In order to do a Self-Underwritten initial public offering and be allowed to solicit investors, you must go public and file a registration statement with the SEC and follow other guidelines and procedures, which we assist you with. The president of our affiliate US. based law firm company is an experienced securities attorney so we have a great deal of experience structuring deals. A traditional IPO entails going to an investment banking firm, while paying all the going public legal fees in advance, then they try to raise the capital for you. There is usually no guarantee they will raise the money for you. With a Self-Underwritten IPO even a start-up company can go public. In a Self-Underwritten IPO you cut out the middle man, which is the investment bank. We take you public and then you can raise the capital yourself, since your company is now public. Once you register your offering and follow other guidelines you can advertise your investment offering directly to investors through TV, emails, and other forms of advertising. This is something private companies are precluded from doing. Because the president of the affiliate company is a securities attorney, the fee is only $100,000 or less.
Ben & Jerry’s Ice Cream Raised its first $750,000 through an IPO Ben & Jerry’s then used these funds to build a new factory and to expand their marketing and distribution nationwide. The company followed up the initial offering they did to the public with a $5.8 million offering on NASDAQ just one year later. This additional capital allowed Ben & Jerry’s the financial means to aggressively expand their sales & marketing and distribution nationally and internationally, becoming one of the founding “socially responsible” companies we know and love today. The company was later sold to Unilever for $326 million, which still carries on most of the founders’ traditions today.
Mendocino Brewing Company: $3.6 million raised in Self-Underwritten Initial Public Offering Hopland, California, Mendocino Brewing Company raised $3.6 $3.6 million in six months for a new brewery through word-of-mouth and cards placed in six-pack containers of ale. In addition, they also placed newspaper ads in the food section of the paper every weekend for a couple of months and caught the attention of investors. Mirenco, Inc.: $650,000 raised in a Direct IPO they did themselves. The fuel conservation company, Mirenco, Inc., raised $650,000 using word of mouth alone with an IPO they did without an investment banking firm. A subsequent public offering brought in $10 million in under a year. The first $340,000 came from existing shareholders, which was used to launch a ninety-day newspaper and radio campaign throughout Iowa to raise the balance.
Portland Brewing: $7 million raised in four Self-Underwritten IPO’s The Portland, OR, brewery raised about $7 million in four direct offerings, promising shareholders a free pint of beer a day for qualified investments. The first offering, for $500,000, was sold out in three days based on a newspaper ad at Christmas time. The company followed with two additional offerings, using both print ads and radio to effectively get the word out. The president and CEO of the company made personal calls to sell shares. The company’s mailing lists were also used to advertise offerings.
Spring Street Brewing: $1.6 Million raised in the Internet IPO in less than thirty days The New York-based brewery hosted a website for its direct initial public offering and attached notices to six-packs of its Wit Ale urging customers to visit its site or call the company for more information, including a prospectus. In one month, investors paid $1.85 per share, investing a total of $1.6 million for an interest in the microbrewery.
Annie’s Homegrown: $3.6 million raised in an direct offering. Like coupons, the natural and organic food company put “tombstone” notices in boxes of macaroni and cheese to let customers know they were raising money to expand the company. Customers or prospects responded by requesting a prospectus by telephone, mail, e-mail or at Annie’s website. The company raised $3.6 million at $6 per share in a year, and created an army of goodwill ambassadors among customers.
Blue Fish Clothing: $4 million raised in a Self-Underwritten IPO Blue Fish Clothing, maker of hand-painted clothing in Frenchtown, NJ, completed a Direct Public Offering for $4 million primarily to customers that believed in the organically grown, pesticide-free cotton clothing the company is known for colorful hangtags in the shape of fish were placed on all of the clothing they sell, drawing a lot of inquiries from customers. The company announced an early end to the offering to create scarcity, and reached the maximum by the early completion date, with half of the investments made in the last few days.
Chinaberry, Inc: $675,000 raised in a Direct IPO Chinaberry is an international catalog company that offers family-centered books and other items. The objective of their Self-Underwritten IPO was to be owned by employees, customers, and other investors who supported and shared their values. The offering was designed primarily to be marketed over the internet. The company had a loyal customer base and announcements of the offering were included in catalogs and product shipments, as well as direct mail and email messages.
