Compare the different approaches that CapitalxAI takes.

Jan 6, 2024

Announcing that CapitalxAI has signed a partnership agreement with a leading investment bank in New York to expand its technology capabilities as part of its growth strategy.

This strategic partnership supports the bank's growth opportunities to improve its client's investor pipeline, turn potential investors into scheduled meetings, and enhance its servicing capabilities. CapitalxAI is broadening its financial offerings with our suite of investor identification, pitch alignment, personalization, and multi-channel outreach solutions, accelerating fundraising efforts for all the clients of the investment bank.

The partnership, a 6-figure contract, was finalized after a detailed 3-month pilot and stringent testing by the bank. During this period, the entire team of CapitalxAI diligently addressed all concerns and built custom features, which are now integrated into the CapitalxAI product suite. After witnessing successful outcomes, the bank will be integrating all its clients to utilize the advanced AI services of CapitalxAI.

Founded in 1976, the investment bank has a presence in 4 countries, including its headquarters in New York and offices in the United States, France, Germany, and the United Kingdom.

The Forbes Global 5000 company possesses a global network specializing in fundraising strategy, financial modeling, research & analysis, capital structuring, and M&A advisory for a diverse client base, such as funds, deals, private equity, special purpose vehicles, startups, and family offices.

The investment bank offers its services and products through three business units: Investment and Business Services (IBS), Financial Engineering and R&D Services (FERS), and Products & Platforms (P&P).

"We are excited about this strategic partnership, as we believe it will greatly enhance the development of our technology stack and bring benefits to all clients of the investment bank." — CapitalxAI

Benefits & Impact

This partnership will usher in a new era of AI-driven efficiencies for the investment bank, offering unprecedented benefits:

Superior Investor Database: Compared to Zoominfo, Pitchbook, and others, CapitalxAI boasts a more comprehensive database of investors, thereby broadening the scope of the fundraising campaign to ensure no opportunities are missed. Unlike other platforms, we utilize GPT-4 to scan millions of web pages to provide real-time, clean data.

Investor Identification: Beyond simple filter searches, CapitalxAI offers in-depth shortlisting of investors based on their past investments, criteria, minimum check size, minimum revenue requirements, preference for diversity, and more.

In-depth Investor Research: CapitalxAI scans millions of pages to provide innovative insights. Its algorithm ensures that each client is paired with the most relevant investors from an extensive database, which includes VCs, angels, accelerators, family offices, and more. 

Identify Right Contacts: CapitalxAI ensures the verification of emails and LinkedIn profiles while also providing spam and bounce detection services.

Find Common Ground in the Investors' Team: CapitalxAI finds shared experiences between the investor's team and the leadership teams of our clients, startups and companies. This fosters reciprocity with investors by connecting on commonalities like education or past workplaces.

Personalized Email Outreach: Each email is uniquely crafted based on your overlapping areas with the investor. The sentence structure can be customized for each client and each email, showcasing fit in the investor's portfolio. This drastically reduces spam, as only relevant investors are contacted.

Personalized Cold Calling Outreach: The investment bank now relies on CapitalxAI's AI personalization to generate highly relevant calling scripts, turning cold calls into informed conversations. For example, "Hey, I'm calling because I saw that Better Tomorrow Ventures has invested in fintech startups like Caliza and Salsa, which is why I'm reaching out to you about BlueWave."

Proven Email Sequences: CapitalxAI crafts email copies with AI-based capabilities, ensuring multiple variations are generated. It also enforces the usage of templates from past successful campaigns for proven results, with intelligent scheduling of 5 campaigns spanning 5 steps each.

Sequential Outreach: By sequentially sending emails to key executives at an investor firm, CapitalxAI has observed a substantial increase in reply rates, signifying higher engagement.

Mail Delivery Optimization: CapitalxAI optimizes mail delivery through the use of custom domains, DMARC, and warmed-up mailboxes.

Customizable Outreach Tactics: Clients can create a flexible outreach plan to target partners, principals, associates, VPs, angels in any order. We manually find the missing emails for each contact.

The tools we replace

We have replaced various tools, ranging from lead enrichment and investor research to unified communications. Below is a list of the tools categorized accordingly:

  1. Lead Data: PitchBook, ZoomInfo, LinkedIn Sales Navigator, Apollo
  2. Intelligence & Enrichment: Clearbit, Lusha, Sense
  3. Email Validation: ZeroBounce, NeverBounce, Kickbox
  4. Personalized Email Writing: ChatGPT, Jasper AI, Copy AI
  5. Email Warming: Warmbox, MailReach, Snov
  6. Drip Campaigns: Outreach, Apollo, Hunter
  7. Email Tracking: Mailtrack, MailTracker, Superhuman
  8. Unified Mailbox: Spike, Spark Mail, MailBird
  9. Unified LinkedIn: Expandi, Waalaxy, Zopto

Use Cases

The investment bank utilizes CapitalxAI to connect founders and funds with the right investors, partners, and contacts who understand their vision.

Raising Equity: Clients looking to raise equity can use CapitalxAI to find suitable investors. The AI curates a list of potential equity partners based on the startup's profile.

