Methods for facilitating private funding of early-stage companies

• US 20050021392A1
• Filed: 09/16/2003
• Published: 01/27/2005
• Est. Priority Date: 09/16/1999
• Status: Abandoned Application

• Current Assignee: James W. Casparie, John P. Garcia, Kurt E. English
• Original Assignee: James W. Casparie, John P. Garcia, Kurt E. English
• Inventors: Garcia, John P., Casparie, James W., English, Kurt E.
• Application Number:
  US10/663,193
• Publication Number:
  US 20050021392A1
• Time in Patent Office: Days
• US Class Current: 705/12
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A consultant provides services to participants seeking involvement in early-stage companies, as well as to early-stage companies seeking the involvement of participants. The participants, typically known as angels, generally seek to provide early-stage funding sought by the companies in exchange for equity interests in the companies. The consultant identifies a company and presents the company to several participants. The participants, in turn, have the opportunity to accept a conditional offer by the consultant to perform a due diligence review of the company. The due diligence review is intended to provide the participants a basis for deciding whether to invest in the company. A participant preferably accepts the offer by casting a vote in favor of having the consultant perform the review. If a sufficient number of participants cast votes in favor of performing the review, the consultant accepts up to a maximum number of votes, performs the review, and charges each of the participants whose votes are accepted for a portion of the cost of the review. The results of the review are preferably provided first to those participants whose votes are accepted and subsequently to the remaining participants. The right to receive the results of the review in advance of others acts as an incentive for a participant to offer/vote to pay, in part, for a review of a company. The consultant preferably also negotiates an additional incentive from the company in the form of an equity interest in the company that is shared among the participants whose votes are accepted.

Claims

1. A method comprising:

receiving compensation from a plurality of participants;

presenting a business entity to the participants;

deciding, based at least upon a first vote of the participants, to perform a first review of the business entity; and

presenting the results of the first review to at least one of the participants that voted in favor of performing the first review.

2. The method of claim 1, further comprising:

deciding, based at least upon a second vote of the participants, to perform a second review of the business entity; and

presenting the results of the second review to at least one of the participants that voted in favor of performing the second review.

3. The method of claim 2, wherein the first review and the second review are due diligence reviews of the business entity.

4. A method comprising:

(A) receiving compensation from a plurality of participants;

(B) identifying a business entity; and

(C) causing the business entity to assign an equity interest in the business entity to at least one of the participants.

5. The method of claim 4, further comprising

obtaining from the business entity a right to purchase an equity interest in the business entity.

6. The method of claim 5, wherein (C) comprises exercising the right to purchase to the benefit of the at least one of the participants.

7. The method of claim 4, further comprising

causing value to be provided to the business entity.

8. The method of claim 7, wherein the value is provided in exchange for (C).

9. The method of claim 7, wherein the value comprises a service.

10. The method of claim 7, wherein the value comprises funds.

11. The method of claim 7, wherein the value comprises goods.

12. The method of claim 7, wherein the value comprises the results of a review of the business entity.

13. The method of claim 12, wherein the value further comprises the providing of the results to at least one of the participants.

14. The method of claim 7, wherein the value comprises the introduction of the business entity to the participants.

15. The method of claim 7, further comprising

providing the value to the business entity.

16. The method of claim 7, wherein the value is provided by a third party.

17. The method of claim 4, further comprising

obtaining an agreement from the business entity that the business entity assign an equity interest in the business entity to at least one of the participants.

18. The method of claim 4, further comprising

evaluating the interest of the participants in the business entity.

19. A method comprising:

receiving compensation from a plurality of participants;

identifying a business entity;

obtaining an equity interest in the business entity; and

transferring a portion of the equity interest to at least one of the participants.

20. A method comprising:

(A) identifying a plurality of participants;

(B) identifying a business entity;

(C) presenting to the participants, in conjunction with an identification of the business entity, the option to cast votes in support of an activity;

(D) receiving at least one vote cast in response to (C);

(E) accepting at least one received vote; and

(F) receiving compensation from at least one of the participants.

21. The method of claim 20, wherein the compensation is received from each of the participants that cast accepted votes.

22. The method of claim 21, wherein (F) is performed in association with (E).

23. The method of claim 20, wherein the compensation is in the form of a prepaid retainer.

24. The method of claim 23, further comprising

for each of the participants that cast accepted votes, deducting, in association with (E), an amount from the participant'"'"'s prepaid retainer.

25. The method of claim 20, further comprising

providing, in association with (E), the results of a review of the business entity to the participants that cast accepted votes, wherein the review is the activity.

26. The method of claim 20, further comprising:

(G) determining that at least a minimum number of votes have been cast;

and

in response to (G), causing a review of the business entity to be performed, wherein the review is the activity.

27. The method of claim 26, further comprising:

providing the results of the review to the participants that cast accepted votes.

28. The method of claim 26, wherein the review comprises a due diligence review.

29. The method of claim 26, further comprising performing the review.

30. The method of claim 26, wherein a third party performs the review.

31. The method of claim 30, wherein the third party is an outside expert resource.

32. The method of claim 20, wherein at least one participant casts a plurality of votes.

33. The method of claim 20, further comprising

causing the business entity to assign, in association with (E), an equity interest in the business entity to the participants that cast accepted votes.

34. The method of claim 33, wherein the equity interest comprises stock.

35. The method of claim 33, wherein the equity interest comprises stock options.

36. The method of claim 33, wherein the equity interest comprises stock discounts.

37. The method of claim 33, wherein at most a maximum number of votes are accepted.

38. The method of claim 20, further comprising

obtaining an agreement from the business entity that the business entity assign some interest in the business entity to the participants that cast accepted votes.

39. The method of claim 20, further comprising:

obtaining from the business entity a right to purchase an equity interest in the business entity; and

exercising the right to purchase to the benefit of the participants that cast accepted votes.

40. The method of claim 20, further comprising

causing value to be provided to the business entity.

41. The method of claim 40, wherein the value comprises the results of a review of the business entity.

42. The method of claim 40, further comprising

providing the value to the business entity.

43. The method of claim 40, wherein the value is provided by a third party.

44. The method of claim 43, wherein the third party is an outside expert resource.

45. A method comprising:

(A) presenting, to a plurality of participants, a conditional offer to provide the results of a review of a particular business entity;

subsequent to (A), receiving acceptances of the offer from at least one of the participants; and

subsequent to (A), causing the review of the business entity to be performed.

46. The method of claim 45, further comprising

deciding to cause the review to be performed based at least upon the number of acceptances received.

47. The method of claim 45, further comprising

performing the review.

48. A method comprising:

(A) accepting a vote from a participant; and

(B) receiving, in association with (A), compensation from the participant wherein value is provided to the participant in association with (A).

49. The method of claim 48, wherein the vote is cast by the participant in support of an activity.

50. The method of claim 48, wherein the value is provided by a third party.

51. The method of claim 48, further comprising

causing a third party to provide the value.

52. The method of claim 48, further comprising

providing the value.

53. The method of claim 48, wherein the value comprises the results of a review of a business entity.

54. A method comprising:

identifying a plurality of individuals;

receiving compensation from each of the individuals;

identifying a plurality of companies; and

providing, to each of the individuals, the results of a due diligence review of each of the companies.

55. A method comprising:

identifying a plurality of individuals; and

providing, to each of the individuals, an offer to provide, in exchange for compensation, the results of a due diligence review of each of a plurality of companies.

56. The method of claim 55, further comprising:

receiving an acceptance of the offer from each of the individuals;

receiving compensation from each of the individuals; and

providing, to each of the individuals, the results of a due diligence review of each of a plurality of companies.