Venture Capital
And Commercial Equity Funding

Venture capital is for those situations where a business is not likely, in its present condition, to get funding from traditional sources, but could -- with sufficient financing -- yield great near-future returns for funding sources.

Venture capital is truly risk capital. Because venture capital funding sources are looking for unusually high profitability, this form of equity funding is difficult for most businesses to obtain. They simply cannot meet the potential financial requirements of most venture capitalists. Even if they did, most entrepreneurs usually lack the ability by themselves to “get the doors open”.

The U.S. Small Business Administration estimates there are approximately 22.9 million small businesses in the United States, but only a miniscule few ever get on the radar screens of institutional venture capitalists. According to the annual PriceWaterhouseCoopers Money Tree survey of venture capital,  only in 2,715 companies received venture funding in 2003, and only 624 of those companies were companies getting their first round of venture funding.

In fact, according to the Wall Street Journal of February 3, 2004, commitments to venture capital funds fell for the last three years. Less than a year before that, in April 2003, the Journal had reported that VC investing had slipped to a five year low.

So who suffers most when funding is so tight? You guessed it! Only 158 companies received first time institutional venture capital in Q1 of 2004, DOWN from 186 the quarter before!  Worse, of these numbers, software companies took a third, semiconductor companies took 9% and telecommunication companies received 10%. Over 50% of the relatively small amount of money available from venture capital institutions went into only three sectors (leaving only about 80 companies in other sectors to fight over the rest).

 Of the applicants to the venture capital process, about half get lackluster results or totally fail, while almost all of the other half will produce 20-25% annual returns if they are lucky.  Venture sources want much better results from their "winners”. This is why less than 1% of all applicants to traditional "venture" capital sources ever get any institutional money!

That is why many businesses with funding needs that cannot easily be met through traditional sources turn to CAPS Interactive Corp. for help. CAPS Interactive is an intermediary in the funding process and its workers, consultants, and affiliated staff have track records for helping small businesses with good profit potential find venture capital funding sources.  Our contacts are far reaching and so is our expertise

Luckily, institutional venture capitalists aren't the only source of equity funding. Roughly 90% of venture funding gets done through other resources. But locating these resources on your own is time consuming, and getting them to agree to look at your executive summary or business plan  can be nearly impossible without an introduction. (Unsolicited business plans and executive summaries are usually tossed out or returned without being read.) If you do get a funding source to look at your executive summary or plan, all your efforts will be in vain if you don't present your "story" in a way that makes the funding source want to open their wallet.

If you get past all of these roadblocks, then you still must negotiate a deal that makes them want to work with you without giving away your family jewels.  Of course while you are doing all this, you are still keeping your business going and putting out any "fires" that may be occurring.

CAPS Interactive uses its expertise and contacts to help businesses with good profit potential hurdle obstacles and present their stories to equity funding sources.  The help we offer depends on your company's condition, needs, and profit potential. On a very basic level, we give companies our opinion on what must be done or changed to acquire the equity funding you are seeking. In many cases we also help businesses find the funding that they need to take their business where they want it to go.  We could potentially help your company in similar ways.

Funding Services
As an intermediary, CAPS Interactive offers several innovative programs to help you achieve your equity funding goals:

• Platinum Program- We actively work to help you “put your house in order” using our business professionals so that your company presents the best possible “picture” to a venture source. If needed, a new business plan that can work in the real world is prepared with your input. We then ascertain the best possibilities for your firm in selection of which specific organizations/individuals to approach. We then use our knowledge and connections to open doors that by yourself, you might never get to open, even if you knew where to go.  All this while keeping aware of both your timing needs and any privacy concerns.

• Gold Program- Where we take the picture of both your company and situation that you present us with and use our knowledge and connections to open doors that by yourself, you might never get to open, even if you knew where to go. Again, attention is paid to both timing constraints and privacy.

• Silver Program- We help provide you with necessary “tools” for you to go out and try to raise your own loan money. Generally, a certain amount of consulting time with our professionals is included in this program.

There is no fee for submitting the initial application to CAPS Interactive. It should be noted that we do not accept all clients. For those clients we do accept, our fees are usually generated on a success basis when funding is achieved. In addition, we charge a reasonable administration fee to companies we accept as clients to cover our costs to gather, review and process the necessary information to bring a project to the attention of likely funding sources.

If you feel that your company might have a situation that we might be able to help with please contact us. Complete our contact information form  and either Email us the information using the Submit button on the form, or print and fax the fax form to 702-920-8555. (Do not send any information or pages other than the supplied form or we will not respond.)

We will contact you in a reasonable time frame if your company is one that we would be interested in knowing more about. We strongly recommend that you inquire with your accountants, attorneys and bankers before you contact us. Local financing might be available and your best solution. Your professional advisers should also be made available to us if necessary to help provide a better idea of your particular problems and needs.

Funding Tools And Resources
In addition to the programs described above, CAPS Interactive offers other important tools to help businesses reach their funding goals. These tools are available to all businesses and include:

• Knowledge tools -- information on where to go and how to approach venture funding sources on your own.
• People tools -- making available to you various professionals in banking, accounting, and law who have special experience in the areas of funding.
• Attitude tools -- your attitudes will keep you focused on running your business in spite of financial needs. It will help you present yourself to sources in ways that are conducive to getting the best deals. Our tools, techniques, and information will help you focus on getting your funding during potentially trying times. You need not stand alone!