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Graic Valente
Gallente
Valente Galactic Enterprises
Posted - 2011.05.24 11:15:00 - [1]
 

Edited by: Graic Valente on 16/06/2011 09:28:39




The Pitch

VGE is a supply chain organisation looking for smaller investors to take advantage of modest expansion opportunity in current operations through an IPO. The investment has no fixed term, but will provide a relatively healthy ongoing return. VGE see this as an opportunity to source the required funding for expansion without liquidating assets, but also regards this as an opportunity at gaining secondary market experience.

This thread is to gauge interest with no committment on my part.

The Background

With the exception of blowing crap up thereís not a whole lot I donít dabble in around New Eden.

I basically have your boiler plate supply chain corporation from planetary interaction, mining, research, invention, manufacturing, logistics and trading. Fortunately, over the years Iíve built up some reasonable earners here and there and picked up a steady client base at the same time who pay reasonably well.

However, thereís one thing Iíve never had a try at and that is putting any sort of real rigour into the way Iíve managed many aspects of the business. I know itís profitable as the ISK continues to flow. Good numbers are good but only so much fun for a while in the context of sitting in a wallet.

I thought I would be able to get a bit more ďbusiness likeĒ by trying to go down the corporation path. Maybe itís just me, but the effort of herding cats was just not my style. Recruiting was time consuming, offering support while having healthy levels of scepticism was doing my head in. So it was time for a ďPlan BĒ.

The Proposal

One thing Iíve always wanted to try is a manageable IPO for smaller investors that gives punters who arenít in the bazillionaires club a chance to have a dip, and if it all turns pear shaped, I can flog off the assets, we all have a laugh at my incompetence and everyone gets their money back.

So we are talking a very simple model here. Limited shares, relatively modest issue values, a halfway average percentage return, no end date in mind, secondary market if desired, any buy back down the track at issue value.

The Plan

Keep doing what works basically Ė with one exception.

One of my customers has requested that I double volume of a certain range of items. That will take a few weeks to gear up. Some POS equipment, BPOs and consumables while research is done. My preference isnít to sell the stuff that already makes the ISK. Also, if they pull the order down the track I have a list of other people I can sell to.

Funds raised from this offering will be used to buy additional plant equipment and BPOs. However, I will effectively be performing an asset swap so that it will be the established parts of the business that produce the dividends to shareholders to reduce risk and get dividends flowing right off the bat.

The Why

Yeah, I know thereís no real economic benefit of taking a small amount of funds when I could easily self-fund and keep all the profits myself. As explained this is simply what not this is about.

The Governance

As mentioned this is just me. No corporation theft, no dependencies. Unless I start spinning up imaginary friends as well as research alts no-one gets near the corporate wallet.

Because all the cool kids are doing it Iím more than likely to spin up a one member SPV corporation to handle shares and dividends.

No restrictions on a secondary market besides an investor concentration (more below) that really can't be enforced because of alts I know. And Iím saying it now if you want to trade shares do it through myself or a trusted third party. Obviously thereís nothing I can do if you get scammed out of your shares and I will just issue dividends via the in game system. So take care.

Graic Valente
Gallente
Valente Galactic Enterprises
Posted - 2011.05.24 11:17:00 - [2]
 

The Collateral

Yeah happy to chuck some out there if required. As a crazy side project I actually collect Tritanium for no other purpose simply to collect it. Iíve got a bit of a pile of that these days. Also, I have highly researched BPOs, ships etc. Iím sure we can sort out something as long as it doesnít stuff up too much my ability to make ISK. My preference is to just see who is interested before I start locking up assets for a small share issue with no end date. At most I would only have collateral locked down for 10 weeks so as to not bleed ISK on that front for too long.

The Assets

Oh man, insert several man years of collecting stuff here. Enough stuff to run the afore mentioned industry and cover the buyout in the event of total loss of everything. I would have to put my NAV up as at least 10-15 Billion ISK and thatís only counting a couple of hangers worth of stuff.

The Liabilities / Exposures

Nada.

