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Adventure Investors: Case Histories

AeroGrow International:
$2.5 million raised in a DPOs in less than 4 months

AeroGrow, International, (Michael Bissonnette was founder and CEO) also benefited from DPO funding. AeroGrow took an emerging  technology, aeroponics, and modified its use to create the world’s first organic kitchen garden—the AeroGarden

Advertisements in Boulder and Denver newspapers, direct mail postcards, and radio announcements filled investor seats at AeroGrow sales presentations. The number of investors allowed per meeting was limited to 8 and the amount that could be invested was also limited–to create scarcity and a reason to buy now, which investors did in sufficient numbers to oversubscribe the issue. An incentive was also given for a commitment in 5 working days( 85 % of those who invested made their decision within that time period). The average closing rate for those who attending the presentations was 50%. An incentive was also given for investments over $25.000. Overall, the average investment size for the entire offering was slightly over $25K.

JOMY:
$1 million raised in a DPO in less than approx 90 days

Boulder, CO-based JOMY was a 10-year old company that sold security ladders nationwide. The company was generating $1 million in sales and had a history of profits. But the company needed to expand to meet pent up demand. JOMY was also a possible acquisition target with a substantial, diverse client list.

A personalized sales letter was used to pique investor interest in coming to a sales presentation. The sales letter talked about the large, untapped need for JOMY ladders, the credibility of the company, growth projections and potential for expansion. Investors from a variety of backgrounds were targeted. In all, the sales letters brought in a sufficient number of investors, generating $1.0 million for JOMY in 90 days. JOMY sales subsequently tripled over the next several years.

LaserLock, Inc.:
$1 million raised in a DPO in 60 days

LaserLock provides authentication services and counterfeiting prevention cloud-based software. The company raised $1 million in a DPO in just 60 days, from 20 investors the CEO knew. Eighty percent of the investors in contact with the CEO invested in the company.

Mentor Capital Consulting:
$2.8 million raised in a DPO

AeroGrow, International, (Michael Bissonnette was founder and CEO) also raised money from a DPO for MentorCap, a funding network to bring small businesses and investors together. Following a $1.6 million private placement, MentorCap issued a direct public offering that raised $2.8 million from individual Colorado residents by using a direct mail campaign focused on specific types of investors and inviting them to preview evenings with the CEO.