funding nightmare recovery and PPM

[izoomonline]

My company has just finished being raped by two firms in Atlanta 1 a networking group and the other a capitalization group that are supposed to help growing companies raise capital. We shelled out close to $50000 to these two groups and have been strung along for 6 months on "why this isn't completed"; "we need to do this or that" etc. and we are fed up. Out of it all the first firm at least has introduced us to Angels and VC's that are interested and very serious about investing in our company. However the 2nd firm (which we were sent to by the 1st firm) was supposed to actually handle the capitalization structure; offering and prepare the investment docs. As you've probably guessed we paid for this upfront and we still do not have a ppm. We have our own CFO now and have done all the prep work ourselves internally and I don't want to engage another company to prepare the docs unless they are recommended by another entrepreneur. Does any one know of a reputable group to prepare a ppm expediently and introduce our project to additional investors? We have everything ready.

[Evan]

Hi izoom - it's a shame to hear this story and it happens all to frequently.

I used to be a part of a group here in Toronto that did the introductions to the investors and helped write the investment memorandum. It's strange to hear that the first company you worked with did not offer these services. You should not be approaching investors before you have your ducks lined up.

Your best bet is to find someone local who you can meet up with and who has experience in the area. They will likely have other investor contacts as well who can help potentially fund your business. Try to work out a success based model for the capital raising. We used to take a success fee of 8% for equity based deals.

Good luck!

[izoomonline]

Thanks Evan for the solid advice. I had heard the nightmares before but never thought it'd happen to me. But it did. On a good note one of the members here Helen Dowling reviewed our business plan for us and she gave a very insightful and helpful analysis. Thanks again!

[Evan]

Good to hear izoom! Give us an update when you have gotten through the funding process or if we can be of additional help!