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How’s it going, everyone? Today, I want to show you how discovering the Fund Launch Formula changed the game for me and others – and how it can help you!
Click here to see my full YouTube video
I’ve helped 240 people start investment funds and have started and am currently running 2 funds myself. While talking to all these successful fund managers, we discovered (not invented) the fund launch formula. If you google, “how to start a fund,” then you’ll find some blogs that were written by people that have never launched a fund! They’ll tell you to hire a lawyer, then go raise capital. Well, if you can’t raise the capital on your first try, then you’re now in the hole for $30-50K just in legal fees. Legal is actually the last step in the fund launch formula!
So, let’s start with the 1st!
Find the Deal
Have you ever thought you’re not the capital raiser type? If you find a deal that’s too good to pass up and present that to investors, then you won’t need to be good at capital raising. The investor would look past your inexperience/inadequacies and give you the money – if the deal is too good! So, the first step to the fund launch formula is finding a great deal. Remember, this is before any lawyers or legal fees. If you’re doing something else besides capital raising, then partner up!
Every fund management team should consist of 3 roles (or people):
- Capital Raiser
- Fund Manager
- Expert Investor
Frame the Deal
Once you have a great deal that piques investors’ interest, it’s time to frame your deal! No legal yet, but you need to get all the details in order. You’ll consolidate everything about your deal into a pdf or slide deck – this has everything that investors would want to know. Fund Launch provides you with templates and marketing materials to help facilitate this process!
Raise Money
When your presentation is ready, go and raise capital! Yes, you need to do this before legal. Here’s another thing to do before raising capital: Pitch your mentor and ask him to poke as many holes in your proposition as possible. You can even do this with other mentors – all the better! When you’ve polished your pitch, then do raise capital!
“Most funds never launch because managers build products that investors don’t want.”
Use your fund pitch to gauge the interest in this deal. If no one is interested, start over at step 1 or 2. This way, you have not wasted any money on lawyers! And of course, if you are getting interest and soft commitments… then proceed to step 4!
Legal
After your lawyers complete your PPM and other legal docs, you can return to your “soft commitments” and tell them that the legal is in order and you’re ready for launch! And now, you’ve just launched a fund that’s already funded!
Conclusion
Discovering the fund launch formula has helped me and all of the fund launch community succeed! Don’t forget to do it all in the right order! If you want access to more materials and guidance from me, visit Fund Launch. And, don’t forget to check out the Fund Launch Blog!
Thanks for stopping by,
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