The Audit

I have no feelings for or against an audit. I just think it looks like a bloody thankless task and I donít think anyone needs to be subjected to the process until there are questions around performance or expansion. Happy to do it, just can't yet see the point of people paying for one yet.

The Risks

Scam

Yes, I know the obvious and valid questions around reputation grinding and similar. And I know the defence of ďitís not walk away ISKĒ doesnít carry much weight or the fact that small scale returns are easy to produce, legitimately or otherwise.

Frankly, if thatís all you can see thereís little I can probably ever do to change your mind on that one. If people are that gun shy see the collateral part of my post.

Hit by a bus

With respect guys. I have my own business and four kids. If I canít play because of circumstances beyond my control you are seriously on your own.

Burn Out

Did I mention four kids? This operation keeps me sane. Burn out is not likely given Iím not going to be doing anything different to what I have for the last couple of years.

War

As a corporation engaged in POS activities a war would be fairly disruptive but not the end of the world. In the event of war the operation would be shut down until everyone gets bored and I move or they move on.

The Future

One thing at a time. There may be an expansion or just a buyback. Iím not going to rule anything in or out. However, the exit strategy is pretty clear it will be a basic buy back at issue value. However, thereís no exact timing on that. Although, no matter how poor I perform you wonít lose out.

If you want to sell and canít find a buyer it will be 75% of issue value on return of shares pre-end of dividend period (which you will be paid) to keep it all clean. I reserve the right to refuse a buyback.

The question though Ė can I scale? The answer in my mind is yes. The number of skilled alts is steadily rising. Trading is becoming more a part of the business and experience has taught me to maximise my time.

So if I ever come back and talk about some other new venture don't be suprised.

Graic Valente
Gallente
Valente Galactic Enterprises
Posted - 2011.05.24 11:19:00 - [3]
 

The Numbers

Now the breakdown:

Number of shares: 200
Issue price per share: ISK 10,000,000
Total issue value: ISK 2,000,000,000
Issue bundle: 10 (ISK 100,000,000)
Market concentration: 20 per investor
Dividend schedule: Every 4th weekend (dates TBA)
Anticipated return: Minimum 5%

The Questions

Have at you! Well, have at me really.

The Reserved Post

You can express interest here, keeping it all public. No drama with that. And it doesn't have to be all done in five minutes, so no big rush.

In advance, I apologise for any errors etc. be nice if you could offer feedback without taking out the one wood.

Thanks for reading!

Graic Valente
Gallente
Valente Galactic Enterprises
Posted - 2011.05.24 11:21:00 - [4]
 

Edited by: Graic Valente on 25/05/2011 23:07:42
Edited by: Graic Valente on 25/05/2011 22:10:17
The Q&A

(I don't want to edit my OPs on you)

Thank you to everyone for the offers of support, positive responses and fair questions to date, it's nice to see.

Q. What's the minimum share reservation?
A. 10 shares.

Q. What's the maximum share reservation?
A. 20 shares. As per my plan I want to give smaller players a crack. I would really prefer people do keep it about 20 for now, but I know it's not enforceable.

Q. When do I send ISK?
A. Please not yet, let's see how the community responds based on what I've said and what more I may need to do to fill this IPO. I want to publish some dates "soon". I don't want to keep people hanging but I want everyone to be happy before I start.

Q. Can we have a basic audit?
A. If I really can't get critical mass without it then no worries. Happy to be transparent. There's not much to verify really. Just a contract history between myself and my customers and EVE mail exchanges confirming a ramp up in production. I will keep this open for offers as is for a few days until I decide. However, I'll be totally open and honest though. There are aspects of my business not related to this offering and that won't impact on it that I don't want in the public domain at this time.

Q. Who do I send the ISK to.
A. Myself, once I request it.

Q. How will shares be distributed.
A. As per offering, most likely in game.

khai88

As a special case you can send your ISK now. If I can't launch in a shortish time frame it will be returned.

