Early Stage Business

 

While America offers tremendous opportunity for innovative, small businesses to become successful, these companies nearly always need capital.

 

After starting her early businesses in the 1980’s on the proverbial shoestring, and funding them out of cash flow, Rebel Holiday became intensely aware of the need for capital. She was determined to find the answers to the questions most entrepreneurs ask, “How can I get the capital to start this company?” “How can I grow without losing control?” “How can I plan when I don’t know how much money I can attract?” “How can I attract talented management?” and “How can I build value for my shareholders and give them a good return?”

 

While there are answers and solutions for both early-stage companies and the investment community, they are complex. Early-stage companies with revenues under $2 million, must strive to establish a credible valuation and develop meaningful milestones to attract capital. Investors now need more information to identify the companies with the highest potential. Yet this process will continue due to the tremendous potential of the private equities market.

 

Early Stage Venture Capital

 

In the aftermath of the Entrepreneurial Explosion, traditional venture capital is virtually non-existent for start-ups. Yet naturally, many investor groups and venture capitalists still want to capitalize on small business growth. Most are still trying to find companies that can be identified as “sure bets,” however few have been able to “crack the code” on investing in early-stage companies. There are good reasons for these challenges.  Since 1997 Rebel Holiday has worked with a team of experts to develop solutions to typical venture capital problems.

 

It takes money to raise money. Now there are several private venture capital firms that use this win-win model and provide short-term bridge loans to early-stage companies. Expert service providers structure and plan growth in phases. In exchange, these funds acquire a small amount of stock in seed stage, high-potential companies from diverse industries. The goal is long-term capital gains through the growth of a diversified portfolio of equity investments. This funding model is designed to seek companies positioned to achieve eventual stock liquidity, yet recognizing the challenges of early stage ventures.

 

Rebel has helped establish expert Advisory Boards, comprised of high-level business leaders as well as scientific and industry experts to assist our Portfolio Companies in their growth and development.