, time and stability in business matters a lot, as it makes investors less nervous.



Q: What tips do you have on effectively researching a market and doing due diligence?

A: “Pick up the F’ing phone” You should call and talk to people in the industry. Vendors are often a secret weapon, and know people that you should be talking to. Email is ok – phone is good – in person is the ultimate! If you have to buy a $300 plane ticket and rent a hotel just to visit someone, they will take you serious, because they know you want it. TALK TO PEOPLE AND GO MEET THEM WHERE THEY ARE.

My favorite quote: “If you are going to do something, do it big.”


p.s. Sorry I didn't summarize Eskil's question, I couldn't hear him very well...

 

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[DeletedUser2]

Pitch anything

by Oren Klaff is a good book.
I am happy to call Oren a friend of mine, and we have discussed story building in raising capital.

his book is a GREAT read.

he lays out a methodology that's pretty powerful, and if mastered pretty damn good.

Personally I wish I had known him back when I was raising money.
I would have used some of his systems.

Z

 

[InMotion]

A rough outline:

Pick up the phone. Meet with people.
Build your contacts before you need money.
Find a good attorney. Stay out of jail.
Ask what they need and give it to them.
Learn to tell a compelling story
Find an investor with more than money to offer initially. Make it worth their while. Don't be greedy.
You can always make and find more money. Time is the scarce resource.
Go BIG or Go home.
Identify an expert team.
Leverage. Scale. Profit. Everybody wins.
Pick up the F*ckn phone
Show up. Meet with people. Go the extra mile.
Don't be a p*ssy


Great information

 

[AllenCrawley]

Only 1 more day till Zen's call! Call is 3:00pm EST tomorrow.

There are several options callers can use to connect to this conference call.

For this call we are using freeconferencecallHD.com.

First option is to dial in directly (long distance charges may apply):
(530) 881-1400
Access Code: 927495

Second option is to download the android or iphone app:
Android
iphone

Third option is to connect via the internet:
1. Go to HD Conferencing - Home - www.freeconferencecallhd.com
2. Under the label "Dial In Via our Flash Phone", select the box that says "Click here to launch".
3. You will then have the options to select the dial-in number, choose (530) 881-1400 enter 927495 in the access code box and then your name.
4. Once you select "Place Call" you will be directed to the conference call.

 

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[Vigilante]

For you newbies... if you make it a point to catch the call... you are going to realize that the cost of admission to the INSIDERS only serves as a barrier of entry to keep the lookie lous out. One call.. such as today's call... can pay for 20 years of INSIDERS for some. Even if you don't need to "raise funds" --- tune in to the call anyway. It is the MINDSET you need to catch even if the specific content is not relevant to you today.

The call today is hosted by one of the more/most successful people on the forum. It's the kind of personal, private instruction that a few years ago we couldn't have ever accessed. It's like walking up to the doors of a successful company, asking to speak with the CEO, and requesting you can sit in for an hour and see how his mind works. Try that anywhere else but here and see how well it works.

Concentrate for an hour on the attitude. The process. The mind map. The history. The difference between how a guy like zen******* thinks, and how your average "worker" thinks.

You might find his thought process contagious.

 

[Eskil]

Not only is this call dripping with golden info... Zen is also funny as hell.

"Pick up the F*cking phone"

 

[MJ DeMarco]

Thanks Zen for taking time to share your wisdom. I'm proud to say that I was finally on a call! Woo hoo! The power of a good story cannot be underestimated!

 

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[DeletedUser2]

THIS IS JUST A LONG THANK YOU NOTE:

That made my whole month!

that has to be one of the coolest thank yous I have ever gotten.


and sometimes its just little things like that that make use want to share in the first place

Z

 

[DeletedUser2]

[INSIDERS CALL] Raising Money for your Project - March 22nd zen*******

Jack. We will have to sign a mutual NDA. So you can't use my stuff I can't use yours. And no one wins. Or just license me your questions and l ask the forum if its a good idea and if I can make any money on it and ill just put up a site that copies yours. I hope you ok with that. Cause I need to make money for my family and don't know how to do it..... .

Z

 

[JEdwards]

I am worried about people stealing my questions and taking credit for them...

Zen: Are you willing to sign an NDA for my questions before I submit them?

 

[JEdwards]

Zen, Spot on.. There is so much money out there, and it is ALL about Story.


Great, Great call!

 

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[Jake]

Pick up the F*cking phone.
Ask what they need and give it to them.
Learn to tell a compelling story
Find a good attorney.
Identify an expert team.
Find an investor with more than money to offer initially. Make it worth their while.
Go BIG or Go home.
Leverage. Scale.
Pick up the F*ckn phone
Show up. Meet with people.
Stop being a p*ssy

no one benefits from you doing small shit in your basement

 

[Jake]

1. Find a product / idea / niche. Can it scale? Yes? Proceed

2. Do market research. Find out everything you can. Is there room for you? Yes? Proceed

3. Create a story (important!)

4. Build out your (profitable) system

5. Approach investors with your story, tell them your numbers and that X input will = Y output. Make them want to be a part of something awesome that they can brag to their friends about.

