hey Pat how do I raise money man I got
an idea I think it’s gonna be great but
I need money how do I go get backing you
know and what is this angel investor
thing there’s an angel come from the sky
and say here’s the million dollars that
you needed what’s the venture capital is
you know what is bootstrapping what is
incubators and accelerators how do I go
out there and get my idea in front of
these guys how do I find these guys that
have the money you know what do I do
about how do I communicate with them
these are all the comic questions that
people ask me on a daily basis about
raising money and I’ve been on all ends
about do all the questions you’re asking
I’ve been through with myself so I’m not
giving you theoretically I’ve
experienced it I’ve gone through
rejections I’ve gone through raising
millions of dollars and we’ll cover some
of that stuff here today so three things
I’m going to cover in this video number
one is ten questions to ask before even
go and raise money that’s number one
number two six different ways to raise
money and last but not least where are
these investors and when you do find
them how do you communicate with them so
prior to me getting into this entire
episode if you haven’t subscribed to
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these videos pop up and if you got any
questions comments thoughts comment on
the bottom as I’m going through this
video so let’s get right into a question
number one okay ten questions got asked
question number one should you even
raise money today should you because a
lot of times some company ideas may not
be a big idea you may have a small idea
that you can go out and pretty much
bootstrapping yourself should you raise
money today
that’s one number two if you weren’t
able to go get the money how would you
make the business work I hear a lot of
people say I’m telling you if I don’t
get the money this thing’s not gonna
work if I don’t get the money this
thing’s gonna fail so how would you make
this idea work if you got no money from
anybody because by the way if you can
answer that angels NBC’s are more
interested in your business because no
matter what you’re gonna find a way to
make your business work the third
question is how will the money be used a
lot of times it’s easy to ask for money
but many times I think that
the innovator the ideal person only
thinks about themselves and sometimes
the best way to know how to communicate
with the people that have the money is
if you were this person if you were this
person would you give money to your idea
having all the information and wouldn’t
you want to know on how the money’s
going to be used do you have the answer
to that question a lot of people don’t
so you gotta be able to say if you were
to give me seven hundred thousand
dollars here’s how the money would be
used if you were to give me fifty
thousand dollars here’s how the money
will be used if you were to give me
twenty five thousand dollars I’m simply
making a prototype so I can go and
approach them so I can show this
prototype and the prototype company that
I found cost $18,000 six thousand s
design but if you have that I will take
you seriously if you’re approaching me
number four what’s an ideal investor for
you look like say you have the perfect
investor who is that person for you is
it smart money is it somebody that’s
involved is it somebody that just an
idea is that a contact is it a
connection is it a relationship you’re
looking for is it a certain community I
mean do I need to be in Silicon Valley
because you want somebody that’s gonna
connect you with somebody that I used to
work at Google what is an ideal investor
look like for you number five are you
willing to go big and lose control or do
you want to have full control of your
business because whenever you ask for
money there comes a lot of other things
these are people that are not giving you
money saying okay you lost that it’s
okay don’t worry about it you’re so
sweet you’re so awesome
these are sharks you’re dealing with
they don’t care about your feelings they
don’t care about your family
they don’t sit there and say how’s your
little baby doing here’s what they care
about I give you a million dollars
I expect ten million dollars within five
to seven period what are we going to
deliver this money so if you don’t want
that kind of a relationship you want
full control maybe it may not be an idea
to go out and raise money next are you
okay with accountability that makes me
what I mean by accountability it is not
the easiest thing for entrepreneurs to
take orders from other people but that’s
what they’re gonna be telling it’s not
necessarily orders but they’re gonna be
kind of looking for you being nimble and
being willing to listen because there’s
nothing worse than a relationship being
bad between the investors and the
entrepreneur and the team because once
there’s friction here listen there’s a
lot of ways the investors can make your
life a living hell absolutely a living
kill and some
the entrepreneur says they can’t do that
I have their money and all this other
stuff believe me there’s many many ways
they can make your life a living hell so
can you handle accountability have you
done enough research about the industry
or getting involved and I had a guy come
up to me the other day this was so funny
real nice guy he says I have this great
idea I said what’s the idea says I’m
thinking about creating the company that
allows me to go out there and you know a
do Auto Detail link but I’m gonna do
Auto Detail link mobile so you simply is
like uber you request it and I come just
is there anybody doing this no one’s
doing the marketplace I’m the first one
tomorrow I said you’re serious no one is
doing this in the marketplace I said let
me go out there and do some research so
I go out there and sir like what are you
talking about there’s 15 other people I
found I contacted this guy he’s been in
the market this guy’s raise as much
money look at this link look at that
link look at this thing
oh I had no idea see what I did with
that guy I will never listen to any of
his ideas because he didn’t respect my
time and he didn’t do research for what
he was doing his business if you do do
some research for instance if you
approach me and says there are seven
people that are doing this this guy’s
doing this that guy’s doing this this
guy’s doing this that guy’s doing this
I’m gonna sit there and say oh wow okay
I’m taking you seriously and this is the
research I’ve done this is what I found
these are the I’m being willing to
listen to you so make sure you do a lot
of research with your idea before you go
in front of investors eight how unique
and different is your idea what is your
main differentiator we’re not
necessarily I’m not looking for
everything to be different I’m not
looking for the perfect like what was
really different about Facebook over my
space my space had music being played on
Facebook didn’t have it so what is the
real differentiator between Facebook and
MySpace well it’s a social media site
like MySpace
no it’s kind of different it allows you
to stay in contact with your peers like
MySpace it’s not a perfect thing you’re
looking for but there’s got to be a
certain place that there is a
differentiator that you have my um
LinkedIn what’s a LinkedIn it’s kind of
like is it LinkedIn notes purely
business professionals and we’re gonna
have a monthly point membership okay
call I’m getting a better idea about
what you’re Thomas so there’s got to be
a differentiator and unique positioning
that you’re having number nine have you
done the math sometimes the math is
what’s off so I’ll hear people say well
I’m looking for quarter million dollars
and the valuation of the company
is you know a million dollars and I’m
giving you 40% for quarter million
dollars uh you wouldn’t mean 40% well
I’m giving you 40% quarter million
that’s not kind of how this thing works
at where did you get the mathema
understand how to Mathis as well so it’s
very basic if the company’s worth four I
put $1 the company is now worth five I
own one on five which is 20% makes sense
it’s not one on for 25% it’s one on five
after I give the money so you gotta have
the math down when you tell me what it
is because the moment you miss that you
know I question the investors gonna say
if this guy doesn’t know how to do basic
math on how much it’s gonna be is he
gonna be able to do basic math when it
comes on to running out of money and if
they run out of money what happened to
my money I lose my money you go out of
business I’m not getting returns so
basic math and last but not least this
