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The Venture Capital Group’s (VCG) Offer:
1. No front fees or other fees.
2. The Group will make an investment equal to 55% of the value of the Private Company.
3. For their equity investment, the VCG wants 55% of the equity in the Private Company.
4. The purpose of the equity investment must be to expand revenues and thus pretax profits of the Private Company.
5. While the Private Company will receive the entire financing, it will be spent in accordance with the Private Company’s
five-phase business plan. If the results of the Phase I investment are as Management projected in their business plan, the
Phase II funds will automatically become available and so on until all the risk capital is expended. If the results of the
Phase I funding are less than projected by Management, then the investors will want to have a meeting with Management for
the purpose of more effectively using the risk capital funding.
6. The Private Company’s Government must have a foreign investment incentive program and the Private Company must include
a summary of these incentives with references to Government material in their business plan.
7. The investment will be in US Dollars or Euros.
8. From commitment to funding is usually about 90 days.
Private Company Requirements:
1. The Company must have gross revenues between US$2 million and US$15 million.
2. The Company must have a business plan that includes a current audit done by their regular Chartered Accountants and need
not be done in accordance with GAAP (Generally Accepted Accounting Principles).
3. While it could be spent on expansion, the Private Company must have at least a 15% ROI (Return on Investment) for the past
two years.
4. The Private Company’s Business Plan must show in concise terms how the expenditure of the risk capital will doubt
the Private Company’s gross within 18 months of funding.
5. The Private Company must have a national market for its goods or services.
6. Present Management must stay with the Company for at least five years, unless the Private Company is sold to a third party
during this period.
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