Post a new topic
    6 Replies Latest reply on Nov 17, 2008 10:07 PM by jay2maui

    How can I find investors/capital for our business

    pedsneeds Newbie
      We are a newly established company which is financed with our personal monies. We are quickly realizing that we will need additional funding to support the growth and viability of our organization. Are there any suggestions that can be offered on finding the right investors to join us in our growth with financial support? This is truly an unique and promising healthcare-related business. We are opened to investment options and support.
        • Re: How can I find investors/capital for our business
          CapitalCoach Wayfarer
          To find your "right" investor - I would create a profile. The starting point would be how much capital you require.
          • Re: How can I find investors/capital for our business
            golfheaven Adventurer
            They are out there but you may have same problem as i do. see following.

            CAPITAL INVESTMENTS

             

             

            The problem: The Atlanta area, and much of the Southeast in general, suffer from lack of capital investment into start-up stage companies, despite booming population and economic growth, the long-established presence of some of the world's most important companies, and being home to outstanding centers of academic excellence. Because of certain systemic defects in the Atlanta early start-up market, many entrepreneurs have become discouraged about the opportunity to start their businesses in Georgia. This problem plagues much of the southeastern United States.

             

            The causes: Atlanta, relative to markets like Boston and San Francisco, is a relatively young capital market. Consequently, there is not the broad, established base of investors that exists in these other markets. Further, entrepreneurs are generally not as sophisticated in their approach to raising capital in the Southeast as they are in more developed capital markets. Symptoms of the dysfunctional market in Atlanta include the following:

            • Most entrepreneurs in the region are untrained in how to identify and approach investors, how to credibly present their opportunities to investors, and how to make their companies attractive from an investment perspective.
            • Much of the investment community in Atlanta is disengaged from entrepreneurs. They do not make themselves available to coach and teach entrepreneurs how to make their opportunities more financially attractive.
            • Most "professional networking" meetings are attended neither by investors nor by executives of emerging high-growth companies. The mass of service providers and salesmen have scared them off.
            • The few consultants who are competent to advise companies are prohibitively expensive.
            • Most "professional networking" meetings are located in the parts of Atlanta to which are the least convenient for most investors to travel.
            • Almost none of the investment community in Atlanta is willing to tolerate the risk associated with what used to be called true capital opportunities.
            • Unscrupulous members of the business community attempt to monetize their rolodexes by promising introductions to potential "investors" in exchange for buying their professional services or for paying thousands of dollars to deliver presentations ("pay-to-pitch") to rooms of strangers. Others act as amateur brokers, seeking finder's fees for early-stage investments that result from their introductions. All of these forces create friction in the start-up market that prevents capital from locating investment opportunities.
            • Successful entrepreneurs who achieve a successful high-value exit for their companies frequently withdraw from the entrepreneurial community, often because they realize that they lack the skill and experience to invest in other, Start-up companies to give someone else the chance that someone years ago gave them.
            • The myths: Many entrepreneurs believe that there is no early capital available in Atlanta, and investors think there is a scarcity of quality investment opportunities. Neither is true, but the environment is dysfunctional and there are systematic characteristics of the environment that actively prevent capital and quality opportunities from finding one another.

             

            The solution: Entrepreneurial community and investors (current and potential), with

             

            Opportunities and capital to find each other in local markets.

             

            What are your thoughts on this/ http://www.golfheaven.org/
            • Re: How can I find investors/capital for our business
              BizHelper Newbie
              Hi Pedsneeds,

              I would like to know a little more about your business, where are you located? How long have you been in business? Please email me at customerservice@accuratefinancial.info. I would like to help.
              • Re: How can I find investors/capital for our business
                jay2maui Wayfarer

                HAVE YOU ATTEMPTED TO RAISE MONEY FOR YOUR COMPANY PRIVATELY?

                FACT - It is easier to attract private placement investment capital if your company's common stock is already publicly traded. A ticker symbol provides liquidity for shareholders and is a great corporate tool to attract private placement capital. This tool provides assurances to the restricted capital investors that there is a ‘light at the end of the tunnel" and they will be able to realize an eventual return on investment.

                Advantages of Being Public

                • A public offering of company stock will improve the company's net worth, enabling the company to obtain capital or borrow money on more favorable terms.
                • A public company can more easily expand through acquisitions, using its own stock rather than depleting needed cash.
                • The company may be better able to attract and retain more highly qualified personnel by offering stock options, bonuses, or other incentives involving company stock with an ascertainable market value.
                • Through public ownership of its securities, the company may be in a position to gain prestige, become better known nationally, and improve its business operations.
                • There is an easier possibility of converting debt to equity and to strengthen the company's balance sheet.
                • An equity offering from a lender's perspective strengthens the financial condition of the company (reduces leverage).
                • Future financing may be obtained more easily since the company can offer investors a security that is liquid, more freely tradable, with an ascertainable market value.
                • Liquidity for the owners of the company, including founders, venture capital and other professional investors, can be achieved under Rule 144
                • Taking a company public may enable the company to eliminate existing personal guarantees to lenders and others and generally allow the company to avoid any future personal guarantees.
                • Establishing a public market for the stock usually allows the founders and owners to achieve a psychological sense of financial success and self-fulfillment and an exit strategy.