I’m giving a talk next month on “How Private Equity Funds Raise Capital and Source Deals with Social Media” at Terrapinn’s Private Equity Latin America & Real Estate Latin America conference in Miami. I discuss this topic in more depth in an earlier article I wrote.
Here’s my draft presentation:
I argue that social media is pertinent throughout the 6-step investing cycle:
|
Investing Cycle |
Sample Uses of Social Media |
| 1. Raise capital | •Identify value-added potential investors & find a path to them; Solicit past investors in both your prior and comparable funds |
| 2. Originate investments | •Identify and reach out to relevant people & companies; Become a magnet for investment opportunities |
| 3. Due diligence | •Review professional and personal lives of management; Talk with firm’s network: customers, competitors, suppliers |
| 4. Negotiate deal | •Gain insight into counterparty’s negotiating style, motivations |
| 5. Improve operations | •Recruit “A” performers; Accelerate sales and marketing |
| 6. Exit investment | •Identify and more effectively negotiate with strategic acquirers |
Among the topics I’ll be discussing:
– the few private equity funds using social media (MCM Capital, Healthpoint Capital) — the list of VC funds using social media aggressively is too long for me to list here;
– the major gated online communities for early-stage investors, including AngelList; OurCrowd; FundersClub; Gust; SeedInvest
– the major gated online communities for private equity investors: Association for Corporate Growth; Axial; IntraLinks (MergerID, PE-Nexus); MergerMarket; SecondMarket; etc.;
– companies trying to make the process of raising capital for funds more efficient: Meyler Capital; Palico ; SecondMarket; TrustedInsight; etc.;
What else do you think I should discuss? Have I missed any major players in my lists above? Do you know of any Latin American funds specifically who are using social media successfully?
Terrapinn’s Private Equity Latin America & Real Estate Latin America conference takes place on June 17th-18th at the Four Seasons, Miami. Keynote speakers include David Britts (Managing Director, Co-Head of LatAm Private Equity, Gramercy) and Jean Pierre Lacombe (Chief Economist, Global Markets, The World Bank) . For more information visit the conference site.
(I previously published this at Forbes.)
