Avant-Garde Capital Private Debt/Equity Solution
Building a Private Investor network is a powerful strategy for small business owners, yet many find the realm of private investing intimidating and are unclear about the steps necessary to initiate a successful capital campaign.
Avant Garde Capital is your guide to navigating this journey. Specializing in assisting small businesses to raise between $50,000 and $1,500,000 in capital from private investors, we offer tailored solutions to meet your unique funding needs. Our platform is not only effective but also affordable, ensuring that financial constraints do not hinder your access to vital capital.
In 2013, the Securities Exchange Commission launched the “Jumpstart” program, aimed at simplifying the regulatory landscape for small businesses and startups. The core objective of the Jumpstart initiative is to ease securities regulations, enabling these entities to raise private capital by connecting with investors.
The program offers educational resources and platforms for entrepreneurs to engage with investors and industry experts, fostering innovation and economic growth by helping small and micro-businesses secure the funding they need.
Despite governmental efforts to streamline the process, executing a successful capital raise remains intricate and demanding. The likelihood of success hinges on multiple factors: the robustness of your business plan, the relevancy of your industry sector, your company’s growth stage, and prevailing economic conditions.
By leveraging Avant Garde Capital’s expertise, entrepreneurs can demystify the process, ensuring a well-orchestrated capital campaign that maximizes the potential for success. With our focus on facilitating substantial capital raises in the private arena, coupled with the affordability of our platform, we are committed to transforming your entrepreneurial vision into reality.
Bob Zider wrote a great article in the Harvard Business Review which provides a nice brush stroke concerning the private equity industry: https://hbr.org/1998/11/how-venture-capital-works.
Here are a few basic steps surrounding a private capital campaign for a small business:
- Develop a clear business plan: Before approaching investors, it is important to have a well-developed business plan that outlines the company’s vision, goals, and financial projections.
- Identify potential investors: Small businesses can reach out to angel investors, venture capitalists, or private equity firms that specialize in investing in startups and small businesses.
- Pitch the business: A well-crafted pitch that highlights the unique value proposition of the company and its growth potential is essential to attracting investors.
- Negotiate terms: Once an investor expresses interest, negotiations can begin on the terms of the investment, including the amount of equity the investor will receive and any other conditions or restrictions.
- Formalize the agreement: After agreeing on the terms, the company and the investor can formalize the agreement through a legal document such as a term sheet or a subscription agreement.
Developing a strong business plan, identifying potential investors, and crafting a compelling pitch are essential steps for small businesses to enhance their chances of securing the necessary capital for growth and success. In line with our commitment to support entrepreneurs through this process, Avant Garde Capital has developed an affordable platform specifically designed for small business owners interested in raising private capital.
Our platform streamlines the capital-raising journey by conveniently packaging all the critical components, including outreach to potential investors. This comprehensive approach ensures that you have the tools and resources at your disposal to navigate the complex landscape of private equity effectively.
Interested in exploring private equity options for your small business? Avant Garde Capital invites you to learn more about how we can assist in realizing your financial goals.
Click the “Ask An Expert” button below for a confidential review of your opportunity. Our team is dedicated to providing personalized guidance and support to help unlock the potential of your business.
Private equity
and
finding investors
Jumpstart Our Business Startups Act
The Jumpstart Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of small businesses in the United States by easing many of the country's securities regulations. It was signed into law by President Barack Obama on April 5, 2012.
Our mission is simple: Give entrepreneurs the tools to help themselves.
This is not a loan program. This is a legal platform for allowing entrepreneurs to connect with potential investors who may have an interest in helping business owners. Probably because they were once in the same position.
We write offering documents for issuers, including disclosures, operating agreements, private placement memorandum, subscription agreements, investor questionnaires, and financial projections. We provide the investor database and marketing platform for a structured and professional capital raise.
We have the platform and experience to put together a capital campaign for small business owners interested in using the latest tools available to attract the funding they seek to grow their business.
FAQs about the small business owner
and private capital
May small business owners legally solicit investors for debt as well as equity? And how?
Yes! Small business owners may use the JUMPSTART Act to find investor using a private placement memorandum for both debt financings and equity capital raises.
What is a Private Placement Memorandum (PPM)?
A Private Placement Memorandum (PPM) is the document necessary to offering sell securities (stock shares or promissory notes) in a Regulation D Offering. The PPM discloses risks and important factors related to the underlying investment. It provides details about the company's business plan, management team and other important facts a potential investor needs in making a fair and informed decision.
What is Regulation D?
"Regulation D" is a United States Federal program created under the Securities Act of 1933, indoctrinated in 1982, that allows smaller companies the ability conduct smaller raise capital through the offering of equity or debt instruments without the document heavy registration with Federal or State governmental agencies normally required.
What types of businesses are allowed to use Regulation D?
Most any kind of enterprise qualifies for Reg D. Startups, Mom & Pop Shops, Franchises, Any Private Business and/or Publicly Traded Company.
How do I market my offering and find investors?
The JOBS Act provides a variety of venues a business may find investors such as advertising, friends and family, business associates or customers, and broker/dealers.
Isn’t a private capital campaign expensive?
That depends on the complexity of the offering. But the good news is that most small businesses and startups have straight forward businesses. We developed an affordable platform to help business owners and startups reach their goals.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of any comments or opinions contained herein or passed upon the adequacy or accuracy of the information provided.
Any representation to the contrary is a criminal offense.