We've all heard this since childhood. If something seems "too good to be true," it
probably isn't true.
Certainly some "poor multi-millionaire" from Nigeria picking your name out of a hat
as a person he can trust with his fortune (a common Internet email scam) has to be
viewed with a bit of healthy skepticsm. That and a thousand other scams prove the
rule. Greed and ignorance are two things on which virtually all scam artists depend.
Exceptions
Are there any exceptions. Of course. Let?s look at some you may have already
experienced.
Have you ever met anyone "incredible" in your life? Someone whose mere presence,
advice, gifts or experience benefitted you enormously?
Have you ever been "at the right place at the right time?" Have you ever felt
incredibly lucky? Have you ever had a "bright idea" hit you "from out of left field"? An
idea which altered your life, the way you do things?
All those things are "against the odds" and might be considered "too good to be
true." But, regardless of how good they seemed then or in retrospect, they were
true.
The Benefits of Mistakes
Now, I'm human and I make mistakes. Hopefully not the same one too many times.
It's par for the course and if one treats errors as "learning experiences," one can
benefit. However, there are some who keep making the same mistake over and over.
It reminds me of one of my favorite definitions: "Insanity - doing the same thing
over and over and somehow expecting a different result".
Think about that. If you, or someone you know, has been approaching the subject of
Equity Investors in the same way, over and over, perhaps there's a perception
problem to be considered. We had one recently who'd been going through the
"Investor Mill" for over five years, with zero results. He actually represented a group
with an excellent project, fantastic potential and very likely would have gotten all
the funding he thought he needed, and then some. But he (or one of his 'trusted
advisors whispering in his ear') couldn't cope with the "new concept" and wouldn't
even risk the airfare to meet with the trust if he did manage to get an invitation!
That's not an Entrepreneur. That's someone unwilling or incapable of doing
whatever is necessary to get funded. And we're betting that in five years, they'll still
be in the same position, no further along in their funding pursuits and the market
(and their competitors) passing them by.
Examining Fixed Ideas
Looking at the Equity Investment possibilities available through Capital Funds
Group, some few people have simply rejected the idea out of hand. Let's break this
down.
First, I suggest you ask yourself: what about it seems "too good to be true?"
The statement of fact in question is that:
A Family Trust with practically unlimited resources is willing to consider investing
serious sums of money as Equity Investors in young and innovative technologies.
You may be one in which they'd be willing to invest.
What part of that seems "unreal?" What part of that simply "can't be believed?"
We know from knowledge of the Rockefellers, Fords, Carnegie's, Mellons, Bill Gates,
etc., that Family Trusts do exist with seemingly unlimited resources and, aside from
charitable donations, they also have branches of their Private Family Trusts which do
investing. They have to or the Trusts would soon simply expend their wealth and
there could not be any further charitable donations. That would be a very poor
stewardship of monies.
In the past, they?ve used very old and established conservative firms, filled with
lawyers and accountants who invested only in Blue Chip Stocks and old established
companies which could be purchased outright, expanding their empires.
Changing Times
Times have changed. That strategy simply will not work any longer.
Suppose one of those Family Trusts could have become the exclusive equity partner
with a couple of guys in the "garage stage" (literally) of their business? Let's say their
names were Jobs and Wozniak and the catchy new name for their fledgling company
was Apple Computer. Wouldn't that investment in innovation and vision have
outperformed the Stock Market? In this specific case, ANY market? Certainly.
This particular Trust with whom we deal has such vision. They specifically
look for companies with a solid idea, the dream to make it happen and that same
amazing entreprenurial spirit. Have a great idea? That's not enough. Great ideas, as
they say, are "a dime a dozen."
You don't have to look far or hard for good ideas. But you do have to look
hard to find a Jobs, Gates, Wozniak, Hewlett or Packard, using the computer
industry for our examples.
Losing Control
If you're really familiar with Equity Capital investing, you'll know that the visionary,
inventor or entrepreneur is vulnerable and often will be put in a position of losing
his rights, control, profits and/or company. The "sharks" want control of their
investment. If you believe that this is the only way investing works you'd be right
95% of the time. We're dealing now with the other 5%.
