- Joined
- Jul 24, 2007
- Messages
- 4,219
Rep Bank
$5,375
$5,375
User Power: 457%
I went to a convention that is geared toward putting the people with access to money (Broker/Dealers) with the people looking to raise money (sponsors).
It turns out that the measly $4,000,000 that I have raised in the past isn't even enough to warrant a conversation with anyone here. The smallest deal that I heard talked about was a $15,000,000 capital raise. People are talking about small $50M raises or $200M in 3 weeks!
There are other people like me here but they are trying to break into the business of private or public offerings. They are trying to determine how to get out onto the "platform" where the broker/dealers will be able to sell your deal to investors.
It turns out that there are a lot of challenges and a lot of big bucks need to be paid. My estimation is that you will need to shell out $200 to 500K or so to set yourself up. That will only get you part way into the "good ol' boy" network.
For starters, you will need years of audited financials (very pricey) on your self and business. This will be scrutinized by a third party "due diligence" representative that you will need to pay for. You will also need to pay for the dd for the deal that you want to put on the table. Once this is done, you will need to schmooze the companies with dinners (I have done this, steak and lobster for 30 people. Don't forget the drinks!)
You will also need to have a track record to show along with a product that will set you apart from the others.
The regulatory group that oversees this process holds a lot of power. They regulate the shit out of every part of the process which adds a lot of cost and time.
There are salespeople called wholesalers that will work as your reps to sell the product. You will need marketing materials along with a dog and pony show.
I had an "in" with a small broker dealer. It took a lot of work to get that. They went belly-up in 2010.
This looks like it is going to be a lot of fun!
It turns out that the measly $4,000,000 that I have raised in the past isn't even enough to warrant a conversation with anyone here. The smallest deal that I heard talked about was a $15,000,000 capital raise. People are talking about small $50M raises or $200M in 3 weeks!
There are other people like me here but they are trying to break into the business of private or public offerings. They are trying to determine how to get out onto the "platform" where the broker/dealers will be able to sell your deal to investors.
It turns out that there are a lot of challenges and a lot of big bucks need to be paid. My estimation is that you will need to shell out $200 to 500K or so to set yourself up. That will only get you part way into the "good ol' boy" network.
For starters, you will need years of audited financials (very pricey) on your self and business. This will be scrutinized by a third party "due diligence" representative that you will need to pay for. You will also need to pay for the dd for the deal that you want to put on the table. Once this is done, you will need to schmooze the companies with dinners (I have done this, steak and lobster for 30 people. Don't forget the drinks!)
You will also need to have a track record to show along with a product that will set you apart from the others.
The regulatory group that oversees this process holds a lot of power. They regulate the shit out of every part of the process which adds a lot of cost and time.
There are salespeople called wholesalers that will work as your reps to sell the product. You will need marketing materials along with a dog and pony show.
I had an "in" with a small broker dealer. It took a lot of work to get that. They went belly-up in 2010.
This looks like it is going to be a lot of fun!
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
