Investment bankers... raising money

Hypothetical:

I have a system that yields great results.
I have enough proof to validate the system's claims.
I have everything in order and ready to go.

I just need capital.

I was speaking with a colleauge who is also a trader. He has a system and was talking about a contact he has that has given him a small account to forward trade his system on. This man has raised a little over 10 figures in the past few years for funds such as this. I doubt I can get the name of this guy out of him, so where do I start?

Assuming I'd have EVERYTHING someone raising capital for a company like this wanted, where would I go? I did the sales thing... I'm not looking for any small investments; I'm looking to move this into a much larger operation and just need a little help.

If someone has a contact I would really appreciate it. I'd also appreciate some information on how these guys make money. % of the fund, or whatever...

Thank you
 
Trade the smallest size you can, get rated by the hedge fund tracking companies. The money will find you if you are good.
 
One thing I've been trying to avoid is specifically opening up a hedge fund. I really haven't had the time into looking at legal entities and structure. Can a regular corporation be involved or something like this or would it definitely have to be a standard hedge fund?
 
I checked into it a little and if all your investors are within the same state a lot of SEC rules do not apply. If there are only a few investors then some rules do not apply either. Corporation, schedule c so capital grows without being taxed until someone withdraws it.

I have to reasearch this some more.
 
Quote from Hook N. Sinker:

I checked into it a little and if all your investors are within the same state a lot of SEC rules do not apply. If there are only a few investors then some rules do not apply either. Corporation, schedule c so capital grows without being taxed until someone withdraws it.

I have to reasearch this some more.

Even if you are trading through a corp, you have to pay taxes on your earnings each year.
 
Quote from just21:

Trade the smallest size you can, get rated by the hedge fund tracking companies. The money will find you if you are good.

How they can find out about your performance for you to get
ranked? i mean are there services in any way that cater to
smaller account holders?
 
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