Accredited investors with greater than $1 million in assets can be connected with qualified private-equity-investment opportunities in growth companies seeking funding in the $1 million to $10 million range via online community OffRoad Capital Corp., San Francisco. All activities relating to the purchase or sale of securities, including the qualification of and offerings to accredited investors, will be conducted by a wholly owned broker-dealer subsidiary of OffRoad. The time between OffRoad presenting the deals and their getting funded will be about three weeks, whereas most deals take three months or more to get financed, according to OffRoad. "The private capital markets have been effectively closed to most individual investors, even those with relatively high net worth," says Stephen Pelletier, chairman and CEO. "On the other side are many solid, private, growth-oriented companies with identifiable exit strategies that have not had access to creative or sophisticated financing options. Our research found that these two groups are frustrated by limited access to capital on one side and to deals on the other. Individuals with capital to invest most often don't hear about appropriate investment opportunities or only hear about deals in their geographic region. And, companies needing capital go begging, having to rely on banks for debt financing or the luck of `angel' investors." OffRoad is targeting established later-stage growth companies with well-defined characteristics for investment, including:
- Revenue growth of 20% or more, with a competitive distinction and sizable market.
- A demonstrated ability to raise financing from commercial lending sources, or a prior investment by institutional investors.
- Willingness to comply with disclosure and quarterly reporting requirements.
- Clearly identifiable exit opportunities for investors