Get Investment Dollars Fast and Easy from Angels and VC’s
Posted by James Scott | Filed under Writing & Speaking
Structuring your company should spearhead your capital raising initiative. Make sure that your corporate layout is conducive to creating and retaining investor and venture capitalist attention. You should have a solid and elite executive team composed of the best of the best that your industry has to offer and if you can’t attract those in the upper echelon of your business genre, you need to take an active approach to branding them as experts using on and offline PR campaigns labeling yourselves as industry experts who are innovating industry changing solutions. Create a stir, be controversial (but not offensive) and be ready to back up your stir with empirical evidence of your knowledge and success. You should have an advisory board and board of directors composed of industry specialists. Each individual should represent a forte that makes investors start to salivate when they are reading the bio section of your business plan. They should be able to contribute with contract negotiation, strong alliance introduction capabilities and more. When choosing professionals to fill the void of advisor and director positions you should think in terms of corporate ‘growth’ and ’stabilization’.
Next you want to make sure that your entity is prepared to receive debt and/or equity capital. You’ll need a solid business plan, don’t write it yourself, you’ll only hinder your ability to raise capital. Call a professional to write your strategic business plan. Next you’ll need a way to distribute equity or debt shares, a Private Placement Memorandum is the most common mechanism for helping companies raise capital quickly and easily while staying within the regulation guidelines of the SEC. Your PPM must be written by a professional to deliver the ultimate protection for your company while simultaneously spelling out the technical intricacies of your business to the investor.
Now that your company is structured properly, you have a business plan and a PPM, you are ready to start raising capital. Your first call should be to a corporate turnaround consultant with an arsenal of global funding contacts composed of all the necessary contacts such as: venture capital firms, private equity firms, angel investors, private investors, accredited investors, structured finance firms and so on. This turnaround consultant, if they are part of an established firm (always use a small boutique firm if you can find one, they are much more affective and one on one than the larger firms and tend to get the job done quicker without the headaches) they will have a service call and ‘Investor Finder’ service. They will reach into their gargantuan bag of contacts and give you so many funding options your head will spin, thus, making your fund raising efforts fast and painless.
Now that you achieved your first round of fund raising it’s time to get serious. Yes! It’s time to take your company public. Stay away from Pink Sheets and Reverse Mergers, you’ll only regret it. If you are a smaller business or a startup, your best bet is the OTCBB. Go back to your turnaround consultant and have them start putting you through the sec audit, sec registration, FINRA registration and Market Maker joint venture and S1 filing. They should be able to handle the entire ‘going public’ process for you and in 4 to 7 months, you’re public and trading.
Be sure to take advantage of the multitude of strategies to capitalize off of your securities. Remember there are many ways to capitalize off of your shares, selling shares through your market maker, continuously engaging in heavy PR to stabilize and enhance your stock price and another way that many entrepreneurs don’t consider as an option when raising capital, the almighty hedge lender will can lend your company money against your collateralized securities. Yes! Use your stock as security for financing. After you pay off the loan, line of credit or lease you get those shares back (be sure that your lawyer audits your contract with the lender to keep away from any convertible stock clauses). So now you are raising capital by selling stock as well as the ‘on demand’ loan or loc concept of security backed lending.
Congratulations! You’ve just completed ‘Real’ corporate finance 101! Now get out there, put your company together and start raising the capital you need.
For Corporate Consulting or Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: 502c, 504, 505, 506, investor finder, offering memorandum, ppm, ppm offering, Princeton corporate solutions, private placement memorandum, reg d, regulation d, take company public, Writing & Speaking
PPM Offerings: The Right Way To Raise Capital Quickly!
