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What Attracts Investors to a Company: Lessons from $2 Billion in Deals

capital raising real estate capital raising Dec 03, 2024
What Attracts Investors to a Company: Lessons from $2 Billion in Deals

 

Raising capital isn’t about luck—it’s about strategy. After working on over $2 billion in deals, I’ve learned there are specific things investors look for when deciding where to put their money. If you’re wondering how to attract new investors, here’s what works.

1. A Clear, Compelling Vision

Investors want to know where you’re going and why it matters.

  • What problem are you solving? Clearly define the opportunity and why it’s worth pursuing.
  • What’s the payoff? Be specific about the potential returns and the timeline.
  • Keep your pitch simple but impactful—confusion kills confidence.

2. Proof of Concept

You don’t need a perfect track record, but you do need evidence that your strategy works.

  • Share key metrics or results from past projects.
  • Highlight your unfair advantage, such as unique skills, experience, or partnerships.
  • If you’re new, focus on what you’ve built so far and the traction you’re gaining.

If you’re unsure how to navigate early challenges or avoid costly mistakes, I’ve shared some personal lessons in 5 Hard Lessons I Learned in Real Estate Investing (And How to Avoid Them). These insights can help you position yourself better and build trust with investors.

 

3. A Strong Team

Investors bet on people, not just ideas.

  • Show you have the expertise to execute your vision and this ultimately how to attract new investors. 
  • Highlight your team’s strengths and complementary skills.
  • If you’re a solopreneur, emphasize the network of advisors or partners backing you.

4. Trust and Transparency

Trust is the currency of raising capital.

  • Be upfront about risks and how you plan to mitigate them.
  • Communicate clearly and consistently—don’t leave investors guessing.
  • Share testimonials or success stories that reinforce your credibility.

5. An Opportunity to Grow Together

Investors aren’t just looking for returns; they want to feel part of something meaningful.

  • Explain how their investment aligns with their goals and values.
  • Offer regular updates and opportunities to engage, so they feel involved in the journey.

 

By focusing on these elements, you’ll not only stand out but also create a compelling case for why investors should choose you.

Pro Tip: If you want to know more about building trust and crafting irresistible offers, check out my recent blogpost about 5 Hard Lessons I Learned in Real Estate Investing (And How to Avoid Them

 

Want to take the next step? Start implementing these principles today and watch your investor interest grow!

 

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The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. Marcin Drozdz, M1 Real Capital Inc are not financial, legal or tax advisers. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. You understand this to be an expression of opinions and not professional advice. You are solely responsible for any actions you take with the content and hold Marcin Drozdz and M1 Real Capital Inc or any of it's affiliates harmless in any event or claim.

 

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