Money for Small Business

[KarlDakin]

I am working on the development of a new seed capital fund for the State of Colorado to provide needed capital to business startups: 2009 Colorado Seed Capital Fund.

You are invited to join in a discussion on this subject in this thread. Topics may include:
- Current availability of capital in Colorado
- Sources of capital for small businesses
- Information sources on capital
- Criteria for selecting small businesses to receive funding
- Improving your ability to receive capital
- Telling your story to obtain capital
- Current price of money

You may follow or participate in this project at www.seedcapitalfunds.com

Karl Dakin
303 916 89272
info@KarlDakin.com

[Sorpbromb]

Hello - unfortunatley your link does not work
Funding and supporting small businesses is the best way to improve market conditions in a community. I am not in Colorado but support the discussion and hope you all produce results and share new ideas with the rest.
Should we start raising dollars and support for a cause like non-profits do well? Should be an easy mission to follow or a community?

[KarlDakin]

Correct Link: www.seedcapitalfunds.com

Sorry, my brain had moved on before I was done typing.

I have just uploaded a list of design variables for a seed capital fund.

KarlDakin

[KarlDakin]

I am currently talking with a number of people with similar interests in starting a seed capital fund.

I have chosen the path (variable) of structuring the fund as a for profit social enterprise. By this, I mean that we will solicit people to invest in the fund and if we are successful we will return their investment plus a profit. Most others are using a non-profit social enterprise format. This means that when soliciting investors, the only incentive to invest is doing good. Nothing wrong with that, but it takes away the investors' ability to put their money to work again in another place at a later time.

In the fund I am designing, we are taking 10% of the profits and contributing them to charities that support innovation and entrepreneurship. In this manner, we are addressing two social needs: 1) providing needed capital to small businesses and 2) supporting charities that provide services that we cannot.

Karl Dakin

[KarlDakin]

I created a lengthy blog on the subject of Seed Capital Fund as a Social Enterprise where I explain the social cause impact of such funds in new job generation and the reasons for my approach of using a for profit social enterprise business model.

[KarlDakin]

I am continuing to work on the design and development of the 2009 Colorado Seed Capital Fund.

I created a new post on my blog, www.seedcapitalfunds.com, on the subject of using an objective scoring system for selection of small businesses to fund. In this post, I discuss my reasons for evaluating businesses solely upon facts instead of instinct.

I also posted an illustration of a scorecard based upon this system.

[KarlDakin]

I am start to receive contributions of documents and white papers on the subject of investing in small businesses. I am posting these up on my blogsite at: www.seedcapitalfunds.com/documents.

If you have any offering documents, contracts, scoring or evaluation systems, I would appreciate a copy.

[KarlDakin]

I posted a blog on my site on the subject of Finders and Finder's Fees along with a template agreement - www.seedcapitalfunds.com.

This is a huge grey area. There are lots of people acting as finders and matching businesses with investor candidates. Most of this work is illegal. Both the fed and the state regulate use of intermediaries in the sale of securities. Before using a finder, check with your securities attorney.

Also, a lot of these finders are scams. They will tell you how good they are and then ask for money up front. Does that make sense? NO!!!

There are a lot of good brokers out there and people who can help you legally. Check them out. Ask for references.

[KarlDakin]

Every small buiness can benefit from a great board of advisors. I have posted some thoughts on this subject along with a template agreement at www.seedcapitalfunds.com.

[KarlDakin]

I believe the current scarcity of seed capital will lead to a longer and deeper receission unless action is taken now to create a grass roots stimulus through private efforts.

I intend to address this issue by working towards the establishment of the 2009 Colorado Seed Capital Fund and assisting others in doing the same.

Because all of the people with money who might make seed capital investments are shy about investing right now, it is necessary to put an opportunity on the table that they will invest in.

I believe that a properly crafted investment based upon revenue sharing structure can make this happen. I have shared my thoughts on my blog - www.seedcapitalfunds.com.