Acquiring Minds

How to Raise Money from Investors to Buy a Business

21 snips
May 8, 2023
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ADVICE

Structure Equity With Preferred Returns

  • Use preferred equity for investors and keep common equity for the searcher to capture upside after the preferred hurdle.
  • Structure returns so investors get a defined annualized preferred return before common splits occur.
ANECDOTE

Left At The Altar Then Raised $800K

  • Kevin's first financing fell apart three days before LOI signing and he walked away after exhausting his cash.
  • Later he cold‑outreached, raised $800K in five weeks, and closed the deal.
ADVICE

Start Investor Outreach Early

  • Get on Twitter and use Sam Rosati's public investor list to find prospective backers.
  • Reach out early while searching so investors know your thesis before you ask for commitments.
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