Capital Raising For Small Businesses And Freelancers
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Transcript of Capital Raising For Small Businesses And Freelancers
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Capital Raising for Small Businesses and Freelancers:
Legal and Practical AspectsJune 2, 2015
Jeffrey A. Bekiares [email protected] / [email protected]
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Essentials to Keep in Mind!• Start-up legal essentials.• What makes a company “investable”.• Sources of Capital – From seed, to angel, to IPO.• Traditional and Alternative Finance criteria.• Crowdfunding – Traditional and equity based.• Legal and tax implications in raising capital.
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Start-Up EssentialsDIY vs. Professional Assistance
• What You Can Do:• Form Business Entity / Publication• Obtain Tax ID• Register with DOR / DOL• Obtain additional business licenses• Company authorizations (sometimes)• Discuss and (preliminarily) document your business deal!
• When You Should Request Assistance:• Operating Agreements / Shareholder Agreements• Employment / Consulting Agreements• Equity Incentive Plans• Equity Grant Agreements• Securities Sales Agreements• Section 83(b) Election Letters
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Capital Raising – High Level Issues
Type of Company State of Company Composition of Team Protections & Future Incentives
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Capital Raising: Traditional and Emerging Sources• Seed Funding.• Traditional Lenders.• Alternative Lenders.• Angel Investors.• Venture Capital / Private Equity.• Public Markets – “Firm Underwriting” or “Best-Efforts”
Offerings.• Crowdfunding.
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Capital Raising – Seed Funding• Advantages:
Network of first instance. Most favorable terms.
• Disadvantages: Does not work for everyone! Does not diversify Risk
• What makes a Company “Investible”?
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Capital Raising – Lenders• Advantages:
Most familiar terms to the most businesses. Most widely available geographically.
• Disadvantages: Credit crunch; recession. Highly regimented credit criteria; onerous paperwork.
• What makes a Company “Investible”?
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Capital Raising – Angel Investors• Advantages:
Larger dollar value investment. Addition of expertise to enterprise.
• Disadvantages: Competitive Marketplace; spotty resources by location. Highly industry specific.
• What makes a Company “Investible”?
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Capital Raising – VC & PE Markets• Advantages:
High dollar access. High connection quotient.
• Disadvantages: High dollar thresholds. Highly defined exit criteria.
• What makes a Company “Investible”?
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Capital Raising – Public Offerings
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Four Primary Varieties of Crowdfunding
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Crowdfunding – Businesses Best Served
Deals with a local
character
Mom
and Pop
sEarly Stage Start-Ups
Bricks/
Mortar
Small Offering
s
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The Invest Georgia Exemption / 2012
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Designing a Winning CampaignCommon Elements
• What kind of Company is likely to be the most successful and why?
• What does the Company offer?• Who is the target audience?• How does the Company present the offer?• How does the Company handle its backers after the campaign
closes?
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My Contact InfoJeffrey A. Bekiares, Esq. [email protected]
ATLANTA TECH VILLAGE Suite 5553423 Piedmont Road, NEAtlanta, GA 30305
To schedule a consultation with me please e-mail or call anytime!