This week I shared the stage with the Green Leader Bob Brown at the 10th Australian Sustainability Awards.
Ethical Investment was why everyone was there apart from the excellent menu which featured organically grown fare.
Paddy Manning a journalist with the Sydney Morning Herald reported well on it, picking up on my phrase “It takes passion to invest”. Read the Article here.
And it does. Not just for Ethical and Socially Responsible investment but for all early stage investing.
Investors in the first two rounds are usually friends, family of fans of the business and they are true believers. They are primarily investing out of their passion for the entrepreneurs building the business.
All capital raisings go through stages. Even those in Ethical Investment. Usually these stages are called rounds. In the first round there needs to be a “first follower”. Just like the guy in the video over to the right called the “Shirtless dancing guy”
The first follower is usually filled with passion. And the second and the third and subsequent followers. They passionately believe in the entrepreneur and intend to put their money where their mouth is. Building the Ethical businesses of tomorrow.
This passion though needs to be developed and nurtured. During an ASSOB capital raising this nurturing starts with a “Discovery Meeting”. It is here that the capital raising story is developed and who the story will be told to. Over a period of time a the information flow communicated to potential investors will gather a band of loyal followers in the capital raising. Once the offer document is complete it is always an anxious wait to see who is the first follower. Once the first follower steps up “Social Proof” begins to be built and other followers soon follow.
Building and nurturing passion is essential for successfully raising capital for Ethical Investment and Small Business funding.