HVEMi - High Voltage Electric Motor intelligence
Venture Capitalist Offer - January 17, 2012
Angel or Venture Capital funding for inventions is
not something to be considered without months, if not years, of research
and gaining the knowledge of dilution through series of funding.
Seeking funding to manufacture is not considered when selling an
invention; funding for prototype development is completely separate.
I recently cancelled a meeting which
was to initiate a $2mm deal mainly because of the leadership and company
control (essentially the invention) would be lost--that is, I told the
investor that I rather do it myself if he could not agree with my
timeline and counter-offer, though we had been communicating for months.
My previous vision did not include an IPO...or my share of stock diluting.
However, with this mentality I may lose opportunities; so, everything
presented is only for initial efforts, thoughts and sharing information,
which is subject to change with any funding partnerships.
I am only waiting for the right leadership to take control of all the
major business decisions while allowing me to continue to create and
Capitalist Investment Offer Jan 17, 2012
His words (my edits in italic - (IVN)
Investors' Names - Husband and Wife)
It can take 2 more years to get the
Patent while we will be "Patent Pending"
While we are in "Patent Pending" we
can work on our business plan as well as raise capital. (Venture
Capital for Inventions?)
To get involved with introductions and
leadership I will want 5% of the Company in IVN.
We will pay for the Patent search. If favorable we will then
pay for the Patent. (Venture Capital for Inventions?)
Once the first $1mm venture capital
raised IVN percentage in Company is raised to
10% (Venture Capital for Inventions?)
Once the second $1mm venture capital
raised IVN percentage in Company is raised to
15% (Venture Capital for Inventions?)
If IVN want to invest own
venture capital in Company it will be valued at current
round value. (Venture Capital for Inventions?)
Additional capitals raised after the
first $2mm in company IVN as well as
CFO stock will be diluted as per valuation. (Venture
Capital for Inventions?)
"Mr. B I’ve been involved in many deals as
well as a deal I’m presently part owner and involved in
currently, it has taken 4+ years and had many rounds of capital
and just now we are filing for a public offering." (Venture
Capital for Inventions?)
Venture Capital for Inventions?
This is the question I ask to myself, and
you should ask too, at every turn of our ventures; among other
questions that need to be automatically ingrained in our thought
process, the assessment must consider the goals.
My goals are to bring HVEMi
technology to the public market, to maximize awareness and build a
network of technicians. With my knowledge of HR 2930 passing the House,
after watching the introduction of the bill, I consider the crowdfunding
opportunity to have a tremendous influence on changing how inventions
come to life. The JOBS Act passed the Senate and was signed by the
President in early April, 2012.
Now, why have I questioned "venture capital for inventions" so many
times? It is for the awareness of inventors having hope. The same hope
I have in not only gaining interest in presenting my product but also
establishing a base of technicians who will have the option to consider
stock ownership for capital investment through the legal crowdfunding
platform, creating 500,000 jobs.
Venture Capital Creates Jobs - Economic Growth
I appreciate venture capital avenues to consider. Unlike bank
loans, Venture Capital and Angel Investor (private investors or group
investors) funding is crucial to economic development in many levels of
business. It takes money to make money; and, without determination
and dedication with proper guidance businesses (personal resources) may
Where inventors and startups hold product driven goals, venture
capitalist not only offer the financial means to reach benchmarks but
also guidance and oversight to maintain and continue business direction
towards positive growth.
Private equity firms or individual investors assume all financial risk
when funding businesses with no guaranteed returns on investment.
This risk should offer better rewards for shareholders and investors to
promote USA growth with tax reform.
HVEMi for Partnerships - Not Short Term Investors
The difference is selecting PEOPLE with talent or capital who share my
vision and purpose for HVEMi technology for long term partnerships, not
a five-year ROI. HVEMi technology offers energy solutions with
potential financial gains unlike any current trend. The level of
belief, patent status, and validated claims present different avenues
for funding. The real-life example of my venture capitalist's
offer demonstrates where the normal starting point for obtaining funding
The investor who made the offer was not aware of many things, but enough
to make me a reasonable offer. I did not disclose my actual
patent application timeline, nor the patent search results to determine
if he would be willing to pay for them and work well with my goals and
vision, while I expressed confidence in the process and focused on the
I knew the investor could not, even if he hired professionals, prepare
and submit a patent application IF he was dishonest. He gained my
trust but not a partnership. Shortly after the conclusion of our
meetings my patent applications were submitted.
