How can a company build trust with retail investors before raising capital?
Short answer: Dean's S2A Modular example shows why investor education matters. People confused modular with mobile, container or manufactured housing, so the company had to explain the market.
At a Family Office Club event, Dean DeLisle explains what companies should prepare before raising retail capital.
Dean on a digital footprint
Dean says a company and its people need a digital presence to build enough trust for someone to invest. YouTube videos are one option.
Dean on team expertise
Dean says thought leadership should include active participants across the organization. Their social networks extend the company's reach.
Dean on explaining an offering
Dean says some technical companies have strong products but explain them in a way that feels disconnected to investors. He recommends a simpler story, since he says online attention lasts a little over eight seconds at the top of the funnel.
Dean on investor and CRM data
Dean says his team uses investor behavior data to match an offering with people likely to invest. He also urges companies to mine CRM records because their biggest fans may support a capital raise.
"In order to have enough trust to invest in your offering, you need to have a digital footprint whether you like it or not."
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Michael Lee-Chin: Learn from the best role model. Find the best role model in the world and ask how they did it. Then follow their recipe exactly without changing it.
- Serg Bell: Success comes from many decisions. He does not see business as one winning bet. He sees it as a long game, like poker or bridge, built on many smart choices over time.
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Frequently asked questions
How can a company build trust with retail investors before raising capital?
Dean's S2A Modular example shows why investor education matters. People confused modular with mobile, container or manufactured housing, so the company had to explain the market.
How long does Dean say people focus online?
Dean says the average online attention span is a little over eight seconds, and that attention can last much longer once someone is engaged.
What else might investors bring to a company?
Dean says people who invest may also bring buyers or customers, which can generate revenue.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.