The Reservations

Reservations (No audit)

khai88 - 20 Shares ** ISK accepted in advance as khai88 is away. **
Arancar Australis - 10 Shares
Cista2 - 20 Shares
Gr8er - 10 Shares
Brac Mingan - 10 Shares
Isaar Kirom - 20 Shares
Dark Tenshi - 10 Shares
Aris Aurora - 20 Shares
Khanid Voltar - 20 Shares
Tom Hagen - 20 Shares
Zaveed - 10 Shares
Jean Baptiste Johansson - 30 Shares ** See post #31 for clarification **

200 of 200 Reserved

Reservations (Pending Basic Audit)

Skarii TuThess - 10 to 20 Shares
Abdiel Kavash - 20 Shares
Gr8er - 10 Shares

Thanks for reading!

khai88
Posted - 2011.05.24 13:01:00 - [5]
 

Edited by: khai88 on 25/05/2011 07:14:45
Edited by: khai88 on 25/05/2011 07:12:39
200m ISK send, thk Graic


Arancar Australis
Posted - 2011.05.24 15:48:00 - [6]
 

Please reserve 10 shares.

When would you like the ISk to be sent your way?

Skarii TuThess
East Aridia Trading Company
Posted - 2011.05.24 16:23:00 - [7]
 

FWIW I think that VV is still available for audit services and that it can be paid for from the audit fund that RAW23 is holding.

I'd like a basic audit just to confirm a rough NAV and that you are making a profit through current activities.


Pending this I'd like to reserve 10 shares. Would be happy to increase to 20 if you don't fill it, but am happy to let others get in on this along your desire to give people a chance at investing.

Cista2
Hydra Investment Fund
Posted - 2011.05.24 16:33:00 - [8]
 

Is 20 shares max? I will take 20 shares then.

Abdiel Kavash
Caldari
Paladin Order
Fidelas Constans
Posted - 2011.05.24 18:54:00 - [9]
 

Originally by: Skarii TuThess
I'd like a basic audit just to confirm a rough NAV and that you are making a profit through current activities.


I'd like to reserve 20 shares after this.

Das Miner
Gallente
Thunder Bolt Industries
Posted - 2011.05.24 19:00:00 - [10]
 

Good luck. Plan looks cool.

Gr8er
Posted - 2011.05.24 19:18:00 - [11]
 

I'd like to reserve 10 shares,
but i'll take 20 if you get an audit.

Brac Mingan
Posted - 2011.05.24 20:08:00 - [12]
 

I'd like to reserve 10 shares.

Isaar Kirom
Posted - 2011.05.24 20:51:00 - [13]
 

Reserve 20 shares.

Dark Tenshi
Gallente
Aeria Gloris Inc
Posted - 2011.05.24 21:54:00 - [14]
 

Reserve 10 shares please, if still opened for business.

Syds Sinclair
Posted - 2011.05.24 22:04:00 - [15]
 

..This looks like a great fit for Tutskii's fact checking service.

Aris Aurora
Caldari
Black Mesa
Posted - 2011.05.25 01:59:00 - [16]
 

i would like to reserve 20 shares....
unfortunatly i dont have nessary amout of money. i am still trying to sell my dam adv mobile labs.Sad
they r just lying there in jita all 14 of them.
hw soon would you like the money? an dhow soon will u let ur shares out?

Graic Valente
Gallente
Valente Galactic Enterprises
Posted - 2011.05.25 04:14:00 - [17]
 

Update

Thank you all for your feedback and questions to date.

I have included an FAQ with questions from this thread and in game.

Also is a list of expressions of interest for both non-audit and basic audit.

I look forward to your responses.

Kaine Altra
Posted - 2011.05.25 04:26:00 - [18]
 

Edited by: Kaine Altra on 25/05/2011 05:37:58
Withdrawn.

Aris Aurora
Caldari
Black Mesa
Posted - 2011.05.25 05:39:00 - [19]
 

umm wats the diff between basic and no adut?Embarassed

Korgall
Posted - 2011.05.25 06:07:00 - [20]
 

Edited by: Korgall on 25/05/2011 06:07:11
I am very interested in your venture, but as im rather new to EVE, Id like to clarify a thing for a newb like me :)

The "Issue bundle" does that mean that smallest share number you sell is 10 shares ?

