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VonBel Business Enterprise - Investment for 10-30 man indy corps offer

Author
Paul VonBel
VonBel
#1 - 2014-05-13 04:09:04 UTC
VonBel Business Enterprise (VBE) for small indy corporations.
Thank you for your interest in VonBel Business Enterprise.
Introduction
Application Form
Terms & Conditions
INTRODUCTION


What is VBE?

VBE Is a startup enterprise offered to small industrial corps (10-30 individual players) who intend on growing and expanding their corporation but lack the necessary funds to do so. The TL;DR would be; I value your company and offer to buy up to 49% of its stock from you.

I used to run an indy corp and know it can be difficult but rewarding and I also enjoy the idea of helping small startups potentially grow.

For the time being, as this will be running as a trial for the first investment of 500mil ISK (maybe 1bn, depends on demand), it will act on a first-come-first-serve basis. Usual application forms apply - once the 500mil or 1bn is filled I will post in this thread.

Any questions please let me know, any issues please let me know and I will try and iron it out (hence only a test run at 500mil / 1bn for now)

To reiterate, this is not a loan, it is an investment. I will value your company and if I think you've got what it takes to grow the corp and offer me an investment, I will invest.

I'd rather service 10 small companies than 1 large one to try and build a portfolio and trust. I may branch into other corps of EvE but given its most "business like" approach would rather stick to indy for now.

Thanks and I can't wait to hear from you! (and have holes picked all over this, will be good to iron them out and I'm sure there'll be some)

Quote:
Currently invested companies & CEOs
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4)
5)


Do I need VBE?

If your plans to grow and expand are restricted only by a lack of liquid ISK or an inability to purchase the necessary capital such as ships, equipment and/or POSs, then yes you could benefit from VBE.
Do I qualify for VBE?

If you wish to apply for a VBE investment you must meet the following criteria;
• Your corp must contain circa 10-30 individual players Not including alt accounts
• You must be investing over 75% of all profits created by the corporation back into the corporation
• All funds relative to the corporation must be transacted via the corporation wallet and not the player wallet
• You must agree to a full audit of your corporation’s funds & assets
What happens when I apply for a VBE investment?

1) Your form will be assessed and an appraisal will be made as to whether your corporation would be fully elligable for a VBE investment.
2) A full audit will take place of your corporation.
3) If successful, your corporation will be valued and an investment will be granted.
4) In return for the investment, shares of the corporation will be issued to Paul VonBel.
How do I apply for a VBE investment?

Please fill in the below application form. Fill in all fields and submit the application to Paul VonBel via evemail and await a reply.
Please fill out the below Application Form & evemail it to Paul VonBel.

APPLICATION FORM


NAME OF CORPORATION:

Elligability Criteria

1) How many individual members are in your corporation?
2) Are you investing 75% or more of your corp’s profits back into the corporation? If not, why not?
3) Are you transacting all corp finances such as purchases, sales and ISK transfers via the corporation wallet? If not, why not?
4) Do you agree to a full audit of your corporation’s funds and assets? If not, goodbye.
Personal

1) Why did you start a corporation?
2) What is your intention with your corporation?
3) What has been the most difficult and, also, easiest aspect of running your corporation?
4) Have you run other corporations in the past? Why did you close them? (Provide list & reasons if applic.)
5) What is your leadership approach?
6) What if your corporation fails?
7) Why should I invest in you?
The Corporation

1) How do you advertise your corporation?
2) Do you API check your applicants?
3) Do you have a businessplan written?
4) How many members do you take on each month?
5) How many of your first 3 members are still with the corporation?
6) Do you have a corporation structure, hierarchy and/or set roles?
7) How many members will the corporation have within 30 days of this application?
8) How many members will the corporation have within 60 days of this application?
9) Does your corporation make a profit or loss?
10) How will you make ISK in the event of a war?
11) Do you own any POSs? If so, how many
12) If not, do you intend on investing in any? If not, why not?
13) If you own POSs and you get wardecced, what will be the consequences for your corporation if they are destroyed?
14) How do you intend on combatting the inevitability of suicide gankers?
15) What will you be spending the loan on?
16) How much time do you spend mining?
17) Do you run mining ops? If so, how often?
18) Do you manufacture & sell items on the market?
19) Provide your full corp API details, here:
The Numbers

