1st - You've launched the fund!
The fund has seed capital or friends and family.
** Game On ** â âł
Focus on a more important matter >> Prioritize the # of investors over dollars invested <<
Initially measure your success by how many investors have chosen you... NOT đ« dollars raised, AUM âŒ
Now for the math:
You convince 5 investors, each gives you $3 mm. đ
>> The typical fund investor doesn't want to be more than 20% of your AUM. If you have $15 mm in seed capital, 20% is a $3 mm allocation per investor. So those 5 investors give you $15 mm. They can top up...
Your AUM is now $30 mm. You doubled!
>> You call all your prospects. Tell them about the 5 investors you are helping, tell them the impact stories. You get 5 more investors. BUT now a 20% allocation is $6 mm per, so you add another $30 mm.
You've got 10 investors and you are at $60 mm AUM. Another double. âŸ
>> You call your original investors to tell them about the new 5. The original can now top up. 20% on $60 mm is $12 mm so those original 5 who were at $3 mm can go up to $12 mm each. Another $9 mm each which adds $45 mm.
You're at $105 mm in AUM.. ( The magic đ threshold! )
From 10 investors...
And those original 5 at $3 mm started it all
Why... Because you focused on the right thing - # of investors
You've crossed one of the most important AUM milestones đ đ đ
Remember the why ⏠Use # of investors, not $ raised
Your investors will grow with you #growth đ
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