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  1. #1
    Senior Member Reputation points: 52185 ADiamond's Avatar
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    how do you raise capital?

    someone please give me a play by play on how to raise capital whether it be venture cap, angel investors, crowd funding, etc.. for syndication purposes?

    And how different sources would be more beneficial than the other
    Last edited by ADiamond; 03-12-2015 at 11:22 AM.
    Anthony Diamond
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  2. #2
    sure and where would you like me to deposit your commissions lol

  3. #3
    Senior Member Reputation points: 13596 isaacdstern's Avatar
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    There is literally an insane amount of money pouring into this industry right now, all you really need to do is raise your hand and say "I do MCA and I am raising money"

  4. #4
    Senior Member Reputation points: 52185 ADiamond's Avatar
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    Quote Originally Posted by isaacdstern View Post
    There is literally an insane amount of money pouring into this industry right now, all you really need to do is raise your hand and say "I do MCA and I am raising money"
    Indeed Isaac, I agree. But it's harder when you don't know the right people. If you have to start at square one, where does one go?
    Anthony Diamond
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  5. #5
    A forum user Reputation points: 2147483647 Sean Cash's Avatar
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    Quote Originally Posted by ADiamond View Post
    Indeed Isaac, I agree. But it's harder when you don't know the right people. If you have to start at square one, where does one go?
    I can introduce you to a lot of people that do this. Investing in syndication is huge right now. The catch-22 is that these investors will want to see a well-established track record. So in order to raise money to syndicate, you need to already be syndicating.

    You'll also need to be able to measure the performance of your portfolio in a format that an investor can trust and make sense of.

    Do you have money in deals currently? If so, how many have you gone in for? If it's enough, I'd be happy to point you in the right direction.

  6. #6
    Senior Member Reputation points: 52185 ADiamond's Avatar
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    Sean, I do have a book started - I am currently in about 15 deals & growing. Also, I have books of a few other people to present which would be better to analyze because of the volume they're doing plus the time they've had to grow their portfolio. The performance is very enticing.

    I would love to get tips from some industry vets sean, you have my email thanks!
    Anthony Diamond
    Underwriter

  7. #7
    A forum user Reputation points: 2147483647 Sean Cash's Avatar
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    Quote Originally Posted by ADiamond View Post
    Sean, I do have a book started - I am currently in about 15 deals & growing. Also, I have books of a few other people to present which would be better to analyze because of the volume they're doing plus the time they've had to grow their portfolio. The performance is very enticing.

    I would love to get tips from some industry vets sean, you have my email thanks!
    pm me your email again.

  8. #8
    Senior Member Reputation points: 13596 isaacdstern's Avatar
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    Good luck bro!!

    Quote Originally Posted by ADiamond View Post
    Sean, I do have a book started - I am currently in about 15 deals & growing. Also, I have books of a few other people to present which would be better to analyze because of the volume they're doing plus the time they've had to grow their portfolio. The performance is very enticing.

    I would love to get tips from some industry vets sean, you have my email thanks!

  9. #9
    As Isaac said, the money is out there. It's a matter of finding the right fit. There are a lot of snakes out there, just be careful.

  10. #10
    Senior Member Reputation points: 13596 isaacdstern's Avatar
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    There really are, you want someone who will ideally bring more to the table than just capital. Someone who can help you be more efficient so that you can do more of what you do best and not have to stare at the bank account all day everyday worrying that you don't have enough cash

    Quote Originally Posted by MCA UW View Post
    As Isaac said, the money is out there. It's a matter of finding the right fit. There are a lot of snakes out there, just be careful.

  11. #11
    Veteran Reputation points: 135672 Chambo's Avatar
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    Quote Originally Posted by ADiamond View Post
    someone please give me a play by play on how to raise capital whether it be venture cap, angel investors, crowd funding, etc.. for syndication purposes?

    And how different sources would be more beneficial than the other
    CapCall need money?

  12. #12
    Senior Member Reputation points: 52185 ADiamond's Avatar
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    Quote Originally Posted by Chambo View Post
    CapCall need money?
    No Not at all please do not interpret it like that, in fact we're doing just fine. This is a personal venture specifically focused on putting together a fund through my own entity for syndication.
    Anthony Diamond
    Underwriter

  13. #13
    I am also looking to raise capital to invest into lending. What is the best process for doing this? lets say I have $500,000 raised. Is it best to line up with a lender and get the return on there portfolio and pick and choose deals I want?

  14. #14
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    yep, that's it

  15. #15
    Off hand who do you know out there that is accepting capital? I am sure all will, but I would like k=to at least get an idea of what companies would be recommended.

  16. #16
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    ADiamond-I just sent you a PM
    Kevin Henry
    VP-Business Development
    Seacoast Business Funding, a division of Seacoast Bank
    561-850-9346
    Kevin.Henry@SeacoastBF.com
    1880 N Congress Ave., Suite 404
    Boynton Beach, FL 33426

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    Quote Originally Posted by jibarguen77 View Post
    I am also looking to raise capital to invest into lending. What is the best process for doing this? lets say I have $500,000 raised. Is it best to line up with a lender and get the return on there portfolio and pick and choose deals I want?
    If the lender doesn't know you from Adam, you won't get past the receptionist. Everyone wants a piece of the action and capital is easy to come by. You have to be able to add more value to the relationship than just cash. Cherry picking a lender's portfolio for the deals you want to invest in is a pipe dream. Now if you can bring your own deal flow into the mix, then you have a leg to stand on.

  18. #18
    I already work in the industry with multiple lenders so I do have some legs under me.

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    Quote Originally Posted by jibarguen77 View Post
    I already work in the industry with multiple lenders so I do have some legs under me.
    So tell them you want to start syndicating your deals?

  20. #20
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    I believe for syndication as long as you have a good track record you can attract a few million with ease (Cresthill does NOT operate the syndication model). Its more difficult for the smaller MCA firms that want to structure capital with mid to low teen rates.
    Last edited by mcaguru; 01-11-2016 at 05:38 PM.
    Marcus Clapman | Business Development | Cresthill Capital
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  21. #21
    When you say track record, you mean as far as sending in deals to my current lenders?

  22. #22
    Quote Originally Posted by ADiamond View Post
    someone please give me a play by play on how to raise capital whether it be venture cap, angel investors, crowd funding, etc.. for syndication purposes?

    And how different sources would be more beneficial than the other
    We got kicked around a bit on the journey. I hope my two cents helps...

    Angel / Pre-Seed

    1. Have a story to SELL.
    2. If you can't sell a STORY learn.
    3. Have a TEAM. No one funds individuals.

    This gets you to the pre-seed stage. Seed stage ($500k +) you'll need:

    1. Product
    2. Traction
    3. Revenues. Generally $50k per month+ gets these conversations started.


    Crowdfunding
    The new laws are a drag when you break it down... Often times you'll need $100k in legal to get an SEC compliant crowd funding campaign going.

    Targeting investors for syndication purposes seems like a very productive use of time. We'll be actively doing the same soon. Some ideas we are considering to court them are:

    1. A report / book.
    2. Good ole fashioned cold calling.
    3. Well produced and created content.
    4. A clear and compelling edge / value prop.
    5. Automated webinars, etc.

    If you source your own capital, you'll have better control over ownership of your book and will likely also be able to get a lower cost of capital.

    You should also be armed with DATA. This stuff is high risk in nature. Use data to tell the story of your clear and compelling edge. Start compiling that data by making it a habit to never accept a bank statement, rather, pull decision logic. You can download this data later (and refresh bank pulls) and turn it into great visuals. You can tell stories of what types of paper over perform vs. others, what geographies, etc.
    Last edited by YuliyaG; 01-11-2016 at 09:59 PM.

  23. #23
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    Quote Originally Posted by jibarguen77 View Post
    When you say track record, you mean as far as sending in deals to my current lenders?
    By track record, that means you have decent size deal flow and your merchants don't have a high default rate. Some of the funders you work with will allow you to syndicate on your own deals. Keep in mind, your participation will probably be capped to around 20% of each deal so it would take you awhile to deploy $500K unless you have a large client base.

  24. #24
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    I do have a direction for anyone in the mind frame and ability to syndicate over 1M in MCA files. (Let me be clear I am not looking for a syndication partner) I am looking for someone in that frame of mind to chat about somthnig a little out of the box. PM ME.
    Last edited by mcaguru; 01-12-2016 at 11:05 AM.
    Marcus Clapman | Business Development | Cresthill Capital
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    http://www.cresthillcapital.com

  25. #25
    Senior Member Reputation points: 7162 TheShitzuofMCA's Avatar
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    They are all over the place and trying to get into the business. One wealthy private investor will lead you to another one if you can secure the ROI promised. Be careful of who's money your taking like from the Russians. lol I worked for a small lender that used family money and private investors at about a million a month of volume. One guys word of mouth would bring another in and so on and so forth like a money virus. We even allowed the employees to syndicate on deals, soon they brought their families money. I think your local chamber of commerce is a great place to socialize and find investors for example.

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