Raising Money from Customers
Sample Letter Soliciting Investment from Customers
Loyal customers can be a great source of investment funds for growing companies. Here's a sample letter asking customers to invest in a financing round.
If you customers believe in you, why not ask customers to invest in the company?
It's very common for well-to-do customers to actively invest in the companies they patronize. If you need money to fund company growth, it's worth a try, don't you think?
How to Ask Customers to Invest
To give you an idea on how to ask customers to invest in a company, here's an email I received from a local business in Chicago that is looking to raise money. I've pulled out the specifics so you can reuse it and in order to keep the company's information private.
Dear Ken,
Over the years, we've developed a good relationship - one founded on a common appreciation of the concept of [company name].
As you've seen, we have grown our business by following our philosophy of [explain company differentiation]. We pride ourselves with our excellent customer service and superior customer experience and believing the [key message here]. And we appreciate you as a loyal customer.
Opened in [year founded], we are in an exciting growth phase and are in the process of raising a round of financing to [what you will do with the money]. As many of our valued customers have expressed interest in becoming a part of our company as it grows, I am reaching out to you.
If you are interested in joining a limited, private placement group please contact me at [contact information here].
This is a rare opportunity to become part of a growth company in a booming industry.
(Note, [company name] isn't a publicly traded company and its ownership isn't a registered security)
Regards,
[Owner name and title]
Be Sure You Follow the Rules for Raising Money
There are numerous laws and regulations regarding how to raise funding for a company. Make sure you have good counsel and are raising money correctly before you tap customers for an investment.
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Are you going to ask customers to invest in a company? If so, what questions do you have? We welcome all comments, questions and advice from experts on the topic of raising money from loyal customers.