Capital Description
Capital resources
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25102(n) exemption For California Corporations
The 25102 (n) exemption is a option to raise capital and sell securities for companies located in California. It lets a company sell securities to semi-wealthy folks and advertise the investment opportunity to the public. Under this exemption, the offeror can actually announce the offering to the public!
California is the only state that has its own special federal securities law exemption.
The federal Securities and Exchange Commission adopted Rule 1001 which provides an exemption from the federal securities registration requirement for offerings of up to $5 million that comply with the California 25102(n) exemption.
The 25102(n) exemption was enacted in 1994 by the California legislature. It exempts offers or sales of securities in transactions that meet the following requirements (note that this a very abbreviated summary of an extremely complicated law!):
(1) The issuer is a California corporation or corporation formed under another state’s laws that does business in California or any other form of business entity organized in California.
(2) Sales of securities are made only to “qualified purchasers” which can include a person who, either individually or with his or her spouse, either
(i) has a minimum net worth of two hundred fifty thousand dollars ($250,000) and had, during the immediately preceding tax year, gross income in excess of one hundred thousand dollars ($100,000) and reasonably expects gross income in excess of one hundred thousand dollars ($100,000) during the current tax year or
(ii) has a minimum net worth of five hundred thousand dollars ($500,000).
“Net worth” does not include the person’s home, home furnishings, and automobiles.
A qualifying natural person must, by reason of his or her business or financial experience (or that of his or her professional adviser who is unaffiliated and not compensated by the issuer), have the capacity to protect his or her interests in connection with the transaction. In addition, the amount of the investment cannot exceed 10 percent of his or her net worth.
Under this exemption, the offeror can actually announce the offering to the public!
There are several restrictions on the announcement and what information it may contain. For example it must include a statement that “no money or other consideration is being solicited or will be accepted, an indication of interest made by a prospective purchaser involves no obligation or commitment of any kind, and, if the issuer is required . . . to deliver a disclosure statement to prospective purchasers, no sales will be made or commitment to purchase accepted until five business days after delivery of a disclosure statement and subscription information to the prospective purchaser
California is the only state that has its own special federal securities law exemption.
The federal Securities and Exchange Commission adopted Rule 1001 which provides an exemption from the federal securities registration requirement for offerings of up to $5 million that comply with the California 25102(n) exemption.
The 25102(n) exemption was enacted in 1994 by the California legislature. It exempts offers or sales of securities in transactions that meet the following requirements (note that this a very abbreviated summary of an extremely complicated law!):
(1) The issuer is a California corporation or corporation formed under another state’s laws that does business in California or any other form of business entity organized in California.
(2) Sales of securities are made only to “qualified purchasers” which can include a person who, either individually or with his or her spouse, either
(i) has a minimum net worth of two hundred fifty thousand dollars ($250,000) and had, during the immediately preceding tax year, gross income in excess of one hundred thousand dollars ($100,000) and reasonably expects gross income in excess of one hundred thousand dollars ($100,000) during the current tax year or
(ii) has a minimum net worth of five hundred thousand dollars ($500,000).
“Net worth” does not include the person’s home, home furnishings, and automobiles.
A qualifying natural person must, by reason of his or her business or financial experience (or that of his or her professional adviser who is unaffiliated and not compensated by the issuer), have the capacity to protect his or her interests in connection with the transaction. In addition, the amount of the investment cannot exceed 10 percent of his or her net worth.
Under this exemption, the offeror can actually announce the offering to the public!
There are several restrictions on the announcement and what information it may contain. For example it must include a statement that “no money or other consideration is being solicited or will be accepted, an indication of interest made by a prospective purchaser involves no obligation or commitment of any kind, and, if the issuer is required . . . to deliver a disclosure statement to prospective purchasers, no sales will be made or commitment to purchase accepted until five business days after delivery of a disclosure statement and subscription information to the prospective purchaser
accredited investors
Accredited investor is a term defined by various countries' securities laws that delineates investors permitted to invest in certain types of higher risk investments including seed money, limited partnerships, hedge funds, private placements, and angel investor networks. The term generally includes wealthy individuals and organizations such as banks, insurance companies, significant charities, some corporations, endowments, and retirement plans.
In the United States, for an individual to be considered an accredited investor, they must have a net worth of at least one million US dollars, not including the value of their primary residence or have income at least $200,000 each year for the last two years (or $300,000 together with their spouse if married) and have the expectation to make the same amount this year."
In Canada, the same prerequisites apply, however their net worth must be a minimum of one million dollars not including the value of their principal residence.
Linkedin Groups - Accredited Investors
Keiretsu Forum
Keiretsu Forum is a global investment community of accredited private equity angel investors, venture capitalists and corporate/institutional investors. Keiretsu Forum was founded in the San Francisco East Bay in California in 2000 by Randy Williams. We are a worldwide network of capital, resources and deal flow with 26 chapters on 3 continents. Keiretsu Forum members invest in high-quality, diverse investment opportunities. Our community is strengthened through its involvement in social and charitable activities. www.keiretsuforum.com
In the United States, for an individual to be considered an accredited investor, they must have a net worth of at least one million US dollars, not including the value of their primary residence or have income at least $200,000 each year for the last two years (or $300,000 together with their spouse if married) and have the expectation to make the same amount this year."
