The Capizate Score™ Process
Capizate 7 Step Process
- Initial 20-Minute Interview
- Enterprise's Current Documents Uploaded for Review
- Situation Analysis Including Document review, Capital Type Determined and Estimated Capizate Score™
- Fully Completed Capizate Score™ Due Diligence Report
- Documentation Confirmed or Completed - Designed for the Correct Capital Type
- Capital Market Plan Implementation - Dealmaker Onboarding (For Regulation A+, Regulation D, Regulation CF or a fund) - Capital Market Introductions for all other Capital Markets
- SaaS for Score updates, Document Updates, and Investor Relations Management
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Step 1 - Referral - The Initial 20-Minute Interview
- Advisor sources the Enterprise/Client
- Advisor coordinates the meeting with the Capizate Staff and the Client
- 20 Minute Introductory Meetng includes the Licensed Advisor, Enterprise Representatives and a Capizate Representative
- Set up on Zoom (Preferred) or conference call or in person
- 10-Minute presentation by the Enterprise Principles
- 10-Minute response by the Advisor and/or Capizate
- Capizate Staff available at no cost for the 20-minute introductory meeting
- Goal of the meeting: Determine if Capizate and the Advisor can be of service to the client
- Determine if the Client is prepared to move forward by uploading documents, signing a Situation Analysis Agreement and paying the $1,000 fee
- If all parties are ready to move forward then Capizate and/or the Advisor should collect the contact information responsible for signing the Situation Analysis Agreement
- Set up the Second Meeting by Zoom, phone or in person for the Situation Analysis
- 1st Interview Questions
Variables and Factors for determining capital type
- Distressed
- Formation
- Start-Up
- Growth
- M & A
- Preparing for Public
How many tranches (if applicable)
Over what period of time?
3. Use of Capital (Mark all that apply)?
- Startup - Working
- Growth Scalability
- Marketing & Sales
- Cash Flow Capital
- Human Capital
- Equipment
- Mergers & Acquisitions
- Inventory
- Real Estate
- Low risk Tolerance (Very Low Risk Tolerance, expect to at least recoup principle)
- Medium Risk Tolerance (Can lose some or most of the funding)
- High Risk Tolerance (Can lose most or all of the funding)
- Low Cost of Capital (1-4%)
- Medium Cost of Capital (5-10%)
- High Cost of Capital (11-18%)
- Very High Cost of Capital (19%+)
- As long as the enterp;rise receives the net amount it needs, the cost is immaterial
- To be determined (None)
- Sole Proprietor
- Limited Liability Company
- Limited Partnership
- General partnership
- S Corp
- C Corp
- Other
- Administration
- Agriculture
- Arts
- Entertainment
- Finance
- High tech
- Hospitality, F & B
- Info Services
- Mining/Energy/Utilities
- Professional Insurance/Mgmt.
- Real Estate
- Science - Health - Medicine
- Trades - Construction
- Transportation
- Waste Management
- Wholesale & Retail
- 3 Months
- 6 Months
- 1 Year
- 2 Years
- 3 Years
- 4 Years
- 5 Years
- 5 Years +
- 4%
- 6%
- 8%
- 10%
- 12%
- 15%
- 20%
- 25% +
- Legacy Business
- Merger & Acqusitions
- Build & Sell
- Repurchase Equity
- Reverse Merger
- Public Offering
How Much Collateral is Readily Available?
What is the Principals' Range of FICO Scores?
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Step 2 - Data Room Setup - Document Upload
- Prepare and sign Non-disclosure Agreement (Only when the client requires it)
- Prepare and send the Situation Analysis Agreement
- Capizate Staff will prepare the data room
- Assist client representatives to upload documents, if necessary
Note: Client may p;rovide their own data room link on google drive or Dropbox.com and the Capizate Team can transfer to Box.com - Confirm documents are ready for review
- A second client interview is scheduled to complete the Situation Analysis
- Confirm the Situation Analysis Agreement has been signed in DocuSign
- Confirm the $1,000 Retainer has been received by Capizate
The average enterprise only submits 3-5 of the documents on this list. This is an exhaustive list of all potential documents needed, but many are not applicable, based on the final capital type. It is advised the Enterprise upload only the documents currently available (Do not create documents until the capital type has been determined)
D 1-Page Tear Sheet
A 1-page summary of the business and its offering - value proposition, business model, financial model, the capital ask, contact information, logo.
