For nearly seventy years, SEC's mistake has been to focus on form rather than substance. Attorneys believe that you can pass a law or regulation that will protect Society from its crooks. It can't be done. Whatever Law you pass, there is always a loophole. Closing loophole creates other loopholes. The process is cyclic. It's never ending.

There are good aspects to American Securities Laws, like full disclosure. However, Law must serve best interest of public. The SEC should ensure that crooks only get one shot at defrauding public. They should have policies that reduce costs of going public rather than be driving force for higher costs. The SEC should require investors to take a "street smart" course in risk capital investing before they can open a brokerage account. It should be taught by SEC, after SEC becomes "Street Smart."

The SEC serves itself. While Bear won't walk Wall Street now, it will eventually return size of Gonzilla. By that time, we'll have had eighty years of SEC regulatory failure. I doubt attorneys working at "Death Star on Potomac" will get another chance to serve public and honest business people.

Common sense isn't common. This axiom is truer inside Belt Way than in small town America. When you can't afford to raise money for your business, blame SEC. When you learn that you can't raise money for your private business and can't go public, blame SEC. When you lose your retirement money in Market, blame SEC. The SEC serves itself. You pay them to do it.

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/]

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/]