Why Investors Only Invest in People They Like and Trust

building a brand capital raising May 20, 2024
Why Investors Only Invest in People They Like and Trust

People invest in those they like and trust. Period. End of story. Even if you're the most competent person in the room, it won't matter if you don't connect with people or if you don't have a brand that speaks volumes about you or how you do things. Would you agree?

Think about it. Have you ever been in a situation where you knew someone had all the right skills, but you just couldn't see yourself working with them? Maybe they lacked warmth, authenticity, or simply didn't seem like a good fit for your team.

On the flip side, we've all met people who may not have been the absolute best at what they do, but their passion, reliability, and genuine nature made us want to invest in them, whether with our time, money, or trust.

In the world of capital raising, this principle is even more critical. Raising capital isn't just about numbers, projections, and business plans—it's about people.

The connections you make, the trust you build, and the reputation you cultivate are what will ultimately drive your success. Capital raising is a people business, and those who thrive are the ones who understand this fundamental truth.

So, how do you become that person who others want to invest in? How do you position yourself as a trustworthy, reliable, and likable professional in the capital-raising arena? It starts with building genuine relationships and a strong personal brand. Here’s how you can get started on this journey and move one step closer to creating the life you want through successful capital raising.

Real Talk: People Invest in Those They Like and Trust

Now that we've established the importance of trust and likability, let's dive into actionable steps you can take to build your network, educate yourself, identify opportunities, and take decisive action in the capital-raising market.

Here’s How You Can Get Started

  1. Network Like a Pro

    • Attend Industry Conferences: Find conferences and events related to capital raising, venture capital, and entrepreneurship. These are excellent places to meet potential investors and partners.
    • Join Online Platforms: Participate in platforms like AngelList, LinkedIn, and specialized forums for investors and entrepreneurs. Engage in discussions, ask questions, and share your experiences.
    • Build Relationships: Don’t just collect business cards. Follow up with people you meet. Grab coffee, offer help, and stay in touch.
  2. Educate Yourself

    • Read Books: Some of my favorites are "Venture Deals" by Brad Feld and Jason Mendelson and "The Lean Startup" by Eric Ries. They offer great insights and practical advice.
    • Take Online Courses: Websites like Coursera, Udemy, and edX offer affordable courses on venture capital, fundraising, and entrepreneurship. Learn the basics, advanced strategies, and everything in between.
    • Listen to Podcasts: Tune into podcasts focused on startups and investing. They’re a goldmine of information and inspiration.
  3. Identify Opportunities

    • Research Market Trends: Get to know the latest trends in your industry. Look at successful startups, emerging markets, and investor interests.
    • Prepare a Compelling Pitch: Develop a clear and compelling pitch for your business. Highlight the problem you're solving, your unique solution, and the potential return on investment.
    • Explore Different Funding Sources: Consider various funding options such as angel investors, venture capital, crowdfunding, and strategic partnerships.
  4. Take Action

    • Start Small: Don’t wait for the perfect opportunity. Start with what you can manage, even if it’s a small investment or a minor partnership. The experience you gain will be invaluable.
    • Get Your Financials in Order: Ensure you have a solid financial plan. This includes having a detailed business plan, accurate financial projections, and understanding your valuation.
    • Hire Professionals: Don’t try to do everything yourself. Hire a good attorney, accountant, and advisor. Their expertise can save you time and money.
  5. Build Your Brand

    • Be Authentic: Share your story, your successes, and your challenges. People relate to real, authentic experiences.
    • Leverage Social Media: Use platforms like LinkedIn, Twitter, and YouTube to share your capital-raising journey. Post regular updates, tips, and insights.
    • Deliver Value: Whether through blog posts, videos, or workshops, consistently provide value to your audience. This builds trust and positions you as an authority.

Final Thoughts

The life you want is closer than you think. You're exactly one capital-raising opportunity away—make sure you're ready to grab it.

Equip yourself with knowledge, build strong connections, and take decisive action. Remember, it’s not just about finding the right investor; it’s about becoming the right person who can recognize and seize the opportunity when it comes.

 

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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