D Assumptions Worksheets
A document that explains and/or summarizes the methods and assumptions used to build the business and financial model. Assumption's worksheets may include key performance indicators {KPis); industry standard statistics, facts or percentages, cost of goods, price strategies, total addressable market (TAM), serviceable attainable market {SAM), service obtainable market {SOM), market penetration modeling, and other growth and revenue assumptions.
D BMC (Business Model Canvas)
1-page summary - customer segments, value propositions, channels, customer relationships, revenue streams, key activities, key resources, key partners, cost structure.
D Certified Business Plan (Or business plan in any form)
334 Attributes defined in 5 sections. To be certified, the plan must earn a score of 925, or better.
D Capital Marketing Plan
Email blast to all potential investors to data room, list of investors.
D Capital Offering Documents
1st pre-legal review draft of the offering documents outlining the opportunity, summary of the offering, subscription process.
D Capital Structure Plan
Type of capital, amount of capital, capital stack and tranches, increases in valuation.
D Capitalization Table
List of all equity owners, amount paid, and ownership percentage.
D Capizate ScoreTM
D Company Website- On Web 3.0
Domain name; hosting; website platform; website Speed; SSL security; SEQ friendly; tracking and analytics; cross-browser compatibility; social media integration; content marketing; mobile friendly; navigation; white space; branding; typography, layout & colors; about us page; contact us; FAQs (frequently asked questions); product and services; video content.
D Due Diligence - Corporate Identity
Entity standing, state registration, organizational document review, meeting minutes, corporate governance report.
D Due Diligence - Competitive Analysis
Total competitive landscape, direct competitive analysis, indirect competitive analysis, comparison chart, market penetration modeling.
D Due Diligence - Intellectual Property
Summary report of all proposed claims, ownership of property, rights, documentation.
D Due Diligence - Legal
Scrubbed for legal issues, governmental compliance, litigation.
D Due Diligence - Risk Assessment
A Risk report- Potential liabilities on product and/or services; risks associated with the industry, entity type, business model.
D Due Diligence - Technology
Report on technology, due diligence on competition known or unknown, validation of technology claims.
D Elevator Pitch
Define the elevator pitch- mission, strategic- tactics.
D Executive Summary
A 5-7-page written summary of the marketing plan, strategic plan, tactical plan, 1-page financial summary, summary of the offering.
D Financial Modeling - Fixed Costs
Payroll worksheets, marketing worksheets, sales & general administrative worksheets.
D Financial Modeling - Revenues & Costs
Worksheets are built and linked for each revenue streams with direct (variable expenses & cost of goods) and indirect (fixed expenses) costs.
D Financial Modeling - Summary Page
Worksheets merged between cash flow, profit & loss, equity, and use of funds all in one worksheet (Best presented with 1-page tear sheet or CANVAS).
D Financial Statements - Historical
Current financial statements and 2 years of historical financials including Profit & Loss, Balance Sheet, Statement of Cash Flows and Aging Report.
D Management Team Documents
Summary write up of executive team resumes, bios, organizational chart, staffing.
D Management Team Consultant's Due Diligence
Due Diligence review of consulting team, board members, advisors, attorneys, accountants, professionals, & advisory team.
o Management Team Executive's Due Diligence
Background checks on the management team, executives, confirmation of all material submitted, report prepared.
D Marketing
TAM- SAM- SOM Report: TAM: total addressable market SAM: serviceable addressable market SOM: serviceable obtainable market.
D Marketing Plan & Budget
Includes SEO, TAM/SAM/SOM- SEO/PPC direct expenses, variable expense, budget, CAC, SWOT, pricing strategy, analyze brand, images, website.
D Market Research Report
Market size, demand, penetration requirements, demographics, prepared written report with references, citations, footnotes.
D Primary Point of Contact & Secondary Point of Contact
Provide the name, address, email address and phone number of the primary person(s) that will be engaged with Capizate to complete the Capizate Score TM.
D Presentation Deck
12-18-page graphical summary of the business plan, strategic plan, tactical plan, 1-Page Tear Sheet, offering.
D Sources & Uses
Capital type, amount, and use of funds.
D Strategic & Tactical Plan
MVP (minimum viable product), value proposition, business model defined, financial model defined, mission statement, vision statement.
D Tax Returns (If applicable)
Previous 2 Years of Business filings (And personal if a debt transaction).
D Valuation - Spreadsheets
Research for a 409A Valuation with a review of financial statements, company comparisons for market comp, discounted cash flow analysis, capitalization table, value of equity for tax purposes.
D Valuation - Opinion Letter & Final Valuation Write-Up
Cover letter, qualifications, weighted valuation summary, methodology report, range of company value.
D Exit strategy
Definition of liquidity events, M &A strategy, succession plan, convertible note.
D Virtual Portal (Data Room)
Documents updated, re-dated as necessary, minor updates to presentation materials, updates to investor access levels. We call this the Managed Virtual Portal (MVP).
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Step 3 - The Situation Analysis (SA)
- SA is the first document completed for all clients
- The deliverable includes an estimated Capitate Score™
- The SA includes a preliminary determination of the correct capital type
- Cover letter summary of the findings
- Determine next steps
- The SA is completed in 5-7 business days by Capizate or the Licensed Advisor
- The fee is $1,000
There are eleven elements required to gain access to capital for a startup enterprise, growth enterp;rise, or the development of a valuable innovation opportunity. These include:
1-The business and its products or services fill a gap, a void, or a need within a market; often referred to as the "value proposition" (why);
2-A clearly defined product or service (what);
3-Timing in alignment with market acceptance, market demand, along with micro and macroeconomic factors (when);
4-A defined business finance audience with the right level of suitability, risk tolerance and availability of capital led by an experienced team with a verifiable track record (who);
5-A process by which to follow the guidance of trained professionals that will implement legal, accounting, proof of concept, finance,documents, management and technology to operate the business (how);
6-Proper due diligence, research, and presentation materials, prepared for the right audience;
7-"Luck" - or some manifestation of tipping points that may include the law of attraction, prayer, meditation, or some connection to the universe that will align the stars of prosperity;
8-References, citations, footnotes along with a bibliography have been provided for substantive claims made by the enterprise;
9-A Capizate Score™ of at least 925;
10-If the enterprise has been in operation for more than 12 months, current financial statements and tax returns, prepared by a professional (accountant or CPA), must be included to become "vetted." If a startup, or an enterprise has been in operation less than 12 months, then no financial statements or tax returns will be required to become ''vetted";
11-The supporting documents identified within the Capizate Score™ have been Distressed
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Determining Capital Type - Which is Best for Your Situation?
1. Accelerator Private
2. Accelerator Public
3. Accelerator University
4. Accredited Investors Equity
5. Acquisition Loan Commercial
6. Acquisition Loan Private
7. Angel Investors
8. Asset Based Lending
9. Bonds Foreign
10. Bonds Government Backed
11. Bonds High Yield Junk
12. Bonds Investment Grade
13. Bonds Mortgage Backed
14. Bridge Financing
15. Broker Dealer Debt
16. Broker Dealer Equity
17. Broker Syndication
18. Cash
19. Collateralized Debt Commercial
20. Collateralized Debt Private
21. Commercial Bank Loan
22. Commercial Banking
23. Convertible Note
24. Credit Cards
25. Cryptocurrency
26. Cryptocurrency
27. EB-5 Immigration
28. Enterprise Zones
29. Equipment Loan
30. Equity Sale
31. Factoring
32. Family & Friends
33. Family Offices Equity or Debt
34. Grants Corporate Grants
35. Grants Education Grants
36. Grants Government
37. Grants Municipalities
38. Grants Research Grants
39. Grants State Agencies
40. Hard Money Loan
41. Hedge Funds Private