is this is sometimes more relevant when
you’re talking aventure capitals then
angels but it can be also relevant to
angel angel investors is are you
building to sell so how soon are you
planning on selling this company right
is it something that you’re building
because you want to keep it forever and
a lot of people do that that’s okay so I
need to know as the investor when I’m
getting out and are you building a
company because you’re planning on
selling within a five to seven year
period there’s a sweet spot that VCS
have they like five to seven years
remember the sooner they get their money
out and the higher the return they get
that’s the perfect world for them so if
I give you a million and I get seven
million in five years guess what seven x
and five years I’m in heaven I’m in a
good place if I give you a million I get
3x and ten years I’m not happy because I
could use my money in a different place
to get return so it’s purely a
mathematical formula so what is your
position do you want to sell do you want
to keep what it is what is it that
you’re doing so when you do approach an
angel or a VC and you dump proper
research you will know they like to buy
companies that are built to sell or they
like to buy I met with a guy here
billionaire in Dallas he came and
visited my office two weeks ago and they
don’t like to buy companies that are
built to sell they like to buy companies
that are real solid businesses bringing
value to the consumer employee staff
executive all the team and it stays so
it’s a long-term income that they’re
generating they don’t want to build to
sell so if you approached them about a
bill to
idea they’re not gonna be that
interested again those are ten questions
you ought to ask yourself before even
thinking about raising money it’s a big
mistake people make without answering
those ten questions so now let’s get
right into it
six different methods on raising money
number one very basic bootstrap and what
is bootstrapping I’m using my own money
to start my business this is my own
money that I’m using what am I gonna get
the money from now there are different
places you can get your money from one
is cash savings that is probably the
best way for you to do it that’s cash
savings you’re getting another one is
that you hear about a lot nowadays as
Rob’s it’s called roll over business
startup capital I think it’s roll over
for business startups it’s what Rob
stands for literally our OBS which means
you have $300,000 in your 401k and
typically if you take money out of your
401k you’re gonna have to pay the taxes
on it then you may pay ped and paying
the penalties if you’re under the age of
59 and a half so what do you mean I can
take the money out yes there’s a way of
doing a talk to your accountant where
you can take that money put into your
business not pay any taxes or the
penalties but you have to start a 401k
to be able to use that as an investment
capital you know there are some pros and
cons to it I don’t recommend it but
there are some people that do recommend
it and then there’s helix where some
people take money out of their mortgage
and they get a home equity line of
credit low interest rate I take that
money and I fund my business at seven
hundred thousand dollars of equity my
company I’m taking $250,000 to fund my
business and then some do with credit
cards which is absolutely pathetic
there’s a lot of people out there
that’ll recommend you to finance your
business with credit cards matter of
fact there is guys that literally will
go and sell you the idea of I have fifty
credit cards here it’s four hundred
thousand dollars and guess what if I use
this money and it fails it’s not my
problem it’s the bank’s problem the
banks have all this money who cares I’ll
file bankruptcy and come back up
terrible idea to buy into it shysters
who want to make money off you and the
banks and quite frankly that’s somebody
that’s not thinking long term because if
you ever want to build a massive company
guess what you’ve got to be thinking
about that one day I may be needing a
big bank to give me six hundred million
or three
you know that type of money I ought to
start building those relationships now
but bootstrapping the basic way it’s
your own cash you take the money you
start the business that’s one of the
ways I did and now one of the reasons
why people do that is the following
reason you get to keep control longer
and you get to have a better proven
product so when you go to investors you
have something to show for right that’s
the formula I took for myself on one of
my businesses so it’s bootstrapping your
own money
you’re on savings you’re on the line the
investor says if this guy put his life
savings into it guess what he’s serious
I took the approach of putting my entire
life savings into it I grew the company
and then I got an investor Oscar De La
Hoya Gabrielle Brenner who is the first
Mexican board sports owner in America he
owns the Houston Dynamo and Atalaya
group Atalaya group is a good-sized fund
out of New York it’s a five billion
dollar fund then and I went and got an
eight-figure check from these guys on
raising money but I had proven
track-record on what the numbers were
looking right that’s bootstrapping right
you keep more equity you give up less
later on when you ask for money
okay so the second way you can raise
money is a traditional loan from a bank
or some call it the SBA loan now this
used to be more common back in the days
but the banks are not as loose with
their money today as they used to be now
what will work for you with these banks
is four different criterias they’ll
typically look for a steady income a 700
plus credit score equity in your home
and a last but not least industry
experience and expertise obviously got
to bring your business plan and the SBA
program has two different things in
America one is called the community
program that they have which is up to a
quarter million dollars they’ll give you
and then the other one is a micro loan
which is $50,000 I think you got to give
30 percent down payment upfront for them
to be willing to do that is that way to
go it’s the slowest just so you know and
it’s it’s just it’s not a fast process
you’re going through it’s the least
likely and it’s very slow very annoying
to go through that Rob but it is one of
the rods to go to on raising money
number three is crowdfunding what do we
tell them I will crowdfunding
crowdfunding is this whole thing with
you know GoFundMe Kickstarter IndieGoGo
there’s so many great crowd funders out
there and what crowdfunding is is
exactly what it says
audience large audience funding your
idea you go under these websites it
works typically if you have a prototype
product and you say here’s my prototype
product this is when I said earlier the
guy who goes and raises $25,000
you know $18,000 for the actual product
7,000 for the design and then he takes
this idea and puts it on a video and
says here’s what this does this does
this this this this this this that okay
and here’s what we’re asking for a level
one you’ll be the first one to get it
level to this level three this level
four and if you want to be an investor
level five $100,000 gets you two percent
ownership in a company five percent
ownership in a company and a board seat
whatever you can do that part with some
of these sites you go to you know we had
an issue that happened you saw a JJ Watt
from Houston Texas and started a little
one or to raise a couple hundred
thousand dollars for what happened in
Houston after Harvey the hurricane that
hit ended up being a forty plus million
dollar fund small account it’s spread
when wildfire a linebacker turned this
thing into a 40 million dollar fund that
he gave to Houston we started off with
one of our guys was raising small amount
of money with a couple thousand dollars
to help houston all of us and we got it
to fifty five thousand dollars and we
helped so many families with their cars
homes so it’s not that hard to do it
today especially with the access to
Facebook Twitter social media snap
Instagram it’s a lot easier to raise
money that way for this incubators and
accelerators there’s a lot of great
incubators and accelerators they differ
some of the incubators allow you to come
in you literally come and they’ll give
you a little bit of money and you have
mentoring you have people that advise
you on what to do with your idea and
they’re kind of getting you going it’s a
big typically a big office space one of
the ones we went to was in Boston you
know they have 300 different businesses
there and you’re literally sitting there
