Venture Investment with Zero Risk

**mmal66** · 08-13-2009 04:25 PM

We are offering Venture Investing with zero risk.
HeyMike!! Industries is a U.S. Based entertainment startup and we have secured a financing deal in the form of a loan against a collateralized CD. We can secure a 10M loan against a CD equaling 10% of the total loan value.

We are offering company equity and/or a percentage of our first year sales (with a cap) for an investor willing to put up the CD. This is essentially equity investing with zero risk to the principal.

Highlights of the deal:

Letter of Commitment from lender is pending
The CD would be fully insured (above and beyond the 250k FDIC limit)
Although the CD would be put into an HMI account, the investor would be the signator on the account
The investor could withdraw funds whenever they would like before or after the loan draw period
In addition to the returns on the CD, the investor receives company equity or a (capped) percentage of sales (negotiable)
At an absolute minimum the investor is returned the CD plus interest

The principals involved in the deal will want to conference with interested parties to answer any and all questions.
Great product concept in production and superstar core team in place.

If interested please post or PM me.

Thanks.

**paul2145r** · 08-13-2009 04:40 PM

What exactly are you investing in?

**mmal66** · 08-13-2009 04:48 PM

We are looking for an investor to secure the 1M CD that will be collateralized.

This is an extremely low risk investment in our venture.

**paul2145r** · 08-13-2009 05:42 PM

Well, then what are you going to use the 10m for?

**chicon** · 08-13-2009 05:44 PM

Low risk is a better description. Never is it zero risk.

**mmal66** · 08-13-2009 05:54 PM

The 10M will be used to develop and distribute a line of toy characters that plug into a web site.

Site is at Beta
Toys are past prototype and at sample phase
Core team in place

**Iamnotsatisfied** · 08-13-2009 08:14 PM

Zero risk investments? Alchemy actually works?

**mmal66** · 08-13-2009 08:24 PM

I am offering probably one of the safest investments on these boards, In the interest of creating a collaborative community that can benefit us all I would expect a level of professionalism and decorum. If you have nothing to bring to the table and nothing that is constructive please refrain posting.

Thank you.

**paul2145r** · 08-13-2009 08:31 PM

Haha, I love the new members getting on here offering THE BEST THING THAT YOU HAVE EVER SEEN HERE OR ANYWHERE BECAUSE WE ARE THE SMARTEST PEOPLE IN THE WURLD AND NO 1 IS AS GOOD AS US IN BUSINESS EVEN THOUGH WE CANT FIND A WAY TO MAKE MONEY SO GIVE US MONEY SO THAT WE CAN MAKE SOMETHING THAT MAY MAKE US MONEY BECAUSE WE DONT FEEL LIKE GOING TO GET A REAL JOB AND EARNING MONEY OR DONT FEEL LIKE PUTTING OUR OWN MONEY INTO OUR OWN PROJECTS BECAUSE THEY MAY NOT WORK...

Does that about cover the gist of it?

I've said this time and time again to new members- If you have an idea, great. If you think that it's the best thing out there- good for your- we should all feel that way about our projects. But if you can't handle criticism of something that you say, or will not furnish proof for your claims, then please look elsewhere. YoungEntrepreneur is for people that can roll with the punches and come out ahead. As soon as you learn to respect the sanctity of this forum, you'll be able to capitalize on it.

Anyways, enough with the tirades. If your idea is so good, go to a product manufacturer. You won't find 1mil on here for a concept so vague, and any investor worth his funds will look away as soon as they see "Zero Risk". Besides, why would you need 10mil for the launch of a new product? Do a soft launch for 100k-500k, see how it goes, then use your sales figures as collateral for a loan.

**mmal66** · 08-14-2009 09:00 AM

I'm here to offer a business deal, nothing more. If you'd like more info, let me know.

Thanks.

**dragonrift** · 08-14-2009 03:50 PM

I realize you are here to offer a business deal. Here is my point of view... To start you said this is Zero Risk, nothing is ever Zero Risk, second... there is not a lot of details explaining what you need to use the money for. Someone is not going to put up a million dollars unless there is some security in the plan that they are going to get a large return on their investment. Yet you even claim its low risk, how is giving you a million dollars with no outline of your plans low risk?

**mmal66** · 08-14-2009 07:07 PM

Dragonrift, good questions let me clarify/reiterate.

No one is giving me a million dollars. We need a 1M Certificate of Deposit. Yes, it will be in the company name BUT the investor will be the signator on the account. This means the investor is the only one who can withdraw the funds. The security and returns a CD offers are obvious.

Here is the process:

An account is opened in our company name
The investor is listed as the signator
The CD is placed in the account
The loan is dispersed from the funding source via a 'draw schedule'
During the 'draw period' the CD is blocked or has a lien placed on it
Once the draw period has ended the block is lifted from the CD
The investor withdraws his funds plus interest
The investor retains either an equity stake in the company, a percentage of first year sales, or a blend of both

Yes, it is not a zero risk investment, it is low risk. You can lose the CD (since it is collateralized) if: we don't deliver the project or we default on our 30 year loan during the draw period (~2 years).

I consider it a zero risk investment as I know none of these things will happen. We have an impeccable, driven team that has shipped dozens of these sorts of projects. I am confident Investors will agree with this notion after they have had a chance to meet and speak to us.

Alot of investors in the current fiscal clime would be happy with a yield the CD offers, on top of the CD yield we are offering company equity or a percentage of sales.

Additionally, this is a short term investment. We will ship our product in 9-12 months. We are willing to pay a premium for tieing up your cash for a maximum of 2 years. We are looking to return 25% per year in addition to the yield recouped from the CD. This really is a great deal.

I hope this explains things a little more. Dragonrift, if you would like more info and are considering it as an investment PM me asap. I can provide you with whatever is needed, and get you to conference with principals involved with the deal.

We can also provide: team bios, executive summary, profroma and financials, sales forecasts, investor video, product description, game design and a key to our beta site.

Let me know.

**Iamnotsatisfied** · 08-14-2009 08:18 PM

Originally Posted by mmal66

Yes, it is not a zero risk investment, it is low risk.

Hmmm... so why lie in the first place? So know we know you're not to be trusted.

**mmal66** · 08-15-2009 07:57 AM

I am here to offer a business deal nothing more.

Involving myself in unbased character assassinations and wanton sophmoric slurs is not my current focus.

I will monitor this thread and my PMs but this will be my last post.

At this point, I have laid out more than enough for those interested to decide whether or not they would like to proceed and request more info. At that point I would expect any investor to conduct their own rigorous DD>

Happy posting.

If you would like to seriously consider the deal, PM me.

Thank you.

**paul2145r** · 08-15-2009 11:22 AM

Good luck, but I think you'll have a hard time finding someone with a mil liquid on YE. There's some VC reps on here, but they won't work along the terms that you're proposing. I suggest trying some of the investment-oriented forums. There are two or three private groups that specialize in these types of deals, although I recommend only using them as last resort.

Once you get all of your ducks in a row (Multimedia presentation, comprehensive business plan, LoC from the lender, Letters of Intent from manufacturer(s) and distributor, etc) the send me a PM with your contact info.