The Impact of the JOBS Act on Relationships
The SEC’s recent ratification of the JOBS Act will decrease the importance of relationships in one's quest to source capital.
And recognize that I said, “decrease,” not eliminate.
Freedom to market alternative investments is going to teach those who chase capital that they can do a lot of things to source capital themselves, and that they don’t have to rely solely on people with magical relationships with investors.
Marketing will demystify the capital procurement process. It will be more process-oriented and less subjective. If you are systematic and invest in the process (which will quickly become 10x more than you currently invest) capital will consistently appear.
That said, you'll still want to call the guy who can deliver 100 million after a round of golf.
By Kyle Dunn