hey I do this anybody here does this
here all this collaborate I do this
anybody yes come hey have you thought
about doing this to your side what about
if you do this have you thought about
contacting these guys and they give you
some money and it’s incubator
accelerator and eventually the goal is
to go out and open up your own office
your own operation but they’re at least
getting you going it works very well
with the younger audience you’ll see a
lot a lot of 18 19 20 to 23 year olds
and incubators and by the way there’s
good ones
Soquel there’s good one in Austin Texas
New York Chicago Florida nowadays
there’s once everywhere Tennessee
there’s a lot of great incubators that
you can be part of simply go search
incubator you’re 19 yo with a good idea
and your dropout from college because
you’re obsessed with your idea that you
haven’t got three friends you guys want
to make it work
type in incubators in your local area
search which one’s the best and find out
a way to get connected with them okay so
now that we’ve covered the first four
let’s talk about the difference between
angel investors which is the fifth one
and it will Tom a venture capitalist
right after that angel investor is an
individual wealthy person who made their
money and is willing to invest into
another entrepreneur and there’s two
different types of angels one is friends
and family that’s warm market and the
other one is cold market somebody you
don’t know let’s first talk about an
angel that’s a warm market typically
angel is less than a million dollar
investment many times it’s only 25 50
100 thousand dollars that they put into
it
friends and family okay so you got a mom
dad brother sister uncle your best
friend’s dad who loves you always Saudi
they love the fact that you give good
influence to your to his son or you know
your your girlfriend’s father who never
had a son that likes you or your
boyfriend’s father who never had a
daughter that likes you you go up and
say you know hey uncle Johnny hey pops
hey mom hey hey bro hey mr. Jones look I
have this idea this is what I want to do
and I like to be able to raise some
money I need your help what do you think
about this idea you go through them say
I think I need our office they’re gonna
ask you what do you think how much you
think you know I didn’t have $50,000 and
sometimes the best question to ask is
who do you know that would be willing to
help us I would love for you to be
because I’ll look up someone look up
look up to you so much but the
regardless of what it is if you can get
some of your friends and family that
invest into your idea idea that opens up
the willingness of a cold market angel
investor to be interested in your idea
as well now cold market slightly
different they look for to see have the
if you’re coming to me has anybody in
your family vested interest so listen to
this this is what they’re gonna say have
you had anybody in your friends and
family vessel into the business yes who
my father and my girlfriend’s a father
did as well how much they gave me
$50,000 okay cool
have you put any of your own money into
it yes
$10,000 and savings I put the whole
thing into it interesting okay tell me
what else you know about this industry
that that that that tell me what’s the
differentiator those ten questions that
I asked you that I told you earlier
you’re presenting that to them then they
say great give me a few days what’s your
expectation on return I think we can
make 7x on this and seven years I think
we can make this kind of money in this
if we do this no problem here’s $100,000
no problem here’s a quarter million
dollars then you’re doing the math and
negotiation about what it is and this
video is not about the negotiation side
this video is simply about raising money
in different ways you can go about doing
it so now that’s angel now let’s talk
about venture capital this is VCS that
you’re dealing with these are firms
these are smart people these are people
that have dealt with a lot of different
businesses these are people that have
access to incredible resources contacts
and networks and so when you’re dealing
with them you got to know what they want
and what they’re looking for this is
when you hear about such and such person
had a serious a funding of you know nine
million dollars 15 million dollars or
they raise this much dollars it’s more
than a million dollars VCS are not
coming in for $600,000 they’re not
coming in for $800,000 they’re coming in
for real play matter of fact you’re
offended if you come in for a small time
number because you know it’s a billion
dollar fund six hundred thousand dollars
gonna do nothing for some of them will
have a minimum I spoke with a guy
recently their minimum is thirty million
dollars they don’t even entertain
fifteen million dollars they will
literally tell you we’re sorry we’re not
able you can talk to this guy and
they’ll refer you to somebody don’t
don’t forget to ask somebody who rejects
you because you’re asking for too little
money if they know anybody that’s in a
market of the amount of money that
you’re asking for it’s very important
for you to be asking us so few things
number one they want returns in five to
ten years some of them will push you for
three years remember that but you got to
push off three years your goal is to get
them seven years very rarely will you
get them ten years and here’s why very
rarely
you’ll get them ten years these are
funds that get started and the fund of a
lifespan is ten years and the first
three years they’re just kind of warming
themselves up on who they want to go out
and get and then once they get it
they’re saying we have seven years we
wait patiently to do this if you can get
them at seven years that’s the sweet
spot next VCS are looking for 10x
returns that’s the number they’re
looking for remember
is their thinking and they’ll typically
tell you we like our returns to be
around 10x is what we’re looking for
okay great
you know we like our minimums to be 5x
within a five-year period we’re like 1x
per year fair enough they’re gonna tell
you if you’re asking these questions and
matter of fact they’ll be impressed with
the fact that you’re asking smart
questions like that they want a
coachable CEO and they’re looking for a
strong team when when I’m saying strong
team they want technical skills like for
instance we have a visionary
entrepreneur he thinks he’s gonna go out
there and take over the world great but
do people like working with him yes he’s
got a technical guy with him that’s
incredible coding here’s what he did
before in the past and he used to work
with X Y Z oh wow and he has this other
guy that’s on the board that thought
thought thought that oh I like this so
they’re looking for the team that you
put together right and then an idea key
differentiator we talked about earlier
and obviously if you’re taking money
from a VC you’re committing to pretty
much doing something big because if
you’re not they have zero interest in it
if it isn’t something big that you’re
willing to do yourself so that’s a
venture capitalist we’re dealing with so
now let’s talk about leads where do you
find these angels and these VCS that you
want to be working with where do you go
about these guys and finding them leads
few different places to be thinking
about one is your personal mentors you
literally go to people that you like and
you admire and you ask them who do you
know that dot dot dot
remember if you answered those ten
questions and you go to your personal
mentors and advisers to ask them those
questions you’re gonna get more of a
credible person that they give to you if
you have those questions answered hey
Uncle John I admire you a lot you’re
very successful here’s where I’m at this
is my idea this is what I’m looking for
do you know anybody they’ll typically
say how about myself if they don’t say
themselves they’ll say yeah you gotta
talk to Billy let me call Billy first
you know he’s a guy that owns an
accounting firm he made his money from
this let me call him first see what he
tells you no problem so number one is
people you know your personal mentors
and advisors number two is go find an
angel list get on an angel list there’s
a lot of difference sites you can you
literally if you’re right now go on
google and type in angel investors list
you’ll find it venture capitalists list
you’ll find it you will literally find
these lists and get on there
you know look for them best angels to be
working with in you know your city
Austin best angel investors in New York
best angel investors in Memphis
Tennessee in Nashville Tennessee you
will generally find them if you look for
