Commonwealth Capital is not only able to supply your accelerator / incubator with quality deal flow for future investment, but more importantly is able to re-capitalize your current portfolio of private companies to relieve your exposure and free up your capital, while further assuring success of those companies and a return on your remaining investment.
Here is what it means for your accelerator / incubator.
Commonwealth Capital has 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 $5-$10 million in equity capital—our sweet spot. 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 last 4-5 years.
Although the convertible preferred equity can be an expensive form of capitalization, it is not as expensive as selling common equity—assuming success. A portion of the proceeds of the preferred equity can be earmarked to return some of your investment to you, thereby reducing your financial risk and exposure.
These young companies are properly engineered to attract substantial amounts of investment capital, while maintain the vast majority of equity ownership and voting control.
Commonwealth Capital’s ultimate goal is to incubate these firms to be the “quality deal flow” sought by Wall Street for IPOs and Corporate America for acquisitions.
There is Never any Cost or Obligation to Participate.
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 Contact Us to get started.