Yuri RutmanCo-Founder, Capital Raising Coach, Media Producer
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@NBC @ShortsTv @AMC @AmazonPrimeVideo @SpikeTV, @Silverback ICO, @FremantleMedia, @KellerWilliams, @Moloko Ice Cream, @Crispin Porter Bogusky @20th Century Fox @Hydroactive @OrmusGold @Publicly Traded Quick Service Restaurant Franchise.



Recent Answers


Look into Incorporating in Delaware. Lots of options you can choose from. Try calling American Business Incorporators


Your idea must have a professionally written business plan and Pitchdeck. Also, make sure you have a few 3rd party advisors on your team to give credibility to what you are looking to do. A lot of entrepreneurs need realistic expectations on how much money they want to raise and which way they should do it: SBA LOAN, angel investors, online equity crowdfunding, seed stage VC, family offices, etc. Also, a regulation D Rule 504 offering as part of your business plan will get you more eyeballs and help you at least to attempt to control the potential investor deal terms initially. Please feel free to reach out if you need a more detailed and practical roadmap to succeed.


You should probably start with one film at a time and raise the financing using a site like indiegogo, keep your budget small, and your story highly original. You need to study the global marketplace for film acquisitions to see who is buying films and who the top sales agents are for a film like yours based on genre. Also, submitting a film to as many film festivals as you can afford is also a must, including the 50-100 film festivals that do not have an entree fee.


A private equity company can offer any combo of preferred shares, warrants, options, or convertible note. They are like any other investor and can pick and choose, especially if they think you may be desperate for money. If you have more breathing room, and your deal is solid, consider shopping it around to other P.E. firms or family offices for better terms.


The big answer is YES. But the bigger question is WHY? If you are an emerging company and looking to invest in a venture, why not set it up as just an LLC or a limited partnership? There are too many tax and other issues that can be less complicated with a direct route.


Different Venture Capital firms have different criteria on when they allocate funding. Some come in at a pre-seed or seed stage where all you are is an idea on a paper. If you do a search for VC incubator or VC seed you will get a more readily available selection of where to go. Most VC's raise money from wealthy investors, endowments, and other corporate investors. A lot of these have started to set up their own direct investment platform and act as their own VC's. Feel free to reach out as there are many other alternative financing platforms out there to fund startups.


A better approach is to structure a reverse vesting agreement. Its more of a win-win for you and him from a tax basis if he ever sells the equity he acquired and allows you to buy back his equity at cost if he is ever fired


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