After working with many different people I will be completing a business plan for a Sports and Hospitality Complex very soon. This complex will fill a void in this region and prove to be a sound business investment. The management team is strong, with industry experts in each area of the operation. I wanted to make sure the business plan worked and I had the proper people in place before beginning a search for capital. That being said, I have a few questions.

* Is it better to produce a model of the complex or an artists rendering?
* Are there VC services that solicit investors interested in supporting specific business types?
* What % dividend is currently being paid (quarterly)?

I am new to this site - so I am not sure how it works. If you have any thoughts or advice

Thanks in advance for your help

Hello f:

The MORE you can produce for your audience, the BETTER off you'll be. YES, venture capitalists DO specialize. Do THEY solicit?? I'll bet not. I think you're going to have find them.

I'm not sure what you mean by dividend... They're probably not going to be looking for that. I'm sure they'll be looking for an appreciation in the stock price, because they're going to want probably 75% of your stock.

excon

Thanks for the response. Let me be more specific.

I was told that there were goups that "solicited" venture capitalists for a fee. Their fee was usually added on to the financing being requested. Being new to this stage of the process I do not know if they really exist - or if they do where to find them.

By "dividend" I meant "interest" so to speak being paid on the money. An example might be where an investor owns 4 shares @ $250,000 each. Would I pay a quarterly "dividend" or simple interest to them?

Also you bring up a great thought. If the plan is to repurchase the shares over time is there a period that investors are looking at - say 3-5-10 years or so?

Quote:

---

Originally Posted by excon

Hello f:

The MORE you can produce for your audience, the BETTER off you'll be. YES, venture capitalists DO specialize. Do THEY solicit??? I'll bet not. I think you're going to have find them.

I'm not sure what you mean by dividend... They're probably not going to be looking for that. I'm sure they'll be looking for an appreciation in the stock price, because they're going to want probably 75% of your stock.

excon

---

Hello again, f:

I'm sure there ARE brokers for venture capital... However, I'll bet you can find them yourself. I certainly would try... If I were a venture capitalist, I'd want to back a management team that was resourceful. Finding ME directly, would be an indication of their resourcefulness.

They're not going to be looking for INTEREST, because it's not a loan, and they're not going to want DIVIDENDS. Most new companies don't pay dividends. They plow ALL their profits right back into the enterprise. As I said above, they're going to be looking at owning the majority of your company.

They want stock appreciation. Yes, they'd normally want to be cashed out after 3-5 years. That would probably take the form of an IPO or a merger, unless your OTHER investors can come up with BIG money. But, if they (you) HAVE big money, why don't you just use them?

excon