Frequently Asked Questions
Frequently Asked Questions
1-888-569-0464
Contact us
Q. What do clients, capital investors and business partners have to say about LAUNCHfn?
A. Review testimonials from companies seeking early stage capital, early stage capital investors, early stage venture capital firms, capital investors,
and small business investors.
Q. Where are you located?
A. We are headquartered
in Atlanta, Ga, but operate virtually through internet based tools and can help companies all over the U.S.
Q. What are your hours of operation?
A. We are available via live answer phone from 9-5 EST M-F and available 24 hrs/ 7 Days
a week via our 800 # hotline: 1-888-569-0464
Q. Do you charge for a consultation?
A. Yes. An initial
phone consultation costs $27. An indepth analysis of your business plan and strategy session with the industry recognized
expert, Karen Rands, costs between $199 and $297, depending on the type of application you qualify for.
Q. Are there any former
clients I can contact about your services?
A. Please visit our Testimonial page to see writtern and recorded testimonials from clients, peers, and investors.
Q. How do I know if I am ready for funding?
A. Although
the capital investment market is reported to be tight, millions of dollars are being
invested everyday in sound businesses that are packaged and prepared properly. It
is very difficult for a start up company to receive funding, although not impossible.
The first step is to review your business strategy and operations and give you a
courtesy recommendation. This can happen in person or over the phone. Three
out of four companies never receive funding. You need to have an independent
party that either is an investor or works with investors to review your business
plan, investor presentation and documents for review, they will be able to determine
your "readiness" to meet with early stage capital investors, early stage
venture capital, angel investor networks, capital investors, angel groups, small business investors and increase the
likelihood of capital investor interest. Even if you believe you are "ready",
you need to ensure that your message is clear and the investor community can easily determine the likelihood of a return on their investment.
With a business plan review, we identify any obvious obstacles to
raising venture capital or seeking to find angel investors such
as:
· Incomplete financial and/or business plan (market/sales strategy,
operational information, barrier to entry not established).
·
Complex or confusing message within the investor documents regarding business model or investment opportunity.
· Structure
of the offering, perceived cost of the investment relative to a high valuation or
unclear exit and return to the investor.
· Inexperience or incomplete
management team, and/or attitude of management conveying a sense of entitlement
or resistance to advise & counsel.
· Specific industry focus or niche marketplace that limits the potential number
of investors.
Q. What are capital
investors or an investment from angel investors looking for when they consider a company raising venture capital ?
A. There is a common
saying in the investment community....a company with a "B" product and
an "A" management team will raise venture capital before an "A"
product and a "B" management team. This is difficult for entrepreneurs
to appreciate some times because they are so passionate about their product, that
they think that should be good enough. You should work your network or engage a
firm that has
resources to help you identify interim and permanent
management and advisors that will strengthen your overall package. The second thing investors want to know is can the product find a home? Will somebody buy it? How will money be made? And the best way to determine
this is to have customers. If you don't have customers, then engaged resources can
help you with your go to market and shore up some of those issues. Lastly, they
want to know that there is a barrier to entry to your competitors or a significant
differential between what you offer and what your competitors offer. This may involve
Patent protection, speed to market or other factors. All of which LAUNCHfn resources can help you address.
Q. What
types of services does LAUNCHfn offer?
A. There are many sad stories
of entrepreneurs spending precious dollars to secure services for business plan
review development and raising venture capital solicitation, without achieving the
desired results. Securing the correct resources to make your business capital friendly
and to introduce it to the right early stage capital, small business investors,
angel investor networks, capital investors, early stage venture capital firms that will make the difference in how much time
and money you will spend in your pursuit of raising venture capital.
First we schedule a Venture Capital Consulting call after you Register with us. The
Registration is important so we may better understand your business and objectives. Then we determine, with you what
the best course of action would be. That may include a business plan review or other introductory services. After conducting
the business plan review or reviewing your application for approval for one of our other capital programs, we will discuss
your goals and objectives and provide you with options on how to move forward. Our job is to help you develop an early stage
capital strategy and to match you with the appropriate funding resource.
We have structured a fee program that
allows you to pay as you go and for specific
recommended services. Entrepreneurs hire LAUNCHfn as an extension of their
teams to provide expertise in the art of raising venture capital and positioning their business opportunity for success with
angel investor networks. To learn more about our complete suite of venture capital consulting services,
click here.
Q.
What types of services does your network of service providers offer?
