IF YOU WANT TO HELP SAVCN

Two people can generally accomplish more than twice the work as one alone -- three people can accomplish still more, four - ad infinitum. Individuals in Davis or elsewhere in the Sacramento Area are invited to help. Small enterprises must provide disclosure documents and receive guidance so as not to violate SEC regulations or State laws. You can help entrepreneurs or investors -- but there also a number of other ways you could help, and your participation invited.

HOW ENTERPRISES FIND CAPITAL

It is written someplace that first it takes a dreamer who envisions a new product or service which will become the basis of the new enterprise. Next it may take the craftsman or technician to design and develop it. Third it takes the investment banker to provide the money that results in the actual development of a successful enterprise. Whether it is a new product or a service, the entrepreneur has to gain the knowledge about how to get started and how to operate his or her new enterprise. A business plan may help solidify things and force the entrepreneur to consider alternatives, risks and what resources are needed -- as well as establish the sequence of events that will make it possible. During this period the entrepreneur's own resources are frequently depleted. Family and friends may help-out financially, but more offend than not that enterprise the dreamer wants to start never gets beyond the planning stage. Only those with the required determination look for a way to make it all happen, with or without the assistance of others including investors. With the required determination and what the dreamer may think is a sure-fire biz-plan, the search generally starts with venture capital companies. This route is generally quickly abandoned when it is discovered that nobody wants to talk about the enterprise, or after encountering only opportunists who seek to separate the entrepreneur from their resources -- resources that might be put to better use. Next the entrepreneur may attend one of the many events to "meet financial angels" -- events where they might learn of some source of investment capital. The Chamber of Commerce or the local Community Development Department may host these events in hope of attracting new businesses to their communities. In addition however, there are now many professional event organizers who have found that charging entrepreneurs a fee (to attend a meeting at which someone might reveal the secret of how to find capital), is a profitable way to increase their own profits. There are winners and losers and we have been conditioned to accept this as a part of natural selection. But the process of natural selection applied here is extremely wasteful. It consumes time, and those that win frequently are not those that have the best ideas or the ability to manage new companies. The dreamer is left behind while others with perhaps less integrity may get a chance to start their new enterprises. Others may tell you that competition among new enterprises seeking funding is not necessarily bad. Entrepreneurs that are resourceful and determined might help assure that the new enterprise will succeed. But evidence abounds that this is most frequently not the case. Individuals who will do "anything" to succeed, may not have the best product or lack the ability to sustain the initial successes of the enterprise while it has money to burn.

HOW IT SHOULD BE DONE

SEC Regulations and California laws have been changed so that it is now easier for startup companies to find investors. These regulations and laws will allow them to find investors by advertising on the Internet and elsewhere, after obtaining permission from the SEC and/or the State. It should no longer be necessary to depend on Investment Bankers or Venture Capitalist to decide which company is to be funded and which will not. But first there has to be a facilitator that will provide the services and perhaps loan the entrepreneur money to file and obtain permission to sell their shares. Such a company if it had a loan pool could help entrepreneurs and small companies willing to follow the rules - obtain permission to raise capital and thereafter raise capital from individual investors (or when available, from traditional sources). . This SacAreaVCNetwork.com was put here on Internet in the hope that it will help start a company that would provide loans to assist small enterprises. These would be repaid with interest and where applicable fees would be charged and collected when funds are received from investors. Options to acquire stock of the new enterprises might enable this company to become very profitable. If you believe the competitive system by which only a few lucky enterprises obtain funding should be changed, there are many ways in which you could help. These include:

(1) Investing directly in small enterprises
(2) Consider investing time and money