1) How much investment do you want?
2) Does it need to be in the form of ISK? Will capital suffice? IE, BPOs or POSs.
3) If ISK, does it need to be paid in one lump sum? If so, why?
4) How much ISK will the corporation have within 30 days of this application?
5) How much ISK will the corporation have within 60 days of this application?
6) How much ISK did you invest into starting the corporation?
7) What rate of growth do you predict for your corporation?
8) What if you don’t grow at the rate you predict?

POST THIS APPLICATION FORM TO PAUL VONBEL BY PRIVATE EVEMAIL – NOT IN THREAD

T&C IN NEXT POST

Are you a market trader? Do you want to chat with other traders? Then join my ingame chat channel: VonBel Trading

Paul VonBel
VonBel
#2 - 2014-05-13 04:09:16 UTC  |  Edited by: Paul VonBel
The Terms
1) You agree to a full audit of the Corporation every 30 days from the date of investment. This may not necessarily be done but you nonetheless agree to it if requested.

2) You agree to any funds/shares to be transferred via Chribba if requested by either party.

3) Once the company is valued and the investment requested, the requested investment as a percentage will be the amount of shares transferred to Paul VonBel. Example: If valued at 1bn and investment requested is 100m then 10% of all corp shares at that time must be transferred to Paul VonBel before VonBel transfers the investment.

4) If shares are created by the company after the initial payment then an equivalent amount must then be paid to Paul VonBel (IE, if you create a further 9000 shares then 900 would be payable, in above example).

5) The company’s value will be calculated based upon; assets+isk*members/10 so in the example where a corp with 300m assets and 65m liquid with 22 members would be; (300,000,000+65,000,000)2.2 the company would be valued at 803m.

6) Assets will be counted only if owned by the Corporation itself, not its individual members. If assets have been bought by the Corporation for its members, such as ships, these will be included and should be evidenced by wallet transaction history.

7) In the event the CEO wishes to buy back any amount of the shares then a valuation of the corporation will take place and the shares will be sold back to the Corporation at their present value at that time. No notice is needed.

8) In the event I wish to withdraw any or all of my investment, a notice period of 30 days will be given to the invested corporation’s CEO.

9) The investment must then be paid back to me on or before the 30th day from that notice period, in full or over instalments, no later than the 30th day.

10) No more than 49% of the company’s worth may be requested in investment.

11) I reserve the right to not offer the full amount requested up front.

12) I reserve the right to pay the investment in instalments if seen fit.

13) The total invested amount must pay a yield of 7% each month to VonBel. The rate is variable and can be changed with 30 days notice or negotiated.

14) The 7% base yield is not detracted from the original investment. Example: If I buy 1 share at 10m ISK then I expect 700k ISK each month in dividend. If 10 months passes (7m ISK paid to me) and I wish to withdraw my investment and I sell back the share for 10 million then the full 10 million will be paid to me – not 3 million. This is not a loan, it is a purchase of shares - an investment.

15) If the company has doubled in value over that period and the same stock bought at 10m is now worth 20m, then 20m will be paid to me.

16) In the event any of these terms are broken by the Corporation or its CEO, the Corporation, its CEO and any members within the corporation at that time will be blacklisted and posted on this thread and banned from any further investment with VonBel.

17) In the event a breach has taken place by myself then you must post it on this thread for all to see.

18) In the event you are satisfied with the VBE Investment then you must post in this thread.

19) If you wish to avail of the VBE Investment, you must post a picture of a cute little fuzzy cat in this thread & send an application form.

Regards

Paul.

edit, typo

Are you a market trader? Do you want to chat with other traders? Then join my ingame chat channel: VonBel Trading

Far Wanderer
ACGM Acquisitions
#3 - 2014-05-13 04:26:46 UTC
Good luck! Cool

I really am wasting my breath though, when you can avoid questions from Hexxx and RAW23 like that you must have some seriously devoted investors. --Elizabeth Norn

Bad Bobby
Bring Me Sunshine
In Tea We Trust
#4 - 2014-05-13 08:39:19 UTC  |  Edited by: Bad Bobby
Paul VonBel wrote:
The total invested amount must pay a yield of 7% each month to VonBel.