The investor agreed to pay for both the patent search and the full
patent application, which was good because the amount of capital risk was $20,000. However, he wanted the patent assigned to our new
corporation BEFORE additional investment capital was deposited. (USA
Patent / PCT)
I have certain expectations and very specific goals for HVEMi technology
applications to be realized through maintaining controlling interest in
the corporation I am forming. I have a CFO and other positions filled by highly
experienced people with incredible résumés. As the CEO and
Chairman, I have had to determine all the key components for bring HVEMi
to manufacturing and the public in the manner in which suits my heart
For those few who had seen HVEMi in action and shared my vision/purpose
I only offered 1% stock in ONE corporation to obtain their talent.
Consider it well!
When I told the investor if he could not agree to my counter-offer and I
would do "it" myself, I meant it!
The investor made a good offer and I could have selected to sell out my
vision and plans when signing the agreements. However, I did not
because of the lack of primary details NOT agreed upon, which factors in
stock dilutions in rounds of funding. My stock ownership will not
be diluted with rounds of funding. I know to some this will be
their negative point of focus to defame my goals. Good.
That is a good real-life example of how to be prepared and commit to
your goals, but only part of the plan to introduce HVEMi technology.
The need-to-know is offered by the inventor, not the other way around.
I respect and appreciate my venture capitalist, and offer.
Disclosure | Non-Disclosure Agreements
Need to Know?
As an inventor seeks capital funding, not disclosing IP information or
other business related positions are necessary to protect and assess
investors. At this point I do not hide the information of
obtaining a patent pending application, having done the appropriate
searches and preparation.
If you are studying this information for your own research pertaining to
your venture, then let me add my comments regarding disclosure
NDA I have used can be downloaded, but partial or full disclosure
agreements should never be signed without legal guidance and secure IP
Most patent attorneys would advise against signing disclosure agreements
without first obtaining patent pending status, at minimum. If you want
to contact me for direction and good referrals for your venture,
use the contact form and I will comment as time allows.
The need-to-know disclosures to investors, prototype engineering
companies, or invention manufacturing companies comes through your personal decision and assessments.
Never sign anything with doubt or hesitation.
Strategically planning publicizing HVEMi technology was not an easy
task. The number of people who knew about the HVEMi prior to
seeking venture capital was less than 5 people; all of which only knew
different aspects and not the total version. (not including attorneys)
ASAP Not Necessary - Vision
Having prototypes and the abilities to build full HVEMi
motors empowers me to set goals and a timeline according to my vision.
My vision and purpose for HVEMi technology is to form a corporation
established by technicians that will train and manage other technicians
around the world, first in the US.
Why do companies want to become publically traded, having
The stages of IPO is where people become millionaires.
However, though many companies survived after industry crashes the fact
is that the millionaires remain rich while the expendable
people lose, sometimes everything.
However, starting small, educating people and promoting
tax reform will empower HVEMi Motors and America to charge the future
with energy independence and prosperity!
Educating people in the ways of corporate America is essential for
understanding tax code laws and how it will directly relate to those
involved with HVEMi manufacturing
locations. Avenues for in-depth presentations of tax
code responsibility will be promoted after HVEMi technology is
publically validated. Why? Because if you understand the
JOBS Act and have reviewed HVEMi 500,000
Created Jobs page, then providing professional legal guidance and
transparent expectations of tax payments associated with not only
running a corporate entity but also as investors is part of the process.
Completely bringing my vision and HVEMi technology to
life and the public may take more time, but those who share the vision
of the future working with HVEMi will continue developing new technology
Between the Sheets, of Money
Without maintaining and holding onto a vision for what I, or
you, want to achieve, selling out comes easy with material or financial
I was willing to work with the investor, but without the foundation of
my requirements being firmly established and agreed upon my trust
What is not in the investor's offer above is a few specifics but more
importantly WHERE the patent is assigned. Under my counter offer I
would only license or assign the patent to OUR corporation upon agreeing
to a 2012 business plan.
Money changes people, which is the most important deterrent for me to
sellout and walk away knowing that HVEMi technology would just be
another corporate giant commodity.
Any inventor or business owner has the same decision when large sums of
money will win them the "American Dream". So, if OWS or any other
person is offered the chance to walk away with money in their pockets,
you know most people would not look back and disregard friends, family
and morality in the process.
If someone wins the Lotto, all of a sudden they have "new" old friends
that want a handout. The same goes on with publically elected
officials; the corrupt system and greed of
corporate giant politicians provides
many opportunities to look the other way and make questionable decisions
all for money.
Oversight Responsibility - while corporations use every legal means to
protect assets and minimize tax, politics also have ways to decrease
To protect our politically elected officials and our country removing the
temptation is the most important goal to achieve.
For now, we all have to play by the rules before we can change the
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