The management team will contribute $150,000 to ITP for start up costs. Venture capitalists achieve a return of 35% with reduced risk through the use of a convertible debt instrument. ITP is seeking an investment of $500,000 for working capital requirements. The investment would be in the form of a five year convertible note.
Terms of the Offer
The five year note will be offered from November 1, 1997 with interest payable quarterly at the rate of 35% per annum. The venture capitalist will be offered a charge over the assets of ITP, including a charge over the intellectual property.
The following options will be available to the venture capitalist:
Future Growth and Exit Strategies
The shareholders in ITP have a number of future growth and exit options available to them. These include:
1. Continue to grow the business by:
2. Exit the business by:
ITP's management team is totally committed to the success and growth of ITP. They have invested substantial time, capital and knowledge in ITP. They bring to ITP the necessary expertise, experience and education to implement the company's strategies and realize its aims and objectives.
|In the Pipeline|
|Table of Contents||Appendices|
1. Executive Summary|
2. Company & Product
4. Operational Plan
5. Financial Plan
6. Offer to Investors
|The information and ideas herein are the confidential,|
proprietary, sole, and exclusive property of the company's founders.