Why Wealthy People Don't Invest in Innovation

When savvy investors are looking for start-up innovation projects to invest in........

Sorry. who am I kidding?

NOBODY actively seeks to place their hard-earned savings into an unproven product, with someone they have just met, for an indeterminate amount of time, for an optimistic projection by someone who has spent more of their savings on patents than they did on market validation (in most cases).

This trend will increase exponentially when you factor in the notion that the person you pitch to is wealthy. In fact, the wealthier - the harder it is to get a yes from your pitch.

You see, wealthy people are generally surrounded by advisors.

Those advisors do not want to see some of the funds they manage to be taken from their control and placed in an innovation project with all those attributes - managed by someone they have no control over.

So, from the very moment this wealthy prospective investor puts the advisors to work on your due diligence, they are building a compelling case for why the prospective investor should not invest.

This is why I never pitch to high-net-worth investors. Innovation doesn't fit their profile and everything I do to encourage them to be part of my project will ultimately be undone by others.

Imagine if you searched for someone from within your target industry or market. Imagine they have resources and/or infrastructure that you were raising money to acquire. If their contribution was services, infrastructure, expertise, or even a complete channel packed with your buyers (who might have been buying something unrelated but complementary from them) then you might not need so much cash.

Some projects may not need cash at all, to become successful, if the right partner can bring the right assets to your innovation.

Imagine that! "I don't want your money. I want you to offer my product to your 500,000 buyers and the resulting income will de-risk this project for both of us...."

This process is called building leverages and it is an important aspect of the Cornerstone Investor Model. This is why experienced inventors can raise capital in 4 pitches to less, by profiling and valuing the leverages that are available to their prospect partner - usually at no cost to them.

Would you like to know more? Here is the first of five short videos which explain how the Cornerstone Investor Model works and how leverages can change the pitch success rate for you. Watch it HERE.

I have a series of these short video explainers free for inventors who are feeling stuck with their projects. You can view these HERE.

Merry Christmas to all,

Daniel

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