DealMaker was founded by two securities lawyers who believed there was a faster, more efficient and effective way to raise capital than the traditional “pen and paper” method used by private equity firms. They envisioned a better process without lawyers, investment brokers/dealers and other professional services resulting in high fees, less control over the raise and a longer duration to receiving funds.
In addition to these traditional P/E firms, DealMaker was competing with platforms like Republic, and Start Engine who offered an ‘Amazon’ type service that allows investors to select from an array of companies to invest in, but gives the firm raising capital little control over the size and timing of the raise nor the ability to leverage their own customer base as potential investors.
DealMaker needed to articulate their unique value proposition while building strong brand awareness and revenues to protect themselves against the eventuality of a large player copying their model and entering the market.