42. High Net Worth Individuals
43.Home Equity
44.1ncubator Private
45.1ncubator Public
46.1ncubator University
47.1nfinite Banking
48.1nitial Exchange Offering
49.1nitial Public Offering
50.Investment banker Debt
51.1nvoice Factoring
52.Limited Partnership Fund
53.Line of Credit
54.Merchant Account Advances
55.Mezzanine Financing
56.Private Debt
57.Private Equity
58.Private Investment in Public Equity
59.Private Placement Memorandum
60.Promissory Note
61.Purchase Order Loan
62.Real Estate Collateral Loanv
63.Real Estate Loan
64.Regulation A
65.Regulation A+ Title IV
66.Regulation CF Tittle Ill
67.Regulation D 504
68.Regulation D 506(b)
69.Regulation D 506©
70.Retirement (401K) SDI
71.Reverse Merger or Acquisition
72.Royalty Financing
73.Rule 144
74.SBA504b
75.SBA 7a
76.SBA Express
77.SBA Veteran
78.SBDC
79.SBIC
80.Simple Agreement Future Equity
81.Standby Lines of Credit
82.Uplisting
83.Venture Capital
84.Whole Life Insurance
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Step 4 - Capizate Score (Underwriting Process)
- Due diligence designed to determine if the enterprise has earned a Score of 925, or higher
- 78% Accurate in predicting success & failure of enterprises since 2008
- Capizate Staff will complete the Capizate Score™ with 7-10 business days
- Full Report $2,500
The Capizate Score is broken down into five main sections: 1) Company & Business; 2) Capital, Valuation, and Financials; 3) Process and Marketing; 4) People & Culture; and 5) Legal, Risk, and Documentation. The allocation of points used to calculate the Capizate Score from the information collected from an enterprise is fairly evenly divided between diligence and documentation. It should be noted that the majority of attributes are objective (expressing or dealing with facts or conditions as perceived without distortion by personal feelings, prejudices, or interpretations and a minority of subjective attributes (modified or affected by personal views, experience, or background ).
The Capizate Score follows specific protocols, due diligence processes, and business finance document preparation standards in assessing companies. The Capizate Score sections are divided into 25 subjects. The subjects are further described through 334 individual attributes. Each attribute is worth three points on a scale of 0 to 3. The grand total possible points is 1,000. The 25 sections are shown below:
Section 1- Company and Business
- Situation Analysis
- Company
- Business
- Due diligence
- Trends and timing
Section 2- Capital, Valuation, and Financials
- Pro forma
- Capital formation
- Exit strategy
- Valuation
- Historical financials
Section 3- Process and Marketing
- Business Model Canvas
- Marketing
- Strategic and tactical plan
- Presentation materials
- Technology and ssecurity
Section 4- People and Culture
- Leadership
- Management experience
- Consultants and advisors
- Staff
- Culture
Section 5- Legal, Risk,and Documentation
- Corporate documents
- Capital raise materials
- Legal review
- Risk Management
- Investor marketing
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Step 5 - Business Finance & Presentation Documents
- Capizate Score updated through the process
- The primary documents completed for most projects include:
- 1-Page Tear Sheet
- Pro forma Forecast
- Business Model Canvas
- Business Valuation
- Capitalization Plan
- Presentation Deck
- Market Feasibility Study
- Capizate Staff and/or Licensed Advisor will complete all the required deliverables
- $250 per Hour -Average Enterprise hires for 30 Hours
Capizate can provide templates for documents that Clients want/need to complete internally.
Advisors are trained to complete Capizate templates as well. Capizate has well over 400 documents in template form by industry, sector, and subsector.
The most feasible, fastest, and most compliant process is for Capizate to complete the documents on behalf of the Client. The process is as follows:
- A template is chosen as the most viable and closest to the Client business model.
- A Capizate staff member, the Advisor or subject matter expert will prepare the document customized for the Client.
- A meeting via zoom will be held for each document for review and feedback. Changes and updates are made based on client feedback.
