Raising capital for expansions and startups 101 ? A few facts for beginners

Posted by Elite Internet Technologies on October 24th, 2016

If you believed all the hype about expanding your business and startups, you’d be dating the Easter Bunny. Expanding a business is a challenging process. Money is not given away. You MUST be fully aware of all the issues, stages of capital development, and the realities of investment.

Let’s look at the hype:

Everything is wonderful and everyone wants to throw money at you.

You simply get someone to manage your expansion or startup or IPO, and you’re a billionaire.

Nothing can go wrong with this process.

Garbage.

The facts:

You and your operation are competing for investment money with most of the rest of the world. This money has its own ideas about what’s a good investment.

Expansion and startup capitalization are done in the toughest market on Earth. You think people are going to throw billions at you?

Everything can go wrong, and often does. Just read the stories about angel investors, failed startups, and bad venture capital deals and how the process goes wrong on a daily basis.

You need expertise on your side from day one. The most basic form of capitalization is a private placement. You allocate equity to your investors on a formal basis. You take on major obligations and responsibilities. The key processes are well defined in a process called Regulation D Private Placement Memorandum preparation.  (If you don’t know what this is, don’t even leave your desk until you do. Believe us when we say ignorance is not in high demand, and if you ever expect to see a cent, you must understand this process fully.)

For a good look at working experts in this field, check out a company called Venture Associates. This is a do-everything company for capitalization and capital management purposes. They’re actual experts, not the usual car sales rejects you get in over-hyped expansions, startups and IPOs.

If you check out their website here at  www.venturea.com . Check out the information on Regulation D Private Placements, in particular. See how the process works. See what practical experience in this field teaches.

See the SEC compliance issues and why they’re so important for yourself.  Talk to the company directly for the facts you need for your setup. It will be worth it.