We are looking for a few select investors. Only those who like simplicity and an excellent return on their investment should read further.
We are a very experienced group of finance professionals who have come together to do what we have done separately for decades: help fund new and small businesses.
The SEC has provided a new simple type of crowdfunding specifically to help fund small business. Regulation Crowdfunding allows smaller businesses to sell small amounts of debt or equity to small investors.
There are always a great many small companies that could benefit from a capital infusion of a lot less than $1 million, the Reg. CF upper limit. Hundreds of thousands of small businesses are actively looking for that capital every year.
Most of these small businesses will get their funding from a bank and on the bank’s terms. That often means personal guarantees and property liens. It always means a payment of principal and interest every month, like clockwork.
We can help these companies structure a debt or equity offering on much better terms; terms that will protect the business owners’ personal assets; terms that will improve their cash flow and bottom line; terms that will make their offering attractive to investors.
We want to our own Reg. CF platform to list and help sell these small offerings to investors.
Under Reg. CF a platform that hosts these offerings must join and be supervised by FINRA. Once registered, Reg. CF platforms can be compensated by taking a percentage of the amount of funds that each company raises. A fee of 5% is within the industry standard.
We have already contacted a network of professional business and loan brokers who want one more item in their financing bag of tricks. Several have suggested that they could keep our pipeline full all by themselves. Companies that offer and sell franchises want us to list and help provide funding for their new franchisees.
What makes this business of operating a Reg. CF crowdfunding attractive to us should be the same thing that should make an investment in our platform attractive to you. We have the ability to sign up a lot of small companies, create a lot of small investment packages and collect that 5% over and over.
We believe that we can create financing packages that are good for the company and attractive to investors.
For example:
For Investors in our Investors’ Preference Interests; Management will assume all salary and overhead costs and distribute 60% of the gross revenue to the investors. The intent is to use the investors’ funds to heavily market the first 10 offerings, return those funds to the investors from the fees earned from those 10 offerings and convert the investors into holders of up to 15% of the company thereafter. If successful, the intent is to provide the investors with a significant income stream thereafter with no capital at risk.
We think that having 3 new companies to fund in the pipeline every month (avg. $500,000) and closing 3 (raising $1.5 million per month) is realistic at the end of one year of operations. We believe that we can attract enough investors to close the funding of 6 companies every month by the end of the second year (raising $3 million per month). At this level, investors who purchase our Investors Preference Interests should get a distribution of 2X and more of their original investment every year, after their original investment has been returned.
Contact Adam Pressman and schedule a call.
See our Term Sheet and financial projections HERE.
