Chryscap at aol.com
12-31-1969, 07:00 PM
Along with three business partners, I'm starting a light manfacturing and
custom packaging business in Milwaukee, Wisconsin. We're starting the
company, as opposed to purchasing one, because we want to create new jobs for
minorities in the central city in Milwaukee. For many reasons, it isn't
feasible to purchase and relocate an existing company.
My partners and I have over 100 years of business experience in production
management, accounting, finance and marketing, including 10 in the same
business for a $50 million, 650 employee, 5 plant non-profit. We consider
ourselves "entrepreneurs with a social conscience" investing our own "seed"
money, in cash, to make the business happen. We have personal financial
risk. As enterpreneurs, we want to make money, of course, but we also want
to have a significant social impact by creating jobs and wealth for our
workers and our shareholders, including, perhaps, one or two non-profit
investors. We will create some (85-165) entry-level jobs with good benefits
in the central city where the job situation for low-skilled, unemployed
minorities is pretty wretched. We have good sales contacts, good operating
experience, and good finance contacts...that is, for traditional loans and
equity capital. Believe it or not, we already have a "customer." Our
customers are very excited about the strength of our management and that we
are "minority-owned". Our problem is, that this is not a traditional deal:
its a start-up, its high risk and we only need a small amount of money...less
than $500,000 to start. It's too small an amount for regular VC's. (If only
we were raising $10 million. Maybe next time.) By the way, this is not an
offering for the sale of securities. It is a plea for information.
At the last Community Development VC Association meeting in Seattle, I heard
about many national community initiatives to start "social" VC funds ranging
from a few million to large multi-million dollar funds ($15 - $20 million,
and more). I walked away with some pretty high expectations about the
potential for raising capital for our company. After all, where can you find
a business with great growth potential and such an experienced management
team willing to invest and operate in a central city location for the purpose
of attracting unskilled minority workers? What I've learned since, however,
is that nearly all of it is (OK, understandably) geographically restricted.
And I thought I was living in a global village! I can't believe Milwaukee
is this much of a "fly over" zone. There must be some national group who,
while flying on their next trip to Chicago, SF, NYC or Scottsdale will be
willing to "land" here in Milwaukee (90 miles due north of Chicago on the
Interstate, no less) long enough to look at our company. Any
recommendations?
In deference to our local "social" investors, the jury is not entirely "in"
and the results remain to be seen. However, we're operating on a clock who's
time is counted at a "burn rate" which may exceed our invested capital. For
the last 15 years, I've managed a VC fund now fully invested here in
Milwaukee, an SBA regulated SSBIC ("Specialized Small Business Investment
Company"). Just like the traditional VC's, I'm finding social VC's operate
in a very inefficient capital marketplace. Their newness and "fewness" makes
them even more elusive. I'd appreciate any national leads, as well as local
ones here in Milwaukee. I'm new to "social investing" and I'm sure I don't
know all the local sources.
Informational phone calls and/or e-mails are welcomed. Thanks for your help.
Bill Beckett, President
Chrysalis Capital Management, LLC
2745 North Martin Luther King Drive, Suite 204
Milwaukee, Wisconsin 53212
(414) 264-2252 Phone
(414) 264-2253 Fax
E-mail: CHRYSCAP@aol.com
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custom packaging business in Milwaukee, Wisconsin. We're starting the
company, as opposed to purchasing one, because we want to create new jobs for
minorities in the central city in Milwaukee. For many reasons, it isn't
feasible to purchase and relocate an existing company.
My partners and I have over 100 years of business experience in production
management, accounting, finance and marketing, including 10 in the same
business for a $50 million, 650 employee, 5 plant non-profit. We consider
ourselves "entrepreneurs with a social conscience" investing our own "seed"
money, in cash, to make the business happen. We have personal financial
risk. As enterpreneurs, we want to make money, of course, but we also want
to have a significant social impact by creating jobs and wealth for our
workers and our shareholders, including, perhaps, one or two non-profit
investors. We will create some (85-165) entry-level jobs with good benefits
in the central city where the job situation for low-skilled, unemployed
minorities is pretty wretched. We have good sales contacts, good operating
experience, and good finance contacts...that is, for traditional loans and
equity capital. Believe it or not, we already have a "customer." Our
customers are very excited about the strength of our management and that we
are "minority-owned". Our problem is, that this is not a traditional deal:
its a start-up, its high risk and we only need a small amount of money...less
than $500,000 to start. It's too small an amount for regular VC's. (If only
we were raising $10 million. Maybe next time.) By the way, this is not an
offering for the sale of securities. It is a plea for information.
At the last Community Development VC Association meeting in Seattle, I heard
about many national community initiatives to start "social" VC funds ranging
from a few million to large multi-million dollar funds ($15 - $20 million,
and more). I walked away with some pretty high expectations about the
potential for raising capital for our company. After all, where can you find
a business with great growth potential and such an experienced management
team willing to invest and operate in a central city location for the purpose
of attracting unskilled minority workers? What I've learned since, however,
is that nearly all of it is (OK, understandably) geographically restricted.
And I thought I was living in a global village! I can't believe Milwaukee
is this much of a "fly over" zone. There must be some national group who,
while flying on their next trip to Chicago, SF, NYC or Scottsdale will be
willing to "land" here in Milwaukee (90 miles due north of Chicago on the
Interstate, no less) long enough to look at our company. Any
recommendations?
In deference to our local "social" investors, the jury is not entirely "in"
and the results remain to be seen. However, we're operating on a clock who's
time is counted at a "burn rate" which may exceed our invested capital. For
the last 15 years, I've managed a VC fund now fully invested here in
Milwaukee, an SBA regulated SSBIC ("Specialized Small Business Investment
Company"). Just like the traditional VC's, I'm finding social VC's operate
in a very inefficient capital marketplace. Their newness and "fewness" makes
them even more elusive. I'd appreciate any national leads, as well as local
ones here in Milwaukee. I'm new to "social investing" and I'm sure I don't
know all the local sources.
Informational phone calls and/or e-mails are welcomed. Thanks for your help.
Bill Beckett, President
Chrysalis Capital Management, LLC
2745 North Martin Luther King Drive, Suite 204
Milwaukee, Wisconsin 53212
(414) 264-2252 Phone
(414) 264-2253 Fax
E-mail: CHRYSCAP@aol.com
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