Posted by James Scott | Filed under Business
Entrepreneurs are being turned onto Regulation D in droves. Regulation D Rule 504, 505 and 506 allow companies a more lenient fund raising process than those who choose to go public by other means. In the past year I’ve seen more PPM consultants pop up on the internet than ever before and I have to admit I’m concerned. As a veteran in this field I’ve seen it all, now we have a legion of self proclaimed Reg. D gurus who buy templates, add some text and tell their clients that they are delivering a customized offering memorandum; here’s where things go bad and a difficult situation gets even worse. You have this worthless document, now what?
You need to gain the confidence and capital of accredited investors without soliciting as dictated in Regulation D Rule 502c. Now you have a worthless document that you can’t solicit investment capital for (which your guru consultant never told you but took your cash anyway) so how are you suppose to raise funds for your company? First, you’ll find that you’ll eventually need to make your way to an actual PPM author, not a broker so that you can get a PPM that protects you from lawsuits and gives the investor a real breakdown of the upside and downside of your business.
Next you’ll need to find a “Investor Finder”, yes this is an actual term for an individual or corporate entity that is completely submerged in the accredited investor realm and is able to match your opportunity with friends that he/she has in their database of real, accredited investors. This is the second half of the PPM equation.
Don’t kid yourself and don’t allow yourself to be lied to; you’re going to need a seasoned professional to help introduce you to investors that have the capital to help you get to where you need to be. Friends, family and employees will commit to investing in your company until your PPM is completed and it’s time to make good on their commitment; all of a sudden little Johnny needs braces and Sally is in the hospital with pneumonia, this happens all the time. Now what? With a real Private Placement Memorandum and a solid Investor Finder you’re problems are basically over. Investigate where the author and I.F. stand in the Internet public domain and after you find a company that meets your needs, get moving and start raising capital.
The internet tells all when it comes to reputations, you’ll be able to tell the difference between a seasoned veteran and a startup consultant after on Google Search and a phone call. A PPM can make raising capital quick and easy if you have the right firm in your corner.
Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: 502c, 504, 505, 506, Business, james scott, offering memorandum, ppm, ppm offering, Princeton corporate solutions, private placement memorandum, reg d, regulation d
Private Placement Memorandum: What You Need To Know About Offering Memorandums
Posted by James Scott | Filed under Finance
With the downturn in the economy and banks holding on to the bailout money they were supposed to be lending that was meant to stimulate the economy, the entrepreneurs are once again, thrown to the wolves.
Now there are self proclaimed ‘guru’ consultants popping up on the web who are reselling private placement memorandum authoring services. It’s unbelievable to think that a company will spend $5,000 to $20,000 with an absolute amateur who doesn’t know the first thing about a PPM or the legalities of this document that can lead to the client getting sued by investors down the road.
Who is looking out for the client? Sadly, no one seems to be looking past the almighty dollar and actually trying to help the entrepreneur succeed in raising the capital they need to grow their business which will lead to job creation and stimulating the economy. If you’re a business that’s trying to raise capital here is some advice on how to prequalify a Private Memorandum service to find out if they are truly the author of your document or if they are simply using a template that will get you burned down the road or if they are simply taking your money and outsourcing the service to another group that has no real compression of this intricate document.
Ask them, in a stealthy way, to define these basic terms that are simple for anyone that does this for a living. What are Blue Sky Laws and how does that affect you when you’re raising capital? What is and do they include a complete state legend with your PPM? What is the difference between accredited and non accredited investors and how many of each can be used with each of the 3 types of PPMs?
What type of solicitation laws does the SEC have in place for a company that is fund raising with a PPM? How can you prepare for due diligence before the PPM is completed and in the hands of investors? These are just some of the most basic questions that will give you a feel for how well the consultant you are speaking to truly knows this industry. Always get all your questions answered before going with a consultant in this industry. Never go with a pushy consultant and always remember, the best Regulation D (Private Placement Memorandum) consultants will answer all your questions without up sells or ‘hurry up because this is a limited time offer’ mentality. The SEC created Regulation D exemptions (PPM) to help companies raise capital in a streamlined, simple way and this is an incredible method for any business to raise a little or a lot of money. Find the right consultant that includes everything in one, cost effective bundle and you’re on your way to getting the cash you need for your expansion objectives.
