Investing

Answering any and all questions related to investing on Global Domination and entrepreneurs started on their journey to success.

About Global Dominations

In addition to fund raising, GD through its consulting agency provides consulting services including accounting, bookkeeping, fractional sales, fractional CFO, marketing, and social media services.

GD can help you raise equity, revenue-based funding, debt, equipment financing, factoring, and more. We primarily focus on equity and revenue-based funding raises but can also help you find other types of funding.

We are in our first year of operation and are unable to measure our success as yet. However, we aim to have at least one out of every three participant who go through the full program to receive funding.

The time it takes to raise funding varies greatly. Companies can receive funding after one week and some can take more than a year. We endeavour for companies to take an average of 7 months.  The factors though that determine the fund raise timeframe include: how complete your business is (market validation, team and sales are key criteria), how well you run prepare your documents and run your campaign, and how well you follow up investor prospects.

We charge $100/month on a recurring basis throughout the program. We offer additional services to help with your business (financials, sales, marketing, accounting, bookkeeping, etc) at an additional cost. There are no back-end fees. There’s no contract to sign and is on a month-to-month basis. You can call and cancel at any time.

By joining the program, you’ll receive the campaign planner package which includes templates for investor documents, campaign mailers, and pitch video scripts. You’ll also receive access to our investors through the funding portal.

The first step is to fill out the application form under the “Raise Capital” button if you haven’t done so already. We’ll send you an invite to one of our Open Doors sessions where you can ask questions about the program and meet the Global Domination team. We can also discuss by phone as well.
If you want to join the program we’ll send you a sign-up mailer. After sign-up, we’ll send you the campaign planner package so you can start working on your business preparation, investor documents, and campaign. Along the way we’ll guide you through the process.
After you complete the investor and campaign documents, we’ll review it and give some guidance on how to polish it for the investor. If you need help with any of the documents such as the Five year financial projections, we have team members who can help although this may come at an additional charge.

When the investor and campaign documents are complete we post it on the GD Growth Platform site and send it out to the investors. Investors who express interest in your deal by selecting the “Follow” button or viewing the video will be added to an investor prospect list. If you have investor prospects of your own we recommend adding them to this list.

We then send your campaign mailers (typically weekly) updating them on your progress and educating them about your deal. The goal is to build up a list of 50 investor prospects or more. Along the way, you may reach out to the investor prospects and offer to meet for a coffee or a conference call to answer any questions they have.

We help you prepare your company, investor documents and the campaign for fund raising. Global Domination Funding Program focuses on the campaign planning and investor engagement. After you signup, we provide you a campaign planner package which includes everything you need to build out your documents for investors (executive summary, pitch deck, 5 year financials, and pitch video) and your campaign mailers (what you’re going to tell investors at each step along the way). You can use these campaign documents and tools on any crowd-funding portal or with any investor group. If appropriate we may suggest going through the angel networks and venture capital groups. We can guide you on how their process works.

We offer equity, revenue-based funding, and debt raises.

Before Investing

Signing up on Global Domination is free and gives you access to see the list of small businesses in your community that you can invest in. There are never any costs to investors to use Global Domination or invest.

While there are many different types of companies listed on Global Domination, they typically have the following profile:

  • Company Type: are food and beverage producers, franchises, retailers, consumer product manufacturers, restaurants, breweries or distilleries.
  • Stage: are already generating revenue or will be generating revenue very quickly after the fundraise
  • Financial status: are growing, healthy companies, not companies looking for bailout or turnaround funding
  • Use of funding: typically raising between $50K to $500K to purchase equipment, hire more employees, open another location, build additional inventory, etc…
  • Minimum investment: typically $250 or $500
  • What investors receive: a revenue share loan, equity, or convertible debt (+ investor perks)
  • Express interest to get access to a business’s investment details, their business plans, financials, and management team profile. Investors who express interest also receive exclusive company updates and invites to investor meet and greets in the community. For example, if there is an investment opportunity in a local brewery, registered investors will be invited to a tasting event at the brewery to taste the beer and meet the management team.
  • Once you express interest, businesses will be able to contact you through the Global Domination platform (they will not have any of your contact information). They will obtain information on your state of residence, occupation, and any publicly available information on your profile.

Global Domination provides investors with access to investment opportunities in small businesses in their community. In return for investing, investors receive either preferred equity in the company, or a revenue share loan, and typically investor perks (i.e. free or discounted products/services, etc…).

Individuals who sign up for a new account are subject to a 30-day waiting period before they can complete investment. This waiting period is in place to help the business comply with securities laws around accepting investments from individuals that the business does not already know. Individuals that sign up through invites the business sends are not subject to the 30 day waiting period (because a pre-existing relationship exists).

Global Domination helps businesses create investment offerings by acting as their placement agent. This means that Global Domination reviews each business and completes a process of due diligence to ensure each business meets internal and applicable regulatory requirements before they begin Actively Fundraising on Global Domination. You can determine whether a business is Actively Fundraising by reviewing the Guide area in the upper right hand corner of each business’s profile. 

Making an Investment

  • Once you find an investment opportunity that you would like to invest in, first you will Express Interest in the business. You can control your interest and investment in the business through the action area on the right-hand side of the page (image below).
  • Expressing interest grants you access to additional investment materials for your review. You are then able to Provide Feedback on your investment interest, such as whether you are ready to commit to invest, are still reviewing the materials, have interest up to a certain dollar amount, or would like to propose different terms.
  • Once you are ready to commit to invest, you can easily complete your investment by signing the investment documents in the ‘Sign Documents’ section of the action area and choose how you would like to submit payment for your investment in the ‘Transfer Funds’ section, including via an online transfer, wire, or check from your personal bank account or self-directed IRA.
  • Before completing your first investment, each investor creates an investment account, much like the process of investing through an online brokerage service. Investing often starts as low as $250 or $500.

