My Three Step Process to Raising Money for my Fund

My Three Steps to Raising Capital

After having been around hundreds of fund managers the past several years I’ve come to the conclusion that arguably the biggest problem for them is raising money.

And there’s no question that it is tough. But it’s not impossible.

Today I’m going to walk you through THREE steps to follow to successfully raise money.

Step 1: Follow the Money

Find, glass find, magnifying glass, search, magnifying

I want you to brainstorm all the places that you could go to interact with highly affluent individuals.

Some of my personal favorites include the following:

  • Sports Events (Shout out to the Jazz)
  • Political Meetings
  • Extreme Sports
  • Charity Fundraisers
  • Top Notch Restaurants
  • Concerts
  • Masterminds (Check out mine here)

And that’s just to name a few.

Get creative, think outside the box and you’ll be able to sniff out the rich!

Paul Hutchinson, one of our mentors and the co-founder of a deca billion dollar fund, is a great example of someone who has perfected this.

Paul has literally built his incredibly successfully career around being able to identify just where the money is located.

My father used to always tell me that Paul could easily pick out the biggest investors in a room within minutes of being there.

It’s a skill that I highly recommend you develop, and then use to get in touch with the people best suited for your fund.

Step 2: Work Your way in vs Buy Your way in

Once you’ve located where the captial is, it’s going to be crucial that people aren’t looking down on you or see you as inferior.

One of my all time favorite books called Flip the Script talks about the importance of STATUS ALIGNMENT.

Status alignment is using a series of social ques to ensure that people are looking at you the way you want them to.

As equals.

You need to look the part.

Talk the part.

And most definitely walk the part.

I tell people that they can do this through one of two ways.

Work your way in, or buy your way in.

Both are great methods to use.

If you’re looking at establishing yourself longterm and are willing to put forth the effort, then working to get to the level of your target investors is the way to get there.

If you’re looking for a quick road to the top and have the resources required, maybe you buy your way in.

Exotic car groups are a great example of this, where all it takes is one Lambo to give everyone around you all the info they need on your biography.

I personally leverage both strategies to get me in front of the right people.

The area where I’ve personally seen the most bang for my buck has been through various mastermind groups that I’ve joined.

Step 3: Convert

Agreement, business, deal, hands, handshake, shake, shaking

Okay everybody, this is going to the be the KEY to getting money into your fund.

You can locate all the wealthy people in the world, get yourself in front of them, and if you can’t sell these guys on your ideas, you’re screwed.

So here’s the game plan.

First, you’ve got to collect the contact info.

I typically go about this by saying I’ve got tons of deals coming my way and I can’t handle all of them.

I’ll then offer to push the deals to them and they can take a look because they’re solid.

This gives me a simple way to add value to their business, with minimal effort on their part. It’s a no brainer for them and works like a charm.

I then take their email or phone number or whatever it may be, and I’m in.

After that I’ll break down to them what they do and make sure to highlight just how they are going to profit from this type of deal.

I’ll usually set up some sort of future meeting for us to go over logistics and that’s where I’ll run them through my full Pitch deck.

This is where I can really weed through who will be a good fit and who won’t.

The rest is history.

Conclusion

All in all, maybe finding investors isn’t be nearly as hard as you once thought if you follow these simple steps.

It’s worked for me time and time again, and I’m confident you can produce similar results.

So I invite you to identify where the money is, get in front of them, and CONVERT!

Take Care,

Bridger Pennington

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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.


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