In Canada, the same prerequisites apply, however their net worth must be a minimum of one million dollars not including the value of their principal residence.
Linkedin Groups - Accredited Investors
Keiretsu Forum
Keiretsu Forum is a global investment community of accredited private equity angel investors, venture capitalists and corporate/institutional investors. Keiretsu Forum was founded in the San Francisco East Bay in California in 2000 by Randy Williams. We are a worldwide network of capital, resources and deal flow with 26 chapters on 3 continents. Keiretsu Forum members invest in high-quality, diverse investment opportunities. Our community is strengthened through its involvement in social and charitable activities. www.keiretsuforum.com
alternative Investments
An alternative investment is an investment in asset classes other than stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, art, wine, antiques, coins, or stamps and some financial assets such as a Real Estate Fund, commodities, private equity, distressed securities, hedge funds, carbon credits, venture capital, film production and financial derivatives. Investments in real estate and forestry are also often termed alternative despite the ancient use of such real assets to enhance and preserve wealth. Alternative investments are to be contrasted with traditional investments.
Alternative Investments
Alternative Investment Funds
Alternative Investment Management Association
Alternative Investments
Alternative Investment Funds
Alternative Investment Management Association
angel investors
An angel investor or angel (also known as a business angel or informal investor or angel funder) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups orangel networks to share research and pool their investment capital, as well as to provide advice to their portfolio companies.
Angel List
Angel Capital Association
Angel groups have grown significantly in the last decade, as more and more organizations have been established and more individual angels have joined the groups. Angel groups now exist in nearly every American state and Canadian province, and they offer accredited angel investors the opportunity to invest in and help build successful companies - while also having a good time. Every group is different in terms of investment strategy and culture, but ACA member groups offer interested investors a variety of benefits. Most angel groups are looking for new investors to join their groups.
Funding Post
For 14 Years FundingPost has worked to bring entrepreneurs together with leading investors worldwide. We believe that it is important to reach investors in every medium possible - both online and offline.
Through our national Venture Capital Events, Venture Guide Magazine, Books, Webinars and our online Venture Exchange, FundingPost has had the opportunity to work with thousands of Angel and Venture Capital, Corporate VCs and Family Office Investors representing over $108 Billion. We make introductions from Investors to Entrepreneurs Every Day! www.fundingpost.com
gust
Gust is the official platform of over 1,000 angel groups, venture funds, & other investment organizations
www.gust.com
Maverick Angels
Maverick Angels is a very different kind of angel investor network. We take an entrepreneurial approach to angel investing to create win-win results with portfolio companies. www.maverickangels.com
MicroVentures
MicroVentures is like an investment bank for startups. We conduct due diligence on startups and then if approved we help them raise capital from angel investors. Our process of raising capital is similar to crowdfunding. We give angel investors the ability invest small amount of capital to crowd fund a startup raising capital. The concept is similar to peer to peer lending but instead of debt you get equity for your investment.
www.microventures.com
Angel List
Angel Capital Association
Angel groups have grown significantly in the last decade, as more and more organizations have been established and more individual angels have joined the groups. Angel groups now exist in nearly every American state and Canadian province, and they offer accredited angel investors the opportunity to invest in and help build successful companies - while also having a good time. Every group is different in terms of investment strategy and culture, but ACA member groups offer interested investors a variety of benefits. Most angel groups are looking for new investors to join their groups.
Funding Post
For 14 Years FundingPost has worked to bring entrepreneurs together with leading investors worldwide. We believe that it is important to reach investors in every medium possible - both online and offline.
Through our national Venture Capital Events, Venture Guide Magazine, Books, Webinars and our online Venture Exchange, FundingPost has had the opportunity to work with thousands of Angel and Venture Capital, Corporate VCs and Family Office Investors representing over $108 Billion. We make introductions from Investors to Entrepreneurs Every Day! www.fundingpost.com
gust
Gust is the official platform of over 1,000 angel groups, venture funds, & other investment organizations
www.gust.com
Maverick Angels
Maverick Angels is a very different kind of angel investor network. We take an entrepreneurial approach to angel investing to create win-win results with portfolio companies. www.maverickangels.com
MicroVentures
MicroVentures is like an investment bank for startups. We conduct due diligence on startups and then if approved we help them raise capital from angel investors. Our process of raising capital is similar to crowdfunding. We give angel investors the ability invest small amount of capital to crowd fund a startup raising capital. The concept is similar to peer to peer lending but instead of debt you get equity for your investment.
www.microventures.com
ASSOCIATIONs
ACG - Association for Corporate Growth
ACG is a global organization with 58 chapters and over 14,000 members. Chapters in the U.S., Canada, Europe and Asia. Private equity professionals, investment bankers & intermediaries, attorneys, auditors & accountants, lenders, corporate development officers, company leaders and others focused on the middle market make ACG your resource for opportunities, capital and services. ACG brings together every segment of the growth community. www.acg.org
Alternative Investment Management Association (AIMA)
Founded in 1990, the Alternative Investment Management Association (AIMA) is the global representative of the hedge fund industry. We represent all practitioners in the alternative investment management industry – including hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms, investors, fund administrators and independent fund directors. Our membership is corporate and comprises over 1,300 firms (with over 7,000 individual contacts) in more than 50 countries. www.aima.org
American Association of Private Lenders (AAPL)
Formed in 2009, the American Association of Private Lenders (AAPL) is the national organization representing the private real estate and peer to peer lending industry. Our membership includes private money lenders, hard money lenders, mortgage fund managers, brokers, and service providers from around the United States. We believe our principles – excellence, ethics, and education – are the cornerstone for success in the industry. AAPL members are leaders in the industry and embody the character, dedication, and experience critical for success.
