One of the reasons why so many can’t seem to “find” capital for a year or more when billion-dollar transactions occur every single week in the US; is because they can’t define the huge difference between types of financial structures. If you can’t specify what type of capital your seeking then how on earth would you readily illustrate how your eligible for it today?
A minimum of 3 primary financial structures that have a mandatory requirement for mass marketing are;
(1) PPM’s – private placement memorandums (which have NO tradeable value)
(2) Debt to equity conversion debentures (bonds)
(3) EB-5 overseas investors (involves a US government agency and takes about a year)
Too many erroneously assume that 1 genie-in-a-bottle individual small-cap investor is just around the comer to fund 100% of whatever project. This myth is debunked by the Chairman of the New York Angels group. Here is what he says; http://SinCityFinancier.wordpress.com/2011/08/04/question-on-quoracom-how-often-does-1-angel-i/.
Telemarketing is still the primary means to attract a wide audience of buyers or investors, etc. But it’s convergence ration is small and is labor and time consuming. It would be overly optimistic to say the convergence ratio for telemarketing is 10% of call volume and timeline to complete an IR campaign only 3 months. Algorithm marketing will represent 50% of all marketing for all industries by 2020. Both types of marketing have been previously reported on this blogfeed and can be referenced in seconds. Anyone who thinks algorithm marketing is not successful is oblivious to the fact that Facebook traded on secondary market exchanges prior to it’s 2012 $100B IPO and compounded it’s valuation 10x in 24 months.
Film producers for some reason think angel investors are the best or only option for funding films. Here is a free list of the Top 20 angel investors in the US along with some inconvenient truths that debunk this myth too; http://SinCityFinancier.wordpress.com/2014/06/30/list-of-the-top-20-angel-investors-in-the-US-from-san-francisco-business-times
The majority of anyone looking for capital seem to gravitate towards equity as a first option even though it should always be the last option. Lack of ability to specify which of 24 types of equity they are eligible for is 1 reason. Timeline to close and lack of having any security are only 2 more reasons. Rather than speculate what is a security, here is what the dictionary says it is; http://SinCityFinancier.wordpress.com/2014/11/27/what-is-a-security-according-to-dictionary-equity-securities-and-why-most-film-producers-dont-qualify-for-equity/ .
Another misconception so many of those seeking capital have is that all capital takes the same amount of time to close. The bottom of our INTAKE FORM provides the accurate time frame for different categories of capital. The only one that consistently closes in under 30 days is (ABL) asset-based lending. It is true that 1 type of equity finance qualifies for ABL funding. This exception is stock loan finance or bulk stock sales of trading stock for which PPM’s do not qualify. Here is a preliminary checklist of what is expected to qualify for these types of finance; http://SinCityFinancier.wordpress.com/2012/01.01/check-list-for-applicant-eligibility-acceptab/.
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