Typically, potential investors receive an ‘elevator pitch’ which can lead to a presentation, and finally some offering memorandum such as a private placement memorandum. This has been industry standard for a long time, and certainly since the concept of Venture Capital became popular. But it leaves investors with very shallow on the surface information. Of course some of them take greater due diligence measures, but the model itself is a pay and you will see model. It’s simply not possible with many of these companies to have an insiders view, because you are not an insider.
As an alternative, Structured Consulting proposes a new incremental approach to investing. It involves a multi-phase process that first is a process of education about the industry, then a phase of participation, and finally investment.
To break it down on a capital basis, it should be an incremental phase approach, such as $1,000 – $10,000 – $100,000. At any point, the investor can choose to stop. In this example, $1,000 is a reasonable fee for training and education in the financial services industry. Why not do it with a project you might invest in or participate in some way, rather than attending a weekend seminar at a conference center packed with students?
This concept of an incremental approach involves integration (synthesis) of the project with participants. Capital participants can be called investors, but the word ‘investor’ suggests the pay and do nothing model.
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