Short answer: No.
Often firms that come to Foodshed Investors want us to sign an NDA, or Non-Disclosure Agreement. This is totally understandable, as they are concerned about their proprietary trade secrets, their financial actuals and projections, and their plans for the future. But we won't do it...
Before we start, this is not legal advice and we are not attorneys. With that out of the way, we hear from a lot of companies about general confusion regarding 506 (b) and 506 (c) deals. This FAQ is intended to help clear up this confusion and provide some high level information with regards to these two types of investor exemptions.
Our Funding Readiness advisory service provides the process and tools for entrepreneurs to prepare due diligence materials for efficient investor review, and in...
Unlike most tech-focused angel networks and most cohort-based incubators and accelerators, we don't use a funding cycle. We've built a continuous process flow...
Increasingly, we're hearing from entrepreneurs that have received interest from an outside investor or are just about to approach investors and they want us to "take a look" at their deal. They're not necessarily looking for funding from us, but just want an informed opinion as to whether the terms on the table are fair, or customary. Or maybe they've never raised money before and just want to understand the process.
We're happy to do that!
Companies engaging with FI may have access to tools to assess "gaps" between their present state and having a quality fundraising deal; to create a workplan to address those gaps; to assemble a potent investor package and due diligence materials; to target and curate potential investors; and to to plan and manage their business.
There is currently no charge to apply for funding. Once your application is received we will review it against our qualification criteria. Should there be a fit, we charge a one-time on-boarding fee to cover the administrative cost of formatting your offering into our "Investor Interest" email and circulating it to our Investor and Syndicate Networks. We never charge a "success fee" based on the size or outcome of your raise. In addition to our fees, companies raising money can expect other 3rd party fees.
We see Convertible Note deals all the time. Generally, we really dislike them as bad for both the entrepreneur and the investor, for all kinds of reasons...
We don't set a minimum investment level. It varies deal by deal, and is determined by the Lead Investor and the fundraising company. That said, deals that go through Ref CF public Crowdfunding Portals typically have a minimum of $100. Deals that are circulated to the Accredited Network usually have minimums around $5k.
We think about business, and about fundraising, a little differently. First, we start with Mission: We start with the belief that for-profit entrepreneurialism can be a force...
As "it takes money to make money", it also takes money to raise money. Here's a list of fees you can expect to pay to others while on the fundraising journey...
FI Funding is a discrete offering that utilizes a defined process. We've outlined the Funding Process to give companies a better idea of what to expect after submitting and application...
"BootstrapPlus" is what we call our approach to sensible business growth and financing. It's like bootstrapping, but with a little help. It's the idea of taking as little...
Yes. In addition to facilitating the general public's ability to invest through our Everyone Network, and circulating deals through our Accredited Network, FI does make private placement investments directly into companies for our own account.
We believe traditional business plan documents are a waste of time and effort. They take forever to create then sit on the shelf...
Deals are structured in a variety of ways based on entrepreneur and investor preference. While FI educates both investors and entrepreneurs on the composition of various deal structures, the decision of how to structure an investment, and the terms of that investment, lies solely with the entrepreneur. See our Disclaimer.
DISCLAIMER: Local Impact Investors LLC, dba Foodshed Investor and also dba Austin Foodshed Investors, is not a venture fund, investment bank, broker dealer, investment clearing-house, investment club, or investment advisor...
We define "funding ready" as your company being legally, ethically, and procedurally ready to accept investor monies. That includes: