Peter Ireland: Start-up Financing For the Rest of Us


By Catherine Austin Fitts

This Thursday evening on the The Solari Report (6pm PT/9pm ET) I will be speaking with Peter Ireland, proprietor of antiventurecapital.com. and author of The Smart Startup Guide: Creative Financing for Savvy Entrepreneurs Who Need to Launch Their Startups Now Without Venture or Angel Capital and Closing Investors Like a Deal-maker: Your Best Strategy for Successfully Raising Money from Private Investors.

Peter’s Smart Startup Guide is the single best book I have found to teach young or new entrepreneurs how starting and financing a business really works. If capital is a tool that the financial centers use to control, then learning how to build our economy by starting and financing new businesses is part of living free and achieving financial independence.

As economic change accelerates, entrepreneurial skills that can be used in all areas of our lives are invaluable. Peter and I will review how to create a sound business model and bootstrap a new business with as little capital as possible. We will discuss the pitfalls of raising capital and the goals and needs of private investors, including venture capitalists, angel investors and family and friends. Some of my favorite links on entrepreneurship and angel investing are posted in subscribers link section.

I will start with Money & Markets and answer your questions in Ask Catherine. Charts on the US dollar index will be posted in the subscriber section by Thursday.

In Let’s Go to the Movies, I will be reviewing Startup.com, a 2001 documentary that chronicles the dot-com start-up phenomenon. The film follows e-commerce website govWorks and its founders from 1999-2000 as struggle in a sea of economic warfare – from the pump and dump of the internet stocks to a burglary of their offices.]


Startup.com Trailer – Oct 21, 2009

Listen live on Thursday evening by phone, Skype or online, or listen at your convenience by downloading the MP3 after it posted on Friday. If you are calling in by phone, make sure to check out the local access numbers available.

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5 Comments

  1. Catherine et al – This looks like it will be a good one (well, they’re all good, really)! I think one of the thorniest issues that arises with early stage companies and investors is the question of valuation. If Peter has ideas on how best for entrepreneurs to tackle this issue REALISTICALLY, that would be helpful. Also, what alternatives are available for gracefully deferring having to answer the valuation question? I have seen convertible debt as one way to go about it, I am sure there are others.

    I don’t know if this is the right place for this, but…

    I came across some articles at SeekingAlpha by Ellen Brandt, Ph.D. It occurred to me after looking through a couple of them that she might make for an interesting guest.

    Here is a link to one of the articles and an excerpt below:

    http://marketslookingglass.wordpress.com/2010/05/25/1-my-life-versus-mrs-blankfeins-diamond-earrings/

    I also noticed that suddenly, one had a great deal of trouble getting among the highest prices on a limit sell or the lowest prices on a limit buy within a given trading sequence – showing that somebody out there was parrying one’s moves, trading tick-by-tick in opposition.

    Did I call out Ameritrade on this? Yes, of course, I did. And what I was told in response was interesting.

    I was referred to a nice fellow who said he was the executive assistant to the CEO. We talked several times. At first, he said he was unaware of the Encoding shift and would research it. In subsequent calls, he acknowledged the shift and intimated that Yes, it might have something to do with various new “Partners” having a bigger part to play on the trading site. In our last conversation, he expanded further, telling me that, indeed, it was possible that Ameritrade’s own proprietary trading floor might be aware – across the vaunted “Chinese Wall” – of what customers were trading on a real-time basis, adding that “we have to protect ourselves by taking the other side of trades.”

    Remember that this was almost a year before the Crash.

    What I was being told, in effect, was that Ameritrade more or less openly admitted to allowing its own traders – and perhaps those trading for its “Partners” – to trade directly against its customers on a real-time basis.

    Imagine that something similar was going on at every other on-line brokerage in the US and in many other parts of the world.

    Imagine a protected class of proprietary trading floors and their “Partners” who had a stake in their own customers’ doing poorly. In fact, the more poorly customers did, the better those trading against them might do.

    Imagine this all being planned well in advance of the Great Crash. And imagine it possibly happening again right now, while the financial services community campaigns rather violently against there being any curbs whatsoever put upon their proprietary trading floors’ Free Lunch.

  2. Paul:

    Peter’s book Closing Investors Like a Deal-maker: Your Best Strategy for Successfully Raising Money from Private Investors is entirely about this issue and proposes doing royalty notes on gross revenues. Intriguing idea which we will certainly address,

    Catherine

  3. Thanks Catherine and Peter for this wonderful interview. I have been struggling for 2 years now to turn the corner with a marvelous project. But after this interview I know what to do next. Thanks again.

    Jeroen

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