A Rocket Ride is simply rapid growth financing that will go from starting to $ 100 million or more in a few years.
The Rocket Ride accomplishes this in a seamless, integrated set of steps. It uses techniques that are individually well known (seed capital, venture capital, public listing), but at Rocket Ride they are all part of a path to providing the fastest possible business development, not simply a mess of separate transactions with it. partner who is most convenient at that time.
From the concept, the company positions itself for its growth in an exit strategy. Potential strategic buyers are studies of your needs and what they would find most valuable. The public securities markets are studied as to what would bring the best market value as an initial public offering. These elements are integrated into the concept and growth plan.
From the ground floor, the company must be set up correctly. That means using sophisticated legal documents that set up the company to go public or sell from the start.
To create a seamless process, you must prepare the founding documents, articles of incorporation, bylaws, incentive plans, employment agreements, and corporate governance rules with a view to the exit strategy, whether it is done. public. or a sale to a strategic buyer.
Then the growth plan and each financing stage can be planned. However, planning is not enough. Everyone has a good plan; it is execution that separates the dreamers from the successful ones.
When you have the plan, the need for managerial talent for the team will be easy to see.
History of rocket travel
My work in the investment business started at the OTC trading desk, where all kinds of stocks were traded, from penny speculations to heavy rust makers. More importantly, this is where most of the publicly traded companies started going public.
Moving up to vice president of commerce for a New York investment bank, not only did I market our IPOs and the other houses’ public offerings, I had to read the prospectuses and attend all the dog and pony shows.
This experience was like a continuous stream of business school case studies in business finance. It was also an education on what the investor will avoid and what to buy.
As I became an investment banker, I developed more and more techniques for venture companies, and that inevitably led me to start running them.
Make no mistake, this was the school of hard knocks – you get hit hard if you’re doing something that doesn’t work and you find out what works and what works like crazy.
Over time, this morphed into the idea of a process, not one disjointed transaction after another.
The limiting factor in the growth of most companies is their own decisions. In the beginning, the company has infinite potential. Bad ideas limit growth. It takes experience to build a strategy that can take you to the end.
My experience tells me that the Rocket Ride is for you if:
You have a public or private risk company
You have an overwhelming desire to succeed
You are always optimistic
You are tremendously impatient
You are a fan of your company
You are a visionary
You are tenacious
You are willing to work hard to get results.
You are demanding with others
You put your business first, knowing that success will give you all the rewards you want.
You are willing to share the fruits of your efforts with others.
You are a leader
You are willing to do whatever it takes to get the job done and do it on schedule.
You secretly have your corporate logo tattooed on your arm
You want to grow your business at the fastest rate possible
The steps of the Rocket Ride are performed by a team. Management is adept at its core business, but may not have the experience or time to take Wall Street by storm. You need teams to have really fast business growth. Each function, such as finance, must support the core business.
The first financing is seed capital. Then more rounds of funding. Timing these rounds is critical to minimize dilution. Then the most funding.
One of the benefits of doing this correctly is that you do not need to redo any work to prepare for the IPO or sale of the business. This minimizes the use of management time. Management has to work on the core business. The money has to be there when it is needed, leaving management to focus on what they really do. After all, finances are only a support function.
Finally, the exit strategy. Most venture capital deals plan to do an initial public offering or merge with a large company. Done right, the company is ready from day one to present it to many strategic buyers, perhaps at auction. Strategic buyers have been adequately educated on the key importance of the business in maximizing price.
If the company is going public, there is the process of finding a subscriber, valuing the company, negotiating the terms, and marketing the issue. The process does not end there, as the company must do well in the aftermarket so that the founders can get paid or not and can look back, with great satisfaction throughout the journey as a true success. That’s what you really want, right?
