I’m frequently asked this question from our entrepreneurs, “How do I raise capital given this economy?” And it’s a good question. There’s a lot of anxiety surrounding it, so I think you want to be aware that it’s true. IPOs were down 85% through the years 2007 and 2008. And now, in 2009, it appears that the well has dried up completely. But don’t despair. There are options. Even though the banks have pretty much cut back their lending, and investment bankers are sitting on the sidelines, there will always be entrepreneurs. And in fact, there are more entrepreneurs created in times of economic crisis than usual.
I'll give you a perfect example. Top-level executive loses his job. Highly skilled position. Got some savings. He’s got a great idea, and he’s always wanted to be in business for himself. There, you’ve got an entrepreneur being born. On the other side of the coin, there’s always investors. There are professional investors that run just like any other company, and they are in the business of providing capital.
Now, the disconnect is occurring in the deal flow. So, how do you access the deal flow as an investor? And as an entrepreneur or a capital seeker, how do you get in front of the investor directly? Well, if you don’t have a strategy, it’s like shooting an elephant with a BB gun. You’re gonna have a tough time. What you need to do is develop a strategy. You need to be able to package and provide your deal criteria and capital requirements, convey those to a targeted audience of capital providers, and one of the ways that you can do that really efficiently now is through a capital network website. Capital Match Point is a perfect example.
One of the benefits in going that route is that you’ve got a captive audience of investors that are professional investors. They are interested in your industry, your stage of business where ever it might be: start-up, early stage, later stage. And they’ve got the capital level that you’re looking for.
One other secret here: cut out the middle man. You don’t want to be working through a broker in times like this. Everybody is looking to save money and cut costs. So, remember, capital is always going to have a cost associated with it. What I recommend to all entrepreneurs and capital seekers alike, at any stage, be efficient with your capital costs, take the most direct route to funding you can.

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