Private Placements for Equity Investment

Private placements are offerings of securities by a company which are private, and not generally available to the public. Such offerings are generally not subject to registration under federal securities law. The Securities and Exchange Commission (SEC) has attempted to provide guidance one what qualifies as a private placement. The SEC has adopted a series of rules which, if made in complied with the rules, provides a safe harbor for such offerings.

The posts on private placements over the next […]

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Business Financing: When Your Target Market is Investors, Top Five Investor Issues

Last week I summarized the topic of financing a business using sales, debt, or equity.  Remember, the Rockies Venture Club’s Angel Capital Summit is coming this March 19-20, 2013 at the University of Denver, Sturm Hall. Go to the links to register to attend, and perhaps I will see you there.

Meanwhile, the ECOops team, of which I am a part, has continued to discuss financing through sales. Specifically, the team has started to discuss the very practical issues of how […]

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Business Financing: Overview re Debt and Equity Options

This month is the Rockies Venture Club’s Angel Capital Summit on March 19-20, 2013 at the University of Denver, Sturm Hall.  Partly in recognition of this event, I am going to focus on financing issues for businesses this month.  While the Angel Capital Summit is focused on what is sometimes referred to as the angel round of investment, today’s post will give a basic overview of financing options for businesses.

As Charles Crenshaw noted in his post on Growing Your Business, […]

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Buying a Business: A First Question–Assets Only?

Once a buyer is considering the purchase of a business, they have a fundamental question to ask: What are they actually going to buy?

It is possible to buy the entire business (i.e., the company or corporation), or to buy all or part of the assets of the business.  Generally, the goal is to buy the valuable parts of a business and leave the rest.

The assets of a business vary, but can include:

real property such as offices, warehouses, manufacturing facilities, kitchens, […]

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Family or Friend Money and Documentation

One of the primary sources of money for the initial stages of a start-up business is friends and family.  This can be a great source.  There is no lengthy application process, the repayment can be more flexible, and sometimes the rate or terms of the arrangement are better.  This all flows out of the fact that generally, the reason a start-up can get the money is because of the personal relationship.  But if the situation turns sour, it can also […]

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