www.aaplonline.com
CFA Institute - Association of Investment Professionals
CFA Institute is the global association of investment professionals that sets the standard for professional excellence. We are a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. www.cfainstitute.org
LAVA - Los Angeles Venture Association
The Los Angeles Venture Association has been providing forums where entrepreneurs and executives of start-up, emerging growth and late stage venture funded companies actively meet and learn from fellow executives, investors, bankers, financial advisors and other providers of professional services.
www.lava.org
ACG is a global organization with 58 chapters and over 14,000 members. Chapters in the U.S., Canada, Europe and Asia. Private equity professionals, investment bankers & intermediaries, attorneys, auditors & accountants, lenders, corporate development officers, company leaders and others focused on the middle market make ACG your resource for opportunities, capital and services. ACG brings together every segment of the growth community. www.acg.org
Alternative Investment Management Association (AIMA)
Founded in 1990, the Alternative Investment Management Association (AIMA) is the global representative of the hedge fund industry. We represent all practitioners in the alternative investment management industry – including hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms, investors, fund administrators and independent fund directors. Our membership is corporate and comprises over 1,300 firms (with over 7,000 individual contacts) in more than 50 countries. www.aima.org
American Association of Private Lenders (AAPL)
Formed in 2009, the American Association of Private Lenders (AAPL) is the national organization representing the private real estate and peer to peer lending industry. Our membership includes private money lenders, hard money lenders, mortgage fund managers, brokers, and service providers from around the United States. We believe our principles – excellence, ethics, and education – are the cornerstone for success in the industry. AAPL members are leaders in the industry and embody the character, dedication, and experience critical for success.
www.aaplonline.com
CFA Institute - Association of Investment Professionals
CFA Institute is the global association of investment professionals that sets the standard for professional excellence. We are a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. www.cfainstitute.org
LAVA - Los Angeles Venture Association
The Los Angeles Venture Association has been providing forums where entrepreneurs and executives of start-up, emerging growth and late stage venture funded companies actively meet and learn from fellow executives, investors, bankers, financial advisors and other providers of professional services.
www.lava.org
broker Dealers
FINRA - Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority, Inc. (FINRA) is the largest independent regulator of securities firms doing business with the public in the United States. Our core mission is to pursue investor protection and market integrity, and we carry it out by overseeing virtually every aspect of the brokerage industry. All told, FINRA oversees about 4,000 securities firms with approximately 637,700 brokers. www.finra.org
The Financial Industry Regulatory Authority, Inc. (FINRA) is the largest independent regulator of securities firms doing business with the public in the United States. Our core mission is to pursue investor protection and market integrity, and we carry it out by overseeing virtually every aspect of the brokerage industry. All told, FINRA oversees about 4,000 securities firms with approximately 637,700 brokers. www.finra.org
Company and Investor databases
AlwaysOn
AlwaysOn is the leading business media brand connecting and informing the entrepreneurial community in the Global Silicon Valley. AlwaysOn serves its members by producing intimate executive Innovation Summits for industry insiders in key forward-thinking technology centers around the globe and connecting them daily on a powerful online media network (www.aonetwork.com).* AlwaysOn editorial and event programming covers the booming areas of digital media and entertainment, ondemand and cloud computing, mobile technology, and greentech. www.aonetwork.com
AlwaysOn Venture Partners
AOVP’s mission is simple—to help connect top entrepreneurial companies with targeted investors, from angels through secondary investors, corporate development heads, media buyers, talent agents, media and entertainment executives and other strategic partners.
Crunchbase
CrunchBase is the free database of technology companies, people, and investors that anyone can edit. www.crunchbase.com
DigitalLA
Digital LA is the largest networking organization based in LA, reaching more than 60000 digital professionals weekly via our newsletter and social media. www.DigitalLA.net
SocalTECH.com
socalTECH.com provides up to date news and information about high tech companies in Southern California, including interviews, a calendar of local events, and a database of technology firms in the region.socalTECH has been dedicated to promoting the technology industry in Southern California since 1998, and provides the most in-depth, up-to-date, and focused view of high tech in the Southern California area.
socalTECH provides breaking news coverage of Southern California tech companies, including venture funding, business news, and interviews with local technology entrepreneurs and industry luminaries. The SoCal TechNews is published daily, and is available on the web or delivered via email.
The socalTECH.com web site also offers an extensive database of local high tech companies, venture capital and private equity firms, incubators, and service providers, which can be used to find capital, employment, customers, partners, and much much more.
socalTECH offers advertisers and sponsors a way to reach a highly targeted audience of high tech executives in the Southern California high tech industry.
