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The Global Village Investment Club
The Global Village Investment Club By William Cate Published November 2003 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
Angels like to "kick the tires." Angel investors are usually living within fifty miles of your office. Because of this policy. Angel investors want to reach out and touch their risk capital investments. They'll want fifty percent equity in your business for their money. It's a losing formula for the angels because more than half of their investments fail. However, touching someone doesn't protect the investor from loss. Assuming an honest entrepreneur, a simple program to limit investment risk works better.
Sophisticated Investors want to quickly recover their risk capital. Profits and ownership are secondary to risk management. I've taught this risk management principle to my my clients for over for twenty years. For our money, we want a free ride on any company’s future success. We want our risk capital returned within weeks of our investment. We'll wait years to take our profit.
I'm creating the Global Village Investment Club on the same principle. We'll invest in operating non-U.S. companies with a national market for their product or service. Management should be seeking money to expand their markets by asset acquisition or globalization. The business plan must be clear and specific. The upside potential in 5-7 years must be at least tenfold the Club members investment.
WE WANT LIQUIDITY. This means the company must be willing to be public in the United States. We’ll expect the company to be acquired by a multination in a few years. Beowulf Investments
will supply these companies the need public company services. The Global Village Investment Club will do PIPE (Private Investment in Public Equities) financings fund the companies initial acquisition in a M&A growth strategy.
The Club will do the Private Placement investments using U. S. Federal Securities Laws to protect our members against fraud. This means the companies will be U.S. Public Companies.
Global Village Investment Club members will select their investments based upon an email newsletter that supplies hard data on the company and its plans.
If you are a sophisticated investor who understands that risk management is more important that reward, we'd welcome you as a member. Please visit: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
The GVIC investment strategy will be to return our member's risk capital quickly. Our members will bury their remaining stock in the public company for several years. Meanwhile, the public company will grow into a multinational super company using an M&A growth strategy. We’ll all exit the company when its acquired by a major multinational corporation.
To contact the author: Visit the Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit the Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
About the Author
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
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