plc - best way to sell shares?

[francis]

after forming a plc what is the best way to sell shaes in order to raise capital ?

[tranz]

PLC?

Shares in this case have to have value? Buying a share of a company that has no value is not going to get you sales.

Just because you have shares doent mean that you can raise capital. Most companies that gain funding from selling shares have been in business for at a least a year or have several angel investors.

If you want to raise capital then you need to have a solid business and marketing plan. Most people turn to friends and family first, then to angel investors, then to venture capital.

Most friends anf family will give you a few bucks but not enough to make a big deal. Angels will give you funds but will want a hand in running the company if they do not feel that you can do it. Vventure capital will be the hardest as they have taken greats hits over the .com era and they will want at least 61% and will want to put in their own team to run the company.

As an example:
I had come up with a concept 6 weeks before 9/11. I spoke to the ex CTO of GE about it. I was asked to show the numbers and a plan. I did and he made a call and spoke to Gary Whent the CEO of Conseco at the time. I asked for the documents as well.

They were delivered and he had Gartner / Dataquest analyize the numbers and the plan. They told him that the company had a valuation of $450M within 4 years. He heard that and asked me what I needed. At the time it was $36M for the 4 years running lean. He is the head of a huge $600M hedge fund and offered $52M fully funded over the entire 4 years. This was with 36 Data Center installations around the globe.

Each DC was going to cost $1.8M to build out as far as gear. (All gear was going to be co-lo in NTT/Verio centers) At full capacity they each would have yielded $28.6M in 1 year. Hence he was excited about the numbers.

In less than 6 weeks I was looking at gaining $52M in funding and losing 61% of the concept I had come up with. I was going to be the CVO or Chief Visionary Officer. Somone else was going to run the day to day of the company.

I also had to come up with $100K of my own money that the primary investor wanted. I had to have skin in the game as I was told.

Why am I telling you this? For the reason is it is possible, you have to have the right idea, the numbers just dont have to work they have to be outstanding yet realistic and you have to be willing to give something up for the dream. You can be all things in a company. Learn to surround yourself with people that know more than you do.

And where am I now?
2 days before 9/11 I was going to hop in a private jet go to NY and sign the deal of my lifetime.

BUT......

9/11 came and just like everybody else that had deals on the table it was soon shelfed. The concept is still there as it isnt being done and can still yield the same types of numbers even now.

So, hoped you mught have learned something. If not then it is a good story.

Good luck in your venture and if you need to ask questions then feel free.

Tony - CTO

PS:
Anybody got $52M?

[acidHL]

For a PLC to even start trading it needs to sell £50,000 in shares, a PLC is generally floated on the stock markets. If your asking that question you might have some problems :eek:

[Adam]

Yeah PLCs need £50,000 minimum share capital with a minimum of £12,500 paid up front. PLCs float on stock markets - thats wher most of sales come from however if you're expecting just private share sales go Limited, its eaasier and cheaper to run.

After my decision between PLC - im going Limited as most of my share sales are private investors. I currently run on 125,000 x £1 shares from around 70 different investors.