Cracking the Code: Three Strategies for Investor Conversion Success

Fundraising can be a tough nut to crack. There’s a whole squad of investment firms out there hustling, trying to find new ways to meet those sky-high investor expectations and get that funding flowing faster.

Now, if you’re reading this, chances are your fundraising journey isn’t going exactly as planned. But hey, chin up! There’s a secret weapon you might not have considered: technology. 

And you know all those fundraising headaches? Most of them are caused by human errors— over 90% of them! But here’s the real deal: technology can swoop in and save the day, wiping out those pesky errors.  The firms that have jumped on this tech train have a significant advantage.

Shedding Light On The Investor Journey

An investor journey is more than just the sequence of steps an investor goes through to invest in your offering. It’s about the whole experience they encounter along the way. Picture it like a two-part story: the pre-raise phase and the post-raise phase.

• Pre-raise: This phase kicks off with your first interaction and ends when your investor deposits funds. The goal? Get them to invest in your current offer.
• Post-raise: Once the funds are in and the investment is complete, it’s about keeping your investors happy (Fun fact: existing investors are four times more likely to invest more if they’ve had a positive experience.)

That said, mastering both phases of the investor journey as a general partner (GP) is absolutely crucial. Just so you know, your investor journey has to address these basic questions: Who are you? Can I trust you? Do you really understand what I need? And most importantly, should I invest my money in your offering?

Once you’ve snagged that verbal yes, things start to get a bit more complicated. The steps you’ll need to tackle from here on out can vary wildly depending on the firm and the types of investments you’re dealing with.

And let’s face it, each of these steps can sadly drag on for weeks or even months. Remember the old days? You’d be mailing documents back and forth, crossing your fingers that everything got filled out. And let’s not even talk about the endless phone calls to make sure they had everything they needed. If you were lucky, your investor didn’t throw in the towel out of frustration. 

But hey, times have changed. Now, we’ve got technology on our side to digitize the whole process!

The ideal investor journey nowadays is like having your own superstar salesperson and relationship manager rolled into one. It’s like having a tireless advocate for your offering, working round the clock to seal the deal, while also being your go-to guide and leading investors through every twist and turn of your sales funnel. Plus, it’s all about forging those deep, meaningful connections that keep investors coming back for more. 

You’re looking at hyper-productivity, sky-high conversion rates, bigger investment amounts, and investors lining up to throw money your way. Now that’s a win-win situation!

Optimizing The Investor Experience

Clarity is key, now more than ever, especially when it comes to your investor journey. Now, when it comes to creating a seamless experience that converts like crazy, there are two big questions you gotta tackle: 

• What does an investor need to do?
• What does an investor need to feel?

Now, the specifics of your investor onboarding process will totally depend on what you’re offering. So, before you dive in, take some time to jot down all the necessary steps. How will they sign those subscription documents? What’s the plan for processing payments? How will they send over those all-important ID documents for accreditation checks? So and so forth. 

Once you’ve got your list, it’s all about dialing into those vibes. Picture every step of the journey and how you can jazz it up with things like cool interface designs, timely pop-ups, friendly notifications, or hey, even a good old-fashioned follow-up call. It’s all about keeping that trust train chugging along smoothly.

Remember, building trust leads to more investments – it’s as simple as that.

Creating a Seamless Experience

With every step of your onboarding process, your investors are basically playing the “Did I make the right call?” game. And here’s the reality: they’re sizing up your firm based on looks before they even get to know you. So, it’s absolutely crucial to set the stage with a vibe that’s comfy and building that trust right from square one. ‘Cause let’s be real: a wonky website or a clunky platform screams “We’re clueless about tech,” and that’s not the vibe we’re aiming for, right? So, keep it simple, and seal the deal with just the click of a button.

Now, if you want to make your investor onboarding a breeze for everyone involved, here are a few best practices to swear by:

• Cut down on the number and complexity of steps: Each step is a chance for your investor to bail, so make sure every step is straightforward and easy to understand. Simplify your procedures to reduce any confusion or annoyance for your investors. Always remember that simplicity is crucial in keeping your investors interested and dedicated throughout the process.

• Spruce up that user experience: You don’t need to reinvent the wheel here—just make sure your investors feel right at home with familiar design. Take, for example, a DocuSign study that found adding a reminder to an e-signature request made it three times more likely to get digitally signed. Additionally, consider incorporating interactive elements and intuitive navigation to enhance user engagement. Providing clear instructions and prompts can further guide investors through the process seamlessly, reducing any potential friction points along the way.

• Make your information crystal clear and easy to digest: When it’s time to get your message across, you’ve got choices. You could whip up a sharp document, craft a killer presentation, or put together a captivating video. The key? Keep your audience glued to their seats from beginning to end.

Sure thing! While this list covers some key points, remember, it’s just scratching the surface. And if you’re hungry for more tools to enhance your investor journey, consider checking out WealthBlock. It’s the top-tier white-label private capital-raising platform, promising to take your capital raising efforts to the next level.