What is Capital Coaching?

I am introducing a new service I am calling Capital Coach.

What is a Capital Coach?  Well, the short answer is that it's just like a business coach, except it's limited to issues and activities in raising capital.

The long answer is obviously longer.  All businesses use capital in the conduct of their operations.  Many, if not most, businesses have a need for capital that exceeds what they have.  They can obtain the capital they need by earning it or by raising it. 

I help raise capital for businesses and projects of charities and government agencies.  When I coach, my clients raise the money and I support them with advice, mentoring, analysis, networking, introductions and instruction. 

Even if you have raised capital before, unless you are raising capital using the same type of transaction from the same capital source, you may benefit from coaching. 

Most people are familiar with loans and equity investments from banks, angels and VC's.  These options represent only a small percentage of available options that may not be available or if available are too expensive.  I can show a client alternatives and select the source of capital and type of transaction that will best match their business strategy.

Raising capital has been described as a 'contact sport' - to find a qualified investor requires a seemingly endless list of contacts.  I have been working in the capital industry for 35 years and I am a Director of the Colorado Capital Congress where I am working with other civic leaders to improve the capital eco-system for Colorado.  My network is large and I can make introductions.

I have found the biggest challenge to raising capital is knowledge.  How does one get ready to receive capital? How does one tell their story?  To whom should their story be told?  How does one price their business?  How does one structure and negotiate a deal?  All questions that need to be answered.  I teach methods, techniques and processes for designing, developing and conducting a capital campaign.

Finally, a cash investment is not the only way to obtain capital.  Money can be obtained through grants for research (monetizing the startup), from an exchange of products/services (barter), or from negotiating with vendors or distributors (strategic partnerships), or selling off a secondary market application (licensing).  All of these activities get the job done in securing the resources needed to start and grow a business.  My broad experience in technology commercialization and product development has shown me many ways to obtain capital that are not found in any books.

So, the goal of capital coaching is to obtain needed capital.  Anything and everything that needs to be done to attain this goal may be a topic of capital coaching.