them then another one that works very
well which is quite frankly pretty
simple to do is local universities you
know if you went to university it’s even
easier because you’re like a I’m a USC
graduate I’m looking for this anybody I
can talk to and have a meeting with oh
sure no problem I’m a UCLA guy I’m an
NYU graduate I’m a Harvard I’m like I’m
at the I’m a Texas A&M graduate can I
talk to somebody here sure no problem
right so you can go through that program
to find them and then obviously last but
not least you always have link then you
have these websites on the ways to
communicate with them so that’s elite
now how do you approach them right so
you find seven names you’ve done your
research these seven will be very ideal
for what you’re looking for how do you
approach them few things to be keeping
in mind you’ve got to keep it very very
simple and not a long-winded email that
you’re sending this person one of the
best things that works when people send
me an email is the following now send me
an email and they’ll say hey Patrick I
just want you to know I watched you on
an interview you did on this podcast and
in minutes 17 to minute 18 they’ll put a
link you talked about this and it
changed the way I viewed business I
really admire you for what you do a lot
of these angels and VCs these
personalities are out there I did have
written a blog they’ve written an
article they’re on a video so it’s not
hard to find them if you do proper
research so instantly you got my
attention
oh wow this guy’s a fan this guy admires
the content this guy’s starting with a
compliment line number one – I am a 24
year old Harvard graduate I am a 26 year
old USC graduate entrepreneur who has an
idea that I want to share with you bomb
I am an aged executive entrepreneur
graduate whatever it is that I have an
idea that I want to share with you then
in one sentence
max – if you can do it in one even
better many times people ask me question
can I ask you a question about my
business I’ll say ask your question in
one or two sentences max and they’ll
respond back in one or two sentences
because you can do it it makes you
actually think when I say
ask it in one or two sentences in one
sentence or two make your request my
idea is that that so after the idea you
you want to put a link in there as well
to say here’s a link to a website of
video promos something that’s gonna
explain to them what it is and last but
not least you ask them I would like to
meet with you for 10 or 15 minutes to
explain to you what it is that I’ll be
doing respectfully last name done that
simple email you put out there they’ll
respond to that this is not gonna be
everybody so let me explain to what
happens when I get these emails myself I
look at it and I’ll typically click on
the link and I’ll say okay if it’s too
much information I’m not going through
it if it’s short I’ll briefly look
through it and then I may immediately
get busy doing something else and then I
may forget about your email so you could
follow up with me a week later on that
email you sent me hey John I just wanted
to follow up with you by the way great
article we wrote this week again if you
see another thing by the way great
article you wrote this week about this I
just wanted to follow up and see if you
were able to look at my email last week
believe me I respect your time I just
wanted to follow up with you an email
like that gets my attention and it
almost makes me be committed to
responding back to you because angels
and investors also don’t want to be
somebody that doesn’t get back to people
who are doing it professionally they
won’t even take your email seriously if
you’re not sending an email that’s
actually formatted properly if it’s too
long-winded if it’s copy/paste if all of
a sudden the font changes and it becomes
HTML because you wrote it on a complete
different platform then you copy paste
and put it on and they can tell that
you’re doing copy paste a guy send me an
email and he said a dear Mark Cuban I
really respect what you are as a
business man I admire you and then he
apologized and he says I’m so sorry I
feel so embarrassed I did a copy paste
email I meant to say Patrick me David he
already lost me and he probably did that
to other people and you can tell he’s
doing a copy paste people know that
because they get those emails all the
time so be able to differentiate between
those two as you send it to them okay so
that’s number one way on how you send a
letter the best way to get introduced to
an angel or VC is somebody else
introducing you to them if you can get
another high profile reputable person
send an email saying hey John this
Patrick I sat down with Billy and I
listened to what he had to say and I
think this is something that you ought
to sit down and listen to as well if
there’s any interest please schedule a
time for you and him to get together but
I’ll leave it up to you guys you are not
committed to do this for sending this
email and if you guys communicate moving
forward you don’t need to keep me in
your emails or CC me I will leave that
up to you guys thank you all the best
next I’ve made those introductions many
times when people ask me to make an
introduction to somebody it happens once
you do that you’ve got to be patient you
see raising money can be a full-time job
by itself and the key to all this is to
be patiently aggressive you got to be
aggressive and assertive yet you’ve got
to be patient because the process may
take six to twelve months as you’re
going out there raising money for your
business so everything I cover with you
here today is how to go raise your money
but I can tell you above all if you go
out and build a real business if you go
out and build a real model if you go out
and prove that your business model works
if you go out there and do it in a way
where you’re attracting people to you
where investors want to have their money
in there where this is getting to depend
where syndicates are begging to say I
also want to get a million and I also
want to get a half a million and I also
want to get this because all these guys
want to be part of your business then
you have more influence and people that
want to help your business get to the
next level more context more
introduction more site edification
zanter opportunities all these other
things
if you truly focus on building a real
legitimate business based on systems
that’s replicable
that’s scalable that brings more
interest from other people who want to
invest into your business and keep this
in mind I didn’t really get into revenue
back funding here and mezzanine and what
it is to do mezzanine and what happens
if you’re in a bad place and you’re
trying to get money but your business is
going down you’re not really selling so
you need to get money and it’s a
different kind of money and they
negotiate harder this is not that video
we may do it on another time or we may
do it on a private mentoring a monthly
membership that we have this is purely
an episode to teach you the basics when
it comes on to raising money a lot
Spinelli’s last but not least I have a
PDF for you everything I covered with
you I have a PDF for you for you to look
through all the questions everything you
can click on a link below if you’re
watching this on YouTube it’ll be on a
link below to take you to my website
it’s a free pdf you simply get that PDF
with the
questions everything I covered it
someone note for you to have and you go
through and assess exactly what it is
that you want to raise your money if
you’re watching this video on a complete
different website go on Patrick where
David calm type in the title how to
raise money to go to the video linked
and you’ll see the PDF on the bottom
download it so you’ll have it for
yourself as well
next subscribe to the channel because
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compassionate capitalism take everybody bye-bye
an idea I think it’s gonna be great but
I need money how do I go get backing you
know and what is this angel investor
thing there’s an angel come from the sky
and say here’s the million dollars that
you needed what’s the venture capital is
you know what is bootstrapping what is
incubators and accelerators how do I go
out there and get my idea in front of
these guys how do I find these guys that
have the money you know what do I do
about how do I communicate with them
these are all the comic questions that
people ask me on a daily basis about
raising money and I’ve been on all ends
about do all the questions you’re asking
I’ve been through with myself so I’m not
giving you theoretically I’ve
