10 Concepts We Can Learn About Raising Capital From How2Exit's Interview Natu Myers, CEO of Raises.com E110 Watch Here
Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit unrefined, you're reading our notes, so. yeah. -Ron
Concept 1: Raise Capital Intro
Raising capital compliantly is an important part of any business transaction, whether it be real estate, business acquisition, or any other venture. Natu Meyers, the founder of Raises.com, has been helping companies do just that for years.
Meyers began his journey in the world of business transactions by learning about the theorem and cryptocurrency before it became popular. He quickly realized that the bigger problem was companies wanting to raise money rather than investors needing to deploy money into cryptocurrency. This led him to work with mentors, coaches, and industry leaders to learn how to help companies raise money compliantly.
Meyers and his team at Raises.com now help companies structure their real estate or business acquisition deals, and then assist them in building systems to raise capital and getting their capital-raising team in place. To do this, they work with registered broker-dealers that are legally able to raise money on behalf of companies.
Raises.com helps companies draft paperwork with attorneys, so they are legally compliant, and then find a salesperson that works for the company as a full-time contractor or employee. This helps companies to raise capital in a compliant manner, which is essential to any business transaction.
Raises.com has helped many companies to raise capital compliantly and is continuing to do so. With their help, companies can ensure that their business transactions are as successful as possible.
Concept 2: Raise Money Compliantly
Raise.com is a consultancy and licensing firm that helps their clients to raise capital for their businesses. They have an exempt market dealer application, which is highly regulated and allows them to raise capital for their clients in exchange for a success fee. They also partner with other broker-dealers in the United States and have a chaperone broker-dealer arrangement which allows foreign broker-dealers to have oversight of American broker-dealers when working in the US.
Raise.com helps their clients to raise money for both real estate and business funds. They specialize in deals that are between one and two million dollars, as well as larger deals of up to ten million dollars. They focus on the people they work with in order to get the best marketing leads.
Raise.com helps their clients to raise money compliantly. They advise their clients to understand where the money is coming from, and to do draft documents, redacting the specific name of the deal until they have it secured. They also help their clients to talk to lenders for the debt portion of the deal and to talk to private equity firms to see what their criteria is.
Raise.com is an invaluable resource for companies looking to raise capital compliantly. With their help, companies can ensure that their business transactions are as successful as possible.
In order to raise money compliantly, companies must first be able to identify accredited investors. Accredited investors are individuals or entities that have a net worth of at least $1 million or an annual income of at least $200,000. Companies must also be able to identify potential investors who may be interested in investing in a deal.
Once a company has identified potential investors, they create a website that allows investors to opt-in to receive information about any deals that may be available. This website must also be compliant with all applicable regulations.
The most common regulations for raising money are Regulation D 506C and Regulation D 506B. Regulation D 506C allows companies to talk to accredited investors and raise a limited amount of capital in the United States. Regulation D 506B is similar, but companies are not allowed to market the securities on the internet. Companies can raise up to $5 million with Regulation D 506B, but the limit is based on the number of unaccredited investors that can participate in the deal.
In addition to Regulation D 506C and Regulation D 506B, companies can also use Regulation A and Regulation A+ to raise money. Regulation A allows companies to market to both accredited and unaccredited investors, and companies can raise up to $75 million with Regulation A+. Companies must also adhere to certain auditing requirements and provide investors with the necessary paperwork.
Finally, companies can also use crowdfunding to raise money. Crowdfunding allows companies to raise up to $5 million, but they must be registered with a broker-dealer that is a funding portal. Companies should also be aware of any exclusive agreements they may have with the funding portal.
Raise.com can help companies ensure that they are compliant when raising money. They can provide assistance and coaching on the various regulations, help create marketing materials, and provide advice on speaking to investors. With Raise.com's help, companies can be confident that they are raising money compliantly.
Concept 3: Raising Capital in Harder Now
In the current economic climate, however, raising capital is becoming more and more difficult. The market is volatile, and investors are becoming more cautious. They are more likely to invest in short-term investments with a lower risk, rather than long-term investments that may have higher returns. Additionally, banks are becoming more stringent with their lending requirements and are less likely to lend money to companies.
Raising capital is a complex process, and it is important that companies understand the regulations and the risks involved. Companies should be aware of the current market conditions and the potential risks associated with taking on new investments. Additionally, they should have a clear understanding of the terms of the investment and what the expectations are for the return on the investment.
