For certain businesses, it is essential to raise capital to get to the next level. One of the key ways that this can be accomplished is through investors. If you don’t structure your deals with investors properly, it can turn a strong move towards growth into a significant liability. During my latest interview on the Fueling Deals podcast, I spoke with Joel Block to gain more insight into finding, pitching and structuring deals with investors to raise capital.
Joel is the CEO of Bullseye Capital as well as a venture capitalist and expert in raising capital and creating investment funds. Joel’s experience in navigating the hedge fund world is one of the many benefits he brings his clients and speaking engagement attendees. He is the master of teaching companies to “draw the shortest line to the money”.
On this episode of Fueling Deals, Joel and I discuss why so many businesses struggle to obtain capital investments, how to structure your offer so that investors can easily understand it, and how to use new tax rules to your favor to completely avoid taxes on your capital gains and 1031 exchange deals. Listen and learn how to get money from others and keep more of your own money.
If you’re looking for a large source of unsecured equity for your business, there are some things you need to keep in mind. Asking for large amounts of money is a different creature from smaller investments or loans against collateral, and the strategies you employ must adapt to these differences. It’s important to know how to speak the investors’ language and inspire confidence in what you’re doing (and offering).
It is also vitally necessary to understand the terms of the deal you’re offering the investor, whether the terms were drawn up by your attorney or not. If you don’t understand the deal, how can you give good answers to a potential investor’s questions and alleviate their concerns? You don’t need to be fluent in legalese, but you should be able to explain what you’re offering in exchange for their risk.
Simplicity and Shelter
The terms of the deal you’re offering should be simple enough for a layman to understand. Your goal isn’t to convince your investor’s attorney, your goal is to convince your investor to take the risk. Structuring your deal so that it can be easily explained will go a long way in portraying both confidence and knowledge of what you’re offering.
Additionally, Joel shares some incredible information on opportunity zone tax shelters brought to us courtesy of the 2017 tax code changes. Joel explains them as the most potentially powerful tax shelter ever, and he shares how to take advantage of these new rules (as well as their requirements).
Learn more about Raising Capital and Avoiding Taxes by listening to my episode on Fueling Deals podcast.