Thursday, August 12, 2010

Early LPOs vs. Late IPOs :
Are Angels The New VC?

During the DotCom heyday, Angel Investors provided the launching pad for Venture Capital Firms to propel any startup on two legs toward a successful IPO. Fast forward to today's investment climate and you would be hard-pressed to find any VC who isn't frustrated by what they consider to be a shortage of IPO worthy deals. More and more VCs have deals in their portfolios that have long outlasted their investment value, and more and more VCs are seeking to unload these deals, at a loss, as reverse merger vehicles. Nearly all have abandoned hope in the "sure thing" and are stepping into what has traditionally been the Angel role of incubating startups that may or may not mature into IPO candidates.

We at GrowPublic are partnering with Angel Investors and Venture Capitalists alike to provide an alternative method of providing liquidity to initial investors and to increase the likelihood of future funding for their deals once those companies go public, through what we call an Early Stage LPO (Limited Public Offering). We are coaching VCs and Angel Investors everyday who call us wanting to understand our Early Stage LPO versus late stage IPO approach to business. Paired with our rapid incubation system for small cap private companies on their way to becoming public, as a FIRST step for growth funding, rather than as a last step for exit ROI, it's easy to see why the system we initially developed for Angel Investors is fast becoming a viable option for Venture Capital firms, as well.

With an Early LPO, Angels and VCs need only bring $75,000 to the table in order to secure our services on behalf of their clients, in exchange for shares of the company, and the ability to invest further once their ticker symbol is live. Private equity investors who once shouldered the entire risk load associated with funding startups now enjoy 100% liquid investment, thanks to GrowPublic, increasing the likelihood that the company will be further funded and stock positions purchased by VCs or Angel Investors will be liquid in as little as 180 days, due to the fact that the company will be publicly traded.

When you partner early with GrowPublic, you will enjoy some pretty amazing services you won't find anywhere else under one roof. Along with pioneering the method by which most companies like GrowPublic now take private businesses public, we are the experts in brand development and social marketing, and the only firm in our industry that offers these keys to a successful public launch in-house, as part of our service package. By leveraging the viral nature of communication in today's social media, we position your client's strengths in front of their target audience long before their stock goes live, building a fan base around their brand, and converting those supporters into investors leading up to the launch of their stock.

Last, but not least, after a successful launch, when most of our competitors have left their clients to fend for themselves in foreign territory, we at GrowPublic are just getting started. Our focus is firmly on your client's growth, before, during AND after they go public. You won't find a service quite like ours anywhere else.

If anyone is interested in learning more about our approach, please visit http://www.growpublic.com/ , or call GrowPublic CEO, Ted D. Campbell II at 210-913-5497.