2. You can buy an OTCBB shell. The retail shell cost is $150,000 plus costs of an audit, due diligence investigation and SEC filing. The total cost will be around $350,000. You'll get around 60% of issued shares. Only buy a currently trading shell. Make certain that it's clean. This means there aren't pending lawsuits. Your group gets all insiders' shares. You cancel past insiders' rights to buy stock. Over years, I've helped over 30 clients buy shells. I've never been offered a clean shell. It takes time, knowledge and money to clean any shell you buy.

3. You can do a spinoff. You can sell 10% of your private company's stock to an existing public company with over 500 American resident public shareholders. The public company can pay your stock as a stock dividend to their shareholders. This gives you over 500 public shareholders. Under 1934 U. S. Securities Act, when you have over 500 public shareholders, you must start reporting to SEC and thus become a public company. The cost of doing a spinoff can be as little at $25,000 plus audit and legal costs. Total costs are about $115,000.

The primary advantage of a spinoff isn't cost savings. It's guarantee that your public company is clean. You won't face an unexpected lawsuit. Your share price won't be buried by million of shares of selling by past insiders.

The disadvantage to any alternative to doing an IPO is need to find a source of funding. The CFG program gives you access to public investors, but not an underwriter. The Shell or Spinoff strategies require that you or service arrange a Private Placement.

Unless you find a way to offer investors liquidity, your odds of finding money are less than 1%. The low cost starting point in this liquidity game is to use CFG service. If you have assets and income, consider going public with a spinoff. See article at: [http://WWW.capitalfundsgroup.com/raiscap/expansionexit.htm] If you are a major power in your industry, do an IPO.

The opportunity to raise risk capital is excellent as long as this Bull Market lasts. I think it will last for several more years. However, every day you waste is one less day you have to build your company into a multinational powerhouse.

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/]

If your potential investors can't sell their stock, they won't invest. You have better odds of beating Bank at Monte Carlo than finding serious money for a private company. In Monte Carlo, your odds of winning at Roulette are 1-in-36. In Vegas, they are 1-in-37.

Your odds of finding a Venture Capitalist are 1-in-2,500. Your odds of finding a Vulture Capitalist are about 1-in-100. My best guess is that your odds of finding an Angel are about 1-in-300. It will cost $30,000 to $100,000 to prepare a business plan and present it to these groups. Is it worth risk?

According to Money (1/1/98), your odds of raising $200,000 for a SCOR company are about 1-in-4. The costs of raising this money will be between $15,000 and $100,000. If potential costs are over $50,000, it's a losing bet. You are making same statistical mistake that a poker player makes drawing to an inside straight.

With liquidity, your odds improve. It may cost $1.25 million to do an IPO (Initial Public Offer). However, it's an even money bet that underwriter will do IPO. If your IPO financing exceeds $2.5 million, you've made a statistically sound bet.

Your odds of succeeding with a Spinoff/Offshore Private Placement exceed 9-to-1. This means odds are over 90% in your favor. The reason that spinoff works is 1934 U. S. Securities Act is clear that any company with 500 American resident shareholders must be a reporting (public) company. While U. S. Securities and Exchange Commission (SEC) can delay review process, they can't stop a public company from paying a stock dividend to their shareholders. The reason European Fund Managers risk money on spinoffs is that they are buying stock at a substantial discount to trading price. They can't lose because they are assured liquidity.

It's your money. You can risk it on an IPO. You can risk it on a spinoff. You can waste it trying to find an Angel or VC. If you want to risk it on a spinoff, contact me.

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/]