Table of Contents
- Can we work on success fee only?
- Can we provide references?
- How much do investors typically invest?
- What type of investors do you attract?
- How much interest should I expect to receive?
- Should I rely on just Wholesale Investor for my capital raise?
- How do I get the most out of the service?
- Our capital raise, closes in 1 month, what can you do for us?
- How can we guarantee we will raise money using your service?
- How do we select companies?
- What is your role?
- Do you provide guidance on pitch, presentation, how to speak to investors, etc?
Before we start, I feel it is important to let you know that I understand the Founder’s journey. I am a Founder. I know the emotional rollercoaster that it is. I know how hard you work and how frustrating the process can be. I have also raised money and I have made nearly every mistake there is.
We work hard to provide you our service and there is a team of 16 people, who are driven by our mission to create and enable opportunities. The private company space is a challenging area and it should be. Every day, you work hard to build the technology and business which will empower and transform the way people live, work or play.
Can we work on success fee only?
No we don’t. WI works under the class order 02/273 and are technically defined as a publisher / matchmaker. Under our class order, WI is unable to charge success fees. We are not a Corporate Finance house or Broker. We would not put our ability to operate at risk for anyone!
Can we provide references?
There is no need, the majority of our clients achievements and our role is published online on our website. The WI transaction and Media sections on our website can a significant amount of information for you get a reference.
If you would like specific references for your sector, you can either look for these companies on our site, or ask our BD’s for examples. This is what is most relevant for you.
We DO NOT provide introductions to references, as our clients are like you, busy and under pressure.
How much do investors typically invest?
This varies quite widely. Reminding you that we do not control or influence what our investors do, we have noticed some trends.
Private investors – Typically will act faster and for a first investment, they typically invest $50k to $250k. We have seen an investment of $500k and $1mill, but unless you are Pre-IPO or IPO, this is less common.
Professional, Strategic and Family Office Investors – Typically invest $1mill and above. Expect that this will be a longer process with the need to appease investment Boards with due diligence.
Whilst most companies come to us saying, they are not too many investors and they want one large investor. We have have found momentum is key and the balance of private and professional investors. What you want and what investors want are often very different.
There is also something powerful about the “$100k” keep me interested investor. If the business performs, they are often very proactive in future rounds.
The other thing we have noticed, is that HNW Investors tend to invest in groups. If 1 investors has done their DD and invested, they will have friends which are likely to follow on.
What type of investors do you attract?
See above in the answer “How much should I expect to raise”. This provides a breakdown on what to expect.
The other investor or group is the potential of strategic investors who are also looking to create trade opportunities as part of their investment.
How much interest should I expect to receive?
Interest differs for every company and there is a difference between online and event registrations. Online, we typically see anywhere between 20, up to 400 registrations of interest during a campaign.
At investor events, it also varies wildly from 5, up to 100+.
The difference in interest is due to a range of factors
- Interest in your sector
- Your previous media coverage
- Board and Management credibility
- Saleable factors provided by you (growth, brand name clients)
- Brand name shareholders
- Brand name clients
- Your presentation skills
From our perspective, we do our best to showcase you in a way which our investors expect information. We will also look for different ways of positioning to generate additional interest.
Should I rely on just Wholesale Investor for my capital raise?
Wholesale Investor is a non-exclusive service, as we have your best interests in mind. To recommend you use us as part of your strategy, or marketing mix. Whilst we have 10 years of track record and helped companies successfully raise across each sector, this does not guarantee success.
We will work hard with you to assist you as part of your strategy, and we will even promote and draw attention to other initiatives you achieve, like media coverage, awards, capital raised etc.
How do I get the most out of the service?
Anyone who has been in this space long enough, knows the rules of raising capital. That is “If you raise money, it’s because of you. If you don’t raise money, it’s our fault. :). Most people laugh when we say this, but we know it’s true.
We recommend to read our article on the attitude to raising money.
Some other important points;
- Like all good relationships, communication is key. Both with Wholesale Investor and potential investors. Your relationship manager will provide examples of the types of content you should communicate with potential investors and the frequency
- We want to see you succeed! This may sound obvious, but it’s true. The more we know how you are progressing, the more we can assist, or leave you be
Our capital raise, closes in 1 month, what can you do for us?
This is not an ideal scenario for us, but one we are used to working with. Depending on our schedule, we usually have online and events activities which could be relevant for you.
Please communicate with us your deadlines, pressures and reasoning and our team will work hard to ensure the offer is communicated promptly . As highlighted above. If you attract larger investors, expect a slightly longer conversation.
How can we guarantee we will raise money using your service?
You can’t. It’s that simple. No one can! This space is hard and you need to work hard to raise money. This never changes.
How do we select companies?
WI takes a simple approach to curating opportunities for our platform. This is one of the core reasons we have been able to build a strong brand across multiple countries, which include State and International Governments as clients and previous contracts with 2 stock Exchanges (ASX and SGX).
The key areas we look at are;
Board and Management – Been there, done that experience
Existing Investors – Who else has previously conducted DD and invested
Skin in the game – How much have the Founders themselves invested
Sector – We try to target sectors which are currently in favour, or that are in alignment with our mission. There is a great saying, “a rising tide, lifts all boats.”
Media – Any media attention previously would have attracted visibility and typically assist us in the promotion process
Government Grants – The process for getting Government Grants is extensive
Awards – Industry awards provides a level of validation
B2B Companies: Blue chip clients, Growth rate or Blue chip company trial
B2C Companies: Growth rate in subscribers, revenue and customer, media attention, awards etc
Our curation is how we are able to continuously attract high quality early stage companies. It is also the selling points which helps us attract interest in companies.
What is your role?
We connect the known with the unknown, create serendipity for our clients and find quality opportunities for our investors.
Do you provide guidance on pitch, presentation, how to speak to investors, etc?
While we do not provide tailored advice we can provide general advice on what to do and relay feedback from our investor network.