1. Fund Managers Receive Wide Exposure to Relevant Investors in a Shorter Amount of Time
Problem: Getting personal introductions to investors can be tough, and using incomplete databases and spreadsheets to directly email investors is time consuming. Raising capital is never easy, especially for first-time fund managers. And when managers turn to cold calling and emails, the response rate is incredibly low as investors typically prefer warm introductions from colleagues and peers.
Solution: Managers of venture capital, private equity, and hedge funds post their fund profiles and relevant details on the DarcMatter platform while being able to control who is able to access specific offering information. By doing so, fund managers receive instant exposure to investors nationwide, ranging from individual accredited investors and financial advisors to family offices. As these investors are on DarcMatter to specifically source alternative investments, fund managers can get in front of the right investors more effectively and quickly.
2. DarcMatter Helps Fund Managers Save Money on Fees
Problem: Many funds, especially emerging managers, hire placement agents to help them raise capital. Unfortunately, these services are costly. Typical placement agent and broker-dealer fees are calculated as a percentage of the total capital commitments introduced by the agent. Traditionally, placement agent fees range from 2% to 2.5%. To put things into perspective, a 2% fee on a $100 million raise will result in a $2 million fee incurred by the fund.
Solution: Fund managers on DarcMatter do not pay a fee on the total dollar amount raised. Instead, fund managers simply pay an upfront monthly subscription fee. While DarcMatter does not provide some of the ancillary services that placement agents provide, such as drafting offering materials and advising terms and conditions in fund agreements, it provides a technology solution that enables issuers to self-administer raises, enhance exposure, and facilitate connections with prospective investors.
3. Fund Managers Save Time Using DarcMatter
Problem: Attending cap-intro events and road shows are time consuming. Managers spend time and money on travel costs, tickets to cap-intro events, and road shows. These tactics may provide funds with a few good investor leads, but there has to be a better, more scalable way to achieve this in a shorter period of time.
Solution: While capital raising for fund managers has mostly been left to traditional methods, both investors and fund managers are using technology to better access, engage, and communicate with one another. DarcMatter allows funds to get in front of investors online instantly, saving time and allowing fund managers to more efficiently manage their capital raises.
DarcMatter is a technology platform providing enhanced capital connectivity between issuers and investors in the alternative investment space. Visit DarcMatter.com to start raising capital or get transparent access to alternative investment opportunities.Visit DarcMatter