Raise After Personal Investment

Michael Girdley shares his perspective on raising capital for businesses, emphasizing the importance of personal investment and ethical fundraising practices. His approach centers on maintaining authenticity and credibility when seeking outside investment.

Key Points:

• Personal Investment Philosophy:

  • Only raises money when putting in substantial personal funds
  • Feels "yucky" about raising money without personal investment
  • Puts a "substantial amount of net worth" into new ventures

• Investment Strategy:

  • Typically invests "couple million" in new ventures
  • Some investments range from "50 to 100k"
  • Uses personal investment to limit over-expansion
  • "Skin in the game matters"

• Fundraising Approach:

  • Syndicates deals with other people when needed
  • Will raise external capital only after personal investment
  • Uses personal investment to validate belief in the venture

• Decision Making:

  • Personal investment helps focus on quality opportunities
  • "Better really believe in it" when putting up real money
  • Uses financial commitment as a filter for opportunities

• Partnership Structure:

  • Maintains significant stakes while including others on cap table
  • Claims "100% success rate on partnerships"
  • Prefers co-founders who also invest their own money
  • Values partners who make the business "their job"

This approach has helped him build credibility and maintain strong partnerships across multiple ventures while ensuring he remains selective about opportunities.