The Unconditional Way to Fund Any Venture

Raising capital is easy if you do what others will not. You can raise money for just about anything by focusing on these core elements:

Relationship Network

The first step is to establish a professional network. These are not LinkedIn connections but people who will take your call, reply to your email, and meet you for lunch. Please get to know these people by spending time with them.

All the money I raised came directly or indirectly from my network. Unlike sales, getting funds does not happen with a cold call.

Give help

I am in several circles of experts who call me for advice on various topics. I provide value to my network in the form of connections, referrals, and technical help. For example, multiple hedge funds ask me for advice, as do several angel investors. Put yourself in a position where this can occur.

The most money I ever raised at one time came from those I had helped for years. Instead of asking for money, I asked them to be involved in my venture.

Referral Network

Before raising funds:

1. Determine the investors most likely to invest in your company.

2. Ask your relationship network for referrals.

3. Ask multiple people to reach out on your behalf with an introduction and a good word.

Having a referral removes many of an investor’s initial concerns. I know this because I feel a difference in my mind when a deck comes from a trusted referral versus a cold outreach.

Prove the market

Investors do not have time to determine if the space you are in is a viable market. Instead, you must prove it with actual pre or early sales revenue. People paying for a product in development is a great way to prove that the market exists.

Cold calling is a cheap way to find your market. It does not require a website and allows you to experiment quietly without people asking, “Wait, were you not into something else last week?”

Ask for help

When pitching investors, do not ask for money. Instead, ask for help. For example, “We just sold our first 100 units and have enough revenue to pay production costs. However, I hoped you could help me determine the fastest way to grow that to 1000.”

Something happens in the brain when people ask you for help. It makes you feel important and valued. That help may be good advice, a check, or an offer to evangelize your product to their network. Either way, it is a win.

Conclusion

Few companies raise enough funding because they do not do the required work. Having a strong network can take years off the process by borrowing credibility. The fastest way to do that is by providing help to others. Before launching a company:

• Start a newsletter.

• Build your personal brand.

• Help as many people as possible with your expertise.

Do these things, and money will come to you.