What's the secret to attracting high-quality investors? It's simple: Don't just think big. You need to target big.
Posted on: 29 July 2024
Creating more value and asking for a bigger ticket size can naturally attract wealthier and more capable investors that make the fundraising process easier.
As an entrepreneur, I've been fortunate enough to attract successful investors, entrepreneurs, and family offices in my life. And whenever I sit with them, I always do my best to ask as many questions as possible to understand their mindset.
Let's take the use case of raising funds for a Web3/AI Gaming Studio. If you're looking to raise $100K to develop an MVP, you'll need to speak to smaller investors who might have a net worth of $1M-3M. They might seed you $100k for 30% equity, which is a huge amount of equity, and drag you out for 15 meetings since this $100K is a large part of their net worth. And this will make the fundraising process extremely difficult.
Instead, if you delay gratification and work on the MVP by yourself through being creative and resourceful, and you did as much free marketing as possible, you could get 1000 users to sign up for beta testing. And then, you go out to raise $5M as a seed round. You will attract higher quality investors who might have a net worth of $50-100M plus. And those investors will be easier to work with since they will be putting less pressure on you and allowing you more space to be creative.
Remember, "by creating more value and asking for a bigger ticket size, we naturally attract wealthier and more capable investors that make the fundraising process easier."
Want to learn more about raising serious funds from investors in the UAE? Follow me for more info, and don't hesitate to DM me on LinkedIn!