Watching "Banks Gone Wild"? Here's what to do NEXT:
There are consequences to the banking collapse of SVB, you need to get smart about where the money is moving to ....
In case you missed it, the entire world is suddenly glued to the latest reality show “Banks Gone Wild.” It’s basically like every other reality TV show, except in this one, you get to see exactly how rich people act when their billion-dollar PIN code doesn’t work.
This affects you because much uncertainty remains.
After nearly a week of chaos, the spectacle of a banking industry unraveling appeared to ease, at least for the moment, as pressure began to lift on the midsize and regional lenders most in danger.
In the background, some regional banks like First Republic Bank (FRB) received huge bailout packages to shore up their balance sheet and give comfort to account holders.
Here’s who’s NOT getting multibillion-dollar rescue packages: You!
That’s why on Monday morning, I announced an upcoming emergency broadcast I’m hosting this Friday @ 9am PDT about raising capital in the wake of the SVB meltdown… and the response has been overwhelming.
“It’s Been Unbelievably Intense: Winter is Coming.”
Since the official collapse of Silicon Valley Bank (SVB) I’ve been in back-to-back meetings trying to get a handle on what this means for companies just like yours to get access to capital in 2023.
For fans of my work, you’ve heard me talk about the importance of “Winter is Coming” in your pitch.
I think it’s safe to say, without hyperbole, Winter is Here. And not just Crypto Winter or Venture Capital Winter, But full-blown Capital Markets Winter.
Here’s what’s going down out there:
Middle-market banking is getting slammed, which probably describes your situation. You need to think about fundraising in a completely new way.
Investors are dropping out of their commitments to “re-evaluate.” I’m seeing deals get killed that were “done” and supposed to close this week.
“Are they profitable?” is the most common question I’m getting about companies.
Right now, every company CEO that wanted to raise money has got to look in the mirror and ask one question …
Who is going to write me a check for all the cool stuff we’re doing?
Here’s the answer: great investors are everywhere, ready to write checks for fundable deals. And if you’ve been frustrated because you just can’t seem to get your hands on some shiny VC money when all your lesser competitors can (or did)…
Here’s the #1 piece of advice I can give you for raising capital in 2023.
“You need to grab a map of the United States then draw a giant red “X” over San Francisco …”
Now “X” out Boston, New York City and Washington.
What’s even LEFT? $3.7 trillion of “dry powder” waiting to be deployed into deals just like yours.
Read below for details on my call this week, about how to get into that open vein of capital. I’m presenting everything I know about tapping into the still-active money markets.
P.S. Don’t forget to answer the quick survey at the end of this email. I’m going to be making some of my best PAID resources available for free. The survey is to help me understand what would be most useful for you (and our community) right now.
The Big Idea in 60 Seconds
After a decade of access to almost infinite capital at bargain basement rates and lots of market liquidity, companies in need of capital are facing a new reality:
Instead of $50m+ seed rounds that close in a day with no due diligence…
The dead drop collapse of FTX, Silvergate, Signature, and Silicon Valley Bank has struck fear in the hearts of investors everywhere.
The Era of Easy Money Is Over!
And if you’re planning on raising any capital in 2023, the only way you’re going to get any money at all is to agree to unattractive terms and toxic control provisions.
Investors are reintroducing the “2X Liquidity Preference with Participating Preferred” to a deal near you (possibly the worst deal term you can get.)
But what if it were possible to get awesome deal terms and access to active investors?
At the time of writing this, we have 229 people registered for the webinar.
If you’d like to invite someone you know who you think would be interested, feel free to send them the link (but do it quick before I max out).
Because my webinar room has a hard cap of 500 people. Make sure you go here and RSVP before you miss out.
Also, as a special bonus for our Pitch Anything Community, I’m going to be giving away some of my best PAID resources. Check out the list below and click on the one sounds most helpful to you right now.
Want to get access to some of my very best PAID resources for free?
All you need to do is recommend this newsletter to people you know. Let me know which of the following resources you'd want most as an incentive.