A: LAUNCHfn's
strategic partners offer a variety of services that growing entrepreneurs need to be thriving well run companies:
* Business plan enhancement and development
* accounting and financial modeling
* strategic planning and general business development
* sales and marketing consulting
* human resource planning
* patent search and filing
* corporate legal services and securities legal work
* filing for public offerings
* profit and efficiency maximization
* outsourced executive resource (CFO, CMO, CLO)
* coaching on presentation style and development of investor pitches
For a partial list of our strategic partners,
please click here.
Q. How many investors should I expose my opportunity?
A. According to the Kugarand Theory of Investing, for every one capital
investor who invests, three say they will invest, and fifteen were exposed to the
opportunity. You must have a plan to expose your opportunity to hundreds of investors perhaps, and furthermore, a system to follow up and stay in touch with them to let them know of your progress so they will
become more comfortable and more likely to invest.
Q. What else do I need besides
a business plan to raise capital?
A. If the company is pursuing private
equity investment under a REG-D offering, there are two ways to proceed.
First, the company can sell their own shares through a "direct offering"
to their friends and family and investors familiar with the management and the company
and under specific controlled conditions, the company may sell their shares privately
to accredited investors. Raising capital is a learned skill. It is regulated
so you must adhere to state and federal laws, but you also must understand that you are selling shares. You must have a plan to sell the shares similar to how you sell your products or services. If you don’t know how to sell those shares or develop the strategy, seek professional advice from a firm like LAUNCHfn.com. LAUNCHfn.com will work with the company to teach
you how manage this process and create and maintain the records needed for
regulatory purposes. LAUNCHfn.com under specific controlled conditions may
introduce investors to the company in a private setting using the "road show",
group, and individual investor meeting strategy. Second, LAUNCHfn.com
has established good working relationships with a number of Registered Broker Dealers
in Atlanta and select other markets. These firms will develop the legal
documents required and then represent the company to their angel investors, capital
investors, early stage capital, small business investors, angel investor networks, capital investors, angel groups, early
stage venture capital firms, and private investor networks, and manage a campaign
to promote the shares of the company.
Q. Is there benefit to raising capital through a reverse merger or direct public offering on the OTCBB?
A.
Once you are beyond start up and have a proven business model, and determine that
venture capital is not a likely source of growth capital, you can explore going
public using a structured equity offering through a reverse merger or an SB1 filing
with the SEC. There are a lot of pros and cons for doing this to raise
capital so seek many opinions and be sure to plan for the time and expense it takes
to create the market for those shares after you go public.
Q. I hear the banks are lending
now to small businesses, is there also another source of working capital that is
available to me?
A.
If the company needs a funding strategy that includes some debt in equipment leasing
or facility acquisition, or they need working capital as an interim to an equity
raise, there with many different lenders that can provide a variety of debt programs.
There is capital available for purchase orders, inventory financing and equipment,
letters of credit for offshore manufacturing and working capital from invoices.
Q.
How do I get started with LAUNCHfn?
A. First, register your company,
LAUNCHfn starts with an initial consultation over the phone. We try
to understand you goal and objectives and any milestones you have accomplished with
your business. We explain the basics of the capital formation market
place and our methodologies. If you think you may want to engage our services,
and we believe you will value our counsel, we will begin with a business plan assessment
and development of a funding strategy. The next step may include implementing
the funding strategy or further developing the business model so that funding efforts
are more effective. Send an email to info@launchfn.com to learn more or fill out the form on the REGISTRATION page in Get Started with LFN to initiate your initial consultation.
Q. How much does it cost to raise capital?
A. To raising
venture capital or your initial funding, you should work through people you know,
often called friends and family, although it may not be your friend or your family,
but an affinity group that is somehow connected to you or your product in an emotional, subjective way. This should only cost you for
dinners, lunches, coffees, and travel. When it comes time to raise millions
of dollars though, you should plan on setting aside some of your initial capital
you raised to cover this expense. It will cost you for presentation fees,
broker/finder fees, legal fees, consulting fees to ready yourself, travel fees,
and entertainment fees. If you are not experienced at raising capital,
then you need to hire an expert. Entrepreneurs can file their own patent
and do their own taxes, but they often outsource that work to professionals with
greater expertise to ultimately save themselves time and money in the process. It
is the same with raising venture capital.
Gain valuable information about the funding process at the following sites:
http://www.entrepreneurblogspace.com
http://www.myvirtualangelworld.com
http://www.kugarand.podomatic.com
Have a question for us? Click Here.