experienced it I’ve gone through
rejections I’ve gone through raising
millions of dollars and we’ll cover some
of that stuff here today so three things
I’m going to cover in this video number
one is ten questions to ask before even
go and raise money that’s number one
number two six different ways to raise
money and last but not least where are
these investors and when you do find
them how do you communicate with them so
prior to me getting into this entire
episode if you haven’t subscribed to
this channel please click on the
subtitle to subscribe to the channel and
if you haven’t joined a notification
squad click on that alert button you’ll
always be the first to be alerted when
these videos pop up and if you got any
questions comments thoughts comment on
the bottom as I’m going through this
video so let’s get right into a question
number one okay ten questions got asked
question number one should you even
raise money today should you because a
lot of times some company ideas may not
be a big idea you may have a small idea
that you can go out and pretty much
bootstrapping yourself should you raise
money today
that’s one number two if you weren’t
able to go get the money how would you
make the business work I hear a lot of
people say I’m telling you if I don’t
get the money this thing’s not gonna
work if I don’t get the money this
thing’s gonna fail so how would you make
this idea work if you got no money from
anybody because by the way if you can
answer that angels NBC’s are more
interested in your business because no
matter what you’re gonna find a way to
make your business work the third
question is how will the money be used a
lot of times it’s easy to ask for money
but many times I think that
the innovator the ideal person only
thinks about themselves and sometimes
the best way to know how to communicate
with the people that have the money is
if you were this person if you were this
person would you give money to your idea
having all the information and wouldn’t
you want to know on how the money’s
going to be used do you have the answer
to that question a lot of people don’t
so you gotta be able to say if you were
to give me seven hundred thousand
dollars here’s how the money would be
used if you were to give me fifty
thousand dollars here’s how the money
will be used if you were to give me
twenty five thousand dollars I’m simply
making a prototype so I can go and
approach them so I can show this
prototype and the prototype company that
I found cost $18,000 six thousand s
design but if you have that I will take
you seriously if you’re approaching me
number four what’s an ideal investor for
you look like say you have the perfect
investor who is that person for you is
it smart money is it somebody that’s
involved is it somebody that just an
idea is that a contact is it a
connection is it a relationship you’re
looking for is it a certain community I
mean do I need to be in Silicon Valley
because you want somebody that’s gonna
connect you with somebody that I used to
work at Google what is an ideal investor
look like for you number five are you
willing to go big and lose control or do
you want to have full control of your
business because whenever you ask for
money there comes a lot of other things
these are people that are not giving you
money saying okay you lost that it’s
okay don’t worry about it you’re so
sweet you’re so awesome
these are sharks you’re dealing with
they don’t care about your feelings they
don’t care about your family
they don’t sit there and say how’s your
little baby doing here’s what they care
about I give you a million dollars
I expect ten million dollars within five
to seven period what are we going to
deliver this money so if you don’t want
that kind of a relationship you want
full control maybe it may not be an idea
to go out and raise money next are you
okay with accountability that makes me
what I mean by accountability it is not
the easiest thing for entrepreneurs to
take orders from other people but that’s
what they’re gonna be telling it’s not
necessarily orders but they’re gonna be
kind of looking for you being nimble and
being willing to listen because there’s
nothing worse than a relationship being
bad between the investors and the
entrepreneur and the team because once
there’s friction here listen there’s a
lot of ways the investors can make your
life a living hell absolutely a living
kill and some
the entrepreneur says they can’t do that
I have their money and all this other
stuff believe me there’s many many ways
they can make your life a living hell so
can you handle accountability have you
done enough research about the industry
or getting involved and I had a guy come
up to me the other day this was so funny
real nice guy he says I have this great
idea I said what’s the idea says I’m
thinking about creating the company that
allows me to go out there and you know a
do Auto Detail link but I’m gonna do
Auto Detail link mobile so you simply is
like uber you request it and I come just
is there anybody doing this no one’s
doing the marketplace I’m the first one
tomorrow I said you’re serious no one is
doing this in the marketplace I said let
me go out there and do some research so
I go out there and sir like what are you
talking about there’s 15 other people I
found I contacted this guy he’s been in
the market this guy’s raise as much
money look at this link look at that
link look at this thing
oh I had no idea see what I did with
that guy I will never listen to any of
his ideas because he didn’t respect my
time and he didn’t do research for what
he was doing his business if you do do
some research for instance if you
approach me and says there are seven
people that are doing this this guy’s
doing this that guy’s doing this this
guy’s doing this that guy’s doing this
I’m gonna sit there and say oh wow okay
I’m taking you seriously and this is the
research I’ve done this is what I found
these are the I’m being willing to
listen to you so make sure you do a lot
of research with your idea before you go
in front of investors eight how unique
and different is your idea what is your
main differentiator we’re not
necessarily I’m not looking for
everything to be different I’m not
looking for the perfect like what was
really different about Facebook over my
space my space had music being played on
Facebook didn’t have it so what is the
real differentiator between Facebook and
MySpace well it’s a social media site
like MySpace
no it’s kind of different it allows you
to stay in contact with your peers like
MySpace it’s not a perfect thing you’re
looking for but there’s got to be a
certain place that there is a
differentiator that you have my um
LinkedIn what’s a LinkedIn it’s kind of
like is it LinkedIn notes purely
business professionals and we’re gonna
have a monthly point membership okay
call I’m getting a better idea about
what you’re Thomas so there’s got to be
a differentiator and unique positioning
that you’re having number nine have you
done the math sometimes the math is
what’s off so I’ll hear people say well
I’m looking for quarter million dollars
and the valuation of the company
is you know a million dollars and I’m
giving you 40% for quarter million
dollars uh you wouldn’t mean 40% well
I’m giving you 40% quarter million
that’s not kind of how this thing works
at where did you get the mathema
understand how to Mathis as well so it’s
very basic if the company’s worth four I
put $1 the company is now worth five I
own one on five which is 20% makes sense
it’s not one on for 25% it’s one on five
after I give the money so you gotta have
the math down when you tell me what it
is because the moment you miss that you
know I question the investors gonna say
if this guy doesn’t know how to do basic
math on how much it’s gonna be is he
gonna be able to do basic math when it
comes on to running out of money and if
they run out of money what happened to
my money I lose my money you go out of
business I’m not getting returns so
basic math and last but not least this
is this is sometimes more relevant when
you’re talking aventure capitals then
angels but it can be also relevant to
angel angel investors is are you
building to sell so how soon are you
planning on selling this company right
is it something that you’re building
because you want to keep it forever and
a lot of people do that that’s okay so I
need to know as the investor when I’m
getting out and are you building a
company because you’re planning on
selling within a five to seven year
period there’s a sweet spot that VCS
have they like five to seven years
remember the sooner they get their money