Trying To Raise Capital Fast? Call us at 267-233-0183 to get more information about Private Placement Memorandum, Princeton Corporate Solutions can write you an Offering Memo
Tags: Finance, investor finder, investor finder service, james scott, offering memorandum, otcbb, ppm, Princeton corporate solutions, princetoncorporatesolutions.com, private placement memorandum, take your company public
Want to Take Your Company Public? How To Go Public Easily 100% of the Time!
Posted by James Scott | Filed under Finance
There are many ways to use capital without using bank loans, lines of credit and other shady methods like shelf corps and bogus platform scams. If you are truly trying to raise capital for your company here are some simple breakdowns of your options with a quick definition for each one:
PIPE: Private Investment In Public Equity this is used primarily by mutual funds and private investment firms where they buy discount stock in order to raise capital, there are two types of PIPE’s traditional where common and preferred stock is issued at a set cap to raise money for the issuer and a structured pipe issues convertible debt.
DPO: Direct Public Offering is when you sell equity shares directly to customers, suppliers and employees.
PPM: Private Placement Memorandum is also known as an offering memorandum takes advantage of Regulation D rule exemptions 504, 505 and 506. This process came into existence with the’33 securities act and popularized in the late’80s, companies can raise money from the public via private placement; there is virtually zero interaction with the SEC after you file form d as long as you stay legal. (most popular form of fund raising).
IPO: Initial Public Offering: extremely expensive, need SOX 404 audits, must have board of directors, quarterly financial reports to shareholders, report heavily to the SEC and 1 out of every 1000 companies that want an IPO actually qualify. I love participating in these but most companies just can’t qualify for one reason or the other.
OTCBB: Over the Counter Bulletin Board is an electronic quote system that is the next best thing if you can’t go public via IPO, there is minimal red tape to start-ups and small businesses and is legitimized by the stringent ongoing reports to the SEC which keeps investor confidence high (these are extremely solid and I suggest this structure to companies when I am hired by their company or legal team as a consultant as a fast, easy way to raise big capital from the public otc)
Pink Sheet: you can look at pink sheets as the Burger King, while the OTCBB is McDonald’s, they are competing OTC mechanisms. Pinks sheets are commonly referred to as penny stock and notorious for ‘pump em’ and dump em’ controversies and a lot of crooked people are involved with this platform. This is not a long term process that will allow one’s company to grow, pink sheets companies are typically short lived but it is cheap to set up but not a professional structure that could be upgraded in time to an IPO.
Reverse Merger: a group funds the filing and creation of a public shell, they then sell that shell to a company that wants to go public, the established company merges it’s entity into the public shell. The sellers retain around 30% equity after they charge an upfront fee of 300k to 1m. 99% of reverse mergers are successful with the merger, but unsuccessful to bring them to trade and the entity basically just fizzles out.
Taking your company public is actually quite simple and inexpensive when you have the right consultant putting the structure together for you. There are countless ways to raise capital quickly and easily. It’s important that you understand your options before you waste time entering into the red tape infested banking system for a loan.
Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
Tags: company go public, DPO, Finance, go public, how to go public, how to take your company public, ipo, james scott, otcbb, pink sheets, PIPE, ppm, Princeton corporate solutions, take my company public, take your company public
Is Your Business Going Public? Viral Marketing Will Get You The Publicity You Need
Posted by James Scott | Filed under Business
As a publicist I’m constantly barraged with the latest and greatest way to get my client’s brand out to the public in an orderly yet expedient manner. Fly-by-night methods and organizations come and go, yet the original promotional concepts that yield that greatest results are still at the forefront of the publicity industry, they’ve just evolved and taken a different shape.
