As one investment banker relates his story: "We were introduced to two firms requiring private equity. They chose us because we had raised capital for the legendary Richard Waryn. So, our reputation preceded us.
Both of these firms initially were thinking small; one was aiming for $10M, and the other for $500M. As you probably already know, it's much more difficult to raise $10M, than it is to raise $100M. After we were done talking, the $5M turned into a $100 M development-acquisition fund, and the $500M turned into.... well, a $4B expansion fund. Both numbers are justifiable."
Your job as an investment banker is to embolden the founder of the investee company. You are to make him see the Biggest Picture possible. Nothing gets you in a founder's good books faster than wanting to champion his vision, which you helped create. In order to do that, you must know everything about his company, industry, competition, and most importantly his career path.
It's very much like selling real estate. A home must be priced right, must show well, and be located in the right location for the right buyer...and you had better be in good terms with the home owner. Your investee company must be priced right, show transparency well, and be in the right sector for the right investor. And you must feel like two peas in a pod with its founder.
Now you must prep the property. How to showcase an investee company is the topic of another discussion.
#1 Rule of 52: Have Titanium Steel Balls (or Ovaries, as the case may be). You'll need them to convert the founder to think Big. Internalize this.
