Accredited Investors Are Time-Poor: Don’t Make This Mistake

Are you overwhelming potential investors?

Accredited investors are intentionally time-poor.

They will not waste their time sitting through unannounced presentations, reviewing extensive documents and collateral, or accepting unnecessary phone calls.

The most admired attribute of high net-worth individuals (HNWIs) is their ability to say no. In my experience, they say no ten times for each yes, so if you have something important to say, say it quickly and concisely.

Understand that HNWIs are as protective of their time as they are of their portfolio. Don’t start the relationship by sending them a 95-page private placement memorandum or your pitch deck to review.

Build a process with intrigue so they ask you for more information, a meeting, or a phone call.

Overwhelming the qualified investor with information will only result in them giving you a no or I’ll think about it. 

In my experience, accredited investors are most interested in the following aspects of your deal: the story, the market served, the asset segment, the ROI, the tax benefits, the exit strategy, and you/your team.

Start with only the minimum information. Offering a one-page summary or term sheet is a good initial step. Don’t sell the investment on the initial content.

Sell the next step.

Matt Scott
Matt Scott
Matt Scott is a seasoned expert in the private capital markets, specializing in raising funds from accredited investors. With over two decades of experience in starting, capitalizing, operating, and exiting private companies, he guides entrepreneurs through the intricate landscape of private capital raising. Leveraging proprietary processes and systems, Matt and his team have successfully facilitated over $1 billion in capital raises for their clients. At 7x, Matt and his team provide comprehensive execution and back-office support, tailoring strategic systems to meet the unique needs of each entrepreneur on their journey to secure private capital. Their client base spans the United States, Canada, Dubai, Israel, Finland, and Central America, underscoring their global reach and expertise.