Cap Value, Inc.

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  • Capital Raise
    5000000.0
  • Structure
    Other
  • Offering Price/Share
    0.0
  • Shares Offered
    0.0
  • Current Shares Out
    4000000.0
  • Post Offering Valuation
    0.0
  • Post Offering Shares Out
    0.0

Overview and History

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Cap Value, Inc., a California corporation,  a wholly-owned subsidiary of Capital Services Group, was formed in January, 2014 to provide merchant banking services to development stage and emerging growth companies over their corporate lifecycles, providing growth capital and corporate finance advisory services.

There are more than 23 million small businesses in the United States, many of which are in need of growth capital, expertise in structuring their efforts to raise capital, and which do not have experience, relationships and access to manage the process effectively.

Merchant banking has a long history and means different things to different people. Our mission is to establish Cap Value, Inc. as a full-service provider of strategic resources and access to capital for select emerging growth companies throughout their life cycle.


The differentiation in our merchant banking platform resides in:

  • Our proprietary deal sourcing, which comes directly through Capital Services Group’s client portfolio;

  • Our process, which leverages Capital Services Group’s investment packaging and direct public offering capabilities and commitment to insuring best practices in its clients companies;

  • Our exclusive access to Equity Round, an online marketplace for Rule 506c offerings;

  • Our strategy for distribution, which includes access to capital for our portfolio clients through IRA/401k platforms, family offices, institutional investors, angel investors, investor and brand awareness building through our planned media property, The Equity Round Magazine; and

  • Our commitment to designing the most effective capitalization strategy appropriate to our clients’ needs.


Products and Services

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Cap Value, Inc. is dedicated to serving emerging and growth companies over their corporate lifecycles by providing sophisticated capital markets and strategic advisory services, as well as making select principal investments through its venture capital fund. Our goal is to provide our clients with the resources, insight and partnership required to bridge them to achieving their full financial and strategic goals.

We have built our organization and relationships to provide our clients with the full spectrum of high quality capital advisory services with the conviction that our commitment to our clients is second to none. We act as trusted advisors to our clients and differentiate ourselves by being driven by the challenge of meeting our clients’ needs and the professional satisfaction of achieving results that exceed your expectations.


Cap Value, Inc. is majority-owned and operated by Capital Services Group, a financial services company devoted to modeling, structuring and advising early stage and growth companies on their fundraising and growth plans.

Strategic Investments

Our fund, dba CapServe Ventures, seeks superior risk-adjusted returns through structured investments in emerging high-growth American companies. We are presently raising capital to seed fund Cap Serve Ventures:

  • Asset Class: Early-stage venture capital

  • Size: raising up to $5 million

  • Portfolio Size – initially up to 10 companies

  • Targeted Return: > 20% annualized return over 2 years

  • Structure: C Corporation

  • Capitalization: Cap Value Inc. seeks to raise funds through the issuance of Convertible Promissory Notes, representing loans from investors convertible into up to 20% of our shares outstanding

  • Minimum Investment: $100K

  • Investment Manager: Capital Services Group

    The investment objectives of Cap Serve Ventures are (i) to achieve mid-to-long-term capital appreciation by investing primarily in pre-IPO companies managed by Capital Services Group, where Capital Services Group has been engaged by client to coordinate Investment Packaging and/or Direct Public Offering services; and (ii) to provide expansion and acquisition financing to facilitate the growth strategies of successful managers. 

    Cap Serve Ventures will also invest opportunistically in publicly listed equity securities traded on stock markets in the United States. The Investment Manager will use a combination of quantitative and qualitative methodologies to set the asset allocation of Cap Serve Ventures.

    We are committed to our objective of identifying, investing in and funding well managed companies that demonstrate the potential for substantial long-term growth.  Our knowledge and experience in formulating corporate strategy including marketing, strategic alliances and business management greatly increases the probability of our clients’ success.  We are adept at due diligence, market research, competitive analyses, and financial structuring for the fundings that we undertake.

    Corporate Finance Advisory Services

    We provide corporate finance advisory services to an underserved niche, typically early stage companies ranging from pre-revenue to $50 million annual. We have strong national and regional relationships for capital sourcing, including:

  • Banks and institutions
  • Private equity firms
  • 401k platforms (e.g., PENSCO)
  • Family offices
  • Venture capital firms
  • Angel investor funds/networks
  • Cap Value Inc. proprietary venture capital fund

We understand that one size doesn’t fit all. Each emerging growth company has its unique needs and issues at different stages of growth. Therefore, as our client company grows, we make the necessary changes to our advisory services and recommended strategies which are appropriate to the particular stage of growth and needs of the client at that point in time, taking lessons learned from past performance and developing strategies designed to maximize future outcomes. Our approach to client service focuses on the challenges of high-growth entities and demonstrates our commitment to serving the needs of the venture community.

