Ep 370: Why and When to Raise Capital For Your E-Commerce Brand With Jordan West

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Businesses need to continue to grow and one of the ways that you can grow faster is by putting fuel in the fire that is your business. E-commerce companies are incredibly cash-intensive so sooner or later you’ll probably need to raise capital.

In this episode, Jordan West talks about when and why you should raise capital for your e-commerce brand. He gives you different ways and different types of raising your capital.

Listen and enjoy this episode!

KEY TAKEAWAYS FROM THIS EPISODE

• The beginning of your business is going to be a very difficult time in the e-commerce space to raise capital.
• Getting investors as an e-commerce company is not difficult but you do need to have an incredible network and you need to build a lot of trust in your network.
• Good investors do not bet on companies; They bet on the people who run the companies.
• Raising capital is not a donation to your company. Investors are buying equity from your company for some future returns. 
• You can start with friends and family.
• Angel Investors are high-net-worth individuals that are accredited investors that will come and invest in your business.  
• The size of angel investment is anywhere from 50,000 to 500,000. 
• You can use angel investors, friends and family, and crowd-funding altogether.
• If you've already built an audience that loves you and believes in you, those are good people to potentially go on the investment side.
• Venture Capital is another great way to raise money.
• Getting private equity is not something that's going to happen until you're doing at least about a million dollars in profit. Wait until you're about 10 million in sales to go there.
• Keeping money in the bank is boring.
• If you aren't active on LinkedIn and you're not building a network, it's probably not the time to raise capital.
• If you've built a personal brand and people know your brand as well, this is the way to go when you're raising capital.
• Raising capital is all about relationships. 

Connect with Jordan here:
LinkedIn: https://www.linkedin.com/in/jordan-west-marketer/

This month's sponsor is Triple Whale.  Triple Whale's powerful analytics platform clarifies your ad performance across channels, keeping you instantly in the know. Hit https://www.triplewhale.com/upgrowth and use promo code Upgrowth for 15% off today.

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PROMO CODE

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We love our podcast community and listeners so much that we have decided to offer a free eCommerce Growth Plan for your brand! To learn more and how we can help, click here:

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In this episode's sponsor is Revenued - is a financial technology company that provides businesses with revenue-based financing solutions. Instead of relying on credit scores or collateral, Revenued offers funding based on a company's revenue. This allows businesses to access capital quickly and repay it as they generate income.

Learn more here: Revenued