SOCALTECH LLC is also publisher of:
TechZulu
Based in Los Angeles, California, TechZulu is an independent news organization delivering an insightful story of the technology industry by showcasing the very people creating it. Our mission is simple: to discover, cover and connect you with vetted technology resources in the Southern California ecosystem and beyond. A pioneer in live Web television, TechZulu engages millions of viewers through real time reporting at conferences and its weekly news show, TechZulu Live. TechZulu also offers production services for conferences and events, and runs the Spotlight Series highlighting promising new technologies. www.TechZulu.com
VLAB
VLAB is the San Francisco Bay Area chapter of the MIT Enterprise Forum, a non-profit organization dedicated to promoting the growth and success of high-tech entrepreneurial ventures by connecting ideas, technology and people. We provide a forum for San Francisco and Silicon Valley’s leading entrepreneurs, industry experts, venture capitalists, private investors and technologists to exchange insights about how to effectively grow high-tech ventures amidst dynamic market risks and challenges. In a world where markets change at breakneck speed, knowledge is a critical source of competitive advantage. Our forums provide an excellent opportunity to network and learn about pivotal business issues, emerging industries and the latest technologies. www.VLAB.com
AlwaysOn is the leading business media brand connecting and informing the entrepreneurial community in the Global Silicon Valley. AlwaysOn serves its members by producing intimate executive Innovation Summits for industry insiders in key forward-thinking technology centers around the globe and connecting them daily on a powerful online media network (www.aonetwork.com).* AlwaysOn editorial and event programming covers the booming areas of digital media and entertainment, ondemand and cloud computing, mobile technology, and greentech. www.aonetwork.com
AlwaysOn Venture Partners
AOVP’s mission is simple—to help connect top entrepreneurial companies with targeted investors, from angels through secondary investors, corporate development heads, media buyers, talent agents, media and entertainment executives and other strategic partners.
Crunchbase
CrunchBase is the free database of technology companies, people, and investors that anyone can edit. www.crunchbase.com
DigitalLA
Digital LA is the largest networking organization based in LA, reaching more than 60000 digital professionals weekly via our newsletter and social media. www.DigitalLA.net
SocalTECH.com
socalTECH.com provides up to date news and information about high tech companies in Southern California, including interviews, a calendar of local events, and a database of technology firms in the region.socalTECH has been dedicated to promoting the technology industry in Southern California since 1998, and provides the most in-depth, up-to-date, and focused view of high tech in the Southern California area.
socalTECH provides breaking news coverage of Southern California tech companies, including venture funding, business news, and interviews with local technology entrepreneurs and industry luminaries. The SoCal TechNews is published daily, and is available on the web or delivered via email.
The socalTECH.com web site also offers an extensive database of local high tech companies, venture capital and private equity firms, incubators, and service providers, which can be used to find capital, employment, customers, partners, and much much more.
socalTECH offers advertisers and sponsors a way to reach a highly targeted audience of high tech executives in the Southern California high tech industry.
SOCALTECH LLC is also publisher of:
- Techrockies - high tech news and information for the Rocky Mountain region
- Northwest Innovation, focused on the Pacific Northwest
- Texastechpulse, which covers Texas
- Silicontap.com, targeted at venture capital and startup news in Silicon Valley.
TechZulu
Based in Los Angeles, California, TechZulu is an independent news organization delivering an insightful story of the technology industry by showcasing the very people creating it. Our mission is simple: to discover, cover and connect you with vetted technology resources in the Southern California ecosystem and beyond. A pioneer in live Web television, TechZulu engages millions of viewers through real time reporting at conferences and its weekly news show, TechZulu Live. TechZulu also offers production services for conferences and events, and runs the Spotlight Series highlighting promising new technologies. www.TechZulu.com
VLAB
VLAB is the San Francisco Bay Area chapter of the MIT Enterprise Forum, a non-profit organization dedicated to promoting the growth and success of high-tech entrepreneurial ventures by connecting ideas, technology and people. We provide a forum for San Francisco and Silicon Valley’s leading entrepreneurs, industry experts, venture capitalists, private investors and technologists to exchange insights about how to effectively grow high-tech ventures amidst dynamic market risks and challenges. In a world where markets change at breakneck speed, knowledge is a critical source of competitive advantage. Our forums provide an excellent opportunity to network and learn about pivotal business issues, emerging industries and the latest technologies. www.VLAB.com
corporate venture capital
Corporate venture capital (CVC) is the investment of corporate funds directly in external start-up companies. CVC is defined by the Business Dictionary as the "practice where a large firm takes an equity stake in a small but innovative or specialist firm, to which it may also provide management and marketing expertise; the objective is to gain a specific competitive advantage.
The definition of CVC often becomes clearer by explaining what it is not. An investment made through an external fund managed by a third party, even when the investment vehicle is funded by a single investing company, is not considered CVC. Most importantly, CVC is not synonymous with venture capital (VC); rather, it is a specific subset of venture capital.
In essence, it is best to think of CVC as a subset of venture capital whereby a company is investing, without using a third party investment firm, in an external start-up that it does not own.
The definition of CVC often becomes clearer by explaining what it is not. An investment made through an external fund managed by a third party, even when the investment vehicle is funded by a single investing company, is not considered CVC. Most importantly, CVC is not synonymous with venture capital (VC); rather, it is a specific subset of venture capital.
In essence, it is best to think of CVC as a subset of venture capital whereby a company is investing, without using a third party investment firm, in an external start-up that it does not own.
