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[And try the Spanish/French translation special version below.]
The Garage Capital Guide to Innovative Business Funding
Here you will find articles about the forms typically used to raise large amounts of money, and the actual forms themselves: the SCOR ULOR U-7 form, Form SB SB-1 SB-2, Regulation A, the somewhat-misunderstood "Form D," SEC-mandated OTC and OTCBB Form 211, and links for state forms like 25102(f) and 25102(n) for California. These rules often do not apply to new company business-owners trying to raise pre-seed, seed, start-up, bridge, R&D private placement or even non-IPO public offering money. For instance, one may send venture capital companies, noted angels and investment bankers a note in crayon written on a napkin or a professionally produced promotional video for one's "new issue." These are so-called exempt investors.
This site is being developed to streamline and demystify the process of raising capital for very small businesses with big growth potential, by providing ready access to information useful to inventors, business owners, intermediaries, new stockbrokers and other entrepreneurs. It replaces an attorney only to the degree that knowing how a haircut is given makes it possible to cut one's own hair. The process of capital raising is not as big a deal as the business itself, and is certainly worth the fees associated with it -- unless we all had to get haircuts blindfolded. This site has a distinctly "metaphysical" bent because the webmaster has found that doing right, doesn't just "clear a conscience," it seems to fuel supernatural "serendipity" and other divine occurences.
There is also information about government grants and funding opportunities for R&D. The price is right -- your increased peace of mind -- so have a nice visit, and be sure to e-mail us if you have a great opportunity, burning question or snatch of verse.
You know who you are. By stealth or bravado, sweat or slack, you have the germ of a really great business that you are trying to nurture on a shoestring budget. Is it possible? This section complements the Garage Shares link below. It is an article for the garage inventor or any garage businessperson who is looking for funding, but who may be a little apprehensive about all of the forms and regulations that appear to be attached to raising money. In this article, we go from the "six degrees" basics to fairly advanced.
The Golden Rule is where friends come from, not Wall Street or Washington. We go into some of the dimensions of raising money without issuing stock in the above page Funding Garage Inventions . For instance, any of us can invite friends to help us in our activities, and the law draws clear distinctions between a business owner and a hobbyist. This article includes some info about OTC public stock offerings, which is increasingly public knowledge thanks to the world wide web.
There are minor limitations on advertizing securities like loans, which are discussed in the sections above.
Small Business and the SEC includes some helpful advice about interacting with the Securities and Exchange Commission, and a link to the SEC to get a copy of a very helpful publication, "Q&A: Small Business and the SEC."
Funding Philanthropic High Tech R&D
Philanthropic R&D is a very loving activity. Inventors with philanthropic projects deserve to be able to accomplish the outcomes, and deserve the support of everyone. This is perhaps the most important section. This is a short list of some "tax-advantaging" ideas that may be of use.
The accompanying Form D , if used to raise less than $1,000,000 in more than one state, doesn't need to be filed with the SEC until up to 15 days after money begins to be accepted. It is a essentially a receipt. A good SEC Link for information and forms like this is http://www.sec.gov/smbus/forms/formssb.htm or http://www.sec.gov and click on "Small Business."
Regulation D is described in some detail in both the Funding Garage Inventions and Garage Shares pages above. I think it would be great if the SEC would publish comic books like the Federal Reserve does.
The Small Corporate Offering Registration, SCOR, also known as ULOR, Uniform Limited Offering Registration, or Form U-7. This form is for registering small exempt offerings of securities, up to $1,000,000, and it is in the form of a questionnaire.
An advantage of the U-7 stock approach is that most states' Departments of Corporations are already prepared for it as a securities filing. Three disadvantages of the U-7 are that it is the only form in its range that requires auditing, in some states 10% of the offering is required to be sold or it is cancelled, I have read, and in some states it is restricted in other ways and carries larger fees than Regulation A. It is also described in some detail in the Funding Garage Inventions page above.
A brief description of the most popular filing format for public stock offerings up to $5,000,000, with a link to obtain a copy of the form.
There is a page here discussing the issues relating to displaying executive summaries while conforming to state and federal securities regulations. This is also where those interested in investing in small businesses or small business owners or students can view "executive summaries."
Would you like to submit a two page summary about it for other visitors and investors to read? Your summary will make it possible for others to see what an executive summary looks like and reads like. Perhaps you need feedback on your evolving business opportunity, and you don't yet know it. At this time, only summaries of projects that have not been funded and projects which are completed can be accepted.
How the site was written and prepared, and how an SEC "No Action" letter was requested and the Department of Corporations of California and various small business counseling groups contacted for feedback. And plenty of prayer, like the prayer of right intention and expecting the best.
How To Make Professional-Looking Web Sites
For those who are planning to approach investors for their business, but haven't yet taken the step of launching a web site. Get busy. Get seen! This is a very very short page of advice on how to have a high impact at next-to-no expense.
The links are divided according to government, organization and private funding operations, and are to some degree annotated.
Spanish/French Version of Garage Capital
To obtain a good translation from the English version of this book, I have written this short version of this book. It has simpler sentences with more common words. Simpler sentences are easier to translate. If you read English and like to read simpler sentences, please try reading this version of the book, in combination with one of the many translation programs available online and for purchase, such as http://www.intertran.net , http://babelfish.altavista.digital.com , or http://translator.go.com .
In this article, I try to get at the spiritual why's of entrepreneurship. "There is no spoon."
Don't be a stranger. mailto:scotttygett@juno.com.
Main Index | Funding Garage Inventions | Garage Shares | Example Ads | Small Business and the SEC | Funding Philanthropic High Tech R&D | The New Regulation D | Form U-7 | Regulation A | Executive Summary Gallery | Executive Summary Submission | This Site | How To Make Professional-Looking Web Sites | Links To Capital | Spanish/French Version of Garage Capital | The Razor's Edge
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