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Looking for advice on finance and more...
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Cpt Bunny
The Scope
Gallente Federation
#1 - 2011-09-13 22:10:13 UTC


Greetings Pilots,


I have been playing eve for many years and always been into trading, specifically ships and T2 modules to 0.0 hubs.
Trading is second nature to me, but i would like to expand and achieve a higher market share.

At the moment, i have around 6B invested and do JF runs every 3-5 days. so isk isnt in the wallet for long before its reinvested. I would be looking to raise around 10-16B for this expansion, depending on wither i just get my own JF.

Goal 1) Find out the best way to finance my growth. Bond, Shares, Loan, i have no idea here, whats the best suited method to my model ? and if possible, could someone link me a temple i could base upon?

Goal 2) At the moment i use courrier contracts to move my stock around, but i think i could make more isk without the limitations of their schedule etc. is it viable to include the aquisition of a JF in one of the above finance methods?

Thanks in advance
Cpt Bunny
The Scope
Gallente Federation
#2 - 2011-09-14 11:26:27 UTC  |  Edited by: Cpt Bunny
After reading more on the old forums, i have a couple more questions.

Would an IPO be more suitable for a long term project such as this?
Is an IPO always based around a Corp or can it be based upon an individual, without actually using real shares?





Some background on me.

http://eve-search.com/thread/1536327/page/1#7
A trading system in ms access that i built. this is still in development and has grown substancially since then. This is the main app i use for my trading efforts.

http://eve-search.com/search/author/Cpt%20Bunny/page/5
All my eve online posts, note that i once looked into raising finance before , back in 2007 but did not go ahead with the plan.
Jaxx McCoy
#3 - 2011-09-14 12:54:23 UTC  |  Edited by: Jaxx McCoy
An IPO can be managed and run by a single individual. You will probably need an alt, to create a holding corp. Your main character then transfers ISK to that alt's corp, and you can payout the dividends to the shareholders of that corp.

How long term is this plan of yours?

If its going to be a few months, you should probably just stick to bonds/loans over an IPO. Ive seen people run offerings for X% per month but then the investors can opt to extend the duration of the loan for another month and so on.

I would only use an IPO for a larger, or very long term project; it's personal preference how you want to keep track of your investors and pay them back.

I dont know a whole ton about this stuff (kind of new here) but nobody else posted anything so I figured I would try and help.

-Good luck! Big smile

Edit for clarity:
(The terms bond and loan are kind of interchangable around here, though they have different meanings IRL finance.)
El 1974
Green Visstick High
#4 - 2011-09-15 11:51:36 UTC
An IPO is more work than a bond if you set up a corp for it (with this char or an alt). If you don't create a corpt then it's in fact a bond with variable intrest. Since you trust your own trading skills better than someone who doesnt know you would, it's better to go for a fixed intrest rate bond. Ofcourse a loan is only viable if you make a higher return than the intrest rate.

The easiest way to get a loan is just to set up a bond within your own corporation (or alliance). There probably are plenty of people willing to invest in you from within your own corporation. They know you, so intrest rates should be lower than on the open market. Even if you can't raise the amount you want, the lower rates should end up giving you higher net profits, which will allow you to expand your business.
Cpt Bunny
The Scope
Gallente Federation
#5 - 2011-09-15 15:15:54 UTC  |  Edited by: Cpt Bunny
Thanks for the replies guys,

it has been very helpful, im pretty sure i will go with the bond option,

2 last questions,

I can see that some people offer collateral on their bonds, does collateral always need to to sit with a third party and is always for the purpose of anti scam mechanisim?

The reason i ask is that i have always been a trader , never really a big builder, so i dont have any good BPO's that i could offer.
what i do have however is 7b isk worth of modules on a 0.0 market allready that does not have the risk of being killed while in transit, i take it this wouldnt work as collateral ?

What amount do you think i would be able to raise on an unsecured bond? as i said, i have around 7b allready, 1-2b bonds will do very little for me. hopefully i would be aiming at 10b+
Abdiel Kavash
Deep Core Mining Inc.
Caldari State
#6 - 2011-09-15 16:32:06 UTC
It is very unlikely you will get 10b uncollateralized from the public. Why don't you ask your alliance or corp, people who (hopefully) have a reason to trust you?