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 there decision within that time period) The average closing rate was 50% of those that attended the presentations. An incentive was also given to 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 personal 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, credibility of the company, growth projections and potential of the expanded company. Using targeted investors from a variety of backgrounds were targeted with a personalized letter. In all, the sales letters brought in a sufficient number of investors to generate $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 at specific type of investors and inviting them to investor preview evenings with the CEO.