The Six Secrets of Raising Capital: An Insider's Guide for Entrepreneurs (Bill Fisher, 2014)

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  • 1. Great business ideas do not get funded
    • Let investors have a glimpse of superman flying
    • A five-minutes pitch, 1 month to prepare. A twenty-minute pitch, 2 weeks. An hour pitch, anytime.
  • 2. No investors will read your business plan
    • Build credibility before speaking to strangers, share a huge problem, explain your solution
    • Slides: root problems, size of problem, economic impact, clear and unfussy solution, why solution work, substantiation the solution works, management team, key financial driver, risk mitigation, competitors, size of investment
  • 3. Money has a personality
  • 4. Dating is your new job
    • No one is going to listen to you until you established credibility, no one is going to call your back ever, no one gets interested until they meet you in person
    • No investor is ever going to do anything on time, you cannot have a long-term relationship until you learn how to disagree and still keep moving forward, you need money from a long-term partner and not a jerk
  • 5. Raising capital can cost your dreams
    • Preferred shares, liquidation rights, dilution protection, dividend rights, investment rights, co-sale rights, attorney fees and transactions
    • Control issues: voting rights, protective provisions, major expenditures, budget approval, approval rights on sales of company, IPO, information rights, founders vesting, approval rights on liquidation, compensation of senior manager, use of proceeds, board representation, board makeup, 
    • Negotiation: put all issues on the table first, draft and issue initial term sheet, give yourself time to consider the terms, always ask for something in return that you gave up, address things you need and not want, always be diplomatic, disagree from something personal, if a multipart investment pick the lead investor, keeping everyone energised
  • 6. The wire closes the deal


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