LAC 19:VII.2109. Application Procedures for Co-Investment

A. The summary application must contain but not be limited to: 1. applicant information: a. venture capital fund name; b. address; c. LEDEC certification number; d. telephone number; 2. project firm information: a. name of business; b. address (postal and physical); c. phone number; d. year established; e. state chartered in; f. legal structure of business; g. IRS tax number; h. product or service; i. headquarters location; j. location of all production and research and development facilities; k. list any pending litigation; l. list any bankruptcy or insolvency filings; 3. owner/manager information: a. name; b. address; c. title; d. Social Security number; e. percent of ownership; f. annual compensation; g. list any pending litigation; h. list any bankruptcy or insolvency filings; 4. use of funds: a. purpose; b. amount; 5. securities given in exchange for investment: a. list types of securities to be issued in this round of financing to all investors with any terms and/or conditions attached thereto; 6. equity information: a. list all equity investors with numbers of shares owned, type of shares owned, dollar value of investment and date of investment; b. total shares authorized by class; c. total shares outstanding by class. B. A business plan that contains but is not limited to: 1. business goals and earnings projections and potential return to investors; 2. market analysis: a. description of total market; b. industry trends; c. target market; d. competition; 3. products or services: a. description of product line; b. proprietary position: patents, copyrights and legal and technical considerations and ownership of same; c. comparison to competitors' products; 4. manufacturing process (if applicable): a. materials; b. sources of supply; c. production methods; 5. marketing strategy: a. overall strategy; b. pricing policy; c. sales terms; d. method of selling, distributing and servicing products; 6. management plan: a. form of business organization; b. board of directors composition; c. officers: organization chart and responsibilities; d. résumés of key personnel; e. staffing plan/number of employees; f. facilities plan/planned capital improvements; g. operating plan/schedule of upcoming work for next one to two years; 7. financial data (for existing firms): a. financial history (five years to present);* b. three-year financial projections (first year by quarters; remaining years annually): i. profit and loss statements; ii. balance sheets; iii. cash flow chart; iv. capital expenditure estimates; c. explanation of projections; d. key business ratios; e. explanation of use and effect of new funds; f. potential return to investors compared to competitors and industry in general;* 8. financial data for startup firms: a. three-year financial projections (first year by quarters; remaining years annually): i. profit and loss statements; ii. balance sheets; iii. cash flow chart; iv. capital expenditure estimates; b. explanation of projections; c. key business ratios; d. explanation of use and effect of new funds; e. potential return to investors compared to competitors and industry in general;* 9. schedule of debt: a. to whom; b. date opened; c. original balance; d. present balance; e. payment schedule; f. date of maturity; g. rate; h. collateral; i. terms of convertibility; j. list all liens against the project firm and related firms; 10. list of trade creditors/suppliers: a. creditor name; b. address; c. date opened; d. high credit; e. balance; f. terms; 11. collateral offered: a. type and description; b. present market value: i. appraisals no more than 90 days old at time of application; c. present balance owed; d. total value of collateral; e. source of repayment: i. primary source; ii. secondary source; f. federal and state tax status: i. date of current tax status; ii. date of last audit; iii. deficiencies assessed/proposed. *All financial statements must meet Generally Accepted Accounting Practices (GAAP).