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VC funds started by government agencies
VC funds started by famous people
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Equity Crowdfunding
Crowdfunding (alternately: crowd funding, crowd financing, equity crowdfunding) is a process in which individuals pool money and other resources to fund projects initiated by other people or organizations. Crowdfunded projects may include creative works, products, nonprofit organizations, supporting entrepreneurship, businesses, or donations for a specific purpose (e.g., to pay for a medical procedure). Crowdfunding usually takes place via an online portal that handles the financial transactions involved, and may also provide services such as media hosting, social networking, and facilitating contact with contributors.
The Jumpstart Our Business Startups Act or JOBS Act, is a law intended to encourage funding of United States small businesses by easing various securities regulations. It passed with bipartisan support, and was signed into law by President Barack Obama on April 5, 2012. The term "The JOBS Act" is also sometimes used informally to refer to just Titles II and III of the legislation which are the two most important pieces to much of the equity crowdfunding and startup community. Title II went into effect on September 23, 2013. Title III rulings are scheduled for October 2015.
Funding models
Crowd funding is donation-based fundraising for businesses or creative projects, typically via an online funding portal. Some but not all crowdfunding projects offer contributors rewards, which may differ based on the amount of money donated. Rewards can include copies of a creative work, products created with the funding, special or personalized incentives (such as autographed works or swag), or public recognition.
In equity crowdfunding, a crowdfunding approach is used to raise investment capital and contributors receive equity in the resulting business. Contributors may act as investors and receive shares directly, or the crowdfunding service may act as a nominated agent.
The Jumpstart Our Business Startups Act or JOBS Act, is a law intended to encourage funding of United States small businesses by easing various securities regulations. It passed with bipartisan support, and was signed into law by President Barack Obama on April 5, 2012. The term "The JOBS Act" is also sometimes used informally to refer to just Titles II and III of the legislation which are the two most important pieces to much of the equity crowdfunding and startup community. Title II went into effect on September 23, 2013. Title III rulings are scheduled for October 2015.
Funding models
Crowd funding is donation-based fundraising for businesses or creative projects, typically via an online funding portal. Some but not all crowdfunding projects offer contributors rewards, which may differ based on the amount of money donated. Rewards can include copies of a creative work, products created with the funding, special or personalized incentives (such as autographed works or swag), or public recognition.
In equity crowdfunding, a crowdfunding approach is used to raise investment capital and contributors receive equity in the resulting business. Contributors may act as investors and receive shares directly, or the crowdfunding service may act as a nominated agent.
EB-5 Financing - Los Angeles
The EB-5 investment program allows overseas investors to invest and immigrate to the U.S. under the EB-5 classification.
In 1992, Congress created a temporary pilot program designed to stimulate economic activity and job growth, while allowing eligible aliens the opportunity to become lawful permanent residents. Under this pilot program, foreign nationals may invest in a pre-approved regional center, or "economic unit, public or private, which is involved with the promotion of economic growth, including increased export sales, improved regional productivity, job creation, or increased domestic capital investment". Investments within a regional center provide foreign nationals the added benefit of allowing them to count jobs created both directly and indirectly for purposes of meeting 10-job creation requirement.
The EB-5 visa provides a method of obtaining a green card for foreign nationals who invest money in the United States. To obtain the visa, individuals must invest $1,000,000 (or at least $500,000 in a "Targeted Employment Area" - high unemployment or rural area), creating or preserving at least 10 jobs for U.S. workers excluding the investor and their immediate family. Initially, under the first EB-5 program, the foreign investor was required to create an entirely new commercial enterprise; however, under the Pilot Program investments can be made directly in a job-generating commercial enterprise (new, or existing - "Troubled Business"), or into a "Regional Center" - a 3rd party-managed investment vehicle (private or public), which assumes the responsibility of creating the requisite jobs. Regional Centers may charge an administration fee for managing the investor's investment.
If the foreign national investor's petition is approved, the investor and their dependents will be granted conditional permanent residence valid for two years. Within the 90 day period before the conditional permanent residence expires, the investor must submit evidence documenting that the full required investment has been made and that 10 jobs have been maintained, or 10 jobs have been created or will be created within a reasonable time period.
By the end of the 2011 fiscal year, more than 3,800 EB-5 applications had been filed, compared to fewer than 800 applications in 2007. The program reached capacity for the first time in August 2014 when the State Department stopped issuing EB-5 visas until the beginning of the next fiscal year, October 2014.
In 1992, Congress created a temporary pilot program designed to stimulate economic activity and job growth, while allowing eligible aliens the opportunity to become lawful permanent residents. Under this pilot program, foreign nationals may invest in a pre-approved regional center, or "economic unit, public or private, which is involved with the promotion of economic growth, including increased export sales, improved regional productivity, job creation, or increased domestic capital investment". Investments within a regional center provide foreign nationals the added benefit of allowing them to count jobs created both directly and indirectly for purposes of meeting 10-job creation requirement.
