In planning for a successful funding campaign, you must expose your investment opportunity to enough investors.
The Kugarand Theory of Investing states that for every …
1 investor who invests,
3 say they will invest, and
15 investors were exposed to your investment opportunity to get to the three to get to the one Investor who actually invests.
If your company is raising $1 million dollars and has a minimum investment of $25,000, then your company is seeking 40 investors,
( 40 x 15 = 600 investors).
Find out how many investors you will need to expose to your opportunity using this formula.
($ 1,000,000/ $25,000 = 40). For your company to get the 40 investors to invest, you will need to exposure 600 investors to your investment opportunity,
A = How much money are you raising?
B = What is your minimum investment amount?
C = Number of investments needed.
- Combination of group presentations and one on one investor meetings to provide an opportunity for the client to “tell their story”.
- Ongoing communication strategy to communicate updates to investors so they can see the progress and move a semi-interested investor to a motivated and interested investor.
Investor relations campaign should include the following:.
- Investor phone calls.
- Email marketing campaigns to investors.
- Customized investor events.
- Public online investment portals.
- Participation in investor events.
- Direct mail campaigns to investors.
- Web marketing.
- Press releases and promotion.
- Investor interest articles.
- Private secure online investment portals with confidential investment information and due diligence documents.
- Direct Mail to reach those investors that do not respond to other means of communication, targeted based on geography and industry preference.
- Simplified method to communicate opportunity to investors so they will take the time to learn enough about the opportunity to be enticed to invest more time in learning more.
- A centralized point of information so that no matter how the investor first hears of the opportunity they have a source of information they can go to.
C * 15 = Number of investors who need to be exposed to your investment opportunity.
A/B = C.
Now that you understand exactly how many investors need to be exposed to your investment opportunity, you can plan accordingly.
Investor relation campaigns expose, promote and generate investment opportunities to investors through strategic planning of your company’s investment opportunity. Activities to gain exposure include:.
- System to capture investor interest and respond accordingly.
- Passive marketing to the interest areas of the investor community through email, press releases, and interviews on radio and TV broadcasts.