out and the higher the return they get
that’s the perfect world for them so if
I give you a million and I get seven
million in five years guess what seven x
and five years I’m in heaven I’m in a
good place if I give you a million I get
3x and ten years I’m not happy because I
could use my money in a different place
to get return so it’s purely a
mathematical formula so what is your
position do you want to sell do you want
to keep what it is what is it that
you’re doing so when you do approach an
angel or a VC and you dump proper
research you will know they like to buy
companies that are built to sell or they
like to buy I met with a guy here
billionaire in Dallas he came and
visited my office two weeks ago and they
don’t like to buy companies that are
built to sell they like to buy companies
that are real solid businesses bringing
value to the consumer employee staff
executive all the team and it stays so
it’s a long-term income that they’re
generating they don’t want to build to
sell so if you approached them about a
bill to
idea they’re not gonna be that
interested again those are ten questions
you ought to ask yourself before even
thinking about raising money it’s a big
mistake people make without answering
those ten questions so now let’s get
right into it
six different methods on raising money
number one very basic bootstrap and what
is bootstrapping I’m using my own money
to start my business this is my own
money that I’m using what am I gonna get
the money from now there are different
places you can get your money from one
is cash savings that is probably the
best way for you to do it that’s cash
savings you’re getting another one is
that you hear about a lot nowadays as
Rob’s it’s called roll over business
startup capital I think it’s roll over
for business startups it’s what Rob
stands for literally our OBS which means
you have $300,000 in your 401k and
typically if you take money out of your
401k you’re gonna have to pay the taxes
on it then you may pay ped and paying
the penalties if you’re under the age of
59 and a half so what do you mean I can
take the money out yes there’s a way of
doing a talk to your accountant where
you can take that money put into your
business not pay any taxes or the
penalties but you have to start a 401k
to be able to use that as an investment
capital you know there are some pros and
cons to it I don’t recommend it but
there are some people that do recommend
it and then there’s helix where some
people take money out of their mortgage
and they get a home equity line of
credit low interest rate I take that
money and I fund my business at seven
hundred thousand dollars of equity my
company I’m taking $250,000 to fund my
business and then some do with credit
cards which is absolutely pathetic
there’s a lot of people out there
that’ll recommend you to finance your
business with credit cards matter of
fact there is guys that literally will
go and sell you the idea of I have fifty
credit cards here it’s four hundred
thousand dollars and guess what if I use
this money and it fails it’s not my
problem it’s the bank’s problem the
banks have all this money who cares I’ll
file bankruptcy and come back up
terrible idea to buy into it shysters
who want to make money off you and the
banks and quite frankly that’s somebody
that’s not thinking long term because if
you ever want to build a massive company
guess what you’ve got to be thinking
about that one day I may be needing a
big bank to give me six hundred million
or three
you know that type of money I ought to
start building those relationships now
but bootstrapping the basic way it’s
your own cash you take the money you
start the business that’s one of the
ways I did and now one of the reasons
why people do that is the following
reason you get to keep control longer
and you get to have a better proven
product so when you go to investors you
have something to show for right that’s
the formula I took for myself on one of
my businesses so it’s bootstrapping your
own money
you’re on savings you’re on the line the
investor says if this guy put his life
savings into it guess what he’s serious
I took the approach of putting my entire
life savings into it I grew the company
and then I got an investor Oscar De La
Hoya Gabrielle Brenner who is the first
Mexican board sports owner in America he
owns the Houston Dynamo and Atalaya
group Atalaya group is a good-sized fund
out of New York it’s a five billion
dollar fund then and I went and got an
eight-figure check from these guys on
raising money but I had proven
track-record on what the numbers were
looking right that’s bootstrapping right
you keep more equity you give up less
later on when you ask for money
okay so the second way you can raise
money is a traditional loan from a bank
or some call it the SBA loan now this
used to be more common back in the days
but the banks are not as loose with
their money today as they used to be now
what will work for you with these banks
is four different criterias they’ll
typically look for a steady income a 700
plus credit score equity in your home
and a last but not least industry
experience and expertise obviously got
to bring your business plan and the SBA
program has two different things in
America one is called the community
program that they have which is up to a
quarter million dollars they’ll give you
and then the other one is a micro loan
which is $50,000 I think you got to give
30 percent down payment upfront for them
to be willing to do that is that way to
go it’s the slowest just so you know and
it’s it’s just it’s not a fast process
you’re going through it’s the least
likely and it’s very slow very annoying
to go through that Rob but it is one of
the rods to go to on raising money
number three is crowdfunding what do we
tell them I will crowdfunding
crowdfunding is this whole thing with
you know GoFundMe Kickstarter IndieGoGo
there’s so many great crowd funders out
there and what crowdfunding is is
exactly what it says
audience large audience funding your
idea you go under these websites it
works typically if you have a prototype
product and you say here’s my prototype
product this is when I said earlier the
guy who goes and raises $25,000
you know $18,000 for the actual product
7,000 for the design and then he takes
this idea and puts it on a video and
says here’s what this does this does
this this this this this this that okay
and here’s what we’re asking for a level
one you’ll be the first one to get it
level to this level three this level
four and if you want to be an investor
level five $100,000 gets you two percent
ownership in a company five percent
ownership in a company and a board seat
whatever you can do that part with some
of these sites you go to you know we had
an issue that happened you saw a JJ Watt
from Houston Texas and started a little
one or to raise a couple hundred
thousand dollars for what happened in
Houston after Harvey the hurricane that
hit ended up being a forty plus million
dollar fund small account it’s spread
when wildfire a linebacker turned this
thing into a 40 million dollar fund that
he gave to Houston we started off with
one of our guys was raising small amount
of money with a couple thousand dollars
to help houston all of us and we got it
to fifty five thousand dollars and we
helped so many families with their cars
homes so it’s not that hard to do it
today especially with the access to
Facebook Twitter social media snap
Instagram it’s a lot easier to raise
money that way for this incubators and
accelerators there’s a lot of great
incubators and accelerators they differ
some of the incubators allow you to come
in you literally come and they’ll give
you a little bit of money and you have
mentoring you have people that advise
you on what to do with your idea and
they’re kind of getting you going it’s a
big typically a big office space one of
the ones we went to was in Boston you
know they have 300 different businesses
there and you’re literally sitting there
hey I do this anybody here does this
here all this collaborate I do this
anybody yes come hey have you thought
about doing this to your side what about
if you do this have you thought about
contacting these guys and they give you
some money and it’s incubator
accelerator and eventually the goal is
to go out and open up your own office
your own operation but they’re at least
getting you going it works very well
with the younger audience you’ll see a
lot a lot of 18 19 20 to 23 year olds
and incubators and by the way there’s
good ones
Soquel there’s good one in Austin Texas
New York Chicago Florida nowadays