The EB-5 visa provides a method of obtaining a green card for foreign nationals who invest money in the United States. To obtain the visa, individuals must invest $1,000,000 (or at least $500,000 in a "Targeted Employment Area" - high unemployment or rural area), creating or preserving at least 10 jobs for U.S. workers excluding the investor and their immediate family. Initially, under the first EB-5 program, the foreign investor was required to create an entirely new commercial enterprise; however, under the Pilot Program investments can be made directly in a job-generating commercial enterprise (new, or existing - "Troubled Business"), or into a "Regional Center" - a 3rd party-managed investment vehicle (private or public), which assumes the responsibility of creating the requisite jobs. Regional Centers may charge an administration fee for managing the investor's investment.
If the foreign national investor's petition is approved, the investor and their dependents will be granted conditional permanent residence valid for two years. Within the 90 day period before the conditional permanent residence expires, the investor must submit evidence documenting that the full required investment has been made and that 10 jobs have been maintained, or 10 jobs have been created or will be created within a reasonable time period.
By the end of the 2011 fiscal year, more than 3,800 EB-5 applications had been filed, compared to fewer than 800 applications in 2007. The program reached capacity for the first time in August 2014 when the State Department stopped issuing EB-5 visas until the beginning of the next fiscal year, October 2014.
events
- Conferences
Family Offices
A family office or single family office (SFO) is a private company that manages investments and trusts for a single family. The company's financial capital is the family's own wealth, often accumulated over many family generations. Traditional family offices provide personal services such as managing household staff and making travel arrangements. Other services typically handled by the traditional family office include property management, day-to-day accounting and payroll activities, and management of legal affairs. Family offices often provide family management services, which includes family governance, financial and investment education, philanthropy coordination, and succession planning. A family office can cost over $1 million to operate, so the family's net worth usually exceeds $100 million. Recently, some family offices have accepted non-family members.
More recently the term "family office" or multi family office is used to refer primarily to financial services for relatively wealthy families.
Recent estimates put the number of family offices in the United States at more than 3,000 and that number is expected to grow in the coming years.
Family Offices Group
The Family Offices Group is the #1 largest family office networking association in the industry with 62,000 total members. Our team works directly with several ultra-wealthy families, we hold live family office workshops and constantly update our directory of family office contact details.
www.familyoffices.com
More recently the term "family office" or multi family office is used to refer primarily to financial services for relatively wealthy families.
Recent estimates put the number of family offices in the United States at more than 3,000 and that number is expected to grow in the coming years.
Family Offices Group
The Family Offices Group is the #1 largest family office networking association in the industry with 62,000 total members. Our team works directly with several ultra-wealthy families, we hold live family office workshops and constantly update our directory of family office contact details.
www.familyoffices.com
Financial Advisors
The National Association of Personal Financial Advisors (NAPFA) is the country’s leading professional association of Fee-Only financial advisors—highly trained professionals who are committed to working in the best interests of those they serve.
www.napfa.org
www.napfa.org
financial professionals
Association for Financial Professionals
The Association for Financial Professionals (AFP) serves a network of more than 16,000 treasury and finance professionals.
www.afponline.org
The Association for Financial Professionals (AFP) serves a network of more than 16,000 treasury and finance professionals.
www.afponline.org
Insurance Agents & Brokers
Independent Insurance Agents & Brokers of America is the largest association in the United States. The Independent Insurance Agents & Brokers of America (Big "I") is a national alliance of more than a quarter million business owners and their employees who offer all types of insurance and financial services products. Unlike company-employed agents, Big "I" independent insurance agents and insurance brokers represent more than one insurance company, so they can offer clients a wider choice of auto, home, business, life, health coverages as well as retirement and employee-benefit products.
www.independentagent.com
www.independentagent.com
Investment Banks
Investment Banks
Investment banks are financial institutions that raise equity and debt capital, engineer corporate mergers and acquisitions, perform business valuations and render fairness opinions, among other activities. The majority of investment banks offer strategic advisory services for mergers, acquisitions, divestitures, management buyouts and other financial services for clients, such as the trading of derivative, fixed income, foreign exchange, commodity, and equity securities. Investment banks also assist corporate and government entities in raising capital through issuing and selling securities in the debt and equity capital markets. In mergers and acquisitions, services provided by investment banks include valuing the company, preparing a confidential offering memorandum, identifying prospective buyers, marketing the company for sale, and negotiating the purchase price and terms. In private placement financings or public securities offerings, the investment bank values the company, advises on offering price and terms, prepares the offering circular and markets the securities to prospective lenders or investors, ultimately raising the requisite financing.
List of Southern California Invesment Banks [PDF] »
Investment banks are financial institutions that raise equity and debt capital, engineer corporate mergers and acquisitions, perform business valuations and render fairness opinions, among other activities. The majority of investment banks offer strategic advisory services for mergers, acquisitions, divestitures, management buyouts and other financial services for clients, such as the trading of derivative, fixed income, foreign exchange, commodity, and equity securities. Investment banks also assist corporate and government entities in raising capital through issuing and selling securities in the debt and equity capital markets. In mergers and acquisitions, services provided by investment banks include valuing the company, preparing a confidential offering memorandum, identifying prospective buyers, marketing the company for sale, and negotiating the purchase price and terms. In private placement financings or public securities offerings, the investment bank values the company, advises on offering price and terms, prepares the offering circular and markets the securities to prospective lenders or investors, ultimately raising the requisite financing.
