Those who have been doing “impact” project finance awhile realize what it takes. But if you currently seek capital for a worthwhile venture or project, at some point you need to ask yourself a tough question: why don’t you already have it?
Telling the Truth to Yourself: Priceless
Most entrepreneurs would answer that they’re not sure what the problem is, or confidently pursue their various options in hopes of meeting and succeeding with investors that “get it.” If you’ve done your homework, and are offering a fair deal (either a willingness to sell shares or pay close to market-rate interest for debt capital, or related instruments), then what’s the hold-up? Just haven’t met the right source, or is the problem deeper than that?
Perhaps it is because you simply haven’t gone deep enough, made the necessary effort? Or, perhaps — if you’re honest about it — because the company has some issues? (Most do.) We’ve found that often what’s missing is a precise understanding of how investors think, act, and will perceive your particular situation. Lack of objectivity, on the one hand, mixed with a very common fallacy that investors are a unified group, with predictable interests, styles, or model. They’re not. But how fully have you been “stepping into their shoes” and making sure they know you are tracking everything they say to you?
Objectivity is lost by the time you’ve given your plan the attention such efforts require. But also consider that market conditions constantly change, investors change, even best practices and expectations change, and when you combine these factors, … some number of disconnects or delays seem inevitable.
Well, they don’t have to be. Sometimes, we’ve found, entrepreneurs know extremely well what is required to obtain their capital. They just don’t want to do the work. Better to hire an expert to facilitate the campaign? We can help there, too.
The truth is that, historically, few (2%-5%, by some estimates) of all project starts ever obtain the necessary capital to complete them. Why is that? Likely a combination of several elements. But if you don’t already know the exact reasons you have yet to raise all the necessary capital, perhaps it would be wise to step back for a moment and sort out causative factors? For example, objectively speaking, how “bankable” is your project or venture, really? Are there perceived risks that could get in the way? Project finance is really about monetizing contracts; if you have gaps in this regard, how far will you get?
In other words, are you truly ready for outside investment or other forms of financial support? If not, what does it take to get ready and successfully raise the necessary capital in the current economy?
At In3 Group, we’ve developed a platform, programs, guides (free educational and assessment tools) that allow you to honestly evaluate where you are now, how you stack up compared to the ideal, and thus precisely estimate your chances for successful fundraising. The “onramp” to all this is called RAIN. Once you obtain your score, (or letter grade) contact us to learn more about subsequent steps, how to qualify for billions in available capital through In3 Capital Partners, schedule a private meeting to discuss the opportunities for breakthrough results, or to join the next public webinar or educational session. See events.
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