What You Need to Know Before Fundraising in 2023: Lessons from 2022
2022 concluded a difficult year for investors: the S&P500 closed out -20% and NASDAQ -33%. Bonds were down -16%, failing to provide diversification, and thus giving the traditional 60/40 portfolio its worst showing in 100 years. Investors suffered from declines in asset values, but it was the high levels of correlation that hurt portfolios even more. 2023 will likely bring about more global recessionary talk and a downturn in the credit cycle, which brings investors back to the basics of risk, return, and non-correlation.
Back to basics we go… after more than a decade of free money.
2023 will bring the same thing for marketing: back to basics.
Going Back to Basics
LPs value authenticity, and you going the extra mile. 2022 was bad for the average investor and there’s no sugar coating it… it sucked. It’s early enough to distribute a 2023 “Letter from CEO”. In spite of your own fund(s) / portfolio(s)’ 2022 performance, try communicating:
How you felt the short-term pain too. Within your own organization, and even in your day-to-day.
Remind investors of the firm’s long-term leadership and evolving strategy which will outlive everyone.
List out what you perceive as potential obstacles in 2023, and how you intend to overcome them.
Remind everyone of the firm’s values, and why you’re staying true to them in spite of further turbulence. You’re walking the talk now when it matters most.
They’ll be happy to hear directly from you.
Speaking of being authentic… that templated Christmas / New Year’s greeting that you’d sent? (We received some from you - thank you). Try a handwritten note with a small, branded gift next time. You can easily find something within the SEC’s allowable limits, yet have it more meaningful + high impact.
The Basics of an Ever-Growing Database & Email Marketing
The game of ratios. More prospective investors, the more you might have in your pipe. But you’ll need quality lead-generation and lead-nurturing via 1:1 engagements and your outbound marketing efforts which are more scalable.
Email marketing is the next step once you’ve built up a following. It enables you to reach your audience no matter where you are. While events, social, ads (SEC-compliant, of course!) and old-school hand-to-hand combat all do their bit in communicating to allocators, email remains the most scalable channel and offers you the most control.
Keep it simple... back to basics to kick-off 2023.