August 08, 2020
Moreso than not, most new clients are making this mistake.
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 them with information will only result in them giving you a no or no response.
In my experience, accredited investors are most interested in the following aspects of your deal: the story, the market served, the asset segment, the exit strategy, and you/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.