Welcome to our Frequently Asked Questions, a comprehensive page to provide clarity of our services.
How is Core Team Partners compensated?
At Core Team Partners, our compensation model is designed with performance at its core, ensuring that our goals are seamlessly aligned with your success. We initiate our partnership with a nominal upfront payment. Given the 100+ hours of strategic planning, ecosystem partner introductions, C-suite recruitment, lead generation, and business advisory services we provide, this initial fee is considerably modest. These efforts are strategically designed to secure a minimum pre-money valuation of $25MM, demonstrating our commitment well before any funds are secured, as our preliminary investment substantially exceeds this amount.
As we move forward together, our compensation strategy remains results-oriented: we collect a half percent of the total funds deposited each month over a 12-month period, which accumulates to 6%. Additionally, for every $1 million in funds secured, we gain 1% equity. This equity stake is available for repurchase at your discretion, ensuring your total satisfaction and bolstering confidence in our ongoing partnership.
Our strategic compensation framework is tailored to maximize your funding results and foster a durable partnership dedicated to the flourishing of your venture. We are committed to building your future, reflecting our strong belief in and dedication to your business’s growth and success.
Are Core Team Partners licensed dealer-brokers?
We are not licensed dealer-brokers, but rather strategic partners, operating in a manner that is both fair and compliant. Our approach clearly delineates the services we provide and the value we deliver from any compensation for fundraising, all within the bounds of stringent legal guidelines. Our services encompasses advisory and consulting services, a dedicated investor portal, and the creation of essential materials—all crafted to deliver substantial value. Each service is meticulously detailed in our agreements to ensure clarity and mutual understanding of the unique expertise and effort each entails. Our agreements are crafted with transparency and fairness at their core, aimed at preventing disputes and adhering to industry standards. We are deeply committed to upholding the highest legal and ethical practices.
How long does it take for companies to successfully fundraise?
The timeframe for fundraising can vary widely, depending on several factors. How prepared you are, the maturity of your product/service adn team, and the development of your business plan all play a crucial role. Typically, preparation can range from 3 weeks to 3 months, depending on the level of support you require. For initial funding, the average duration is about 3 months, while a complete raise of $5 million may take up to 18 months.
What are the sources of our funding?
Our client's funding comes from a network of angel investors, our private fund, private equity firms, and sometimes, venture capitalists. We focus on Angel Investors for their passion for early-stage concepts, offering both capital and potential revenue. Each startup receives funding tailored to its needs, benefiting from Angels' eagerness for early involvement and potential lucrative exits. Our expertise ensures your venture gains the right support and guidance to flourish.
How does Core Team Partners structure a $5M raise for 20% equity?
We will meticulously craft a minimum $25MM valuation. Our approach includes developing a comprehensive growth strategy, encompassing public relations, predictable marketing, C-suite recruitment, and a well-defined exit strategy or next inflection point. This plan provides a clear and compelling path for the company's success, ensuring that the investment is not only justified but also poised for fruitful returns for everyone involved. Our focus is on creating a strategic roadmap that aligns with investors' expectations and your company's long-term vision.