there’s once everywhere Tennessee
there’s a lot of great incubators that
you can be part of simply go search
incubator you’re 19 yo with a good idea
and your dropout from college because
you’re obsessed with your idea that you
haven’t got three friends you guys want
to make it work
type in incubators in your local area
search which one’s the best and find out
a way to get connected with them okay so
now that we’ve covered the first four
let’s talk about the difference between
angel investors which is the fifth one
and it will Tom a venture capitalist
right after that angel investor is an
individual wealthy person who made their
money and is willing to invest into
another entrepreneur and there’s two
different types of angels one is friends
and family that’s warm market and the
other one is cold market somebody you
don’t know let’s first talk about an
angel that’s a warm market typically
angel is less than a million dollar
investment many times it’s only 25 50
100 thousand dollars that they put into
it
friends and family okay so you got a mom
dad brother sister uncle your best
friend’s dad who loves you always Saudi
they love the fact that you give good
influence to your to his son or you know
your your girlfriend’s father who never
had a son that likes you or your
boyfriend’s father who never had a
daughter that likes you you go up and
say you know hey uncle Johnny hey pops
hey mom hey hey bro hey mr. Jones look I
have this idea this is what I want to do
and I like to be able to raise some
money I need your help what do you think
about this idea you go through them say
I think I need our office they’re gonna
ask you what do you think how much you
think you know I didn’t have $50,000 and
sometimes the best question to ask is
who do you know that would be willing to
help us I would love for you to be
because I’ll look up someone look up
look up to you so much but the
regardless of what it is if you can get
some of your friends and family that
invest into your idea idea that opens up
the willingness of a cold market angel
investor to be interested in your idea
as well now cold market slightly
different they look for to see have the
if you’re coming to me has anybody in
your family vested interest so listen to
this this is what they’re gonna say have
you had anybody in your friends and
family vessel into the business yes who
my father and my girlfriend’s a father
did as well how much they gave me
$50,000 okay cool
have you put any of your own money into
it yes
$10,000 and savings I put the whole
thing into it interesting okay tell me
what else you know about this industry
that that that that tell me what’s the
differentiator those ten questions that
I asked you that I told you earlier
you’re presenting that to them then they
say great give me a few days what’s your
expectation on return I think we can
make 7x on this and seven years I think
we can make this kind of money in this
if we do this no problem here’s $100,000
no problem here’s a quarter million
dollars then you’re doing the math and
negotiation about what it is and this
video is not about the negotiation side
this video is simply about raising money
in different ways you can go about doing
it so now that’s angel now let’s talk
about venture capital this is VCS that
you’re dealing with these are firms
these are smart people these are people
that have dealt with a lot of different
businesses these are people that have
access to incredible resources contacts
and networks and so when you’re dealing
with them you got to know what they want
and what they’re looking for this is
when you hear about such and such person
had a serious a funding of you know nine
million dollars 15 million dollars or
they raise this much dollars it’s more
than a million dollars VCS are not
coming in for $600,000 they’re not
coming in for $800,000 they’re coming in
for real play matter of fact you’re
offended if you come in for a small time
number because you know it’s a billion
dollar fund six hundred thousand dollars
gonna do nothing for some of them will
have a minimum I spoke with a guy
recently their minimum is thirty million
dollars they don’t even entertain
fifteen million dollars they will
literally tell you we’re sorry we’re not
able you can talk to this guy and
they’ll refer you to somebody don’t
don’t forget to ask somebody who rejects
you because you’re asking for too little
money if they know anybody that’s in a
market of the amount of money that
you’re asking for it’s very important
for you to be asking us so few things
number one they want returns in five to
ten years some of them will push you for
three years remember that but you got to
push off three years your goal is to get
them seven years very rarely will you
get them ten years and here’s why very
rarely
you’ll get them ten years these are
funds that get started and the fund of a
lifespan is ten years and the first
three years they’re just kind of warming
themselves up on who they want to go out
and get and then once they get it
they’re saying we have seven years we
wait patiently to do this if you can get
them at seven years that’s the sweet
spot next VCS are looking for 10x
returns that’s the number they’re
looking for remember
is their thinking and they’ll typically
tell you we like our returns to be
around 10x is what we’re looking for
okay great
you know we like our minimums to be 5x
within a five-year period we’re like 1x
per year fair enough they’re gonna tell
you if you’re asking these questions and
matter of fact they’ll be impressed with
the fact that you’re asking smart
questions like that they want a
coachable CEO and they’re looking for a
strong team when when I’m saying strong
team they want technical skills like for
instance we have a visionary
entrepreneur he thinks he’s gonna go out
there and take over the world great but
do people like working with him yes he’s
got a technical guy with him that’s
incredible coding here’s what he did
before in the past and he used to work
with X Y Z oh wow and he has this other
guy that’s on the board that thought
thought thought that oh I like this so
they’re looking for the team that you
put together right and then an idea key
differentiator we talked about earlier
and obviously if you’re taking money
from a VC you’re committing to pretty
much doing something big because if
you’re not they have zero interest in it
if it isn’t something big that you’re
willing to do yourself so that’s a
venture capitalist we’re dealing with so
now let’s talk about leads where do you
find these angels and these VCS that you
want to be working with where do you go
about these guys and finding them leads
few different places to be thinking
about one is your personal mentors you
literally go to people that you like and
you admire and you ask them who do you
know that dot dot dot
remember if you answered those ten
questions and you go to your personal
mentors and advisers to ask them those
questions you’re gonna get more of a
credible person that they give to you if
you have those questions answered hey
Uncle John I admire you a lot you’re
very successful here’s where I’m at this
is my idea this is what I’m looking for
do you know anybody they’ll typically
say how about myself if they don’t say
themselves they’ll say yeah you gotta
talk to Billy let me call Billy first
you know he’s a guy that owns an
accounting firm he made his money from
this let me call him first see what he
tells you no problem so number one is
people you know your personal mentors
and advisors number two is go find an
angel list get on an angel list there’s
a lot of difference sites you can you
literally if you’re right now go on
google and type in angel investors list
you’ll find it venture capitalists list
you’ll find it you will literally find
these lists and get on there
you know look for them best angels to be
working with in you know your city
Austin best angel investors in New York
best angel investors in Memphis
Tennessee in Nashville Tennessee you
will generally find them if you look for
them then another one that works very
well which is quite frankly pretty
simple to do is local universities you
know if you went to university it’s even
easier because you’re like a I’m a USC
graduate I’m looking for this anybody I
can talk to and have a meeting with oh
sure no problem I’m a UCLA guy I’m an
NYU graduate I’m a Harvard I’m like I’m
at the I’m a Texas A&M graduate can I
talk to somebody here sure no problem
right so you can go through that program
to find them and then obviously last but
not least you always have link then you
have these websites on the ways to