6. Inject capital, kick a$$, you can make more money but can never make more time. Nobody benefits by you doing small shit in your basement so go big or go the F*ck home.

anything to add? :icon_super:

 

[Eskil]

Weird... it's 12:06 (my time = 3:06 EST time) and all the sudden the music stops and Dale is already in the middle of talking...

 

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[CEBenz]

I love Zen's enthusiasm!

 

[theag]

After a Z Pitch:

 

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[nitrousflame]

You must spread some Reputation around before giving it to zen******* again.

Damn speed nazi.


Fantastic call Z. Overflowing with inspirational golden nuggets!

 

[tincho1492]

A video interview with "Pitch Anything"'s author (the recommended book here) which has great tips too.

[video=youtube;wudApUtnEM0]http://www.youtube.com/watch?v=wudApUtnEM0[/video]

 

[AllenCrawley]

Thanks again Zen. Pure Gold!

[video=youtube_share;CF7OnW4XDck]http://youtu.be/CF7OnW4XDck[/video]

FYI, at the peak we had 63 callers.

 

[DeletedUser2]

My question is, would you recommend getting more people involved in the product before searching for capital?

you dont have to have a team on the payroll to show you know how to get a good team together

there have been times, when I brought my team in early, and said this.

show up for investor meetings. show them why you are a great addition to the team WHEN WE HAVE THE MONEY TO PAY FOR YOU, we will pay.

many people will help with this, waiting until you have the money, before joining the team.

or you can use equity to get people in.

 

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[DeletedUser2]

a couple questions that are being asked. I will address these questions directly

If there are more questions pls PM me I will address them as well.

Zen – I would be interested in hearing about how to raise capital for large real-estate purchases like apartment buildings, and how you pitch these deals to investors (private or banks). What is involved prior to raising the cash, what sorts of economics and other facts are required for presentation.

Also, how will you be hosting this call? Will I be required to call in with a landline or will it be web based where I can log in to an address and use a headset.

Thanks!

I have an established company that is about 15 years old. I would like to raise about 2x annual revenue to start a new but closely related project. Is the slow and steady growth of the company an asset or a hindrance in raising funds?

Would I be better off to spin that project out on its own as a "startup"?

Z

 

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[JEdwards]

Yep, I agree Vig, These calls are a great for understanding that people are just people, that talking to vig or zen is no different than talking to your brother. (if you have one)

 

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[drmctcher]

F*****G EPIC call!!!! WOW!! Zen's enthusiasm is on fire and sets the the rest of us a blaze!!!
Thanks for sharing. Brilliant lessons on raising capital~ of course.... But also Huge lessons on mindset, focus, Direct response marketing ~ Story telling... Amazing, and list goes on....!
Rep Speed ++
Thanks again for your time Zen!!:eusa_clap:

 

[DeletedUser2]

Zen, this may be slightly off topic, but is it truth or fiction that VC's typically invest in "fresh" entrepreneurs rather than successful entrepreneurs they have invested in previously? It seems counter intuitive, but most VC studies I have read indicate your odds of getting investment from the same firm twice is much lower than the first time you get investment. Just curious. Thanks.

thats more like saying EVERY investor Invests the same way.

if you interview a bunch of coal miners, and ask, whats the best part of the day. you will find MOST of them like either lunch, or after work.


the world is made up of more than Venture Capital investors.



Z

 

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[MJ DeMarco]

One of my favorite quotes from the call

One of my favorites when he said "No, I'm not paying you a big salary until you can make it big"

Totally resonated with me as I've had the same experience when reviewing prospectuses ... no product, no revenues, no profit - and yet look here, you want to be paid $100K/year with benefits.

Ill pass. I don't want to fund a job, I want to fund a business.


Speed to Dale, the link you provided is just chocked full of Gold. Gold Jerry! (If you haven't checked it out yet, do so!!)

 

[Jake]

Here's the problem. That's an hour and a half long. My attention span is 4 minutes, and that's assuming I don't see a squirrel outside of my patio doors. How about some Cliff's notes on what is probably an actionable video?

He talks about how to pitch anything and take control of situations while pitching.

He goes into that we should be pitching to people's "crocodile brain" which is basically the pre-evolved reactionary part of the brain. The fight or flight portion.

Pitch to that portion of the brain, own the situation, tell your story, make them want to be a part of what you're doing.

Zen seems to have learned a lot from this guy or they have a similar approach.

Basically hit them with a powerful one liner, peak their interest, go into your story, show them that your time is more important then theirs..