Many entrepreneurs and executives want to move forward with the process of going public merely for the ability to raise capital through the sale of stock. They usually don’t think of the strategies necessary to keep the momentum going such as how much equity to give up initially, how much equity to sell ongoing, how to capitalize off of the use of the securities as collateral for loans and lines of credit and so on.

One of the most profound strategies companies can use to retain company equity while capitalizing off of their public entity is to put up portions of their securities as temporary collateral for loans and to use securities to grow through acquisition of strategic alliances.

Stock should be looked at as cash and designated for appropriate purchasing strategies. Stock monetized through collateralized lending can work wonders as long as the exit strategy is in place and secure. Your attorney should be well versed in this activity and audit the contract for convertible aspects which could strip the transaction of its advantageous nature.

Debt that converts to equity means giving up a huge bartering chip for future transactions. Don’t give up equity unless you have to. There are scores of companies that will lend against your securities without having to give up long term equity. Use this strategy wisely and you’ll never have a problem getting capital.

Also, using stock to purchase strategic partners is more relevant now than ever. Purchasing a company with stock that can be monetized over time is an incredible way to grow through acquisition. Going public on the OTCBB is a quick and easy way to start using the countless capabilities for capitalization with a public entity. Going public simply to raise capital with your market maker or broker dealer would be selling yourself short. Take advantage of the countless ways your securities can work for you.

Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!

So, your company is ready for that next step and you’ve decided to take the dive into the world of public offerings and global fund raising. You imagine investors waiting with bated breath for your company to announce it’s share price and release shares for purchase. You’re imagining swarms of broker dealers clambering and falling all over themselves to promote your stock to their massive investor database while you sit back and fill your company’s coffers with millions in capital that will launch your corporation into the realm of superstardom and hemorrhaging expansion. You start to search the internet and come across ad after ad that promotes the idea that you could save $100,000′s if you buy a public shell and reverse merge your company with it, saving you time and money, resulting in achieving a public structure in only a few weeks. Buyer beware!

Reverse mergers into public shell companies is a process that rarely works and if, by some act of God, it is successful you still have countless issues to deal with that could crush your ability to succeed in an instant. Companies that sell shell companies and facilitate public offerings via reverse merger often have many fleas attached to the structure such as the fact that they retain 10% to 25%+ of the company’s shares that they can pump and dump anytime, resulting in a black eye to investors who see your stock plummet, resulting in almost certain bankruptcy and company failure.

Another prominent issue with this type of transaction is that usually the shell company has a complicated history of litigation and liens that you absorb when you merge and if this is the case you’ll spend all your time in ongoing legal battles as your company bankroll is spent on righting the wrongs of the previous owners. We could go on for days about the downside of reverse mergers into public shells but the moral of this story is, ‘do your homework’.

If you are trying to take your startup or small business public, take the extra steps (you’ll actually save money) and look into OTCBB, a legitimate, quick and long lasting way to take your company public without the drawbacks and definite complications of reverse mergers. You can take your company public via OTCBB for less than $100k and there are usually several ways to finance this process so you have minimal out of pocket expense.

Going public is easy when you team up with the right consultants that will help you bypass the dead ends and concepts that will take up your time and cripple your resources.

Want to find out more about Taking Your Company Public, call Princeton Corporate Solutions at 267-233-0183 Go Public easily, quickly and affordably.

When raising funding, most likely investors will want their equity distribution in an SEC recognized format like a Private Placement Memorandum, also known as a PPM. This structure makes use of one of the three Regulation D exemptions stemming from the Securities Act of’33.

The three common exemption rules are Regulation D (Reg D) Rule 504, Rule 505 and Rule 506. These rules carry multiple criteria that assist businesses in raising equity or debt funding without all the stringent legalities of an IPO. These rules are defined like this: Rule 506 provides an exemption for limited offers and sales without regard to the dollar amount of the offering.

This exemption doesn’t limit the number of accredited investors, but the number of non-accredited investors may not exceed 35 investors. (An accredited investor is any one investor with a certain net worth and or experience in the purchase of stocks.) All non-accredited purchasers, either alone or together with a designated representative must be sophisticated enough (meaning, have the knowledge and experience necessary) to evaluate the merits and risks of the investment. (An offering company will usually determines the sophistication of its investors with a questionnaire subscription agreement.)

Rule 506 requires very detailed disclosure of all relevant information to potential investors; the extent of disclosure depends on the dollar size of the offering. Rule 505 offerings may not exceed $5 million, less the total dollar amount of securities sold during the preceding 12 month period under Rule 504, Rule 505 or Section 3 of the act. This exemption limits the number of non-accredited investors to 35 but has no investor sophistication standards. Rule 505 requires disclosure similar to that required for Rule 506 offerings, under $7.5 million.

Regulation D Rule 504 offerings allow a company to raise a maximum of $1 million in funding, less the total dollar amount of securities sold during the preceding 12 month period, under Rule 504, Rule 505 or Section 3 of the act. However, a business can raise only $500,000 by the sale of securities to persons residing in the states of Montana and Alaska, which have no disclosure laws applicable to the offering. For states that do have disclosure laws, which are 48 out of the 50 states, a business can raise up to $1,000,000. Rule 504 has no prescribed disclosure requirements, no limit on the number of purchasers, and no investor sophistication standards. So if you’re trying to raise capital using a Private Placement Memorandum, use the above criteria as a cliff-note and as long as you stay within SEC guidelines, fund raising for your company will be simple.

Call 267-233-0183, Private Placement Memorandum Services, visit Princeton Corporate Solutions to get more info about Private Placement Memorandums and passing Due Diligence

If you’re on the venture capital trail there’s no doubt you’ve heard the term that usually shuts most fund raising efforts down before they can actually begin, that term being ‘due diligence’. When an investor of venture capital firm expresses interest in funding your project, the next thing that happens after intent contracts are submitted is the dreaded due diligence process.

A cloud of confusion usually hangs over the minds of those about to go through this procedure but if you are informed and prepared this process can go from being a migraine inducing nightmare to a confidence booster no brainier that starts a bidding war between investors. The reality of investor due diligence in the new millennium begins with a solid online investigation using the most popular search engine, Google.

The game plan for the entrepreneur is to assemble a robust and authoritative online presents with all the bells and whistles an investor is seeking in a well pedigreed executive staff that is asking for millions of dollars in investment capital. Your plan must be well diversified through various online media genres such as video marketing, how to videos, article submission and press releases with content focused on the cutting edge and leadership role your company plays in your industry niche.

In addition to filling your own blogs with new, viable content on a daily basis, you should make it a habit to blog on other industry specific blogs as you lead the investors back to your site with your blog signature. Don’t forget about the power of audio and video Pod-casting. Let the investors hear your voice, then them feel the powerful conviction and intonation in the keywords as you hypnotize them and place them under your spell.

There are products on the market that cater to plastering the internet with your message with a strong focus on company branding and mass media marketing and publicity. If you pay attention to the branding aspects of your company with a strong and authoritative position on the internet, due diligence will be as easy as taking a nap!

Learn more about Publicity Marketing, Princeton Corporate Solutions has lots of helpful information at their website on how to get Publicity publicity quickly