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Regulation D Offering Help
Kevind3456
subscriber Posts: 1
I am considering a regulation D offering for start up capital for my business venture, specifically rule 506 because I will need at least 10 mil. My question is say I plan to sell 30% of my company through the regulation D offering, in order to retain my 70% ownership interest, do I simply just offer the 30% and get to personally keep the left over 70%? Could somebody shed some light on this topic because I am unsure of how the onwer/issuer maintains the control they desire, I haven`t found a clear cut answer, thanks for the help.
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Percentage of ownership is the ratio of share owned divided by total shares issued. Therefore, if the corporation issues 70 shares to you and 30 shares to another person (in exchange for capital) then - at that moment you would own 70% of the outstanding shares.
As a side comment - selling 30% of the company for $10 million would require you to justify a $33.3 million valuation (post money) on your business.
Contact me directly if you want to discuss your specific situation.robertj2007-5-23 13:6:53
MNgrill guy,
Sorry - I mis typed. Thanks for the correction.
You have a .001% chance of raising millions of dollars for an unproven start-up unless you have a long history of home runs behind you. My advice would be to start small, prove it locally, then go for the big money.
There are several ways you might go to acquire capital for your business. Each approach will have positives and negatives. Developing your optimum capital strategy is a good next step.
Contact me off forum if you want to discuss specifics about your situation.