Catering to the mental triggers of the populace while weaving a web of information and post hypnotic cues through the cynical conscious minds to the unconscious faculty of legions of oblivious targets (oops! I mean ‘potential customers’) is still the name of the game. Television, the visual stimulus that fed exhausted, lackluster minds with a temporary, emotional escape from reality has been replaced by web-mercials and the fast pace of viral media.
The left brained minds that would gather facts on industry, politics and special interest concepts once supplied by the New Yorker and the New York Times is now replaced by the 24/7 information tornado of Web 2.0. Those colorful ads in Time and the Sunday paper have been overshadowed by interactive flash ads that cater to the senses of sight and sound. And of course the idiot radio DJ that would spit out grotesque and perverted one-liners while simultaneously converting the listeners mind matter to mush has been replaced by special interest audio and video Podcasts.
The actions and reactions of the general population have kept the same structure, but the adaptability and ability to absorb messages has evolved. When marketing to the masses the path to the decision making sector of the mind is still initiated with a single stimulus such as an image, sound or scent. When the attention is attracted, keep that initial stimuli active like the hypnotic dance of the cobra, then use the other senses to input messages for instant or future action, in most cases this action is a purchase.
Using TV commercials and disc jockey desasters to promote a business on a shoestring or unlimited budget is like passing up a brand new luxury sedan for a’85 Hyundai. These methods are out of date and should only be used as modest forms of passive branding while the heavy lifting of promotional branding and call to action publicity marketing should be done with online video, social and news bookmarking, press release distribution, blogging, unique article distribution, Podcasts and other innovative white-hat methods that cater to habits of modern man.
Want to find out more about Publicity Marketing, then visit Princeton Corporate Solutions website at Princeton Corporate Solutions
categories: take your company public,go public,otcbb,pink sheets,ppm,private placement memorandum,Princeton corporate solutions,james scott,princetoncorporatesolutions.com,market maker,investor finder,investor finders,investor finder service
Tags: Business, go public, investor finder, investor finder service, investor finders, james scott, market maker, otcbb, pink sheets, ppm, Princeton corporate solutions, princetoncorporatesolutions.com, private placement memorandum, take your company public
Why You Should Take Your Company Public
Posted by James Scott | Filed under Finance
There are several reasons why a company would decide to go public; here are some of the advantages. Liquidity is a popular reason for going public via OTCBB or IPO, many global lenders and private equity groups will lend against stock collateral. Private companies lose time jumping through hoops with various FICO driven line of credit and lending programs with outrageous interest rates while a public company can strategically offer stock for sale or collateral. Run a solid company with growth and a sea of content stock holders and you’ve got your own cash register to grow your company.
Another popular reason for going public is to offer stock options to key employees which creates and retains loyalty while reducing cost of compensation. There is no better way to have employees go the extra mile day in and day out than rewarding them with a piece of the company. Stock options are also a way to attract those prized executives that are in demand.
Having a public company allows massive buying power from the perspective of growth through acquisition. Find a company that is the perfect strategic alliance and buy them with company stock. This method of expansion has served the interests of top tier companies since Standard Oil.
What about those companies owned by an individual or a close knit group of entrepreneurs who are getting up there in age and need to start thinking about an exit strategy? Public companies demand higher sale prices and sell faster because of the flexibility of the structure. We could go on and on about the advantages of going public.
Start-up companies wishing to investigate this concept of fundraising you may want to consider the OTCBB, this is a solid and regulated formation to trade your stock publicly with stock holder confidence as opposed to a lesser trusted option called Pink Sheets. For corporations with some age and capital and IPO may be the best way to go, though this process is expensive and can take more than a year, it’s worth it for the right
Want to Take Your Company Public, then call Princeton Corporate Solutions at 267-233-0183 Go Public via OTCBB, IPO or PPM. We offer Complete Turn-key, affordable solutions.
Tags: Finance, go public, ipo, james scott, otcbb, ppm, Princeton corporate solutions, take your company public, why go public, why take your company public
