Advantages of the CEED Program to
four main participant groups
The CEED Program has the following advantages for the
four main participant groups. Click on each link for that
description:
♦ CEOs and companies
♦ Angel and institutional
investors
♦ Federal government
♦ Communities served
The Advantages Explained
Advantages: The CEO & the small
company
- The time spent on fundraising is greatly reduced,
allowing the CEO more time to focus on building the
company.
- The CEO need only locate a small portion of the
required funding locally. If they do so in the manner that
satisfies our criteria, the bulk of the funds needed can be
provided on a matching basis from outside sources, along
with other means to obtain loan guarantees and other
funding options to further stretch the investment
dollars.
- The CEO is provided tools to make securities laws
compliance easier and less costly.
- The funds provided can stay permanently within the
company. The CEO and other shareholders will never have to
sell the company to pay back the investors, nor will they
have to take the company public if they don't want to.
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Advantages: Angel & Institutional
Investors
- Full and proper due diligence is performed by others on
behalf of investors, in a manner that affords both angel
and institutional investors high confidence that it has
been done properly and that the investment has been fully
vetted.
- Angel investors are incentivized because they know that
large, institutional investors will invest alongside
them.
- Institutional investors, who rarely invest in small,
private companies, now have a means to do so, without
having to incur the high costs of processing the investment
(due diligence).
- Most important of all, both angel and institutional
investors are provided a direct path to liquidity for their
investment, without having to force the individual
companies they invested in to go public or be sold.
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Advantages: Federal Government
- The federal government need only provide funds to those
elements of the CEED Program that otherwise would not be
provided by private sources.
- In other cases, by providing funds, the government
incentivizes private sources to put in much larger
follow-on amounts.
- Any funds provided by the federal government are
greatly leveraged by a much larger amount of private
dollars, thereby saving taxpayers from having to foot the
bill.
- No new bureaucracy is needed to support the CEED
Program, yet the effectiveness of the dollars contributed
by the federal government will go far beyond the typical
"return on investment" of public funds for any analogous
programs.
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Advantages: Communities
Served
- The CEED Program provides a means of direct community
and citizen participation in the Obama administration's
goals of healing the country.
- Numerous companies can be funded and supported, each
contributing to the overall energy and economic health of
the community.
- Funds so invested remain in the community and as a
result, are allowed to circulate within the community for a
multiplier effect.
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