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Best way to package and present a private investment offer?

EricEric subscriber Posts: 8
edited October 2006 in Startup Funding
Does anyone have any examples of how to best package the contents of an investment folder or packet that includes a Business Plan and Private Placement Memorandum?  The business plan serves it`s purpose, but now we need  a little "fluff" to accompany the boring yet necessary numbers. What`s appropriate to include? Or not?
Should it be a flashy cover? Should it contain photos? Should it be serious? I`m really not very sure. I`m afraid that if we take a casual approach, we`ll get a casual response. However if we take a casual response could that actually be better?
Essentially, we are marketing ourselves here and to me it is more important than just about anything in the business plan itself. Essentially we are telling people (friends and family first) that we are building a success here someday soon, and this is their one and only opportunity to have a preffered position as an investor. They`ll have three or four months to respond and then the door shuts quite possibly forever on any level. 
We are doing this so that we can at least tell everyone we know friends, family, acquaintances....you were offered an opportunity. That`s not to say that we won`t be there for them as friends and as family, of course. It`s only to say that they won`t be part of the adventure that will soon be.
Then there is the issue of how to best present an offer to a few hundred people.


  • EricEric subscriber Posts: 8
    Yes. I agree. It should be somewhat tailored to each "level" of investor.
    I`m going to attempt a description of what I see in my head. Please, everyone, I would love to hear thoughts, improvments, suggestions of any kind.
     I`m imagining a quality proffesional presentation folder with the company logo on the front. When you open it there is a "Welcome page" signed by myself and my brother, Jason. (doesn`t actually use the word  "welcome" I`m just using that as a descriptive term..we are essentially welcoming people to take part in this opportunity)
    This "Welcome Page" that addresses each individual personally and states the reason why they are receiving this folder and quickly summarizes the contents and their location within the folder
    On the left they will find the business plan that it serves as the framework which builds a comprehensive understanding of the operations of our business. Under that there is a sealed envelope which contains the investment  proposal. and terms.
    On the right, they will find a few pages.Nice presentation quality, glossy paper.
    A quick "how we got to where we are" page. Words over a collage of black and white pictures from our history.
    A biographical page about Jason white words over a black background wrapped around a medium sized black and white picture of Jason.
    A biographical page about Eric,  black words over an all white backround wrapped around a medium sized black and white picture of Eric.
    And 1 page about Jason and Eric working together. A collage of Color photos and a few words about how they are poised for success.
    I believe that if we do this right. We can offer this to almost everyone. 
    One thing I should point out is that we are not losing our minds desperate for investors. We could trudge are way onward bit by bit toward our eventual huge success and it will take a decade of some of the best years of our lives in the process or we can just do this now by right now putting ourselves into the best position to run a successful operation. Doing this will require some startup capital. We would obviously like to get moving sooner rather than later.
    We are very confident that we will have investors. The only question is  how many and how much? Whatever the number is, we`ll adjust our approach and make it work. That`s the beauty of a business like ours. With product design and development there is a unique and fully adjustable component that allows us to operate slowly on a shoestring budget or quite quickly with ample funding, but nothing is likely to kill it off entirely.
    Still looking for input everyone. Thanks!
  • robertjrobertj subscriber Posts: 0 Member
    I think you`re on the right track with your package concept. Just a couple of comments:
    You say  "Under that there is a sealed envelope which contains the investment  proposal. and terms." I`m not sure what you mean by terms - but be sure the offering documents are appropriate for your situation.
    You say, "I believe that if we do this right. We can offer this to almost everyone." If you are making a private offering (sometimes called a private placement) - be sure that you take the necessary steps to keep it "private". Appearing to offer it to everyone may be consrued as a public solicitation.
    Good luck.
    Robert Johnson
  • kyliptixkyliptix subscriber Posts: 0

    I would like to add humble comments beside previous mentioned; presentation shall be simple, comprehensive and easily lead reader to your company`s facts fast, do not miss following topics:
  • EricEric subscriber Posts: 8
    Robert and Anthony,
    Thank you both. Excellent points.
    Robert I should clarify. When I mentioned in my post "almost anybody" I simply meant that the packet should not need too much tailoring as far as approaching an accredited investor or unaccredited investor. For the accredited investor, they will have the details and numbers that they look for in an investment. For the unaccredited investor they will have the details that they need and the required disclosures
     If you don`t mind I would really like you to elaborate on the importance of keeping a private placement private and why it must not be misconstrued as a public solicitation. This compliance with securities regulations is definitely the most difficult problem that we face for raising startup funding.
    I`m sure our lawyer has a handle on this but I would love to hear your take on a description and I think it will help anyone else that bumps into this thread with a similar situation.
    Robert or Anthony. Would either of you like to speculate what kind of cost we can expect to incur for this?  Does the number of offerings change the amount of work for our lawyer? What exactly is required of our law firm to facilitate this private placement? I believe I remember hearing a number related to this and I want to take a guess that it`s going to be near10k. Does that sound reasonable to anyone? How much of this can be done without them?  
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