List of Southern California Invesment Banks [PDF] »
Investment Professionals
CFA Institute
CFA Institute is the global association of investment professionals that sets the standard for professional excellence. We are a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. www.cfainstitute.org
CFA Institute is the global association of investment professionals that sets the standard for professional excellence. We are a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. www.cfainstitute.org
linkedin Groups - investment professionals
Accredited Investors Network (5,500)
Alternative Investments - Members (32,000)
Family Offices Group - Members (81,000)
High Net Worth Insurance - Members (3,500)
Investor Lead Generation - Members (53)
Private Equity Investment Group - Members (109,368)
Alternative Investments - Members (32,000)
Family Offices Group - Members (81,000)
High Net Worth Insurance - Members (3,500)
Investor Lead Generation - Members (53)
Private Equity Investment Group - Members (109,368)
Mezzanine/Subordinated Debt Lenders
Mezzanine/Subordinated Debt Lenders
Mezzanine and subordinated debt lenders (typically insurance companies, pension funds, commercial finance companies, investment funds and other financial institutions) provide unsecured loans to companies. In the event of default, this financing has a lower priority than other debt and is less likely to be repaid in full after all senior obligations have been satisfied. Thus, mezzanine and subordinated debt lenders require a higher rate of return than secured or senior debt lenders, typically reflected in comparatively higher rates of interest and quasi-equity features. Mezzanine financings, a subset of subordinated debt, can be structured either as debt (typically an unsecured promissory note that is subordinate to senior debt) or preferred stock (which is senior only to common stock). Mezzanine financings are usually private placements that are often used by companies with high overall leverage levels. Mezzanine and subordinated debt lenders may require cash interest or interest payable in kind (negative amortization which increases the principal of the loan) and/or an equity stake in the form of warrants, options or a debt-into-equity conversion feature. Mezzanine debt typically does not amortize until all secured debt, which is senior in repayment to mezzanine, is repaid in full.
List of Southern California Mezzanine/Subordinated Debt Lenders [PDF] »
Mezzanine and subordinated debt lenders (typically insurance companies, pension funds, commercial finance companies, investment funds and other financial institutions) provide unsecured loans to companies. In the event of default, this financing has a lower priority than other debt and is less likely to be repaid in full after all senior obligations have been satisfied. Thus, mezzanine and subordinated debt lenders require a higher rate of return than secured or senior debt lenders, typically reflected in comparatively higher rates of interest and quasi-equity features. Mezzanine financings, a subset of subordinated debt, can be structured either as debt (typically an unsecured promissory note that is subordinate to senior debt) or preferred stock (which is senior only to common stock). Mezzanine financings are usually private placements that are often used by companies with high overall leverage levels. Mezzanine and subordinated debt lenders may require cash interest or interest payable in kind (negative amortization which increases the principal of the loan) and/or an equity stake in the form of warrants, options or a debt-into-equity conversion feature. Mezzanine debt typically does not amortize until all secured debt, which is senior in repayment to mezzanine, is repaid in full.
List of Southern California Mezzanine/Subordinated Debt Lenders [PDF] »
Private Equity Firms
Private Equity Firms
Private equity firms typically purchase equity securities in privately held operating companies. Private equity firms raise capital primarily from institutional and high net worth investors. The most common investment strategies employed by private equity firms include leveraged buyouts, growth capital financings and distressed investments, primarily in situations where the private equity firm is acquiring control of the company through a purchase of greater than 50% of the company’s equity securities. In a typical leveraged buyout transaction, the private equity firm buys majority control of an established firm using equity in conjunction with senior and subordinated debt to increase the potential return on investment through leverage. Leveraged buyouts (LBOs) are distinct from venture capital or growth capital investments, in which the private equity firm typically invests in young or emerging companies and rarely obtains majority control. Another distinguishing characteristic is that, in an LBO, the owners are achieving personal financial liquidity, with the proceeds from the sale of the company’s securities or assets going to the shareholders, while in a growth capital investment, the financing goes into the company to fuel its future expansion.
List of Private Equity Firms in Southern California [PDF] »
Private equity firms typically purchase equity securities in privately held operating companies. Private equity firms raise capital primarily from institutional and high net worth investors. The most common investment strategies employed by private equity firms include leveraged buyouts, growth capital financings and distressed investments, primarily in situations where the private equity firm is acquiring control of the company through a purchase of greater than 50% of the company’s equity securities. In a typical leveraged buyout transaction, the private equity firm buys majority control of an established firm using equity in conjunction with senior and subordinated debt to increase the potential return on investment through leverage. Leveraged buyouts (LBOs) are distinct from venture capital or growth capital investments, in which the private equity firm typically invests in young or emerging companies and rarely obtains majority control. Another distinguishing characteristic is that, in an LBO, the owners are achieving personal financial liquidity, with the proceeds from the sale of the company’s securities or assets going to the shareholders, while in a growth capital investment, the financing goes into the company to fuel its future expansion.
