Artificial Intelligence & Capital Raising Collide
Artificial Intelligence (AI) has long been used by CIOs to pick out winners both in the public and private investment spheres; algorithms have long been the secret sauce which justify the fees that investors fork out. Many middle- and back-office operations have also been automated with the use of AI. But what about the role of AI in raising capital?
To answer that question, we look at two low hanging fruits:
Tailoring marketing decks
Writing monthly commentaries
Managers take months to put together the content in a marketing deck. Customizing the deck for each meeting is another time-consuming process which is often missed due to the lack of time. AI-tailored decks can unleash your efficiency to adapt to each audience to highlight the most relevant data and tailoring messaging… there’s no denying that a customized deck for HNWIs vs. Family Offices vs. Institutions makes a difference in how likely a prospective investor will go through it from start to finish.
For what it’s worth, investors value CIO insights into market trends and activity in the portfolio, even if they’re receiving 25 of them each month from different Managers and economists. Our data at Capital+ over the past 10 years shows that the most read emails are Manager Commentaries (with/without performance metrics)… not Investment Opportunities “Off-Market Deal: XYZ” and not business development emails “Why you should be overweight on [insert asset class]”.
With the right historical data and with the right prompting, AI will write commentaries that sound just like you. You can also modify writing styles based on the investor’s profile. That same data and AI will also pinpoint the optimal time for your Monthly Commentary to hit each investor’s inbox, and advise you on when to initiate your follow-up email to investors who have been flagged as engaged prospects.
Start with these two things to drive value to where you’re needed most in the capital raising process: the 1:1 engagements with prospective investors.
No more excuses for generic marketing decks and missing Manager Commentaries!