The Era of Equity Marketing¬ has arrived. It is no longer "best practices" to mine your Rolodex in order to spam a confidential business proposal to just any private equity investor. Like customers for products, investors too must be targeted more directly for everyone's benefit. The CEO's personal brand and the success of the fund raising effort depends on it.
So while the entrepreneur carries the responsibility of more precise "target marketing", the investor also carries the responsibility of "Capital Marketing" the counterpart to Equity Marketing¬. Just like Visa and MasterCard communicate their unique position and value proposition to the market, so must private equity investors. Companies can use the investor's investment and referral channel criteria to reverse engineer an equity sales channel to the equity customer, just like in product markets.
Equity Marketing Framework:
CEO Faces 2 Nested Marketing Problems
VenLogic provides several innovative programs designed to educate and assist executives in designing their Equity Marketing Plan that sizes and segments the private equity market. This criteria drives the design of Equity Sales channel maps described in Step 5a below. Venture Assessment Tools are the first product that provides more information on this topic. Equity Marketing programs are available through a consulting relationship and will be productized in the future.