Capria Catalyst, our new webinar series for impact fund managers, kicked off on April 28th, 2016. The first webinar on “Successful Fundraising” covered the different aspects of fundraising process. Michael Newman, Capria’s head of Investor Relations, delved into the details of the fundraising journey through the lens of his recent experience raising the $23 million Unitus Ventures (formerly Unitus Seed Fund). The webinar covered three major areas of the fundraising process.
How to identify prospective investors:
- Use existing business networks: start with your immediate circle of friends, family & colleagues, then branch out to local angels, foundations and the entrepreneurial ecosystem i.e. successful entrepreneurs, and even service providers.
- “Reverse engineer” the process: find people and groups of people who are aligned with your investment thesis, strategy, as well as your sector, investment size and geography.
- Find the right type of investor: multilateral banks, DFIs, Foundations, HNIs, funds of funds. Capria’s takeaway is to expand beyond the multilaterals and DFIs to really tap into the private sector instead.
How to pitch and engage with investors:
- Find a strong connector to reach out: an introduction from a known connection is the most effective, but otherwise, find a compelling reason to reach out.
- Keep initial communications succinct, and keep the flow of information steady: pitches should be clear but also intriguing. Meticulously document all interactions. We like to use Dropbox data rooms to share information.
- One-pagers are a great summary document for investors to get an overview of your fund: to see an example of a simple yet informative one-pager, please contact firstname.lastname@example.org.
How to navigate the process and close investors:
- Investors are interested in seeing funds’ pipelines and key documents including concept papers and impact reports. Concept papers are especially useful for institutional investors. They cover the “who, what, where and why” of your fund.
- Create a sense of urgency, and don’t leave any stone unturned with additional investor referrals!
The webinar was followed by a spirited Q&A with questions on topics such as:
- Answering tough frequently asked questions from investors
- Preparing due diligence and legal docs for investors
- Educating your LPs on your investment strategy
“Capria Catalyst is a great way to reach the huge range of people who have expressed interest in our accelerator. Since we are only able to accept a limited number of applicants per Cohort, we wanted to use the webinar series as a means of sharing our experiences and best practices with aspiring and existing fund managers looking to increase the global flow of impact capital,” says Jack Knellinger, Principal and Co-Founder of Capria Accelerator.
Continue to check our website for updates on future Capria Catalyst webinars!
Email us for more information about this series.