Commonwealth Capital is able to supply your Venture Capital or Private Equity Firm with “quality deal flow,” i.e. quality companies with plenty of revenue and profit to justify professional investment.
Here is what it means for your Venture Capital or Private Equity Firm.
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. During this period they are engineered to become “saleable” or “investable” after the Call feature expires.
The convertible preferred equity is positioned as only temporary equity capital until it can be properly replaced, through the Call provision, with traditional venture capital or private equity, as well as bank financing. Commonwealth Capital’s position is to promote traditional venture capital or private equity as later rounds of capital, for most companies.
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 venture capital or private equity firm would be interested in incubating its own quality deal flow, we suggest that you simply Contact Us to get started.