The Secrets to Raising Capital

After years of people telling me I should write a book on how to raise capital, I finally did and I'm very proud of the results.  I had a few associates of mine review the book, one of whom has been raising money for years.  He said,  "Mike, right on.  That's exactly what everyone who is trying to raise money should know." But the purpose of this news entry is two fold.  First in case you missed it elsewhere I want you to know that my book is available and you can purchase it right now on this website for only $49.99.  The second thing I want to talk about is the fact that many of you who read this news item, and who need help raising capital, will not buy my book.  That's okay, by the way.  If you don't want to buy it, don't.  But what worries me about people who might not invest the money to buy this book is something I talk about in my book.

When it comes to raising capital, there are three groups of people who are successful.  The first group are people who just got lucky.  Maybe they had a rich relative, were in the right place at the right time, won the lotto or happen to find a really stupid investor or lender.  It happens and if you are lucky enough to be this person, you probably wouldn't be reading this information.  The second group of successful money raisers are the Slick Willies.  These are the guys who can schmooze and charm the pants off of anyone. I've seen some of these guys in action, and believe me, they are impressive.  I met a doctor who had convinced a group of venture funds to put up $80 million into a medical technology that in my opinion, and the opinion of a number of my colleagues, was about the craziest idea on the planet.  But this doctor could hold an audience and schmoozed the money right out of the bank accounts of these venture capitalists.  I am going to presume you're not Slick Willy beacuse if you were you wouldn't be reading this information.  By the way, from experience the lucky ones and the Slick Willies probably amount for about 1% of the money raised by corporations (my estimate).

So who are the third type?  They are those businessmen who work smart, learn something about the capital raising process, gete their deal in front of the money guys who have the interest and capacity to fund the deal, and finally, make their deal look better than the othe alternative uses of the money guy's funds.

I mention in my book how many people who have trouble raising money don't seem capable of learning.  I have worked with CEOs of fedgling enterprises, mature companies, profitable companies, unprofitable companies, fast growth companies, stagnant companies and floundering companies, and my one universal observation is most CEOs and other senior executives are so entrenched in their industry perspective, in their personal and emotional experiences, and their investment in their own world view that they have ceased to benefit from the great learning experiences available to them.

There are a million great ideas to help you in your business--including the process of raising capital, for a very small cost.  Take advantage of other people's experience and save some time and effort, and make yourself more effective.  If you don't buy the Secrets to Raising Capital find some other guide to tell you how to do (if you can), but don't think that just because you know how to run your business, sell your products or manage staff that you really understand what capital raising is all about.

Good luck, and good learning.