That's quite a lot of challenging terms and conditions for a small loan at 7%.

How many potential clients do you envisage will be able to comply with your terms and conditions but not be able to find this funding through simpler, cheaper and more mainstream means?

On the surface, it really looks like the only corp that would have any reason to take up your offer would be exactly the kind of corp you don't want to do business with (i.e. fools, failures and scammers).
Paul VonBel
VonBel
#5 - 2014-05-13 11:31:31 UTC
Bad Bobby wrote:
Paul VonBel wrote:
The total invested amount must pay a yield of 7% each month to VonBel.

That's quite a lot of challenging terms and conditions for a small loan at 7%.

How many potential clients do you envisage will be able to comply with your terms and conditions but not be able to find this funding through simpler, cheaper and more mainstream means?

On the surface, it really looks like the only corp that would have any reason to take up your offer would be exactly the kind of corp you don't want to do business with (i.e. fools, failures and scammers).


Thanks and I'll take this on board.

If it's a common response I'll make amendments but I'd rather there were T&Cs so corps take it seriously.

Are you a market trader? Do you want to chat with other traders? Then join my ingame chat channel: VonBel Trading

Magnu Stormhawk
#6 - 2014-05-13 12:12:51 UTC
Paul VonBel wrote:


14) The 7% base yield is not detracted from the original investment. Example: If I buy 1 share at 10m ISK then I expect 700k ISK each month in dividend. If 10 months passes (7m ISK paid to me) and I wish to withdraw my investment and I sell back the share for 10 million then the full 10 million will be paid to me – not 3 million. This is not a loan, it is a purchase of shares - an investment.



Not sure how an advance that is repayable on demand that carries a fixed interest rate is not a loan. Though you do get a kicker on the back end as well with what is effectively a put option on the shares. From any corporation's perspective, it is uncertain, complicated, expensive debt. Granted 7% is not bad for uncollateralised debt, but 7% plus up to 49% of all growth in the corp value is a different thing.

You have also failed to cover the situation where the 'value' in the corporation reduces rather than increases (which, i suspect, is likely to happen to many of your customers......). Do they still have to pay back the full investment or are you going to take a hit? Not that it will make any difference given it is unenforceable anyway.

That's a lot of hoops to jump through and as BB pointed out, your customer base is likely to be undesirables, making your terms and conditions and valuation mechanisms all a bit pointless in the end.

10 points for RP though.

Bad Bobby
Bring Me Sunshine
In Tea We Trust
#7 - 2014-05-13 14:13:11 UTC
Paul VonBel wrote:
I'd rather there were T&Cs so corps take it seriously.
You absolutely need T&Cs, but I think you should attempt to simplify them.

You should also consider that many of your potential customers will be time wasters, so you should be careful about the amount of work you sign yourself up for. Reviewing application forms, performing full API audits and carrying out accurate valuations will all be time consuming. Indeed, these are all services that people charge more for individually than you will expect to receive in proceeds from any moderately successful outcome to your scheme. So, you are going to be doing a lot of work that will stack up very poorly against the meagre income you will get.

Aside from that, the core of your offering is a non-starter, since you are proposing to charge way more than the going rate for what is likely to be a much poorer service (from the end user's perspective) when compared to a straightforward loan. Indeed anyone who can jump through half of the hoops you are putting out will easily be able to meet the minimum requirements for an uncollateralised loan at a more competitive rate than you are proposing. Aside from that, an industry corp is highly likely to have some kind of collateral to put up against a small loan, meaning they would only have to make a three line post on this forum in order to get the money they need at a fraction of the cost.
Nedly Stark
ARAZ Engineering
#8 - 2014-05-13 14:57:43 UTC
In regards to bad bobbys post TLDR;

People are better off seeking better rates and offers from the forums than from your services.