Self Worth
If you don't think your own business or idea is worthy of funding, then no
one will ever convince you otherwise. That's sad, but true. If there's some "little
voice" inside you saying "why would anybody invest millions in me?" then you're just
not ready and not really an entrepreneur. Do you really expect people to invest in
you? Would you invest in yourself? Have you? All of our successful
applicants thus far know they're a great risk
Why would this Trust invest in you when most won't?
For the most understandable of reasons: TO MAKE MONEY.
These people specialize in seeking and funding companies which are innovative,
global in scope, potentially highly profitable and run by the kind of entrepreneurs
who will make those things a reality. As they have told several of our clients,
?We don?t invest in projects. We invest in people.?
How About Their Risk?
But isn't this an incredible risk for them? Well, yes and no. They've been successfully
taking this "risk" for a few decades. They are very good at picking the winners from
those who are not ready to be winners. And their organisational setup is such that
those risks are hedged. They have a brilliant set of structures which have allowed
them to stay well ahead of the profit curve, simply because that is their specialty,
their area of expertise.
Will I lose control of my company? That one is simple. No. You're responsible for
100% of your daily functions and actions. Would you want it any other way?
The Price To Be Paid
How much of my company do I have to give up? That's another good question for
which there's no answer..... yet! The Trust has no particular "formula." They treat
you, and each client, differently and as a separate proposition. If it's any indication,
those we know who are being funded left the meetings with a big smile and a look
of amazement at the great deal they were able to negotiate!
"But," you say, "why are they offering me more than I asked for?"
That's a good question.
The answer is likely to be "because they're more experienced at their area of
expertise - investing - than you are."
Many entrepreneurial failures can be directly attributed to "under-capitalization."
Historically, most entrepreneurs ask for what they think they can get, not what they
actually need. The Trust knows this. Their focus, unlike most investors, is not in
simple ROI (Return on Investment). Theirs is on ROIPDI, Return On Investment PER
DOLLAR INVESTED.
Picture yourself in their position for a moment. You have deep pockets. You find a
company in which you want to invest. Do you invest $1,000,000 with, from your
experience, the certain knowledge that they will fail? Or do you invest $5,000,000
knowing that they will have enough to succeed? Which is the smarter investment?
My Advisor Says...
?But?. My Lawyer/Accountant/Best Friend/Brother-in-Law/Broker (pick one) says??
Good time to stop and ask yourself who is responsible for your dream coming true?
And, perhaps, how much money any of the above have raised for you thus far? As
it's your dream, it can be a good thing to make sure that those around you giving
you ?advice? share the same agenda.
More Buts
"But," you might say, "why can't I find this Trust on the Internet? If they are 'real',
they'd have a website! I need to do my Due Diligence on them.?
Do you recall being told they're a Private Family Trust? Consider the word "Private"
carefully. After you've made your first few million, do you plan on painting
"MILLIONAIRE INSIDE!!!" on the side of your car? Probably not. They don't want the
attention that brings. They also respect the privacy of their clients. Your information
will never be given out either.
If they had a website, how many hundreds of thousands of emails do you think
they'd attract from brokers, time wasters, scam artists, etc? Would that be your way
of doing business if you were in their position?
Instead, they have chosen to utilize a small and very select network of trusted
intermediaries who seek out companies that might qualify. Their job, like mine, is
educating the potential client and gathering the necessary information needed to
make sound decisions as to which opportunities to invite.
The Olympics
Does every company get invited? Of course not. From their point of view, even
being invited is like making it to the Olympics. You still may not win, but you've
been selected to compete for their money with the best, other potential winners
they're seeking.
They are not anonymous. If your project is selected and you're given an invitation to
present to them, you will meet them in person. Nothing is hidden, especially their
agenda. You get to present and go over all the details of your dream project.
Negotiations take place right then and there, all the key decision-makers being
present. Papers are signed, and their Letter of Commitment given. You're on your
way.
Your Big Question
Does that seem "To Good To Be True?"
Or, perhaps, is it the opportunity you've been waiting for and working toward?
Your decision.
Mr. Barnes is President & General Manager of Capital Funds Group Ltd., a Canadian
based world wide consulting firm specializing in Putting Companies and
Money Together. They also work with non-US companies to take them
public rapidly and inexpensively, then getting them funded. http://www.CapitalFundsGroup.com/
