Current Shares Out950000.0
Post Offering Valuation5040000.0
Post Offering Shares Out1260000.0
Overview and HistoryEDIT
Avodah Holding, Inc., is a for-pro t Delaware C Corporation, that provides capital and world class technology solutions for high-growth Christian-managed companies that seek to positively impact the world socially, environmentally and economically. The Avodah Service Platform will provide business life cycle services designed to enable start-up and early stage companies to effectively articulate their value proposition, attract and manage growth capital, while providing ongoing strategic advisory services.
More than a marketplace, our vertically integrated technology and deep experience mentoring and preparing hundreds of rms, allows us to ll a critical gap in the market. While dozens of rms are taking advantage of sweeping changes in securities regulation, we realize that long-term value to investors comes from extensive due diligence and preparation of small companies, so that they are ready not just for an initial capital infusion, but for growth and scaling.
OurCrowd, a Jewish platform, provides a similar market making function, but does not provide the depth of services Avodah will provide. In three years OurCrowd has grown to an investor base of over 11,000 accredited investors and has nanced dozens of investments. OurCrowd is currently raising 250MM in a series C round. We believe that Avodah will ful ll an even greater function for the Christian community, and provide investors social, Kingdom, and nancial returns.
Successfully attracting risk capital requires thoughtful planning and clear communication. However, most early stage operators lack experience identifying investors and then pitching them. They don’t effectively articulate their value proposition, and make their case.
Our mission is to work with leadership teams that have a social conscience and are working on some level to develop solutions to the world’s most pressing challenges in sectors such as sustainable agriculture, affordable housing, accessible education and healthcare, clean technology and nancial services. These companies are making an impact.
Our core values of service, stewardship and a commitment to doing good are foundational to our faith, and how we intend to deploy capital as well as support entrepreneurs and the emerging growth companies that they operate. We are committed to the belief that living out our faith through good governance, excellent execution, and disciplined growth drives shareholder value.
What is Impact Investing?
Impact investments are investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a nancial return.
Impact investing focuses on two types of investments: (1) for-pro t companies that have an explicit intent to have social impact via their business model or practices (for-pro t “social” enterprises) and (2) nonpro ts with revenue and earned-income streams (“enterprising nonprofits”).
Once a niche, alternative investment category, impact investing is becoming mainstream. More and more companies are being formed with a social purpose. Avodah is uniquely positioned to prepare these companies to more effectively build investor support, raise growth capital, and execute their business plan in accordance with best practices in corporate governance and risk-management. There is no other comprehensive marketplace or services platform serving the Christian Impact Investment community.
Consumers are becoming more “cause-driven”:
89% of U.S. consumers are likely to switch brands to one associated with a cause, given comparable price and quality1.
42% of North American respondents reported that they would pay extra for products and services from companies committed to positive social and environmental impact2.
69% of global millennials want businesses to make it easier for consumers to get involved in societal issues3.
The impact investing industry is growing in prominence and size. In Spotlight on the Market (2014), a J.P. Morgan-GIIN report, 125 impact investors worldwide reported plans to increase impact investing commitments by 19% in 2014, from USD 10.6bn in 2013 to USD 12.7bn. Respondents also reported growth in their number of investments by 20% in 2013 and committed capital by 10%.
The burgeoning impact investing market is still very young and unfamiliar to many. Historically, the major
funders of impact investment have been foundations, philanthropic institutions, and governments. The one
group often overlooked is ordinary people – retail investors. We believe impact investing should be available
to everyone. New securities regulations have made historic changes to US securities law, and have opened
the door to new asset classes and investment vehicles which allow all US citizens to participate in these
opportunities for the rst time.
Products and ServicesEDIT
We are building a platform designed to meet the needs of companies making an impact by providing (a) investment packaging and strategic services and (b) venture capital investments into businesses that meet our requirements (see “Merchant Banking” below). The services business provides highly pro table ongoing revenue, and the venture arm provides investors the opportunity to participate in the growth of carefully selected companies that have been rigorously evaluated and selected after being serviced by Avodah Services group.
Avodah provides emerging growth companies with a turnkey offering of resources in the form of products and services designed to streamline the process of raising capital.
Direct Public Offerings
Web-Based, Managed Rule 506(c) Offering Platform for Issuers and Broker Dealers
Our goal is to provide our clients with the tools to build investor support more ef ciently and position them for success. Unlike crowdfunding platforms, we evaluate the needs of each business and help them select and prepare for the most appropriate form of capital raising. Even high-performing entrepreneurs do not understand the capital markets and usually lack marketing acumen. Our processes prepare rms to streamline operations, articulate their value, and attract investor interest for the long-run.
