Communication Tools to Build Relationships During a Capital Raise

Being effective when executing a capital raise is essential. What’s the key to obtaining funds? Relationships.

The availability of capital has been high. However, in order to get the right investors, you have to build strong relationships. Building and maintaining those relationships requires the right communication tools and processes.

Managing Investor Information Effectively

In order to be prepared for a capital raise, the first step is to gather a list of potential investors. And just as important as finding information on them is saving that data in a customer relationship management (CRM) system specifically designed for the task. AIM, Altvia’s Private Equity CRM solution, integrates with the platform and provides functionality specific to the Private Capital Markets.

Next, it’s important to create a “coverage report.” This type of report, available in AIM, allows fund managers to plan and track all the activity with a prospect.

For example, it shows the last time they spoke to the prospect and lets the fund manager set follow-up tasks. This is important since the right contact frequency is fundamental to building strong relationships. Reach out to a potential investor too frequently and you risk irritating and alienating them. Fail to reach out to them frequently enough and you risk losing their attention and interest.

Making Prospective Investors Aware of the New Fund

After creating your prospect list and developing an outreach strategy, the next step is to contact prospective investors, and efficiency is key, especially if you have a large number of prospects. Altvia Correspond Market Edition provides an array of features that streamline and simplify mass communication initiatives.

For example, it offers a smart list builder with full AIM integration and real-time contact syncing. It also provides auto de-duplication to ensure that prospects don’t receive the same communication twice and advanced scheduling so you can queue up a mailing and move on to other tasks confident that the blast will take place as planned.

Sharing Files Efficiently

As prospective investors begin to show interest, it’s crucial that you are able to share a private placement memorandum (PPM) and other documents with them quickly and securely. Delayed or awkward handoffs of important forms and information don’t, of course, build confidence in investors. That’s why it’s necessary to have a portal built for this purpose.

ShareSecure, our virtual data room, and GP-LP engagement platform demonstrates that your company embraces advanced technology and values data security—two characteristics that create trust in prospective investors. The ability to securely share all types of files (documents, audio files, videos, etc.), customize user permissions, request, capture, and track digital signatures, and provide document access from mobile devices are just a few of ShareSecure’s features.

Communicating Your Track Record

What prospective investors are looking for from you in the course of your verbal and digital communications is answers. The faster and more fully you can address their inquiries, the more quickly they can reach a conclusion on whether to provide capital.

Altvia Answers helps you give them what they’re looking for so they can make a clear differentiation between you and others vying for their funds. That includes powerful data visualizations that make it easy for busy investors to take in key facts about your organization.

The system enables you to unify diverse data sources and present them on comprehensive, easy-to-understand dashboards. This centralized database uses real-time data connections to ensure that information is continuously updated. Plus, it’s cloud-based, so it runs without long loading times and is easily accessed from mobile devices.

The result is a single source of truth that empowers investors to make decisions consistent with their goals and confident that they understand the big picture regarding the risks and rewards that the deal represents for them.

Ultimately, effective communication and the forging of engaged relationships with investors is the key to securing funds in a capital raise. Having the right communications tools makes it much easier to achieve that objective.

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