7986 South Datura Circle West
Littleton, CO 80120
(303) 683-3338
Categories Menu

Posted by on Feb 1, 2002 in ACQUIRING NEW MONEY | 0 comments

Why private placement financing is making a comeback

On the Money From the  February 1, 2002 print edition One of the most straight-forward resources for obtaining capital for a small business is also one of the oldest: private placement financing. One example of private-placement financing is this true story: A fellow was enjoying a cigar at Churchill’s Lounge at the Brown Palace Hotel. Three gentlemen, also smoking cigars, were discussing the oil business. The first man, who was in a related business, overheard their conversation. He walked over to the group of three and said “Here’s what I’m up to,” so they reached in their pocket and handed him $200,000. He wrote them an IOU on a napkin. Simply put, private placement financing issues security directly to an investor and secures capital for the business owner without the banking industry’s intermediation. Though it’s not always as serendipitous as the Churchill’s Lounge example, private or informal investors are now, more than ever, searching for exceptional small business investment opportunities. Despite the sluggish economy, I’ve run into more people with “funds on...

Read More

Posted by on Jan 2, 2002 in ACQUIRING NEW MONEY | 0 comments

Looking beyond VCs for startup financing

On the Money From the January 2, 2002 print edition The ever-critical financial backing small businesses and new ventures rely upon to succeed can originate-despite the ubiquitous “VC” buzz-from an amazingly wide variety of capital-rich sources. Approximately $37 billion is on deposit in Colorado banks today and with diligent effort, planning and presentation; some of that venture backing could be yours. That’s not to ignore some of Colorado’s VC-funding facts: billions of dollars in start-up and stage-two venture capital have been channeled into Front Range high-technology enterprises, making Colorado fifth in the nation for venture-capital-backed investments. And, despite the potential costs of vc funding-commissions, fees, owner-equity and other forms of reciprocal compensation-84 percent of all Colorado venture capital goes to the high-tech industry. Cash is a commodity that commands its own price. Cash is the fertilizer that makes any new venture grow. Without the participation of venture capital firms providing this fertilizer, where can the new business owner turn for cash assistance in the early stages of the company’s life? The key...

Read More