I really enjoy learning about how successful people become successful; however, I am often frustrated by the lack of early details. Learning about major wins is great, but what about the details about the smaller wins that led to these successes? Today, I am going to do that for you. I going to deep-dive a small win that led to a major success.
Finding a lead investor is one of the hardest things you need to do when raising money for a startup. The less wealthy and connected you are, the harder it is. Click here to learn about the challenge of finding your first investor.
It can be done. In this situation, My lead investor wrote the first check. This was before I had a investor deck, before I had a Minimum Viable Product (MVP), before I had product-market fit, before I formed a legal entity, before I invested a dime.
I barely even had an idea. But I did have an investor. This is more important than everything else. Working capital and third party validation.
I was sitting at a bar at my club one Friday evening after a late round of golf. The rest of my group had plans so I was there by myself eating calamari and watching golf on TV. Life was good.
Two guys came in and sat next to me. Lumpy, the chubby one one of the pair, was staring at my appetizer.
Me: “Would you like some calamari?”
Lumpy: “Yes!”
Sheldon: “Sure.”
After inhaling what was left on my food, the two of them proceeded to describe the inner-workings of the club. Who was relevant. Who was not.
Both Lumpy and Sheldon were members of the club for a long time and knew almost everyone. Sheldon came from family money. He had a bit of a gambling problem and went through a nasty divorce. Lumpy was more of a grinder. Probably earned most of his money. The grinding took its toll, he had some serious eating and people issues.
Finding a lead investor is one of the hardest things you need to do when raising money for a startup. The less wealthy and connected you are, the harder it is. Click here to learn about the challenge of finding your first investor.
It can be done. In this situation, My lead investor wrote the first check. This was before I had a investor deck, before I had a Minimum Viable Product (MVP), before I had product-market fit, before I formed a legal entity, before I invested a dime.
I barely even had an idea. But I did have an investor. This is more important than everything else. Working capital and third party validation.
How I Found My First Investor With Calamari
Two guys came in and sat next to me. Lumpy, the chubby one one of the pair, was staring at my appetizer.
Me: “Would you like some calamari?”
Lumpy: “Yes!”
Sheldon: “Sure.”
After inhaling what was left on my food, the two of them proceeded to describe the inner-workings of the club. Who was relevant. Who was not.
Both Lumpy and Sheldon were members of the club for a long time and knew almost everyone. Sheldon came from family money. He had a bit of a gambling problem and went through a nasty divorce. Lumpy was more of a grinder. Probably earned most of his money. The grinding took its toll, he had some serious eating and people issues.
They were both fascinated by the fact that I was an entrepreneur. I told them the story on how I was recently bought-out of a company I previously launched. I also told them that the purchasers neglected to include a non-compete in their purchase agreement. This meant that I could use all of the connections I accumulated and the information I learned to start a new company. A new company that could directly compete with the company I just sold.
This small interaction launched an extremely intense “friendship” that lasted about a year. Sheldon eventually became my lead investor. He introduced me to 85% of the outside investors. He wrote a check before I did. Lumpy eventually wrote a check as well.
No plan, no business, just investors.
Not a bad return on investment for a plate of Calamari.
This small interaction launched an extremely intense “friendship” that lasted about a year. Sheldon eventually became my lead investor. He introduced me to 85% of the outside investors. He wrote a check before I did. Lumpy eventually wrote a check as well.
No plan, no business, just investors.
Not a bad return on investment for a plate of Calamari.
I will dissect the details of this transaction in a future post.
Contact us today if you want to raise capital for your business, funding@omegaaccelerator.com.
Are you interested in helping businesses while enjoying the potential high returns of angel investing? Email info@OmegaAccelerator.com.
Click here if you would like me to consider investing in your business. If I do not personally invest, I will give you specific tips for finding funding. Unlimited follow-up meetings. 100% satisfaction guaranteed. https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html
Sources and Links
https://www.linkedin.com/in/rencarlton
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegalegacyacceleratorx.com/924-2/https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html
Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering any legal, investment, tax, or medical advice. Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties. All stories are based on true events, but are altered to protect the identity of the individuals involved.
https://www.linkedin.com/in/rencarlton
https://rencarlton.blogspot.com
https://twitter.com/RenCarlton
https://www.youtube.com/channel/UCmxQWgUDlPJo0IHCIa6SzrQ
https://omegalegacyacceleratorx.com/924-2/https://www.facebook.com/TheOmegaAccelerator/
https://www.instagram.com/omega.funding/
https://rencarlton.blogspot.com/2019/09/funding-session-with-ren-carlton.html
Disclaimer: This does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. We are not offering any legal, investment, tax, or medical advice. Please consult the appropriate professional before doing anything you learn from the content posted on any of our digital properties. All stories are based on true events, but are altered to protect the identity of the individuals involved.
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