Our little secrets as fundraisers
In some industries, including ours, posting lower-than-market prices sometimes sends the wrong signal. Potential clients may wonder if the offer is serious and if the quality is there... And these are legitimate questions, especially when it comes to something as important as fundraising, which is directly linked to the potential growth of the company.
However, at Super Capital, we have decided to lower our prices for a few weeks. To be clear, today and since "always", to be accompanied by a traditional fundraiser (a "merchant bank" if you want to be chic), it costs 15k€ to 30k€ of fixed fee (called "retainer") at the beginning of the mission, whatever happens (and sometimes even much more with some players, up to 70k€!), + 6% of variable (called "success fee") if the raising is realized. With us, it's 8 to 10k€ of fixed fee (only if we have work to do on the Deck and BP documents, otherwise it's 0€) + 5% of variable, that is to say 20 or 25% less than the prices charged by traditional fundraisers.
So how do we do it?
- First of all, we don't have fancy and expensive offices in the 8th district of Paris. Almost all traditional fundraisers have such offices, which cost them 10k€ per month or more... We work at our clients' offices, in co-workings, at home...
- Then, we know how to adapt to our clients and their situation. For example, last month, the head of a beautiful software company came to see us saying "I have already found my investor, he is ready to put 1m€ in my company, but I need you to help me tell him the beautiful story we are going to build together". The traditional fundraisers would have either politely sent this gentleman back to his office and told him that they were not interested, or said "ok, we'll take the mission, and we'll take our 6% variable on all the capital injected in your company, including those injected by the investor you found"...
We told him "ok, let's write this beautiful story together (BP Excel + pitch deck PPT presentation) and you will go to your investor well armed, all alone like a big boy". And obviously, we only charged a fixed fee corresponding to our working time and no variable! On the contrary, we sometimes have entrepreneurs who come to us with presentation documents (PPT and/or BP Excel) of an exceptional quality. Why on earth would we go and redo from scratch beautiful, well done, solid documents, on the content and on the form? To justify a fixed fee? Ridiculous and counter-productive. In this case, we remove our fixed fee and take only a variable fee, only on the capital we find ourselves.
- Finally, we have carefully studied the value chain and the processes of a fundraising. And we have eliminated what seems to us not very useful or even counter-productive. A simple example: we no longer come to investor meetings with entrepreneurs. It's almost useless. Investors want to talk to entrepreneurs, not intermediaries! And that saves us a lot of time. We therefore place ourselves "in the back-office" or "in back-up", to advise the entrepreneur in his relationship with the investor (in addition to making them pitch blank, briefing them before the meetings and advising them on the clauses of the shareholder agreement to be arranged) but certainly not in front of the investor, which can blur the message and defluidify the investor / entrepreneur relationship. On the other hand, it is us who send the files by email to the investors, because they know us and read our emails systematically (they know that we send them only good files).
As you can see, we have a new, simple, pragmatic and efficient approach to the fundraising market. And we also know how to work in collaboration with colleagues if needed.
We talk about it when you want >> send an email