How to Raise Capital to Buy an Online Business with Mohit Tater

This episode was brought to you by The Magnolia Firm. Specialty M&A Business Brokerage firm helping business owners sell their company. https://exit.themagnoliafirm.co/top
Mohit Tater shares his acquisitions and investment journey, including growth strategies, revenue verification, and a focus on content sites and affiliates. He discusses raising capital, cap table structuring, and launching Blackbook investments. Mohit explores deal sourcing, negotiation tactics, and lessons learned from failed deals. He addresses investor characteristics, the Multi Member LLC Investment Vehicle setup, and managing investments. He touches on mentors, Webstreet platform, and plans for diversification.
SHOW NOTES:
00:00 Episode brought to you by The Magnolia Firm
00:34 Intro to Mohit Tater - how it all started
03:09 What did you do to grow your first acquisition?
05:21 Do you still use Flippa?
05:36 2nd Acquisition - getting scammed
06:55 What did you learn from getting scammed
07:38 How do you verify revenue
09:29 His focus: Content sites and affiliates
09:55 When he started buying larger revenue site and his first investor
12:01 Formal Pitch or Friends and Family
13:02 Investors ROI over 3 years
14:11 Where he found the deal and revenue numbers
14:50 Conversation with investor to sell
15:19 Deciding to reduce risks
16:20 A deal that did not work out - why it did not work out.
17:34 How he first structured the cap table with investors
18:40 Launching Blackbook investments
20:40 Minimum investment date of deployment
22:11 How many investors he has on his email list
22:47 Types, Size of Deals and On or Off Market & where he sells them
24:22 What he likes to do
25:22 How he negotiates overpriced deals
26:58 Rolling equity
28:05 Proof
28:23 Partners?
28:45 Sell your business Magnolia Firm
29:09 How long did it take to build a list of investors
30:27 What do these investors look like?
31:36 How he sets up the Multi Member LLC Investment Vehicle
33:56 Do investors get dividends?
34:47 How many investments do you current manage?
36:00 Where do you want this to go - what he needs in resources?
38:06 Who is your mentor?
39:38 Why not raise fund - and Webstreet
42:01 Webstreet Fees & value
44:58 How the Webstreet rolling fund decides on deals
46:46 What Webstreet investors expect to see
48:22 Do investors push back on forecasts
48:57 How do you qualify to be on Webstreet
49:57 What about working capital investment?
51:00 How many acquisitions have you made from Webstreet money?
52:43 Plans to buy bigger websites?
53:57 What he needs & diversifying
LINKS to Mohit Tater
www.linkedin.com/in/mohittater/
https://bbi.xyz/
DealFlowSystem: https://dealflowsystem.net/
LinkedIn: https://www.linkedin.com/in/jonstoddard/