Raising capital

**KSM** · 10-09-2009 08:15 PM

Hi i have a few questions. Im going into the digital billboard industry and i wanted to raise capitol to start. I am forming a C Corp and i am going to raise money buy selling equity in the company (Stock) but my question is can i set my stock price at any price i want.. ex. 10.00 per share and how many shares can i determine how many shares my company hav

**ChrisBenjamin** · 10-09-2009 08:19 PM

Yes, but you need to look into a Private Placement Memo (Reg 504D of the SEC) before you can sell off private equity... if you want to keep it on the up and up. Not all companies do and run into hot water later on.

The price per share ultimately won't matter. The relative ownership for total investment is what any investor will be more concerned with. $.01 a share or $10 a share, if they get 10% of the company, who cares what the share price itself was.

Originally Posted by KSM

Hi i have a few questions. Im going into the digital billboard industry and i wanted to raise capitol to start. I am forming a C Corp and i am going to raise money buy selling equity in the company (Stock) but my question is can i set my stock price at any price i want.. ex. 10.00 per share and how many shares can i determine how many shares my company hav

**Crystal.manage** · 10-10-2009 12:57 PM

The most probable answer to your question is that the amounts you are seeking are way too small to tempt Venture Capitalists or Hedge fund managers. After all it is relative. If a VC has tens of millions of pounds to invest into private equity why invest into 100 or 200 start-up companies? Who could possibly manage and foresee all of these investments and entrepreneurs? Its hard enough to manage one sometimes! So relatively speaking, investing in you would most-likely prove cost-prohibitive for them even though arguably they would receive more value overall.

The Hunt - VCs vs Angels
Venture Capital firms are one way to raise a serious amount of capital but as you may imagine there are pitfalls. The main one being loss of equity far beyond the 51% mark. Further the final vote on 'the right of sale' will also most probably be a mandatory right for them. Since VCs main motivation is 'ROISAP' (return on investment soon as possible) VCs will always have a frantic desire to flip every deal as quickly as possible. And they will not care where that return comes from, yourself or an outside party as long as they receive a massive bonus for the risk and skill for what they have invested.