Each investment opportunity on Global Domination has a minimum amount of funding that must be raised by the company in order for your investment to be finalized. No investor funds are transferred until the investment opportunity has raised its target amount of funding. You will be kept up to date via email on the status of your investment and the status of the investment opportunity.

  • If the funding minimum is met investor funds will be transferred from your account to the company and you become an official investor in that company!
  • If the funding minimum is not met the investment is not completed, your funds will never be transferred.

Businesses typically have 90 days to raise funding. Our Happiness Guarantee- we want you to be happy with your investment. If you decide that you no longer wish to remain invested during the fundraise, you can cancel your investment for any reason up to 48 hours after the business countersigns your investment documents at no charge.

If you decide that you no longer wish to remain invested during the fundraise, you can cancel your investment for any reason up to 48 hours after the business countersigns your investment documents at no charge.

  • Depending on the business you are investing in and the type of security, you may or may not receive a stock certificate for your investment. Review the offering materials to determine if you should expect to receive a stock certificate from the Company after investing, and whether the Company has enlisted the services of a qualified transfer agent.
  • At a minimum, for every investment you make, you will receive a countersigned copy of the investment documents that you will electronically sign when submitting your proposed investment.

Post Investment

  • After you invest, you will begin to receive monthly revenue share payments from the company, if that is how the offering is structured. These typically start the month after the fundraise ends. All of the revenue share payments are directly deposited into the bank account or self-directed IRA account that you designated when you invested.
  • You will need to set up an account with our current payment processor, in order to receive these payments.

Beyond receiving payments (if they are part of your investment), as an investor, you also receive:

  • Portfolio management tools on Global Domination that make it easy to stay updated on your performance just like you would with your other investments
  • Standardized quarterly business and financial updates from the companies you are invested
  • Access to an investor forum where you can interact directly with the management of the company and other investors

Remember that, by being a consumer and advocate for the businesses you invest in on Global Domination, you are able to have a direct impact on your potential financial return!

securities

When you invest in a business– no matter if it is a publicly traded company or a small business in your community– you receive something from the company in return for your investment. This can be equity ownership, it can be interest on a loan, or it can be a combination of the two. A revenue share loan is a loan designed to pay you back through monthly payments based on the business’s revenue (assuming the business has revenue), paid until a maximum total return is reached.

 

Highlights:

  1. In return for your investment, the company plans to pay you back by giving you a percentage of the top-line revenue that it generates each month.
  2. The company usually plans to make monthly revenue share payments in the month following the end of the fund-raise.
  3. The monthly revenue share payments are electronically deposited directly into the bank account or self-directed IRA account that you choose.
  4. The company plans to continue making the monthly revenue share payments until you have received the maximum total return.
  5. If the maximum total return has not been paid back by the maturity of the loan, it becomes immediately due and payable.

There are significant risks when investing in private companies, including through revenue share securities. Investors should not invest if they are not comfortable with the risk of potentially losing their entire investment. Read more about the risks of investing, and the risks of investing in revenue share securities.

There are significant risks when investing in private companies, including through revenue share securities. Investors should not invest if they are not comfortable with the risk of potentially losing their entire investment. Read more about the risks of investing, and the risks of investing in revenue shared securities.

Convertible notes are often used for early stage financing because it is very difficult to determine how much the business you are investing in is worth (i.e. the valuation). A convertible note allows the business to delay this difficult task to a later date, presumably once they have some revenues or some other form of track record to base the valuation on. Then investors will be investing a discount to that valuation (to account for the fact that they invested at an earlier date.  

  • Equity represents ownership in a business. The “preferred” component represents additional rights and privileges investors receive in return for their investment beyond owning a percentage of the business. So, in return for investing in a private business, an investor will receive shares (or units, depending on the type of entity they are investing in) that represent their ownership in the business. These shares will be a part of a “class” of securities that the business has issued. A business may have multiple classes of securities.
  • Usually, a business that takes on outside investors will have at least 2 classes of securities: common equity and preferred equity. The common equity will be the equity owned by the founders of the business, and possibly additional employees or service providers. The preferred equity will be the equity owned by investors. Since investors are providing capital to the business in order for the business to operate, they receive preferential treatment as it relates to certain activities of the business. Here are a few examples:

Term

1. Percentage of Revenue

 

2. Maximum Total Return

 

3. Target Payback Period

 

4. Maturity

Definition

Percentage of the business’s top-line (before any expenses) revenue that it plans to pay to investors each month

Each investor may continue to receive payments until they reach this multiple of the amount they invested (except in the event of default), which depends on the stage and track record of the business

The projected length of time, based on financial projections, it would take the business to pay back investors up to their maximum total return

The length of time until the revenue share loan becomes due and payable and the business would make full payment to investors to reach their maximum total return (unless the business were to default on the loan)

Average Amount

2% – 10%

 

1.5x – 2.0x

 

3 – 5 years

 

6 – 8 years

Liquidation preference: A liquidation preference represents the order in which proceeds of the business are distributed in the event that the business is sold. Often, preferred equity will come with a “1.0x liquidation preference”, meaning investors receive 1.0x their investment back before any other funds are distributed to any other owners of the business (i.e. the common equity holders). In this scenario, investors would receive their money back, and then any additional proceeds would be distributed ‘pro rata’ (based on the percentage of the business each investor owns).

  • Information rights: Preferred equity holders are entitled to certain rights in order to gain access to company information.
  • Pre-emptive rights: Preferred equity holders may be offered this right, which allows them the ability to invest in future rounds of equity that are issued by the company to help avoid dilution pitfalls.