This week, PCV and Working Solutions co-hosted Access to Capital: Alternative Financing 101 at Hanson Bridgett in downtown San Francisco. We had a great panel of speakers, who we would like to thank first and foremost:
- Jenny Kassan, Founder & CEO, Cutting Edge Capital
- Daniel Lau, Program Manager, Mission Asset Fund
- Katie Fitzgerald, Director of Business Development, Circle Up
- Alison Bailey Vercruysse, Owner, 18 Rabbits
For those of you who weren’t able to attend the event, here are some highlights from each panelist. If you would like more information or have any questions, please feel free to reach out to us at info@pcvmail.org and we’ll point you in the right direction.
PC: Cutting Edge Capital
Jenny Kassan – Cutting Edge Capital
Benefits of Direct Public Offerings (DPOs)
- Anyone can invest in your company, not only accredited investors
- You keep control of your company
- You are able to advertise your offering publicly
- Securities are unrestricted
- You set the terms of the deal
- No onerous ongoing reporting requirements
Questions to ask when considering a DPO
- Do I have the capabilities and know-how to sell the opportunity myself?
- Is my story compelling enough to attract investors?
PC: Mission Asset Fund
Daniel Lau – Mission Asset Fund
What is a lending circle, how does it work and is it right for me?
- Lending circles are people borrowing and lending money amongst each other. This form of alternative financing is seen in cultures around the world!
- Here’s how it works:
- Group forms (can come to Mission Asset Fund as established group or as individual) and Mission Asset Fund is considered the facilitator of the lending circle.
- Group members are labeled A-F and in the first month, person A gets to access the money first, person B the second month and so on.
- Payments are completed and Mission Asset Fund reports the results to two major credit bureaus.
- Lending circles are right for entrepreneurs who would like to establish and/or improve their credit, and are best suited for small, fledgling businesses.
PC: Circle Up
Katie Fitzgerald – Circle Up
Circle Up is a crowdfunding platform that matches entrepreneurs in the consumer product and resource space with accredited investors. Is Circle Up right for you?
- Equity only!
- Circle Up companies have over $1 million in annual revenue and have about a 70% growth rate
- Average company on Circle Up is looking for between $100,000 to $5 million
- Circle Up companies have access to a variety of financial templates and are able to connect with Circle Up partners such as Proctor & Gamble and General Mills
Alison Bailey Vercruysse – 18 Rabbits
Alison has borrowed from Working Solutions and is also on Circle Up, where she has 39 investors who she regularly goes to for advice and insights. Alison’s presentation had some great takeaways:
- Look for inexpensive and/or free (hello PCV Business Advising program!) legal advice to avoid extremely costly legal fees when you have questions about raising money
- Perfect your pitch! Alison presented her opportunity at a variety of events, but no funding actually came out of them. However, there is tremendous value in knowing your story and how to sell it.
- You never know where the money will come from. Alison actually met one of her first investors at a restaurant. The pitch that she had perfected at all of those events paid off at a very unexpected moment!
We hope that those of you who attended learned a lot, and are one step closer to securing the capital that your small business needs to grow. In your search, be sure to check out PCV’s SAIL Loan program to see if that might be right for you!
Don’t miss the next Access to Capital Event, focused on determining the value of your business, on September 19th!
A HUGE thank you to Hanson Bridgett for hosting us in their downtown San Francisco offices!
PC: Hanson Bridgett
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