Register for a Free 20-Minute Introductory Meeting
Step 6 - Capital Markets
- Qualify for Capizate By-Monthly Zoom Investor Presentations
- Create Content, Social Media, Videos, Podcast
- DeaiMaker Platform Setup
- Investor Marketing Campaign
- SEC/FINRA Filings
- Compliance
- Launch Fundraise Campaign
- Capizate charges $250 per Hour -Average Enterprise hires for 200 Hours (Capizate may, in some circumstances, negotiate a payment plan)
- Capizate Staff and/or Licensed Advisor will complete all the required deliverables
- NO Broker Fees
For regulation A+, D and CF, Capizate is a White label of DealMaker. The process is:
- Pre-Launch Investor Marketing
- Mediagrapher Stage Video Shoot
- Mediagrapher Podcast Shoot
- Mediagrapher Editing
- Veuit Transcriptions
- Veuit 5-Video Shorts
- Veuit Web 3.0
- Investor List Generation- Pitchbook
- Investor List - Accredited Investor List
- Veuit Text, Email Push Campaign
- Capizate Project Management
- DeaiMaker Portal Setup
- Capizate Document Uploads
- Deal Maker Engagement
- Capizate/Deal Maker Compliance Checklist
- Reg D 506C PPM -William Dock Walls
- Capizate/Deal Maker Edgar Filing, Form ID - CIK
- Bad Actor Checks
- Platform Programming/Technical Setup
- Law Cloud/Legal
- Capizate Project Management
- DeaiMaker Portal Setup
- ClickltSocial Social Media campaign
- Capizate Investor meetings, live stream events
- DeaiMaker Monthly Fees
- Veuit Investor marketing
- Carta Cap Table & Stock Issuance
- Capizate Project Management
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Step 7 - Post Capitalization
- Monthly Retainer of $499 includes:
- Access to working documents and Virtual Data Room
- Monthly Capizate Score Updates
- 2 Hours of Capizate Advisor Consulting Time
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Licensed Advisors
The list below includes our top 50 Licensed Advisors of Capizate. They are authorized to facilitate the Capizate 7-Step process. Those with an asterisk(*) have passed the Capizate ScoreTM 40-Hour Certification course within the past 24 Months. Those with a Plus(+) are authorized to train Advisors. Since 2008, nearly 500 advisors have participated in the training process. This list is limited to the top 50 with current standing and an active agreement with Capizate. This list is effective Monday, June 19, 2023.
1. Adon Navarette
2. Alfiya Zukerman
3. *Autumn Ponder
4. Benjamin Chung
5. Benjamin Kromnick
6. Bernard (Bernie) Maner
7. *Bill Murray
8. Bob Wengert
9. Buck Vaughn
10. +Charles Fite
11. Chris Sloan
12. *Clinton Smith
13. Derek Thomas
14. Donald Min
15. *Fred Young
16. Gary Cramer
17. *Gary Grossman
18. *Gary Grynkewich
19. *Gavin West
20. James Farren
21. Jason Kuntz
22. John Hill
23. John James
24. Judy Li Chang
25. Keith Cyzen
- *Laura Duong
- Leslie Bocskor
- +Leslye Noel Galati
- *Logan Paull
- *Madeline Ross
- *Madelon S. Choice
- Marcus Martinez
- Michael D. Park
- *Mike Assum
- Myron Lizer
- *Nicole Keil
- Patrick Szydlik
- *Perky Ujazdowski
- *Peter Knudsen
- *Phil Pereda
- *Richard Kern
- Rob Lundstrom
- Robert Sigler
- Robert Steven Kramarz
- Ronald Fichera
- *Sarah Nishimoto
- Sha Jin
- *Steve Young
- +Tony Drexel Smith
- William ..Dock.. Walls
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Additional Services - In addition to the Capizate Score™, Capizate offers the following services, as needed, for $250 per hour.
- 1-Page Tear Sheet
- Assumptions Worksheets
- BMC (Business Model Canvas)
- Certified Business Plan
- Capital Marketing Plan
- Capital Offering Documents
- Capital Structure Plan
- Capitalization Table
- Company Website
- Due Diligence Corporate Identity
- Competitive Analysis
- Due Diligence Intellectual Property
- Due Diligence Legal
- Due Diligence Risk Assessment
- Due Diligence Technology
- Elevator Pitch Executive Summary
- Exit Strategy
- Financial Modeling Fixed Costs
- Financial Modeling Revenues & Costs
- Financial Modeling Summary
- Management Team Documents
- Management Team Consultant’s Due Diligence
- Management Team Executive’s Due Diligence
- Marketing
- Marketing Plan & Budget
- Market Research Report
- Primary Point of Contact & Secondary Point of Contact
- Presentation Deck
- Sources & Uses
- Strategic & Tactical Plan
- Valuation Spreadsheets Valuation - Opinion Letter & Final Valuation Write-Up
- Virtual Portal (Data Room)
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