Bridging Main Street to Wall Street™
Fact: Lack of Safety: Collectively, venture capital firms fund less than 1.5% of start-up and early-stage companies seeking venture capital. For the start-up and early-stage companies that do receive venture capital, they collectively receive less than 2% of all the venture capital available for investment. More often than not, the founders lose voting control of their company. Why? Most start-up and early-stage companies have not been properly engineered to mitigate financial, operational, litigation, or regulatory risk. They are too risky for professional investment.
Fact: Lack of Quality Companies: There is more venture capital available than at any other time in world or U.S. history. However, the money is not being invested due to a lack of quality deal flow. In the venture capital or private equity industry, this reality is called “capital overhang”. The term capital overhang refers to the amount of capital committed by investors to venture capital and private equity firms for investing purposes. When VC and private equity funds are created, most have limited lifetimes. That means that fund managers typically have 5-7 years to invest the private equity overhang, or they must send the capital back to their investors. Over the decade 2007-2017, the capital overhang in the U.S. private equity markets hovered around the $500 Billion-dollar level in the U.S., and it was getting close to $1 Trillion Globally. In 2019 it reached $2.1 trillion globally and close to $1 trillion in the U.S.
This means U.S. venture capital and private equity firms had to give back around $1 trillion dollars that year to their VC Fund investors, due to the lack of quality deal flow.
Fact: Venture Capital vs. Securities-Offerings: The total venture capital invested into start-up and early-stage companies were just $51.9 billion for 2020. However, the Securities & Exchange Commission estimates that $2.67 trillion was raised through exempt offerings (private placements) compared to approximately registered offerings (IPOs) of $1.5 trillion accounted for new capital.
Therefore, companies raised 51 times more capital with privately placed securities offerings, than through traditional venture capital means.
Fact: Crowdfunding & Integration: The median dollar amounts raised through Regulated Crowdfunded securities-offerings is only $100,000. Start-up and early-stage companies that are properly engineered can integrate exemptions to securities registrations, so that ample seed or development capital can be raised early on through different exemption(s) with the same deal structure (the definition of “integration” regarding securities-offerings). Hence, it is critical that one integrates multiple offerings to assure substantial amounts of capital is raised without severely diluting the Founders’ permanent equity ownership and voting control.
Fact: Founder Wealth Dilution: In typical scenarios, the founders’ median percentage of equity ownership at the IPO stage was diluted to only 7.5%, primarily due to traditional venture capital terms. For those who capitalize their companies correctly through a series of hybrid-securities-offerings, the median founders’ percentage of equity ownership at the IPO stage can be greater than 50%, sometimes much greater.
Therefore, if you want to maintain the vast majority of equity ownership and voting control, an offering of hybrid securities is the wisest avenue of choice.
Fact: Small Business Service Providers: Such as; commercial, merchant and investment banks, accountants, attorneys, insurance companies, marketing and IT firms, normally compete in a zero-sum game environment with their competitors to attract new customers and clients. Would internal, organic-incubation of such well capitalized customers and clients be beneficial to these Small Business Service Providers? If so, EPEC provides Partnership Opportunities like no other.
EPEC™ is a complete Education, Production, Execution, & Capitalization ecosystem for any size company at any stage.
How can we help you?
Capital Access Portal™
Take the Initial Due Diligence Questionnaire to assess your Company’s strengths & weaknesses, regarding a securities offering.
Financial Architect System™
Learn how the U.S. Capital Markets really work and what it means for you and how you can benefit. Produce a Marketable Deal Structure & Securities Offering Documents at a mere fraction of the traditional cost involved. Execute your Securities Offering in compliance with state and federal securities laws, rules & regulations.
Corporate Engineering Conservatory™
Improve the quality and value of your company by implementing the proper corporate engineering principles for continued securities compliance, corporate governance, and capital stewardship.
Commonwealth Capital Income Fund-I (CCIF-I)™
Opt-In to our VC Fund to Showcase your securities offering to us and our Co-Investors for maximizing the probability of a successful capital raising effort.
Partners & Co-Investors
Small Business Service Providers refer Deal Flow to the EPEC Platform for Cash and Equity & Create your own Quality Deal Flow of Well Capitalized Customers and Clients.
Accredited & Corporate Investors, as well as Wall Street Investment Banks / Broker-Dealers, can easily “Cherry Pick” from the Quality Deal Flow within our VC Fund (CCIF-I). These companies that have passed through 7 levels of Due Diligence Filtration have been properly engineered to mitigate financial, operational and litigation risks thereby vastly improving the safety of an investment.
The EPEC Platform™ is uniquely engineered to enable you to…
Educate you, and your management team on how to legally raise substantial amounts of capital, without selling too much of the Founders’ common voting equity, too soon, for too little, through the issuance of a series of hybrid securities directly to individual and institutional investors, as well as through broker-dealers.
Produce securities-offering documents, with “Marketable Deal Structures” to offer and sell hybrid securities. Enable you and your management team to collaborate with tax, legal, and securities industry professionals that you choose to further assure securities compliance.
Execute an effective offering of hybrid securities to actually raise the capital, sought.
Capitalize the company correctly to maximize future company valuation and founders’ wealth.
The EPEC Platform™ incorporates Wall Street's best corporate engineering practices with emerging technologies to bridge any Main Street company with Wall Street capital.
Fact: We’ve engineered our EPEC Platform to make the processes above as quick and easy as humanly possible. However, this is not child’s play. It is as serious as one can get. As you will soon discover; you literally have the legal right to bypass financial institutions to raise substantial amounts of capital from individual and institutional investors on your own terms.