Seeking private capital? Here are five things you should know about your investor
Australians are now among the wealthiest people in the world. According to the Credit Suisse 2021 Global Wealth Report, one in 10 Australians is a millionaire, and more than 3000 Australians are ultra high net worth individuals (UHNWIs) with wealth surpassing $60 million.
Pair this information with the emerging trend of private investors as key players in the venture ecosystem and it looks like startups will soon be courting UHNWIs and family offices as a regular part of capital raising.
Having worked with private investors for two decades, I know first-hand how difficult it is to solicit capital from this segment. The first step is to understand what motivates them; the second is to design an investment solution that fits their growth strategy and risk appetite.
Find what motivates private investors
In my experience, both UHNWIs and family offices use a twofold sense check before making a verbal commitment: gut intuition and being able to address the question ‘what is special about this business?’.