Create a Competitive Environment

Before we get into today’s newsletter, I want to let you all know that I have finished the beta version of my course which is now live for purchase here.

I’m strongly committed to ensuring that everyone can access any content I create, so if the $199 introductory price tag is still too high for you, then you can sign up here to be an affiliate, where you can earn $100 per sale you make.

These offers (both the $100/sale as an affiliate and the $199 price tag for the course) are temporary while the course is in beta, and I continue to improve it. Anyone who purchases now does have access for life and will get any updates and additions for free. So if you are interested, be sure to act fast and take advantage while they last.

Create a Competitive Environment
Read time 0.9 minutes.

Earlier this week, I was reading a bunch of YC’s resources and materials when I came across an old blog from Sam Altman (current CEO of OpenAI and former President of YC) on a very interesting topic: Creating a Competitive Fundraising Environment

What did he say?

I often use YC in my course and in my consulting as an example of an accelerator that nails the main aspects of investor psychology when promoting their companies.

They require investors to APPLY just to be able to hear a pitch from a YC company and do a great job of turning what is normally a process of companies chasing down VCs for funding into a process where VCs are chasing down YC companies for the chance to invest.

In this blog I read, Sam Altman claims that creating a competitive fundraising environment where multiple investors are pitted against each other to fight for funding in your company is the only way for founders to raise quickly with terms that they like. I 100% agree.

How can you create a competitive environment?

I am in the process of helping a client with this at the moment, and the answer is quite easy. Once you get a term sheet, go to everyone in your calendar, everyone who turned you down, anyone at all you’ve talked to about investing in your business and tell them that you have a term sheet, you are closing soon, given the market conditions you are willing to top up the round and if they are interested to let you know cause you need to move fast.

Why does this work? It creates a strong feeling of FOMO, each investor knows someone else said yes, and you are giving them a short period of time to decide if they want to jump on the bandwagon.

Takeaway

Don’t end up in a position where you are chasing one VC or negotiating a term sheet with no backup plan. Once you get an offer, be sure to quickly leverage it to get more investors interested, then pit them against each other to get your business funded quickly with favourable terms.

Don’t forget to check out my course! Click Here To Sign Up Now!

Do you want a chance to be featured across my newsletter network, reaching over 5,000 investors and 90,000 subscribers for free?

Tweet @LawyerLiam with a review of this newsletter or, better yet, share how you are implementing what I share to benefit your business!

Onwards and Upwards,

Liam Gill

P.S. Are you ready to take the next step in raising venture capital for your company? If so, you can book a 1:1 strategy call with me to help get you going in the right direction!

PPS If you aaren'talready, follow me on Twitter, where I share tips and tricks for fundraising daily.