We approach each client engagement as part of their team. Most emerging growth companies don’t have the internal manpower and experience to effectively design and execute a capital markets strategy. By integrating with their existing team, we become an internal resource to our clients across multiple disciplines including accounting, business development, corporate governance and housekeeping, nancial modeling and strategic advisory.
e are building a platform designed to meet the needs of companies making an impact by providing (a) investment packaging and strategic services and (b) venture capital investments into businesses that meet our requirements (see “Merchant Banking” below). The services business provides highly pro table ongoing revenue, and the venture arm provides investors the opportunity to participate in the growth of carefully selected companies that have been rigorously evaluated and selected after being serviced by Avodah Services group.
Our value proposition resides in our team-driven, full-service approach with the unique ability to be fully turn- key to our clients. We offer leverage across the capital markets value-chain. Because we work closely with our clients in the structuring process we are also more effective in designing the narrative, the financial model, the capitalization structure and rationale. We are best suited to work with them to articulate their value proposition throughout the offering process.
In addition, we are uniquely positioned to anticipate and develop key housekeeping documents to maintain compliance throughout the process, and to act as corporate communications advocates on their behalf.
Investment packaging consists of providing client companies with nancial modeling and business plan development services, development of investor collateral materials, development of offering documents and working with clients to more effectively present and articulate their respective value proposition to investors.
We differentiate our process by providing clients with an unparalleled level of guidance and coaching, resulting in a better informed, better prepared and more rational “go to market” strategy for our clients.
This starts with the depth of work we do up front. In addition to our due diligence process, we provide each client with a “New Client Toolkit” which includes information about rules and regulations, as well as compliance in undertaking an investment offering; a due diligence request kit, and MD&A checklist, a directors and of cers questionnaire and other related corporate housekeeping materials.
We have created a framework for developing investment packaging materials that demands a commitment to aptitude, engagement, compliance and transparency from each client that is surprisingly absent in the general private placement marketplace.
Direct Public Offerings
A Direct Public Offering (“DPO”) means that the issuer is undertaking and managing the process on its own, without the assistance of an underwriter. Issuers rarely have suf cient understanding or relevant experience with the offering process. In addition, they rarely have access to a suf cient network of actionable investors to provide the necessary capital.
Our DPO offering consists of working with issuing companies to design the best possible approach to capitalization, providing the experience and know-how to ensure that the administrative, preliminary valuation and structuring groundwork has been thoughtfully and reasonably completed.
Based on the client’s needs, we make the recommendation to undertake a 506(c) offering or a full S-1 registration statement. We also manage the relevant state and federal ling and disclosure processes to ensure compliance.
As with our investment packaging process, our DPO process is uniquely thorough and focused on educating our clients along the way so that they are optimally prepared, and fully informed about what it means to capitalize their business and vision using third party capital.
In cases where a client is pursuing an S-1 DPO, we spend extra time focusing with them on the implications of becoming a fully reporting company, and helping them to develop best practices and internal processes designed to optimally address regulatory requirements, while mitigating risk and associated costs.
All the services that we provide, from investment packing and DPOs, to corporate housekeeping and corporate communications, are underpinned by our strategic advisory services. In all of these cases, we are committed to the guiding principle that success is largely dependent on the planning.
As required by the JOBS Act, the SEC has approved nal rules to permit general solicitation and general advertising in certain securities offerings under Rule 506 of Regulation D and Rule 144A of the Securities Act.
Through Avodah Ventures we design and execute capitalization events on behalf of client companies through a number of strategies including special purpose vehicles formed to raise capital through limited partners, direct investment into companies through syndicates we participate in, and through direct investment via a fund we have established for companies that meet our proprietary qualitative and quantitative criterion.
Avodah Ventures lls a critical gap – it allows Investors to discover pre-vetted and well-prepared rms that have a faith and social impact mission. Investors can participate through limited partnerships in the fund, or through syndicated investment opportunities led by other venture capital funds.
Special Purpose Vehicle Investments
We will create special purpose vehicles to attract investment into client companies that have been packaged and prepared by our services business.
Avodah Ventures will act as general partner to these limited partnership fund (SVPs) and will be remunerated in the form of management fees (1-2%) and carried interest (10-20%). Formed SVPs will be listed on Equity Round, a web-based platform dedicated to marketing offerings of emerging growth companies to qualified investors.
We operate in a competitive industry, with many professional services providers competing for business including legal and consulting firms, investor relations firms, marketing firms, CPA firms and venture capital firms. A successful competitive formula must include:
- Ability to provide solutions specific to client’s needs
- Ability to provide independent, systematic advice and services without conflicts of interest
- Quality, breadth and convenience of advisory services
- Established relationships with value-added partners
- Reputation and experience
We believe we are well positioned to compete in each category of services we provide, on cost, capability and value-add.