FUNDING CHALLENGES - INVESTOR MISALIGNMENT
Karl Dakin
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Entrepreneur Support Organization
FUNDING FORTUNES
"Be careful what you pitch. You might just have to build it."
EDUCATIONAL PROGRAMS
I present educational programs for a fee where I can provide information to attendees that is more specific to their funding strategies and plans.
My next educational program will be one-half day on the topic of targeting those investors who are most likely to invest: Motivated Money Method to Raising Funding. The program will be on January 16, 2025, from 9 am Mountain Time / 11 am Eastern until 1 pm Mountain Time / 3 pm Eastern Time.
The program will be offered in an 'avtor' format with:
Discover how to secure funding more effectively and efficiently. By targeting the right investor candidates, you can tailor your entire campaign, from offer to closing, to match these candidates - achieving greater success in less time and with reduced costs.
This avtor is designed for entrepreneurs, small business owners, community leaders, charities, service providers, and economic developers responsible for raising funding.
Readers of this Instant Funding newsletter qualify for the discounted price of $400 (marked down from $500). Go to Register. Select the Funding Fans ticket and use the discount code FundingFan2025.
Guarantee - If you do not save at least 12 hours of your time due to the skills and insight gained from this avtor, I will refund the full price you paid.
ASK CAP
CAP is my general-purpose artificial intelligence avatar trained on my knowledge about raising funding. CAP is available for your use without charge 24/7/365. CAP is available on my website. Go to CAP.
I am working with Knowledge Avatars to use its platform to create artificial intelligence avatars dedicated to specific funding campaigns of my clients. These avatars can not only answer questions as you progress through the design, staging, and conduct of your capital campaign, but they can be easily trained as a repository of all information, documents, and communications of the campaign and the campaign team. If you want more information on licensing an AI avatar for your operations or campaign, contact Emiliano de Laurentiis at Emiliano@KnowledgeAvatars.com.
I asked CAP,
'What are the negative consequences of an investment pitch that fails to address the needs and conditions of the investor candidates?"
CAP responded,
"When an investment pitch fails to address the needs and conditions of the investor candidate, several negative consequences may arise:
First, it can lead to a loss of interest from the investor, as the pitch may seem irrelevant or misaligned with their investment strategy.
Second, it can result in wasted time and resources for both the entrepreneur and the investor, reducing the chances of securing future opportunities.
Lastly, it may damage the entrepreneur's credibility and reputation, making it more challenging to establish relationships with potential investors in the future.
Effective communication and understanding of the investor's criteria are essential to avoid these issues."
FUNDING POINT - FUNDING CHALLENGES - INVESTOR MISALIGNMENT
When reviewing most investment pitches, the pitch begins and ends with information and statements about the organization seeking funding. Quite often, all of the information is about the organization seeking funding, with nothing addressing the criteria of the investor candidate.
When this situation occurs, the investor candidate is challenged by how they exit the investment and what rate of return or other benefits they may anticipate when they exit.
If you have ever been in a conversation where the other person dominates and talks about nothing but themselves, you can understand how an investor candidate feels when an investment pitch is silent about them.
Investor misalignment occurs when an investment opportunity does not prioritize the interests of the investors.
Without talking about the investor, the pitch sounds ego-centric. It does not answer investors' questions about the opportunity. It is often viewed as disrespectful of the investor and their resources.
Many entrepreneurs seeking funding view investors as interchangeable or substitutable commodities. These sources of funding are referred to as 'other people's money' or 'OPM", indicating that the entrepreneurs consider themselves the only people of importance.
I evaluate entrepreneurs who think so highly of themselves, the certainty of their success, and their invulnerability to everyday business challenges as terrible risks. When these entrepreneurs always place their interests ahead of everyone else, there is no trust that they will respect the investor's interests if things go badly.
Everything in the investment opportunity presentation should be for and about the investors. While a business or community project may need to provide information about themselves to explain the investment opportunity, the description should be directed toward how an investment will advance the investor's goals.
Starting with identifying high-probability investor candidates, everything should be oriented toward those investors. The investor candidates' goals, wants and needs should be the heart and soul of the investment offering. Promotional materials should be authored to speak to these investor candidates and placed where investor candidates may see them. The pitch in the slide deck, offering memorandum, and investment agreement should convey your interest in and concern for the investor candidate.
RESOURCES ON BEING INVESTOR CENTRIC
Technical articles on revenue sharing from Google Scholar include:
Several articles focus on the presentation of a pitch rather than the substance. While admitting that style is essential, too much emphasis is placed on style over substance, as though the audience's entertainment is the desired outcome. I have seen many highly choreographed presentations that looked like candidates for American Idol than meaningful investment opportunities.
Books on revenue sharing on Amazon:
SUCCESSFUL FUNDING SHOW
LAST TUESDAY, CAP was my guest on the Successful Funding show. CAP demonstrated its ability to answer questions about funding, AI, support of my avtors, and consulting services.
Emiliano De Laurentiis, founder of Knowledge Avatars, assisted in the show and helped explain the features and capabilities of AI avatars built on the Knowledge Avatars platform. He offered a discount to anyone who watched the show live or on the recording. Just send me an email at kdakin@dakincapital.com to obtain the discount.
You may watch the recording of the show at:
GOT 15 MINUTES AND A QUESTION ON FUNDING - GIVE ME A CALL
I recognize that many readers of this Instant Funding newsletter have questions about funding that are not answered by the newsletter. I am available for a 15-minute phone/video call about your funding questions. This is to let you know there is no charge for this call. Just contact me to schedule a time at kdakin@dakincapital.com.
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Karl Dakin, the Capital Coach
Dakin Capital LLC
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2dThat's veary informative and excellent work karl Dakin thanks for sharing this is good for the people around the world best wishes to each and everyone their ❤🤝🏽🤝🏽🤝🏽🙏🏾🙏🏾🙏🏾