Raising Debt: Companies seeking to raise debt can use CapitalxAI to find appropriate private debt funds, financial institutions, and bond investors.

Raising AUM: To attract more clients, partners use CapitalxAI to connect with High Net Worth Individuals (HNIs), Funds of Funds (FoFs), sovereign funds, and more.

White-glove service to handle AI discrepancies

In Lightspeed's 2023 sales and GTM benchmark report, 75% of companies express interest in using AI-driven solutions for outreach but hesitate due to AI's nuances. We address this by:

- Rigorous manual review: Each email undergoes a thorough review by our investment analyst before sending.

- AI model fine-tuning: We manually onboard each client, adjusting the AI model for their startup.

"Ensuring precision and personalization, we diligently fine-tune our AI models and meticulously review each communication. At CapitalxAI, we bridge the gap between technology and trust."

The problem with outbound

Top founders understand the importance of creating a sense of urgency among investors. Multiple meetings can make investors decide quickly. While warm introductions are helpful, they're often not enough. Successful fundraising is about reaching out to many. This is where cold emailing comes in.

However, many companies struggle with email delivery. Over 40 common mistakes can send your emails straight to the spam folder. CapitalxAI knows how to avoid these pitfalls. We ensure your pitches always reach the investor’s main inbox.

Missing Emails: A Persistent Problem

Another big challenge is the lack of contact details for partners, vice-presidents, LPs, and GPs on many platforms that promise verified emails. Many investors have chosen not to share their emails on these platforms. But CapitalxAI has a solution. Our manual research team scours for these emails to ensure you have the widest reach possible.

"Where technology meets its limits, our dedicated team steps in, manually uncovering investor emails for unmatched outreach." — CapitalxAI

Securing investor meetings through strategic alignment

Entrepreneurs often seek meetings with investors, just as investors are on the lookout for promising startups. However, it's crucial to grab an investor's attention quickly, as your email may only have 7 seconds to make an impact.

Many entrepreneurs struggle to demonstrate how their startup aligns with an investor's portfolio. This can lead to fewer meetings and a decreased sense of urgency and momentum among investors.

The CapitalxAI platform and services can assist you in strategically aligning with investors to secure meetings. Here's how:

- Highlight Your Fit: Emphasize how your startup aligns with the investor's focus areas.

- Address Criteria: Ensure your goals match the investor's criteria.

- Shared Values: Showcase common values and synergies.

- Operational Alignment: Highlight your operations in areas that interest the investor.

- Stage Matching: Ensure your startup is at the right stage for the investor.

- Shared Interests: Discover and mention common connections or interests.

- Leverage Insights: Use information from the investor's articles and news to demonstrate your alignment.

Describing the personalization process

To tailor an email for each client, we perform several steps:

- Twitter: We visit Twitter to build rapport and find compliments that can create a connection.

- Website: We analyze the investor's website to understand their thesis and portfolio, and lead with reasons tailored to them.

- LinkedIn: We visit LinkedIn to get more investor details to show why your startup is a fit and to reinforce the reasons to meet.

By meticulously tailoring our approach using these steps, we aim to maximize the chances of securing valuable investor meetings.

CapitalxAI's advantages

Clients of the investment bank will experience a streamlined approach to raising capital, with benefits like:

- 50% faster deal closure: CapitalxAI expedites the deal-making process, ensuring quicker negotiations and agreements.

- 3x higher investor response: By utilizing AI to target and personalize communications, clients see a threefold increase in responses from potential investors.

- 2x increased meeting conversion: CapitalxAI enhances the quality of investor matches, leading to twice as many productive meetings that result in successful deals.

- Increase investor pipeline: CapitalxAI expands the potential investor base by identifying and reaching out to a diverse and relevant set of investors globally.

- Shorten fundraising cycle: The time required for fundraising is reduced significantly, allowing clients to focus on their core business operations sooner.

- Reduce spam: Only relevant investors are contacted, ensuring that communications are meaningful and not perceived as spam.

- Cost efficiency: Subscriptions to platforms like Zoominfo are replaced by AI's extensive internet research capabilities, leading to cost savings and more effective outreach.

Our mission is to make you successful

Every promising business reaches a point where it must choose growth. Yet, relying solely on operational capital or personal investment isn't sufficient for rapid scaling. Our state-of-the-art technology and commitment to innovation ensure that our clients consistently maintain a competitive edge in the financial world and raise capital to ensure their projects come to fruition.

CapitalxAI is leading the way in transforming the fundraising landscape. Utilizing custom Large Language Models (LLMs) and integrating them with real-time information, CapitalxAI connects clients with a pre-identified pool of 60,000 investors. 

For consultants, investment banks, hedge funds, startups, and financial advisory firms, the current reliance on limited relationships and an inadequate technology stack hamper effective outreach, leading to a lack of client success.

For startups, businesses, and institutions eager to transform their fundraising journey and committed to client success, CapitalxAI represents the future. By outsourcing your entire workflow to our AI-powered investor relations (IR) representative, business analyst, creative writer, and outreach specialist, you can redefine your fundraising process and outreach strategy.

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