List of Private Equity Firms in Southern California [PDF] »
Private Lenders
American Association of Private Lenders
Formed in 2009, the American Association of Private Lenders (AAPL) is the national organization representing the private real estate and peer to peer lending industry. Our membership includes private money lenders, hard money lenders, mortgage fund managers, brokers, and service providers from around the United States. We believe our principles – excellence, ethics, and education – are the cornerstone for success in the industry. AAPL members are leaders in the industry and embody the character, dedication, and experience critical for success.
www.aaplonline.com
Formed in 2009, the American Association of Private Lenders (AAPL) is the national organization representing the private real estate and peer to peer lending industry. Our membership includes private money lenders, hard money lenders, mortgage fund managers, brokers, and service providers from around the United States. We believe our principles – excellence, ethics, and education – are the cornerstone for success in the industry. AAPL members are leaders in the industry and embody the character, dedication, and experience critical for success.
www.aaplonline.com
Receivable Financing
National Association of Credit Financing
NACM-National and its network of Affiliated Associations are the leading resource for credit and financial management, providing information, products and services for effective business credit and accounts receivable management.
NACM Affiliates are market leaders in the area of credit group services offering more than 1,500 groups across the nation. NACM is committed to assisting every member, meeting their needs and addressing their concerns by offering easy-to-obtain, high-quality products, services and programs. www.nacm.org
NACM-National and its network of Affiliated Associations are the leading resource for credit and financial management, providing information, products and services for effective business credit and accounts receivable management.
NACM Affiliates are market leaders in the area of credit group services offering more than 1,500 groups across the nation. NACM is committed to assisting every member, meeting their needs and addressing their concerns by offering easy-to-obtain, high-quality products, services and programs. www.nacm.org
Senior Debt Lenders
Senior Debt Lenders
Senior debt lenders typically consist of banks, commercial finance companies, factors, investment funds and other financial institutions that provide secured corporate debt that has priority with respect to interest and principal over other classes of debt and equity. Senior debt is normally secured by the assets of the company on which the lender has placed a first lien and has a first call on the company’s cashflow for the payment of principal and interest. Principal is amortized over the life of the loan and interest is paid in cash in quarterly installments. In return for the low risk relative to the rest of the capital structure, senior debt lenders provide loans at the lowest cost of capital for an issuer, usually in the form of either a fixed or floating rate of interest pegged to a spread over Prime or LIBOR. In the event the issuer goes bankrupt, senior debt is first in line for repayment ahead of other insecured creditors (trade, subordinated debt) or equity holders.
List of Senior Debt Lenders in Southern California [PDF] »
Senior debt lenders typically consist of banks, commercial finance companies, factors, investment funds and other financial institutions that provide secured corporate debt that has priority with respect to interest and principal over other classes of debt and equity. Senior debt is normally secured by the assets of the company on which the lender has placed a first lien and has a first call on the company’s cashflow for the payment of principal and interest. Principal is amortized over the life of the loan and interest is paid in cash in quarterly installments. In return for the low risk relative to the rest of the capital structure, senior debt lenders provide loans at the lowest cost of capital for an issuer, usually in the form of either a fixed or floating rate of interest pegged to a spread over Prime or LIBOR. In the event the issuer goes bankrupt, senior debt is first in line for repayment ahead of other insecured creditors (trade, subordinated debt) or equity holders.
List of Senior Debt Lenders in Southern California [PDF] »
Venture Capital Firms
Venture Capital Firms
Venture capital firms raise private capital from institutional investors and high net worth individuals to provide financing for early-stage, high-growth companies with a view to generating a return through an eventual realization event, such as an initial public offering (IPO) or sale of the company. Venture capital investments generally take the form of cash purchases of equity securities issued by the company, typically either preferred or common stock. Venture capital is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and are too immature to secure a bank loan or complete a subordinated debt offering. In exchange for the high risk that venture capitalists assume by making equity investments in smaller and less mature companies, venture capital firms usually receive significant influence over company decisions, in addition to a significant (usually minority) portion of the company’s ownership.
List of Venture Capital Firms in Southern California [PDF] »
Massinvestor
Founded in 1998, Massinvestor, Inc. is the leading publisher of Venture Capital databases, providing authoritative coverage of the nation's top regions for Venture financing–Silicon Valley, Massachusetts, New York, Midwest, Texas, Mid-Atlantic, Southern California, Rocky Mountain and Southeast.
Massinvestor also publishes the United States Venture Capital & Private Equity Directory, which profiles nearly 4,000 investment firms in all 50 states.
www.massinvestor.com
Venture capital firms raise private capital from institutional investors and high net worth individuals to provide financing for early-stage, high-growth companies with a view to generating a return through an eventual realization event, such as an initial public offering (IPO) or sale of the company. Venture capital investments generally take the form of cash purchases of equity securities issued by the company, typically either preferred or common stock. Venture capital is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and are too immature to secure a bank loan or complete a subordinated debt offering. In exchange for the high risk that venture capitalists assume by making equity investments in smaller and less mature companies, venture capital firms usually receive significant influence over company decisions, in addition to a significant (usually minority) portion of the company’s ownership.
List of Venture Capital Firms in Southern California [PDF] »
Massinvestor
Founded in 1998, Massinvestor, Inc. is the leading publisher of Venture Capital databases, providing authoritative coverage of the nation's top regions for Venture financing–Silicon Valley, Massachusetts, New York, Midwest, Texas, Mid-Atlantic, Southern California, Rocky Mountain and Southeast.
Massinvestor also publishes the United States Venture Capital & Private Equity Directory, which profiles nearly 4,000 investment firms in all 50 states.
www.massinvestor.com