As an Alliance of our firm, we can supply your accelerator / incubator with pre-qualified deal flow—companies that meet your specific investment criteria, thereby refining your selection process, saving you time and money. More importantly, we may be able to relieve your accelerator / incubator of deals gone sideways. A simple re-capitalization of some of your current portfolio companies may reduce your accelerator / incubator’s exposure and free up some capital, while further assuring success of those companies and a return on any remaining investment.
This is accomplished through an automated, vertical integration model, which simply means that any of your prospective client companies that currently do not qualify for an investment from your accelerator / incubator or existing portfolio companies that are in need of re-capitalization, can seamlessly be sent to us to qualify for the necessary equity capital for further incubation and acceleration.
We have been capitalizing Start-up and Early Stage Companies as their venture capital partner, since 1998. As former Wall Street investment bankers, we create convertible preferred equity to assist small companies in raising $1-$10 million in equity capital—our sweet spot. A portion of the proceeds of the preferred equity can be earmarked to return some of your investment to you, thereby reducing your accelerator / incubator’s financial risk and exposure.
The preferred equity normally holds a first lien security on assets for investor protection; has a stated dividend in the 6-9% range to attract investors; has an annual participative dividend, which is a participation in net profits; a conversion into common-voting-equity feature and call protection that lasts 4-5 years.
We incubate and accelerate these start-up and early stage companies to be the “quality deal flow” sought by Wall Street for IPOs and Corporate America for acquisitions. Hence, these companies inherently become quality deal flow to your accelerator / incubator like you.
If your accelerator / incubator would be interested in reducing your current risk; freeing up some of your investment capital, while positioning yourself to take advantage of true quality deal flow, we suggest that you simply CLICK HERE to get started.