As someone who has been involved in sales since 1994 after seven years of progressing through the technical realms of junior electronic engineer to product specialist, with all the company benefits that came with it – the equivalent to $7000 per month salary today, company car, full medical cover and company pension contributions etc. etc. – I dropped it all to pursue a career in sales on a commission only basis. Sink or swim it was. I worked for Panasonic Business Systems at the time.
I swam fast, managing in my first month to become the third best salesman out of over 25 salesmen and women, and eventually finishing the year in the same spot. I even won a fully inclusive holiday to Jamaica for my efforts. The only ones who performed better at the time were the Managing Director and Sales Director who of course always got given the best leads (a real Sales Director, unlike the “Sales Directors” of today who have the title but are little more than juniors, or at best sales people with a couple of years experience).
Why was I able to perform better than others?
Having been a “techie” for so long prior, I had a very deep understanding of the products we sold, and unlike almost all of the other sales people, I could sell from a completely different angle. In fact when I went into details about how the things I sold actually worked, most they were fascinated. Yes, I did the usual sales training that the company provided – new products, practice demonstrations et al but what really made the difference is that I obsessed over what I was actually selling.
Soon thereafter, I set up my own startup in the same industry and by 1997 had generated over $10,000,000 in revenue, and had a staff of 19. All bootstrapped.
Now let’s fast forward to early 2012 when I launched Smart Crowdfunding to help rewards-based crowdfunding hopefuls, with most of that time spent driving “retail” backers to crowdfunding offers through digital marketing, I began to learn a lot about “retail” investors too. I obsessed then too, and remember many of those early days jumping out of bed, sitting at my laptop at 6 am (boxers on and little else), hardly moving from there except for toilet and food breaks until 7 or 8 in the evening . In fact, my wife left for work around 6:30 am , returning around 7 pm only to see me sitting there. It was exciting and I loved it all.
During 2017 I moved my into equity crowdfunding (my plan all along) and have since focused my time on helping startups raise money from Accredited and High Net Worth (HNW) individuals all over the world. In order to secure these types clients, I of course have to sell to them too. You may be surprised to hear that since I began doing this, I have never used a script, soft close, nor hard close with any of them. Sure, I notice buying signals throughout my time with them, but have learned that my knowledge, experience and candor, does the most of the selling for me. And, yes, I qualify them early in our conversation, establishing firstly that they have the resources to go out there and raise the money they seek.
The Modern Fundraising Landscape
Through marketing, Startups invest significant time and money in lead generation for capital raises and face a daunting challenge: converting interest into actual investments. While the best digital marketing strategies can flood your database with high-quality leads, the final step—closing those leads—requires a unique set of skills that many startup founders lack.
Investment crowdfunding has changed the way startups raise capital, democratizing opportunities and diversifying funding sources. Yet, the strategies for engaging retail investors differ drastically from those for securing investments from accredited, sophisticated, and high-net-worth (HNW) individuals.
Retail Investors
Retail investors typically contribute smaller amounts, from $100 to $2,000. Their motivations are often emotional and impulse-driven, making them more receptive to campaigns that highlight a vision, story, or societal impact. Emotion triggers in your outreach will pay dividends.
Accredited and HNW Investors
Accredited and sophisticated investors, however, think and act differently. With typical investments ranging from $25,000 and upwards, they are driven by a blend of rational analysis, strategic foresight, and trust in the team behind the venture. For these investors, emotional marketing isn’t enough; they require direct engagement, robust data, and a personal connection before committing to an investment.
Why Startups Fall at the Final Hurdle
Many founders believe that great marketing alone can convert high-value investors, but this is a costly misconception. While strong marketing generates interest and leads, failing to close with accredited investors means wasting the budget spent on attracting them. Most technical founders often lack the sales expertise needed to convert a promising lead into a committed investor, and believe me, I’ve dealt with a whole host of them.
The Key Challenges:
- Lack of Personal Selling Skills: Most technical or first-time founders have limited experience in high-stakes sales, making it difficult to persuade discerning investors.
- Inexperience with Investor Engagement: Engaging an investor goes beyond a well-crafted pitch. It requires handling objections, building trust, and maintaining poise during in-depth discussions.
The Solution: Tailored Coaching for Founders
To bridge this gap, over at XseedR we are introducing a specialized 1-1 sales coaching service designed to equip founders with the skills needed to close accredited and HNW investors.
Here’s what the service includes:
Investor Call Simulation and Practice
Role-playing investor calls to build confidence and refine delivery. Founders practice pitching as they would in real scenarios and receive feedback on their approach.
Webinar and Group Presentation Training
Guidance on preparing for investor webinars where 10-30 potential backers may tune in at a time. Learn to command attention, structure presentations effectively, and address questions with clarity.
Expert Critique and Feedback
After initial practice, sessions with seasoned industry professionals monitoring your pitch provides critical insights to further polish your investor interaction skills. This prepares you for real meetings where first impressions are crucial.
Remember, you only have one bite at the apple, so make it count.
Why This Is Critical to your Success
Startups can’t afford to lose potential high-value investments due to a lack of closing skills. Without proper training:
- Marketing Dollars Are Wasted: The best lead generation strategies won’t yield results if founders fumble during investor interactions.
- Opportunities Are Missed: Accredited investors often expect a tailored, confident approach that highlights both the vision and the viability of the investment.
A Successful Closing Approach Includes:
- Trust-Building: Investors must trust not only your idea but you as a leader.
- Expert Handling of Objections: Knowing how to navigate skepticism and provide solid, reassuring answers.
- Polished Delivery: Clear, compelling communication that inspires confidence in your capabilities and the potential of your startup. The focus here is on Conversational Marketing. Done correctly, it works well
Want to Take Your Fundraising to the Next Level?
By investing in our coaching service, founders transform their ability to close deals, turning interest into actionable investments and maximizing the returns on their marketing efforts. The training ensures you don’t just capture attention—you secure the funding your startup needs.
Your Next Step
Don’t let your hard work generating leads go to waste. Gain the tools and expertise necessary to confidently engage and close accredited and HNW investors. We will empower you to turn investor prospects into committed partners.
Contact: info@XseedR.com to learn more.
