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I think one of the important things is to make
sure they understand their own agreement -now one of things managers do they want
to get up in trading as soon as possible - I have managers company saying I want
to launch this in four weeks, in six weeks that's really very difficult task to do
you have to sit down understand your trading philosophy you want to make sure
that your partnership agreement you're offering memorandum truly reflects what
you're going to do one extra built-in flexibility, you want to make sure you have the
right service providers, you want to make sure that you're able to raise the capital that
you think he going to raise, you know the issue becomes I have many people coming to me
saying "I could raise fifty million dollars without a problem"
well you know what, I typically tell them I hope you're right
but based on my experience the people come and tell me that I'm going to raise fifty
may raise twenty, they may raise fifteen, they may raise twenty five
a lot of it depends what how fast you can launch because people's minds change
over period time
and to help a lot of people just want to say okay I'm committed to you and then
you leave them alone until they have to write a check
one of the things I counsel them on is that you should ask for the largest
minimum contribution that you feel comfortable with
you know when you set up a partnership agreement and say my minimum contribution
is a hundred thousand dollars, people are going to want to bargain and say
can I give you fifty?
if you feel comfortable asking for two fifty, five hundred thousand, or even a
million dollars everybody is going to want a bargain but you'll tend to raise more
capital
these are the things we try to do with our startup managers and let them know
what's available to them let them think out their strategy, really will help
them really get to a successful launch