Digital Due Diligence more important now than ever.

Kaye Alaba
AspenCapitalFund
Published in
3 min readJun 17, 2020

The average investor receives one new investment proposition every day (some get many more) and will invest in less than one percent of the deals he sees. Simply meeting the investor’s criteria is not enough where deals compete for a limited supply of capital and just as importantly, the investor’s limited time and attention. Providing digital due diligence is more important now than ever.

INNOVATIVE POSITIONING

As early adopters of innovation. For years we have incorporated a real-time, engagement-oriented approach to maintaining and extending investor relationships throughout the capital raise life cycle.

By using marketing automation in our capital raise strategy, we help our clients streamline their investor lead generation, investor trust nurturing, and reduce the cost of the capital raise.

Immerse and Converse

By using our immerse and converse methodology we can show trust to an investor in the 3 trust curves — 1. Leadership 2 Industry 3 Opportunity. It is a simple method, get your investor immersed in your company. Involve them. As much as possible. Here are some tips:

  • Create a 5 minute teaser video introducing the strategy from the founder.
  • Provide recorded video references with investors ready to speak further with potential investors.
  • Video explainer of the real tangible asset, walk through, hold it up, show how it operates.
  • Personalized FAQ videos.
  • Recorded webinar on strategy and presentation.

Leverage your investor funnel

An investor funnel is simply a series of intellectual property assets, forms of exposure, and relationship building sources that all lead to more qualified inquiries or to investment in your company.

It’s important to note that sometimes the funnel takes just a few weeks to complete, others will take years to get to the point where you are doing business together. The prospective investor may read your articles for 5 years, then buy your book, and then invest while only talking to you on the phone, or they may move through your funnel any other number of ways including skipping it completely just because of your reputation as a leader in the space which has resulted from building the funnel. The power of having a well-constructed funnel: people can engage with you at any level, even bypassing the whole thing because you have become a voice in the industry.

You will surely have less people wanting to meet with you than the number that read a blog post or whitepaper you write, but the point here is to reverse the flow and get people cold-calling and emailing you about investing. You want everyone to treat you as a credible expert on your niche instead of you having to constantly reach out cold to investors unarmed with these pieces of intellectual property.

Show the investor that you have an exceptional opportunity (Barely legal, market dominating, brilliant idea).

Central to gaining investor confidence in funding, is a clear description of the commercial and proprietary elements necessary for delivery and the way your product fits within the target market ecosystem. This description should also emphasize differentiation and a formalized framework to accelerate market growth and enterprise scale. You should demonstrate how the requested capital will provide confidence that the resources will be used efficiently and are proactively monitored.

Expect three core benefits: better investor pipeline, more productive meetings, and streamlined capital raise efforts.

#capitalraise #capitalraising #startupstrategies #entrepreneurs #angelinvestors #privatecapital #venturecapital #aspencapitalfund #directinvesting #rapidrebound #immerse&converse #hispanics #latinx

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