Investor-Centric Approach

We offer an alternative to your having to offer large equity ownership positions to obtain the “Series A” capital you seek, often well before you have a chance to demonstrate your company’s true value.

We normally form a Limited Partnership or an LLC to raise the capital you need which:

• 1. Should provide you with all the capital you believe you need to achieve profitable levels of operation and become attractive to potential purchasers or larger strategic partners. This should allow you to concentrate upon growing your business rather than engage in promoting 2 to 3 smaller equity offerings;
• 2. Should also provide Investors with specific preferential returns such as:

  a. A preferred annual return on their capital, paid only out of your company’s available distributable cash flow;

  b. A specified percentage of the cash flow your company distributes to it’s ownership after the above preference is paid;

  c. A preferred return of the Investors’ invested capital from a commercial loan, once the company’s operations are going well; and

  d. Then a reduced – but continuing – percentage of your company’s distributable cash flow from operations and any eventual sale of the company, once the above-mentioned financing has returned all of the Investors’ equity investment.

We have found that this approach provides the investment metrics that should move prospective Investors towards making an investment. This is because Investors like to see that they will have a preferred return on their capital, clear cash distribution preferences, an expectation of an early return of their invested capital, and a continuing share in your company’s success. This deal structure also allows us to project an IRR for Investors, an important metric often used for making their investment decisions.

The advantages of this approach to you, as the company owner are:

• That our approach should greatly reduce the amount of company ownership that you would have to offer to obtain all the capital that you require to reach scale;
• That you can allocate most of your valuable time to growing your company rather than promoting successive smaller capital raises;
• That it should allow you to retain full control over your business plan implementation;
• That you shouldn’t have to change your management team or your Board of Directors to accommodate the preferences or whims of outside equity investors; and
• All up, this approach should help you achieve a profitable level of operations more quickly.

It’s then that intelligent, discriminating investors will have an offering document before them that they can absorb and analyze and then move towards making an investment decision.

Because our Investor-Centric system’s comprehensive information about your venture, investors will be comfortable asking intelligent questions when progressing towards deciding to make an investment.

These important due diligence discussions are the best way by which investor confidence in your business plan and management team is accomplished.

You should note that this financial structure will
easily accommodate additional capital raises,
should you later require more capital to take
advantage of a unique, unanticipated opportunity