Have you ever heard this kind of Venture Capital company?

[dnol]

a. Conditions and Procedures
i. 100% loan investment, where the project/cooperation is the guarantee.
ii. Terms as of today are 6% interest rate on draw down per annual (subject to change)
iii. Lender takes 45% equity shares in project/cooperation
iv. Term of loan is for 10 years max, if it is paid back in less than 10 years, there is no penalty.
v. There are no upfront fees or cost. However, there are three (3) deposits that will be made. The first being a good faith deposit for 115,000 USD, the second will be for the site due diligence report, and the third will be for the escrow agreement. These deposits are to insure that the project is serious and willing to go all the way to closing.

---------------I think they are more than a scammer.

 

[dnol]

is there any such trustworthy business model in western world?

 

[Dale Hubbard]

Joe, you need to post much more detail than that to get an opinion. Probably more than you want to divulge. However, if it's a straight loan, the requirement for a large equity stake would be unreasonable IMHO. Equity is good to keep investors interested in your business and its good fortune, rather than lending money and collecting it.

They are taking your project as 100% security? That sounds odd also. In fact the whole thing sounds odd the way you have explained it. The $115,000 'good faith' deposit is meaningless if it comes before their due diligence.

 

[tldrental]

"aZooZa" or anyone else have any advice on a good VC firm? I have been looking for one myself.

 

[dnol]

Joe, you need to post much more detail than that to get an opinion. Probably more than you want to divulge. However, if it's a straight loan, the requirement for a large equity stake would be unreasonable IMHO. Equity is good to keep investors interested in your business and its good fortune, rather than lending money and collecting it.

They are taking your project as 100% security? That sounds odd also. In fact the whole thing sounds odd the way you have explained it. The $115,000 'good faith' deposit is meaningless if it comes before their due diligence.

No other questions,they are cheat,my appraisal.

 

[Dale Hubbard]

My advice would be to get as local a connection as possible. The first step on the road to funding is often a friend or relative who will 'angel' you through to the stage where you might attract interest by a VC. I would never bother with an approach to a VC firm until I had an 'angel'; some development, and a cast-iron business plan. Been there, done it

No other questions,they are cheat,my appraisal.

Hmm. No forward progress likely in your situation.

 

[dnol]

yes,very good suggestions.I remember one of my best friend told me so too
But I do not have rich relatives.

 

[Commerce]

The deal they offer is "unbelievably" great from a borrowing standpoint (I think you will find that there are some public companies that can't get those kinds of interest rates).

aZooZa is correct in his assertion about the high rate of equity turnover to the "VC" for a loan arrangement. Perhaps they do this to allow for "negotiation" as part of their trap.

I'm 99.999931415926% certain we have a scam here, because item v. really rings out as being like a low budget variant of the 419 scams (e.g., I've got 20 million dollars that I really need to get out of the nation of Wewillwhipyoass, I trust you because you are part of the 45 million email addresses I recently purchased to con your tail, and now you need to send me $100,000 to seal the deal, blah blah blah).

End game - Well, Mr. X, you drove a hard bargain, so we'll only take 20% equity, just be sure and send that $100K to us by wire (we don't take certified funds checks, we just send them) really soon... This offer good until we get caught.

I certainly hope that folks won't fall for it if this deal is everthing I suspect, but doubtless some desperate individual is going to think this is the way to funding riches.

Unless you actually know people you trust who have worked with whoever this is, run, don't walk, from this deal.

-Commerce

 

[dnol]

k

 

[Dale Hubbard]

I'd delete that D&B report real quick if I was you. You're breaking copyright and opening yourself up to all sorts of problems in this thread.