If you’re ready to start raising capital for real estate deals, VC investments, or something else entirely, you’re in the right place! The Avestor customizable fund makes it easier and more affordable than ever to fundraise for deals, attract the right investors, and grow your fund over time.
Even so, we know that getting started can feel overwhelming, especially if you’ve never raised capital before. In this article, we’ll share 7 powerful strategies you can use to navigate the capital-raising process and set your customizable fund on the path to success.
1. Define Your Target Investors
The first step to raising capital is to identify your target investors. Characteristics to consider include:
- Who they are
- What industry they work in
- What their investment goals are
- How comfortable they are with risk
With this information, you can better design a fund that aligns with your investors’ needs and preferences. This will also help you market your fund more effectively.
And keep in mind, a customizable fund will allow you to appeal to a broader range of investors, as each investor will have the opportunity to build their own custom portfolio.
2. Build a Strong Brand
If you want to set yourself apart in the crowded sea of capital raisers, you need to build a strong brand. And this means more than just using consistent colors or designing a logo. Focus on creating a compelling story that communicates your values, investment philosophy, and track record in a way that will resonate with your ideal investors.
3. Leverage Your Network
Don’t get so caught up in trying to reach new potential investors that you forget to tap into the network you already have. Your best investors may be people you have preexisting relationships with. Think about these people in 3 circles: Friends and family, your direct network, and your secondary network. You can start with friends and family, and then branch out from there.
Take time to reach out to your network and tell them about your fund. And even if those people aren’t looking for what you have to offer, they might know someone else who is. So, don’t be afraid to ask for referrals!
4. Attend Industry Conferences
Conferences and events can be exciting, but make sure to do your homework. Some conferences have big names presenting and are an excellent opportunity to network, but not many passive investors attend. Other conferences have a large number of passive investors. If your goal for a conference is to meet more passive investors, ask around to determine if that conference has a large number of passive investors attending it.
As you become more established, you can be strategic about sponsoring events, scheduling meetings, and looking for speaking opportunities. But for now, the best first step to take is just showing up.
5. Create a Compelling Pitch
If you feel uncomfortable pitching yourself and your business, there’s no time like the present to start practicing. A compelling pitch should highlight:
- The types of deals included in your fund
- The unique features and benefits for investors — including the benefits of investing in a customizable fund instead of a syndication or blind pool fund
- The ways your fund aligns with your target investors’ needs and preferences
- Your track record as a capital raiser
6. Try Out Social Media Marketing
When you’re looking to connect with potential investors outside of your current network, social media is an excellent tool. Use platforms like LinkedIn and Twitter to promote your fund (just make sure you’re following SEC rules), share your insights, and engage with potential investors.
You can also use social media to build your personal brand and establish yourself as a trusted thought leader in your space.
7. Partner with Avestor and Other Fund Managers
When you start a customizable fund on Avestor’s platform, you gain access to resources you can’t find anywhere else. From setup to launch to ongoing administration, Avestor simplifies the process of creating a fund, while also giving you access to our legal, accounting and bookkeeping services at a reduced cost.
Additionally, Avestor fund managers gain access to a network of like-minded capital raisers, offering opportunities for collaboration and partnership. Every Avestor fund manager gets access to our exclusive mastermind, and many of our fund managers raise capital for each other’s deals or invest as co-GPs on projects.
If you're interested in learning more about how a customizable fund can transform your business, let’s connect! Book a demo call today to get started.