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Large Project Financing
- Services and Criteria
Currently, we prefer financing opportunities of
$1 Million to $60 Million in operating firms with
a clear and compelling competitive edge, good potential
for market-segment dominance, and especially experienced
and committed management. We will consider selected
venture-capital start-ups. The criteria include
an asset base (prior investment, collateral), active
purchase orders, or a compelling competitive edge.
A package of coordinated financial instruments is
likely to be offered through our network of contacts.
These include short and long-term debt, equity purchase,
factoring, debt-equity combination, bridge loans,
revolving lines of credits or loans, factoring,
inventory financing, LOC backing, etc. The objective
is an efficient structure sufficient to support
the business plan.
Process for projects over
$250k
The preferred initial submittal is a full Business
Plan. An application and checklist will be provided
for initial research and review. Upon receipt of
all the requested information the total package
is then presented to the Portfolio Manager and/or
Board of Directors. Upon approval Fee Agreements
are submitted for finalization. In order to list
on our Portfolio we require signed fee agreements,
signed NC&ND, completed application & checklist,
ten sets of business plans w/support documentation
and processing & retainer fee. An onsite visit from
the Portfolio Manager and/or board of directors
should be anticipated.
Fees for projects over
$250k
There is no fee for initial consultation and review.
Upon approval of a project and signed fee agreements
a processing & retainer fees ranging from $3k -
$30k is charged. These fees pays for next day mailing
charges, long distance calls, travel to investors
and travel costs for an onsite visit, in house expense,
outsourcing expenses etc. Some clients will be required
to pay an additional retainer fee depending on exclusivity
and expected costs of services rendered. Fee Agreements
for Consulting are based on a percentage of the
amount Funded. These range from 2% to 10%. Depending
upon the project, an equity position ranging between
2% to 10% is required. Consulting Fees other than
processing and developmental services are due and
payable upon closing/funding.
Reasons Projects do not
get funded
Major reasons projects do not get funded when presented
to a potential investor:
1. Presentation unprofessional or weak proposal.
2. Management lack of seasoned management.
3. Strategy poor or unrealistic strategy, market
penetration, timing, and unsubstantiated projections.
4. Economics lack of compelling economics and market
size that is based on the state of the economy and
a project's financial projections.
FACT OR FICTION?
1. Control of your Company
FALSE
Venture Capital firms/Investors typically do not
want to control a small business. The equity position
requested is dependent upon the valuation of the
company.
2. New Technology Only
FALSE
Leading edge technology can be very expensive in
terms of development and marketing, which makes
them difficult to finance. Venture Capitalists are
interested in the potential for high growth and
can be specific to several industries.
3. Satisfied with Reasonable
Returns FALSE
When making a high-risk investment, a high rate
of return is expected. This will be in the form
of interest or equity participation
4. Quick to Invest
FALSE
Most businesses are in the 11th hour crisis by the
time they are seeking funding. The time span from
the moment the proposal is received, reviewed, approved
and funds distributed can be lengthy. It will take
from 6 to 8 weeks for a positive response, assuming
your proposal; projections, marketing strategy and
management team are strong. It is imperative that
a well-prepared business proposal be produced in
order to have a chance at raising money in that
time frame. |
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