Other Issues

  Issues for Consideration 

Angel Investors 

Question: Do you not think it is easier to find 20 people with $25,000 to invest than one “angel investor” with $500,000? Even if you locate a potential “angel” will they listen to your story or read your business plan? In almost all cases, these “angel investors” receive hundreds of business plans each month. What is going to distinguish your plan from being just one more on the pile?

*Investor Group*
This is ultimately the key factor in raising money. Most of us know quite a few people who also know quite a few people with $10,000-$25,000. If you called someone, even if you didn’t know them well, and said that you had an investment idea you believe they would find interesting, a majority of these people would read and evaluate your investment request. Also, we warn you that most internet and broker lists are a waste of time and money. There are strategies for developing a good prospect list specifically targeted to your business. This is your potential investor group.

Remember: for $500,000 you only need to find 20 investors with $25,000 each.

Business Plan v. Private Placement Memorandum
A business plan does not create a proper legal structure to take in money from multiple investors. Even if you provide potential investors with a business plan, a Private Placement Memorandum and Signature Agreement Packet will ultimately still be required for filing with the appropriate state and federal authorities before you can take any investor money.

The Private Placement Memorandum and Signature Agreement Packet should be capable of being used by you in lieu of the business plan.

You need to gather the appropriate information, prepare the documents and tell your story in a compelling manner to accurately reflect your business and your anticipated use of the investment proceeds.

Generally, It is impractical and a waste of time to attempt to raise less than $10 million from Angel Investors and Venture Capitalist. The reason is the “Due Diligence” that is required before investing money is cost prohibited in deals less than $10,000,000. Yet, every day thousands of individuals successfully raise much less capital. Though this sounds like a contradiction the ability to be successful is completely dependent upon the process you follow. Raising capital is an incremental process. You will find many websites, including ours, that have good generic resources but ultimately you are going to have to speak directly with someone about the specifics of your needs. It is only at that point will you begin to learn what it will take to successfully reach your goal. I am sure the question you need answered is:
"How can I raise capital without first committing to spending a great deal of money?”
The first step is realizing that a Private Placement is your single best option for Raising Capital.  

If you are not yet convinced, bookmark this site and continue your research efforts. Eventually you will come back and see that speaking to us or someone like us is your next step and best option for understanding the process to raising Venture Capital.

We offer a Free Initial Consultation which in itself will likely save you thousands in legal and accounting fees.

You will also see that in our Fees and Services section our fees are only due if you are successful in raising capital.

It would appear you have little to lose in speaking with us.

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