1. If AA Capital Investment Services raises capital for me, will AA Capital consider a direct investment in the future?
Yes. However, your company must meet AA Capital 's investment criteria and go through due diligence at the time of consideration.
2. What is a Private Placement Memorandum?
A Private Placement Memorandum (Prospectus or PPM) is most commonly used when raising seed or early-stage capital from private investors (Angel Investors), according to rules put in place by the Securities and Exchange Commission (SEC) and the Securities Act of 1933. A PPM is usually accompanied by a subscription agreement which is used by investors to purchase (or subscribe for) the shares of the offering Company. Young companies that don't qualify for venture capital typically have the highest chance of funding success if a PPM is used to raise funds.
3. Can AA Capital Investment Services raise money for my company at any stage?
Yes. AA Capital Investment Services has been involved in fund raising activities for pure seed companies, early-stage companies, established companies and pre-IPO companies. We will carefully analyze each company to establish the appropriate fund raising strategy.
4. How involved is AA Capital Investment Services after I receive funding?
AA Capital Investment Services is not involved in your company's management and we do not take a board seat for our services.
5. Does AA Capital Services require a retainer or any upfront fees?
Yes and No! In some circumstances we understand that companies raising funds have better needs for liquid cash than for fees so we will take each situation as it comes. A general rule is that any initial fees will be based on expenses that AA Capital may have to pay, such as company formation, audits, legal advice etc. Our primary focus is taking on companies which we believe can be placed with investors through our group.and earning our fees in this manner.
6. How is AA Capital Investment Services compensated for raising money?
AA Capital Investment Services' typical compensation for raising capital consists of a combination of success fees and equity.
7. Does it cost anything to raise money for my business?
At the end of the day, raising money without spending money is only possible in theory, not in real life. Several expenses typically apply during the preparation, fund raising and closing process, such as the creation of documents (business plans, PPM's, due diligence), travel, investor meetings, legal fees etc.
8. Are you regulated to provide these services?
There are many areas of the process which require a regulated entity to perform services, such as prospectus writing and approval, investment promotion and in some jurisdictions, corporate advice. Whenever there is a need for a regulated entity to perform the functions we will pass the work to those parts of the network.
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