Cornerstone Bancorp: $5 million raised in a direct offering in thirty days The community bank Cornerstone Bancorp raised $5 million in a direct offering within thirty days from a mailing to customers and associates. The average investment was $18,000.
Costco Costco used the funds from its first offering to open three warehouses the first year in Seattle, Portland, Spokane, and six more in the second year. Capital from their funding gave them a war chest for marketing and PR which in turn gave them the look and feel of an inevitable success. With that amount of cash they built a head of steam and became the first company to grow from zero to $3 billion in sales in less than six years.
Costco now has 540 warehouse stores and sales totaling $76 billion in 2010.
Hahnemann Laboratories, Inc.: $467,000 raised in a direct IPO The offering was promoted to customers of a homeopathic bookseller and a homeopathic software company.
JOMY: $1 million raised in a direct IPO in ninety days Boulder, Colorado, JOMY was a ten year old company that sold security ladders nationwide. The company was generating $1 million in sales and had a history of profits. But the company needed to expand to meet pent up demand. JOMY was also a possible acquisition target with a substantial, diverse client list. A personal sales letter was used to pique investor interest in coming to a sales presentation. The sales letter talked about the large untapped need for JOMY ladders, credibility of the company, growth projections and potential of the expanded company. Investors from a variety of backgrounds were targeted with a personalized letter. In all, the sales letters brought in a sufficient number of investors to generate $1 million for JOMY in ninety days. JOMY sales subsequently tripled over the next several years.
LaserLock, Inc.: $1 million raised in a direct IPO in sixty days LaserLock provides authentication services and counterfeiting prevention cloud-based software. The company raised $1 million in a DPO in just sixty days, from investors the CEO knew. Eighty percent of the investors in contact with the CEO invested in the company.
NACEL Energy $1.2 Million raised in sixty days via Self-Underwritten Offering NACEL Energy Corporation is one of the first companies in the nation developing utility-scale wind power generation, sustainably and with local partners in the field. They were founded in February 2006 and by December 2007 had completed their first Direct IPO at $1.2 million.
Omware: Raised their first $1 million through a Direct IPO. They used these funds for an accelerated national sales push by both recruiting top sales and sales management talent and simultaneously expanding into four regional offices in Denver , Seattle , St. Louis and Atlanta . Software giant Intuit bought Omware for $42 million just eighteen months after their $1 million DPO.
Original Beverage Corporation: $900,000 raised in a Self-Underwritten IPO in less than six weeks The maker of Reed’s Original Ginger Brew raised over $900,000 with a Direct Initial Public Offering in less than six weeks from a large customer base. Each bottle of ginger brew included a neck tag directing people to the company web site where they could download the offering documents. The company followed up with a phone call within a couple days to answer questions and close the sale with the investor’s credit card.
Real Goods: $4.6 million raised in two Self-Underwritten Initial Public Offerings Real Goods a Ukiah, CA, catalog direct marketing company selling alternative energy products, tapped its customers twice, raising $4.6 million through two direct IPO’s. In both instances, the offerings were oversubscribed and numerous investors were turned down.
The Red Rose Collection: The Red Rose Collection is a mail order catalog business in Burlingame , California , that sells clothing, jewelry, and personal growth products. Red Rose targeted its customers through an aggressive marketing campaign, including an advertisement of their stock in each catalog. Red Rose grew revenues from $25,000 to $14 million in a span of eleven years and was named to INC Magazine’s 500 fastest growing privately-held companies for three straight years.
Tully’s Coffee Corporation: Raised $4.5 million The Seattle coffee company used radio, newspaper ads, and promotion through its retail stores to raise $1.5 million in its first direct IPO, and its second brought in an additional $3 million in less than a year.
Z-Tech, Inc.: $3.6 million raised in a Direct IPO Z-Tech, Inc., an innovative shoe company, did a mailing to their 10,000 customers, offering a free pair of shoes for a $250 investment, three free pair for a $500 investment and so on up to ten free pairs of shoes. The shoes retail for $150 a pair. They ran radio and newspaper ads and conducted investment preview evenings. They raised $3.6 million in a Direct IPO in under twelve months.