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There’s comfort in the crowd

  • By Alan Knott-Craig
  • May 18, 2021

When raising money, a useful technique is to ask Bob for a commitment “subject to”.

Ie: Bob will investment R1mil subject to you finding another R4mil. 

Then when you go the next potential investor you can say “Bob is in for R1mil if we raise another R4mil”.

Both Bob and the new investor can take assurance that if they investor, they’re not alone.

That gives people comfort.

There’s comfort in the crowd.