Turning Around Under-performing Public Companies in an Overcrowded Public Market
According to Colin Wallace at Publex Ventures, over 5,000 public companies in the U.S can be classified as small-cap or micro-cap “orphans” that don’t benefit from a liquid market. While they have the obligations of being public, they don’t have effective access to the public capital markets. Publex introduced an interesting solution to this problem — the fund strategically engineers mergers between early-stage private companies and under-performing public companies, to accelerate liquidity while preserving the superior returns of early-stage investing.
Publex invests before, during, and after merging these companies into an operating public company that is under-performing or is in need of new technologies, business lines, or management to maximize its growth potential and attract market attention. “While there are many funds that invest in both public and private vehicles, Publex is unique in its business model of investing in private companies with the express purpose of combining them with an under-performing public company, then investing further in the combined public entity,” said Wallace.
Another interesting solution is offered by Silicon Valley start-up www.IdeaMamaClub.com, founded by a serial entrepreneur Olga Kostrova. IdeaMama’s unique virtual IP incubation platform offers a pre-assessed micro-cap deal flow, co-developed by its user community. IdeaMamaClub.com facilitates innovations in various industries including biotechnology, commerce, education, energy, entertainment, environment, finance, health, information technology, materials, space, transportation, and others.
Wall Street Money — Get it While You Can
Don’t miss this great opportunity to get business financing that was out of reach until recently. What happened recently, was a shift in investment
focus. The big investment banks and other firms are looking for places to put all the money they are pulling from Wall Street. This can be a golden opportunity for small business. But you must know how to play ball with these big league players.
If you are one of the six million people seeking financing for you business, the following bit of information is a must for you. It will shed light on how to minimize your effort and maximize your effectiveness. If a person doesn’t obtain financing, it is generally due to lack of experience. Because, most people have never worked for a company that is in the trenches successfully obtaining funds for a business venture. Further, the educational system just does not teach an entrepreneur how to get business financing. In general, most people think getting financing for a business is as simple as going to a bank until they try, and get snubbed by the banks. In-fact, only about three percent of the startup businesses in America get financing though banks and about another one percent through venture capital firms. That leaves most entrepreneurs out in the cold. That is what this article touches on — where the other ninety-six percent that do get financing get the money from.
Money for Startup
Alex, I’m involved with a media startup that’s at the raising capital phase. I don’t know how to go about this, so I thought I’d ask you. How do we raise money, about $250K, to get us started? Can you give me advice on how to proceed?
Alex’s Answer:
When raising capital, your mission should be to raise the entire amount needed over the period of your business plan and not only the sum needed now. Before you start looking for capital, you must already know how much capital you need to operate your business over the next three to five years. You will get this information from your plan. However, if your plan is not clear on the issue, you may need help in formulating your plan as well as raising capital. If the amount you seek is indeed 250K, then your target group will be angel investors, as the Venture Capital zone is any investment greater than a million.