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It costs money to do a successful IPO. You'll find that those VC Financial Managers will divert your advertising budget into general advertising that acquaints potential stock buyers with your company. It doesn't bother
VC that none of
potential stock buyers are buyers of your product or service. The axiom is that when investors recognize
name of your company, they'll buy your stock. It's
VC's stock, not
company's product or service that is being sold.
It costs money to do an IPO. That money comes from your company's cash flow. Until you receive
proceeds from
IPO, you won't have
money to expand your business. If
cash flow isn't adequate to pay
IPO costs, expect
VC to issue more stock and dilute your ownership further.
You can invest in a search to find a Venture Capitalist. I don't think your VC strategy is sound. You are betting against
odds that you'll find a VC. If you find a VC, you'll lose control of your company. When your company goes public, you could find that your insider group owns less than 15% of your company's stock. If you think that a VC strategy is a winning strategy, I wish you luck.
To contact
author: Visit
Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit
Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
