Businesses and commercial real estate projects need capital – the earlier the better, right? The challenge has always been to be able to move beyond that initial seed round of funding. The INVIZEN Business Accelerator Program focuses primarily on businesses engaged in commercial real estate development and seeking capital almost at the onset of the concept. The Business Accelerator Program focuses on the core support program requirements focus on seven (7) key elements: (i) proof of concept; and (ii) the financial presentation; and (iii) the due diligence; and (iv) the business planning; and (v) the means and methods to be used to market and distribute the securities offering the issuer intends to adopt; and (vi) offering administrative support; and (vii) the prevention of fraud.
The Goal of the Accelerator Program
The goal of the process is to utilize the capital markets to create a laddered structure of future capital financing events (i.e.: future offerings for capital financing). The process is designed to result, all other things being equal, in creating that future “big win” opportunity for the issuer in a way that does not come at the expense of paying a risk-adjusted return that exceeds market expectations. How does that work you would ask?
Market access is the key…
Put simply, when you get money is just as important as how much money you get. The JOBS Act has already fundamentally changed many aspects of how assets are valued in the capital markets and the points in time where those values can be assessed. The new securities regulations serve, in our reasonable opinion, to further unbridle and enhance these valuations by which all parties can benefit. This means the investing standards of gauging potential returns is slowly changing from annualized cash-on-cash returns to the average annualized internal rate of return. The internal rate of return (or “IRR”) recognizes the time-value of money – the only real metric that count – and the INVIZEN Business Accelerator conceptually designs capital financing programs around this central concept.
Put simply, when you get money is just as important as how much money you get. The JOBS Act has already fundamentally changed many aspects of how assets are valued in the capital markets and the points in time where those values can be assessed. The new securities regulations serve, in our reasonable opinion, to further unbridle and enhance these valuations by which all parties can benefit. Timing of valuation changes mean the investing standards of gauging potential returns is slowly changing from annualized cash-on-cash returns to the average annualized internal rate of return. The internal rate of return (or “IRR”) recognizes the time-value of money – the only real metric that counts – and the INVIZEN Business Accelerator conceptually designs capital financing programs around this central concept.
Make the Decision…
Your responsibilities start with deciding how to engage with the INVIZEN Platform in general, and the INVIZEN Business Accelerator Program if you are seeking capital financing and seek assistance with maximizing your opportunity for a successful outcome.
The INVIZEN Platform offers services on a “one off” basis as well as on a package consulting or reporting program basis to fill a particular gap in a transaction.
The INVIZEN Business Accelerator Program offers a systemic approach to capital markets transactions for promoters and sponsors seeking to issue securities (“issuers”). This program provides a streamlined process to the creation of the necessary due diligence and associated marketing opportunity requirements that attend registration-exempt securities offerings. Issuers seeking to capitalize a business or new construction project have certain criteria they have to satisfy to be eligible for certain benefit opportunities the INVIZEN Business Accelerator Program seeks to provide.
You Have a Capital Commitment…
There is no free lunch in the capital markets and there are capital expenses you have to bear – some because of the rules that govern particular matters, and some because a given provider will not offer deferred payment terms. Some of these items are highlighted below…
Demo Days Event Participation
Demo Days allow the issuer to showcase their funding proposal to prospective investors who are accredited investors (potentially including private equity funds, angel investors, qualified institutional buyers, institutional accredited investors, etc.). These events are advertised and the cost of advertising is provided on a shared-cost basis with each participant being subject to paying a minimum advertising program subscription cost of $50,000 to purchase approximately 30 days of radio advertisements for the event. The object of the advertising is to induce prospective accredited investors to attend the virtual Demo Day event where they would interact with the issuer, subject to the rules.
Proof of Concept Due Diligence
Proof of concept is a fundamental requirement of our program. The transaction proposal must demonstrate a reasonable basis – supported by third-party evidence – that a market opportunity may exist for the business or project. Typically, this requirement is satisfied by a full, complete and tested market feasibility report. We prepare these studies routinely or you can have another provider provide the market study, provided; it meets minimum guidelines and requirements of the Business Accelerator Program. The cost of these studies in the market typically range between $10,000 and $100,000 depending on the type of business or project and the issuer will pay this cost.
Due Diligence Documentation…
Due diligence must be provided that stands up to the CREFC underwriting guidelines for capacity, collateral, credit and default financial risk underwriting assessments. We provide this suite of services or you can have someone else do them. The third party reports required have to be paid for by the issuer. If you have a question on what these would have to be for your particular business or project, please call us. These are the most significant cost items and can range from a total spend of no less than $100,000 and run into the millions of dollars depending upon the complexities of the project or business.