Forums: Discussions for entrepreneurs and small business.

A "Private placement Memorandum" is a document used for the private sale of "non-registered" securities. It is most often used when the exemption contained in Regulation D rule 506 of the Securities law. When one sells securities- they must either be registered with the SEC or be eligible for an exemption from that requirement . Regulation D offers 3 possible exemptions.

 If you want more detail, send me a PM

Robert Johnson

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Well the rule of thumb is never say no to money.  The second rule is always continue searching for funds.  If your investor only wants to put in X then give him X and start looking for the Y to complete out your 50k in investment.  Once they see the business flourish you can always as for more from the two sources of capital you have now.

Also, if the business is doing well then your cost of capital may be far less than the initial 49% give up...

I must respectfully disagree with your "rule of thumb is never say no to money".

If the deal isn`t right for you or the investor isn`t someone you will be comfortable being "married" to for years - then one should say no. Many of the "horror" stories one hears about investors (especially VC firms) would (and should) have been avoided if the entrepreneur had said no to the money. 

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

I agree with Robert. Money always comes at a price. Only you can say whether it`s worth it.

-------------------------

Elsizzle,

I know this may sound a little simplistic and generalized, but if you are sure you can easily find another investor, then you should be able to negotiate from a postition of strength and come to terms that you are comfortable with.  If you can walk away without his money and find it somewhere else, then you can require full upfront payment for full upfront ownership.  If he won`t do it, then find someone who will. I know this is late, but I hope it all worked out for you.

 

Good Fortune!

-------------------------

Raise Capital in 90 Days Online Learn How This Works Bedzzz Inn, Inc Raised $92,867 with this system!