communicate with them so that’s elite
now how do you approach them right so
you find seven names you’ve done your
research these seven will be very ideal
for what you’re looking for how do you
approach them few things to be keeping
in mind you’ve got to keep it very very
simple and not a long-winded email that
you’re sending this person one of the
best things that works when people send
me an email is the following now send me
an email and they’ll say hey Patrick I
just want you to know I watched you on
an interview you did on this podcast and
in minutes 17 to minute 18 they’ll put a
link you talked about this and it
changed the way I viewed business I
really admire you for what you do a lot
of these angels and VCs these
personalities are out there I did have
written a blog they’ve written an
article they’re on a video so it’s not
hard to find them if you do proper
research so instantly you got my
attention
oh wow this guy’s a fan this guy admires
the content this guy’s starting with a
compliment line number one – I am a 24
year old Harvard graduate I am a 26 year
old USC graduate entrepreneur who has an
idea that I want to share with you bomb
I am an aged executive entrepreneur
graduate whatever it is that I have an
idea that I want to share with you then
in one sentence
max – if you can do it in one even
better many times people ask me question
can I ask you a question about my
business I’ll say ask your question in
one or two sentences max and they’ll
respond back in one or two sentences
because you can do it it makes you
actually think when I say
ask it in one or two sentences in one
sentence or two make your request my
idea is that that so after the idea you
you want to put a link in there as well
to say here’s a link to a website of
video promos something that’s gonna
explain to them what it is and last but
not least you ask them I would like to
meet with you for 10 or 15 minutes to
explain to you what it is that I’ll be
doing respectfully last name done that
simple email you put out there they’ll
respond to that this is not gonna be
everybody so let me explain to what
happens when I get these emails myself I
look at it and I’ll typically click on
the link and I’ll say okay if it’s too
much information I’m not going through
it if it’s short I’ll briefly look
through it and then I may immediately
get busy doing something else and then I
may forget about your email so you could
follow up with me a week later on that
email you sent me hey John I just wanted
to follow up with you by the way great
article we wrote this week again if you
see another thing by the way great
article you wrote this week about this I
just wanted to follow up and see if you
were able to look at my email last week
believe me I respect your time I just
wanted to follow up with you an email
like that gets my attention and it
almost makes me be committed to
responding back to you because angels
and investors also don’t want to be
somebody that doesn’t get back to people
who are doing it professionally they
won’t even take your email seriously if
you’re not sending an email that’s
actually formatted properly if it’s too
long-winded if it’s copy/paste if all of
a sudden the font changes and it becomes
HTML because you wrote it on a complete
different platform then you copy paste
and put it on and they can tell that
you’re doing copy paste a guy send me an
email and he said a dear Mark Cuban I
really respect what you are as a
business man I admire you and then he
apologized and he says I’m so sorry I
feel so embarrassed I did a copy paste
email I meant to say Patrick me David he
already lost me and he probably did that
to other people and you can tell he’s
doing a copy paste people know that
because they get those emails all the
time so be able to differentiate between
those two as you send it to them okay so
that’s number one way on how you send a
letter the best way to get introduced to
an angel or VC is somebody else
introducing you to them if you can get
another high profile reputable person
send an email saying hey John this
Patrick I sat down with Billy and I
listened to what he had to say and I
think this is something that you ought
to sit down and listen to as well if
there’s any interest please schedule a
time for you and him to get together but
I’ll leave it up to you guys you are not
committed to do this for sending this
email and if you guys communicate moving
forward you don’t need to keep me in
your emails or CC me I will leave that
up to you guys thank you all the best
next I’ve made those introductions many
times when people ask me to make an
introduction to somebody it happens once
you do that you’ve got to be patient you
see raising money can be a full-time job
by itself and the key to all this is to
be patiently aggressive you got to be
aggressive and assertive yet you’ve got
to be patient because the process may
take six to twelve months as you’re
going out there raising money for your
business so everything I cover with you
here today is how to go raise your money
but I can tell you above all if you go
out and build a real business if you go
out and build a real model if you go out
and prove that your business model works
if you go out there and do it in a way
where you’re attracting people to you
where investors want to have their money
in there where this is getting to depend
where syndicates are begging to say I
also want to get a million and I also
want to get a half a million and I also
want to get this because all these guys
want to be part of your business then
you have more influence and people that
want to help your business get to the
next level more context more
introduction more site edification
zanter opportunities all these other
things
if you truly focus on building a real
legitimate business based on systems
that’s replicable
that’s scalable that brings more
interest from other people who want to
invest into your business and keep this
in mind I didn’t really get into revenue
back funding here and mezzanine and what
it is to do mezzanine and what happens
if you’re in a bad place and you’re
trying to get money but your business is
going down you’re not really selling so
you need to get money and it’s a
different kind of money and they
negotiate harder this is not that video
we may do it on another time or we may
do it on a private mentoring a monthly
membership that we have this is purely
an episode to teach you the basics when
it comes on to raising money a lot
Spinelli’s last but not least I have a
PDF for you everything I covered with
you I have a PDF for you for you to look
through all the questions everything you
can click on a link below if you’re
watching this on YouTube it’ll be on a
link below to take you to my website
it’s a free pdf you simply get that PDF
with the
questions everything I covered it
someone note for you to have and you go
through and assess exactly what it is
that you want to raise your money if
you’re watching this video on a complete
different website go on Patrick where
David calm type in the title how to
raise money to go to the video linked
and you’ll see the PDF on the bottom
download it so you’ll have it for
yourself as well
next subscribe to the channel because
we’ve announced once we came back we
announced that when we reach a million
subscribers we will do our first light
event ever 90 days after reaching a
million subscribers at the moment right
now I don’t know exactly what we’re ever
roughly around 450,000 subscribers the
moment we cross a million subs we’ll do
our first live event together where
entrepreneurs around the world will come
and it’ll be a two or three day session
what we’re getting deep dive into what
an real business can look like 8 – Lucy
what to do all the things Q&A session
many opportunities for collaboration but
we got to get 2 million subs so please
subscribe to the channel and click on a
notification squad to join there as well
and last but not least listen let’s come
together and help shift the way people
think about business entrepreneurship
and capitalism because the true vision
and mission of value tainment is to one
day have a world unemployment of 0% if
Bill Gates says he wants to eliminate
malaria we want to eliminate
unemployment around the world and I
believe it’s possible may take us 50
years it may take a generation or two
but I believe it’s possible only if
entrepreneurs around the world come to
get and spread this message to as many
people as possible so people see the
value in the light of proper
compassionate capitalism take everybody bye-bye
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