VC, PPM or BIGs for a new business

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   Twenty One Daysposted 14 years ago

   I have my eye on a new product in the Health/Nutrition sector. In the past, I have dealt with Venture Capital groups who have a laundry list of terms even before you get a 30 second spot to do a presentation and afterward simply a powerful marketing spread that means either a short sell exit strategy or long term IPO.
   
   Given the nature of VC and the limited areas they are interested in, I went the next step and shelled out a hefty sum for a PPM. A PPM is a Private Placement Memorandum. It is designed for small companies to offer private shares of their business for a lump sum cash investment. The notion with a PPM is you sell the shares -no commission- and use the funds to expand the business and even take it public.
   
   Now, I also have been looking at Business Increment Groups. BIG's are like angel investors who can fund a business in smaller amounts over time, as businesses themselves. They could invest in increments post-production and stop anytime. It would allow a more targeted group and better appeal to the public, using established businesses to introduce the product, which the business can immediately profit from on the retail side as well as investment side.
   
   Sound too crazy???

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