Dear Fellow Entrepreneur;
Are you in need of substantial amounts of capital to fund your start-up or early stage Company or novel business idea? During the capital-raising process, would you like to maintain the vast majority of equity-ownership interest and voting control? Do you continue to hear a discouraging “No” as you seek available funding? If so, we are interested in learning more about your company.
Although we have access to many sources of capital for varying stages of a company’s existence, we, too, are looking to invest in start-up and early stage companies through our own venture-capital funds; Commonwealth Capital Income Funds I & II.
The question on many investors’ minds is “what makes for a successful investment in a privately held company?” Since 1998, by successfully servicing entrepreneurs in their quest for capital, we’ve uncovered some undeniable evidence. It has been our experience that many willing, young companies tend to succeed in their capital-raising efforts and ultimately grow into a force to be reckoned with. This is simply because they are willing to go through the process of designing their company’s capitalization plan and structure, building their own securities-offering documents (for legal-counsel review), and soliciting and selling securities in compliance with federal and state securities laws.
These are the only types of companies we want to invest in. We have access to an unlimited amount of capital for convertible participating preferred equity, as well as an internal capital matching program, where we match $500,000 raised in convertible bridge notes, thereby greatly increasing the probability of raising substantial amounts of capital for your company. With our capitalization process, we show you how to sell securities to us, as well as other investors. We hope you can understand our venture-capital-fund model and appreciate the innovative way we reduce risk for our Funds. Without this model, there’s simply no way anyone could justify the substantial risk inherent with investing in start-up or early stage companies.
As former Wall Street Investment Bankers and experts in compliance matters related to selling securities, we are intimately familiar with the criteria employed by capital-funding sources looking to fund “quality deal flow.” These professional capital sources include investment banks (e.g., broker-dealers), angel-investor groups, hedge funds, private equity firms, family offices, and registered investment advisors. From their perspective, quality deal flow typically refers to a company with positive cash flow and an experienced management team with a unique, high-demand product or service in a growing market. Unfortunately, identifying quality deal flow is often an overly simplified, quantitative assessment that does not fully recognize the distinctive benefit and potential value of investing in your Company.
- First, complete an “Invest-ability Survey” on our Sprocket Blueprint™.
- Second, log into Sprocket Network™ to begin the “Social Proofing” process, which provides us, other investors and potential additions to your management team, a “proof-of-concept” rating to qualify for funding through one of our VC Funds. Other investors will also have a chance to invest in your company under most circumstances, as well. This gives you a greater chance of obtaining the full amount of capital you seek. This part of the process is the single most valuable component as it not only attracts investors but produces direct sales, as well as potential sales distribution channels, including Sprocket Market & Sales Force™ and through Sprocket Distributors™.
- Third, design the deal structure of your securities offering and produce the required legal document with Financial Architect™ included within Sprocket Blueprint(TM) in order to legally solicit and sell securities to one of our VC Funds, as well as outside investors.
- Fourth, engage in the securities sales efforts through a FINRA registered crowdfunding portals and a private secured securities portal on your website, in compliance with federal and state(s) securities laws, with the marketing assistance through the Sprocket Network.™
- Fifth, engage in the process of attracting potential management team members and Directors, through Sprocket Boardroom.™ Your company’s securities offering document is also designed to protect your company in the process of engaging in and contracting with your senior management team. It serves as the full disclosure document for the management opportunity and risks involved. This is a critical element that is often overlooked in the hiring process and further protects your company from potential litigation down the road.
Although there are other processes to accomplish other tasks in the methods you use to build your company, these 5 easy steps enable you to increase the probability of raising substantial amounts of capital to the highest degree possible. How can we make this claim? We can because this is the Wall Street process for Main Street Companies.
The Commonwealth Capital Management Team