If not Id like 5 shares :)

Edit: Spelling

Skarii TuThess
East Aridia Trading Company
Posted - 2011.05.25 07:12:00 - [21]
 

Graic,

rather than a basic audit I'd be happy if you wanted to use Tutskii's fact checking service. It's free. The questions I'd like answered, please, are:

What is your NAV? (roughly to the nearest 1bn)
Are you currently running industrial operations? (yes/no)
If yes what is the ISK tied up in your industrial operations?(roughly to the nearest 1bn)
Do you run these operations from a POS? (yes/no)

Thanks.

Graic Valente
Gallente
Valente Galactic Enterprises
Posted - 2011.05.25 11:07:00 - [22]
 

Update

khai88

Confirming receipt of ISK. Thank you.

Aris Aurora

Basically more people have offered to invest if I can demonstrate that what I have outlined in my proposal is true.

As auditors are as rare as hen's teeth these days some people can go for "audit-lite" which just checks a few facts. No audit is just that. It operates just on a model of trust.

Korgall

No, problem. Happy to clarify. This is my first offering so we are kind of in the same boat.

Just for the sake of making all of this easier to setup I have decided to sell initial shares in bundles of 10. The minumum being 10, the maximum being 20.

Skarii TuThess

I continue to think about it. I was kind of hoping to have one of the regular MD auditors able to look at this to establish some kind of continuity if I need further audits. I haven't finished my EVE mail exchanges with those people yet. I'll keep people updated.

As for your questions, yes they are fair enough to have answered. Pending independant verification I just as an idea on NAV I just ran through a few items with very conservative numbers:
  • Freighters and Hulks

  • Minerals

  • Data cores

  • BPOs

  • POS equipment

  • Sell orders (over buy orders)

Not even looking at character values, other ships, collectables, modules, tags, moon materials, PI stock piles etc. I got to over 15 Billion and stopped counting.

Yes, as described in my offer I am running industrial operations.

For ISK tied up in industrial operations? Not that much, only about 5 Billion sunk into items that would need to be pulled down, moved back to a market to be sold.

Yes, as also oulined above (and detailed under risks) I use a POS.

Thanks for your interest.

Khanid Voltar
Night's Dawn Investment Fund
Posted - 2011.05.25 11:26:00 - [23]
 

I would like to reserve 20 shares, and for such a minimal outlay I am not fussed about an audit.

KV

Tom Hagen
Posted - 2011.05.25 12:04:00 - [24]
 

Hello Graic,

This looks like an interesting venture and it would be interesting to join. If availible, please sign me up for 20 shares. Relatively small investment means that audit does not concern me.

Best regards,

Zaveed
Posted - 2011.05.25 12:09:00 - [25]
 

I'd be interested in getting in on this venture. I'd like to reserve 10 shares, without need for an audit.

Graic Valente
Gallente
Valente Galactic Enterprises
Posted - 2011.05.25 12:26:00 - [26]
 

Update

Khanid Voltar, Tom Hagen & Zaveed

Thank you for your support.

Reserved list has been updated.

Skarii TuThess
East Aridia Trading Company
Posted - 2011.05.25 12:51:00 - [27]
 

Totally understand Graic, and I think it is a good idea to have continuity. Not trying to put you off of having a full audit from an established auditor, just letting you know that I would be fine if it was just a verification service.

Jean Baptiste Johansson
High-Tech Duct Tape
DUCT TAPE UNION
Posted - 2011.05.25 15:18:00 - [28]
 

I'll do the final 30 shares. I know it's more than your 20 share max but that's how I roll. Cool

Graic Valente
Gallente
Valente Galactic Enterprises
Posted - 2011.05.25 22:09:00 - [29]
 

Update

Jean Baptiste Johansson

Thank you for the offer, but I'm sorry I can't do 30 shares.

I have an in game offer made before your own that I will honour.

The offer was by Isaar Kirom for 20 shares leaving only 10.

I would be more than happy to reserve those 10 for you if you are still interested?

Isaar Kirom
Posted - 2011.05.25 22:30:00 - [30]
 

Just a note: You have me listed twice as having reserved 20 shares. I would be happy to pick up 40, I just wanted to bring this to your attention.


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