Raise.com can help companies navigate the complexities of raising capital. They can provide guidance on the regulations, help create marketing materials, and provide advice on speaking to potential investors. They can also help companies understand the current market conditions and the risks associated with investing. With the help of Raise.com, companies can be confident that they are raising money compliantly and that they are making wise investments.
Concept 4: Be Prepared And Realistic
When it comes to raising capital, it is important to be prepared and realistic. Companies should make sure they have done their research and have a good understanding of the market and the regulations. Companies should also be realistic about the amount of money they need to raise and the timeline for doing so. It is important to set expectations for the amount of time and money needed and to factor in operational expenses.
Raise.com can help companies understand the best way to raise money and ensure they are compliant. They can also provide guidance on how to set realistic expectations and how to factor in operational expenses. Companies should also be sure to speak to potential investors and understand the risks associated with investing. With the help of Raise.com, companies can be confident that they are making wise investments and that they are raising money compliantly.
Concept 5: Network and Nurture Connections
One of the most important aspects of raising money is networking and nurturing connections. Companies should use LinkedIn to reach out to potential investors and build relationships with them. They should also attend conferences and events to meet potential investors in person. By attending these events, companies can get a better understanding of the investment landscape and build relationships with potential investors.
Companies should also use the power of their network to help them find potential investors. They should reach out to their contacts and ask them to refer them to people who might be interested in investing. This can be a great way to build relationships and find potential investors.
Another way to nurture connections is to stay in touch with potential investors after the initial meeting. Companies should send regular emails and newsletters to keep potential investors informed about their progress and any new opportunities that may arise. Companies should also be sure to thank potential investors for their time and effort and keep them updated on any progress that has been made.
Raising money is a complex process, but with the help of Raise.com and by networking and nurturing connections, companies can be sure that they are making wise investments and that they are raising money compliantly. Networking and nurturing connections can also help companies build relationships with potential investors and find new opportunities. Companies should take the time to network and nurture connections to ensure they are making the best investments and raising money compliantly.
Concept 6: Network and Build Relationships
When it comes to networking, there are a few different approaches that can be taken. One approach is to attend conferences and events, such as those hosted by Raise.com. At these events, companies can meet potential investors, learn more about the industry, and build relationships with those in the industry. Additionally, companies can use LinkedIn outreach and cold outreach to connect with potential investors. Cold outreach can be a great way to get people interested in your business and to get them to raise their hand and say they are interested in investing in your company.
Building relationships is also an important part of raising money. Companies should take the time to get to know potential investors and to understand their goals and interests. Companies should also be sure to provide potential investors with information about their business, such as what their business does, how they pay their investors, and how much they typically pay investors. By taking the time to build relationships, companies can ensure that they are making wise investments and that they are raising money compliantly.
Overall, networking and building relationships are key components of raising money. Companies should take the time to attend events, use LinkedIn outreach and cold outreach, and build relationships with potential investors. By taking the time to network and nurture connections, companies can be sure that they are making the best investments and raising money compliantly.
Concept 7: Create Relationships and Traffic
One way to create relationships and traffic is to attend events and conferences. Attending events allows companies to meet potential investors and make connections. Companies can also use these events to learn about the industry and stay informed on the latest trends. Additionally, attending events can help companies build relationships with other companies and potential investors. This can help them gain access to valuable resources and contacts that can help them in their fundraising efforts.
Networking online is also important when it comes to creating relationships and traffic. Companies should use LinkedIn outreach and cold outreach to reach out to potential investors. LinkedIn outreach allows companies to target specific investors and build relationships with them. Cold outreach is also a great way for companies to reach out to potential investors and introduce their company. Companies should also be sure to follow up with potential investors to keep the conversation going and nurture their relationship.
Another way to create relationships and traffic is to create a system that allows companies to use other people's traffic to find potential investors. This can be done by creating a list of investors and then calling them up when a deal is available. Companies should also be sure to tell potential investors that they are willing to put them at the back of the list if they hesitate. This can help ensure that the company is able to close the deal and get the money they need.
Finally, companies should also be sure to follow all regulations when it comes to raising money. Companies should be sure to go over the subscription agreement and make sure that potential investors are accredited. Companies should also be aware of any regulations when it comes to advertising their private equity funds and raising money.
In conclusion, companies should take the time to create relationships and traffic when it comes to raising money. Attending events, using LinkedIn outreach and cold outreach, and creating a system to use other people's traffic are all great ways to create relationships and traffic. Additionally, companies should be sure to follow all regulations when it comes to raising money. By taking the time to create relationships and traffic, companies can be sure that they are making the best investments and raising money compliantly.
