The Deal Flow Funnel.
THE DEAL FLOW FUNNEL. Every business requires customers. With a new market we will attract revenue generating startups and their customers who will invest through equity crowdfunding, and then expand as their client base grows and their brand receives national exposure through our TV show.
We start with helping revenue generating companies raise up to $5M on equity crowdfunding platforms, which we may determine to handle through an affiliated entity once we are a full exchange.
We will attract new clients through what we believe will be the most entertaining, interactive business reality TV show in history, America’s Real Deal. This show allows those 18 and older watching to invest directly into their favorite companies, raising capital for them and increasing our investor base. With the popular “Shark Tank” TV show attracting 25,000 to 40,000 businesses who apply to be on their show annually, we anticipate America’s Real Deal will also attract companies to ISM.
MARKETING STRATEGIES: We will not itemize each marketing strategy here, however, we thought we would share some of the more non-conventional ones.
Non-profit organizations: Thousands of times each year, business owners offer stock in their successful private companies in lieu of cash donations to their favorite charity or University. Their desire to give and their reward of feeling good and potential tax write-offs is thwarted by the charity’s inability to liquidate the stock. We work with the company, take them public, often off-setting our fees and the donation with the increase in valuation by removing the Lack of Marketability Discount often applied to private companies. The businesses can donate $1M and can often get the tax credit to off-set their personal $1M they sell of their personal stock.
ESOPS: We will take them public if for nothing else but to allow their employee shareholders to sell stock to someone other than another vested employee. The additional benefits include an increase in value and the ability to raise additional capital with their REG A+ offering.
Equity Crowdfunding Portals. We will go to other equity crowdfunding platforms to provide an exit strategy to their customers who have a valuation of $25M or more. This will build our marketplace by attracting the company’s clients and customers.
Divorcing Business Owners: This is a tough topic but what is nice is that everyone can leave happy. Let’s assume that the company is valued at $25M. The couple knows if either of them forces the sale of the business that it will most likely sell at a 20% discount. So now the business is valued at $20M. The man who forces the sale of his ex-wife’s business wants $10M. The wife agrees but with the provision that she has one year to pay him and she keeps 100% of the business. The wife then goes public with ISM, seeing an increase of at least 20% to $30M. She raises $11M for a new capitalization table of $41M. She covers ISM’s fees and audit fees of about $1M in cash and equities, and pays her ex-husband $10M. She retains $30M in equities, representing about 75% of the business.
REG A+ FINRA accepted Companies. Those qualified companies who don’t go with an exchange – need one. Usually they just handle the sales of their stocks on their own website, or worse, on an exchange that puts the business at risk of derivatives.
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