There’s comfort in the crowd

When raising money, a useful technique is to ask Bob for a commitment “subject to”.

Ie: Bob will invest R1mil subject to you finding another R4mil. 

Then when you go to the next potential investor you can say “Bob is in for R1mil if we raise another R4mil”.

Both Bob and the new investor can take assurance that if they invest, they’re not alone.

That gives people comfort.

There’s comfort in the crowd.

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