Concept 8: Know Securities Laws Before Investing
When it comes to investing, it is important to know the securities laws before investing. Knowing the securities laws can help investors protect themselves from potential legal issues and ensure that their investments are compliant with the law. The Securities and Exchange Commission (SEC) is the main regulator of securities laws in the United States. The SEC is responsible for ensuring that investors are aware of their rights and that companies are following the laws when it comes to raising money.
When it comes to raising money, companies should be aware of the different regulations that the SEC has in place. For example, the SEC requires that companies disclose all of the terms of the transaction when it comes to raising money. This includes information about the company, the terms of the deal, and the amount of money that is being raised. Additionally, companies should be aware of the different regulations for different types of investments. For example, if companies are raising money for a venture capital deal, they need to be aware of the regulations for Reg CF or Reg A.
Additionally, companies need to be aware of the different regulations for different types of investors. For example, if companies are raising money from private investors, they need to make sure that they are not creating a security. This means that companies cannot take multiple people's money and apply it to the same asset. If companies do this, they are effectively creating a security, which is subject to different regulations.
Finally, companies should be aware that they can still be subject to securities laws even if they are not raising money. For example, if companies are advertising their investments on social media or other public forums, they need to be aware that they may be subject to securities laws. This means that companies need to be aware of the regulations for advertising their investments and make sure that they are compliant with the law.
Overall, it is important to know the securities laws before investing. Knowing the regulations can help investors protect themselves from potential legal issues and ensure that their investments are compliant with the law. Companies should be sure to disclose all of the terms of the transaction when it comes to raising money, be aware of the different regulations for different types of investments, and be aware that they can still be subject to securities laws even if they are not raising money. By taking the time to understand the securities laws, companies can be sure that they are making the best investments and raising money compliantly.
Concept 9: Follow The Rules To Succeed
One example of the importance of following the rules can be seen in the podcast transcript. The Host talks about a man who was not following the rules and ended up being raided by the SEC and FBI. He was creating securities and lying to investors, and as a result, he lost everything. This shows how important it is to follow the rules, as the consequences can be severe.
In addition to avoiding legal issues, following the rules can also help companies ensure that their investments are successful. For example, the host talks about the importance of doing due diligence and avoiding sketchy characters. He also mentions that having a good reputation is important, as it can help companies make more money in the long run.
Overall, it is clear that following the rules is essential for a successful investment. Companies should be aware of the different regulations for different types of investments and make sure that they are disclosing all of the terms of the transaction. They should also be aware of the potential consequences of not following the rules and do their due diligence to make sure that they are investing wisely. By following the rules, companies can ensure that their investments are successful and compliant with the law.
Concept 10: Get Investors Before Deal
One of the most important rules for successful investments is to get investors before the deal. This means that companies should be actively engaging with potential investors before the deal is finalized. This will ensure that the company has enough capital to complete the transaction, as well as giving the investors the opportunity to assess the risk of the deal. Companies should also be aware of the different regulations for different types of investments, as well as the potential consequences of not following the rules.
By getting investors before the deal, companies can ensure that they have enough capital to complete the transaction. Companies should also be aware of the different regulations for different types of investments, as well as the potential consequences of not following the rules. Companies should also be aware of the different regulations for different types of investments, as well as the potential consequences of not following the rules. Companies should also be aware of the different regulations for different types of investments, as well as the potential consequences of not following the rules. Companies should also be aware of the different regulations for different types of investments, as well as the potential consequences of not following the rules.
In order to ensure that companies are compliantly getting investors before the deal, they should consider reaching out to potential investors through LinkedIn, as well as attending industry events and conferences to network. Additionally, companies should consider providing investors with informational materials, such as financial models and presentations. Companies should also provide investors with ongoing training and mentoring sessions, as well as access to a community of other investors to discuss deals.
Overall, it is essential for companies to get investors before the deal in order to ensure that the transaction is successful. Companies should be aware of the different regulations for different types of investments and make sure that they are compliantly disclosing all of the terms of the transaction. Additionally, companies should consider reaching out to potential investors through LinkedIn, as well as attending industry events and conferences to network. By following the rules and engaging with potential investors before the deal, companies can ensure that their investments are successful and compliant with the law.
---- MORE COOL STUFF ---
Are you ready to take your podcast listening to the next level? Subscribe to "DEEPER by How2Exit" newsletter and never miss out on our latest episodes. Join our newsletter HERE
Want to stay in touch with what's happening in the Main Street M&A Space? Subscribe to The Hub - Acquisitions Hub
