Kyle Dunn on Sourcing Capital

Private Equity
by trusted insight posted 10years ago 388 views
We help people source capital more effectively. In sourcing capital, everybody says it's all about relationships. I agree 100% with that. I'd simply ask: “well if it's all about relationships, why don't we develop 500 of them at one time?” If you have two people offering the exact same thing, and one person is in front of more people, there’s a greater likelihood they're going to get more capital. The system (or lack thereof) of raising capital it's just inefficient. People aren’t using the CRM systems, they're not managing relationships effectively or efficiently. You have all these asset managers who create these incredibly thick marketing decks. They take this information and they throw that overheard the wall of an institution and, and then they’re surprised when they don't hear back. You know what? No one is reading that. No one reads the two-inch binder or the huge PowerPoint deck. They're not marketing decks. They have nothing to do with marketing. They’re not designed to solicit a response. All the information is important at some point, but it doesn't start the conversation. What you need to do is take it out to people – say, ten thousand people – and you need to continuously communicate to those people over time. You need to develop a relationship so they know you, are familiar with you. We want to create materials where someone reading them finds them compelling and it captivates their interest. There's no one else out there doing what we do. The sort of marketing we do is where you undertake information and digitally bounce it off people. Marketing’s at a point now where you no longer need a response. If you tier videos and you send these to a given institutional set of potential investors, the person who's watched three or four of the videos: that's who you take the time to call. People don’t accidentally watch two minutes of a video. The ability to profile interest in this space is mind-numbing; that's how you create relationships that's how you market across thousands of people.