mike noel raise cash private capital secrets

The Secrets of Raising Private CapitalBy Michael Noel, CEOFullStackTLC.com/MichaelNoel

Copyright 2016 Eliances. All Rights Reserved

About Mike Noel• 20-plus years in Finance and Investment Banking• Middle Market Intermediary 10-plus years• Worked on or Originated

• 100’s of Leveraged Buy Outs• 100’s of Transactions• 100’s of millions of dollars in transaction value


1. Venture Capital2. Private Equity 3. Factoring 4. Crowd Funding 5. Personal Debt 6. Private Raises


The Number TWO most important Secret is,•Private Capital is the best capital you can get – if done correctly.


Quickly - Different Kinds of Capital Raise


Private Equity and Venture Capital• Financial Buyer• No real synergy• No real Strategic Alliance• Just Money, with a return the number one consideration• Their job is to employ Capital


Angel FundingHard Facts:• 3% get funded• 97% invest time, energy, effort and money for Zero Return• Good practice however


Crowd Funding• You need some way to get you message out!• Should be called Crowd Renting,• If you do not have a crowd in Social Media, or are pre-prepared

to rent a crowd• The silence will be deafening.


Types of Creative Private Capital


Factoring• A financing method in which a business owner sells

accounts receivable at a discount to a third-party funding source to raise capital

• You need to have accounts receivable


Advantages• Inexpensive (Sometimes)• Allows for more rapid growth• Currently I have 1% per month for the right circumstance 12%

per annum for short time.• (Better than money market for the investor)• Good for Company 12% return for the investor.• Can get pricey up to 30% vig not uncommon• Be careful


Personal Debt• Services deliver $20,000 to $150,000• Using a combination of• Banks• Credit Unions• Credit Cards


Personal Debt• They fund these all at the same time• Takes coordination• Do not attempt this on your own• Low percentage rate to begin with• 2 weeks to funding


Personal Guarantee Your Neck• You can lend the money to your company• Charge your company more that you pay• Pocket the spread


The Number TWO most important Secret is,• Private Capital is the Best Capital you can get, if done correctly.• Fastest growing Segment• Blue Collar Backers on Discovery Channel


Process• Got to be able to tell a good story• Complete story• Have to be able to support that story with facts• MVP – Minimum Viable Product• Confused mind says “no”


Good rule of thumb• No friends and family• Ask them for referrals not money


Tell you story to as many folks as possible• Good practice


Tell enough folks someone will get you to a Private Investor


The Number ONE most important Secret is,• Best Private Investor• Someone with the problem that you solve


Strategic Alliance• Synergies with your group• Excellent outsourced talent pool• Usually they come with you first few clients (Cash Flow)


My current work in progress• FullStackTLC.com – First 90 Days• MVP - Done• Zero Debt• 100 k recurring revenue• 2-million-dollar valuation


Sector - Marketing Automation• Single Investor - PR and Marketing Firm, that had a problem

We solved very nicely.• And we gave him the solution at cost at first.


The Number ONE most important Secret is,• Best Private Investor• Someone with the problem that you solve


Process• Go to market with a MVP• Look for the Strategic opportunity• Take it


Questions• 5 Minutes


mike noel raise cash private capital secrets

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