We review and refine the company’s business plan and corporate strategy; management, recruiting, and marketing strategies are also defined.  Financial controls and financing needs with the goal of placement of equity and/or debt and/or obtaining partnering or distribution agreements are also thoroughly delineated. 

Market Opportunity

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According to the SBA, there are 23 million small businesses in the United States. We believe that the majority of these companies are either planning or in the process of executing a strategy to meet their growth capital requirements. Providing assistance to early stage and emerging growth companies is, in our estimation, an underserved market, and as such, there is far more demand than there is supply for growth capital.

According to the National Venture Capital Association, venture capital outpaced the marquee benchmarks of Wall Street for the second quarter in a row (through Q214).

Venture capitalists invested $13.0 billion in 1,114 deals in the second quarter of 2014, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Quarterly venture capital (VC) investment activity rose 34 percent in terms of dollars and 13 percent in the number of deals, compared to the first quarter when $9.7 billion was invested in 985 deals. The total dollars invested in Q2 2014 marks the largest quarterly investment total since $13.1 billion was invested in Q1 2001. VC investments for the first half of 2014 reached $22.7 billion, the highest first half total since 2001.

Seed stage investments rose 46 percent in dollars and 20 percent in deals with $189 million invested into 55 deals in the second quarter. Early stage investments rose 17 percent in dollars and 9 percent in deals with $3.8 billion going into 522 deals. Seed/Early stage deals accounted for 52 percent of total deal volume in Q2, compared to 53 percent in the prior quarter. The average Seed deal in the second quarter was $3.4 million, up from $2.8 million in the first quarter of 2014. The average early stage deal was $7.3 million in Q2, up from $6.8 million in the prior quarter.

First-time financing (companies receiving venture capital for the first time) dollars increased 48 percent to $1.9 billion in Q2, while the number of companies rose 20 percent from the prior quarter to 351. First-time financings accounted for 14 percent of all dollars in Q2 while first-time deals accounted for 32 percent of all deals in the second quarter.

Seed stage and first-time financing are the cross-section of the venture capital investment activity which we are focused on, which represented approximately 5% and 32% of total deals done in Q2. With roughly 23 million small businesses in the United States, assuming that at least 50% of which are seeking capital, our target market is vastly underserved.

Competitive Landscape

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Firms that could be characterized as competitive to our charter, include angel investors and networks, venture capital, small hedge funds and private equity. As noted above, given the sheer volume of early stage and emerging growth companies, we don’t believe that we face significant competition in terms of deal sourcing and origination.

Moreover, our pipeline funnel of prospective investments is generated solely through Capital Services Group’s client base, which provides insulation from competition in terms of sourcing and origination.


Our Solution & Value Proposition

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The differentiation in our merchant banking platform resides in:

  • Our proprietary deal sourcing, which comes directly through Capital Services Group’s client portfolio;

  • Our process, which leverages Capital Services Group’s investment packaging and direct public offering capabilities and commitment to insuring best practices in its clients companies;

  • Our exclusive access to Equity Round, an online marketplace for Rule 506c offerings;

  • Our strategy for distribution, which includes access to capital for our portfolio clients through IRA/401k platforms, family offices, institutional investors, angel investors, investor and brand awareness building through our planned media property, The Equity Round Magazine; and

  • Our commitment to designing the most effective capitalization strategy appropriate to our clients’ needs.


Sales and Marketing Strategy

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We are committed to a disciplined investment process which we believe is critical to making the best use of our investors’ capital. Attention to detail will never turn a bad deal into a good one – but it can dramatically improve our ability to avoid getting into flawed deals, or our ability to salvage value from a deal that has not met expectations.

We draw on our collective years  of experience in the capital markets, as operators, investors and professional services provides to both private and public companies. For any prospective investment:

  1. Must be referred by Capital Services Group investment committee;
  2. Must provide requested due diligence materials;
  3. Assessment of investment opportunity;
  4. Modeling of investment opportunity;
  5. If interested, we will propose structure and valuation and any relevant terms;
  6. Investment.

A condition on any investment by CapServe Ventures into a prospective company is that it has engaged Capital Services Group for a 2-year term (our target exit timeline) to provide ongoing strategic and corporate communications advisory.


Press Releases

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Presentations

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Archived Presentations

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IMPORTANT NOTICE
Capital Services Group Inc. and Equity Round ("CSGER") are not registered broker-dealers. CSGER does not give investment advice, endorsement, analysis or recommendations with respect to any securities. All securities listed here are being offered by, and all information included on this site is the responsibility of, the applicable Issuer. CSGER has not taken any steps to verify the adequacy, accuracy or completeness of any information. Neither CSGER nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy or completeness of any information on this site or the use of information on this site.