Find a blue chip investor

The blue chip investor is an investor who, instead of investing a large sum, brings all his credibility to the manager's thesis and validates his ability to keep his promises. Its mere presence, even for a small ticket, will be a force of attraction for other investors.

Investors must convince themselves of the qualities of a manager before bringing them their money. They will only invest if they are confident of getting a financial return, and possibly other non-financial benefits. The manager must strive to forge this conviction, and this task is not easy.

Unlike a commercial company, managers find it difficult to put forward clear metrics to distinguish themselves and convince. They have neither turnover, nor growth, nor technology, nor new markets to conquer... When raising their fund, especially if it is the very first, they will have to defend a thesis, perhaps understanding of trends, and their personal quality. At best, managers have a track record: good investments already made can convince the manager's ability to repeat the feat, especially if they have already been sold with a nice capital gain.

In order to defend the strength of his fund, the manager will have every interest in advancing an authoritative argument, peer confirmation , ie the presence of other investors. The mere presence of many investors is already an argument. But it will be even stronger if there is a blue chip investor in this cohort . This is an investor with a special aura, through his experience and his own qualities.

The blue chip will be a major piece for managers to display in the array of arguments. When a great chef praises the merits of a kitchen, customers will easily flock to the restaurant. Giving all their confidence in the judgment of a specialist, the investors will be convinced, beyond the fine speech presented by the manager and the compliments that he addresses himself.

Who are blue chip investors?

The best blue chip investors are funds of funds, because they are professionals accustomed to investing in funds. Unlike insurers or pension funds, which also regularly invest in investment funds, their job is to evaluate investment funds: they have precise knowledge of the managers, their capacity, their history, etc. They know how to sort out the good from the bad. Their investment will be a major marker for other investors. They will be reassured. They can almost content themselves with this investment to forge their conviction, thus lightening the work of the manager.

Unfortunately, funds of funds rarely invest in first - time fund managers . Most have a strict policy of not even studying their fundraising. They need a track record established for this same management company, without even looking at the possible past of the managers in another management company.

Failing to have a fund of funds among its investors, managers raising their first investment fund can look for experienced profiles. Any individual with investment experience will have a special aura: investment banker, experienced investors, entrepreneurs… Young managers can look for individuals working in a fund of funds.