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Loud and Clear – April 1st, 2021

How PDGP Fund I raised $1.4 bn using on social media

 

Not to flex, but our clients are so extra.

I’m just here to spill the tea on the oversubscribed first and final closing of Poisson, Davril, Gowk & Partners LLP (“PDGP”) Fund I (“The Fund”), above target at 23,800 BTC. This is the current equivalent of USD 1.4 bn (obviously, we hope this will have risen, by the time you finish reading this paragraph.)

We did the whole thing on social media; it absolutely slapped.

As background on the new fund, it will use its proprietary deal origination to invest for control positions in mid-market industrial businesses in the American Mid West. MJ Hudson acted as legal adviser and investor relations adviser and has been appointed administrator. We are the CEO of fund stuff.

You may be thinking about raising funds on Facebook or picking up tickets on Twitter: after all, if you are a regular reader, you are anything but basic. I therefore thought it might be helpful to walk you through the process we went through for PDGP.

In the rest of this article, I’ll cover everything you need to know about orchestrating a fundraise on social media:

1. Appropriate domicile
2. Fundraising outreach
3. Due diligence and reporting
4. Lessons learned

1. DOMICILE

Most jurisdictions (with some notable exceptions) are traditional, in their approach. When PDGP came to us with the idea for their new vehicle, we saw this as an opportunity to try something different and domiciled the fund on a custom anarchy Minecraft server with sophisticated griefing protections (at invest.jurisdictioncraft.xyz). Prospective investors were whitelisted for the server and subsequently forced into spectator mode, upon the first and final close (to protect their limited liability status).

2. FUNDRAISING

Initially, the plan was just to slip into prospective LP’s DMs on Insta, but we got shadowbanned (appeal is ongoing) so we quickly moved to “plan b”. In less than 2 weeks, we completed investor outreach, managing the entire process through a combination of LinkedIn connection requests and InMails.

3. DUE DILIGENCE AND REPORTING

The data room was hosted on Fortnite with onsite due diligence conducted during Llama-Rama, a Rocket League / Fortnite cross over event, with live music performed by LA-based producer and EDM star Slowpalace, featuring tracks from his latest EP.

Reporting for LPs that pass the vibe check is managed on TikTok, with investors able to access quarterly reporting through their For You page.

4. LESSONS LEARNED

Take everything you read on April 1 with a pinch of salt…

Sorry, that was a pretty obvious April Fool (or poisson d’Avril, in French, of course). If you need help deciphering the social media argot in the previous paragraphs, do let me know. And if you need advice on structuring, domiciling, or administrating your fund, hit me up and I will connect you to the right people in MJ Hudson.

You already know I can help you with marketing and investor relations, right?


If you have any questions, please contact Matthew Craig-Greene, using the details below.

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