We continue to get questions and comments on the private
placement technique of raising funds for your vineyard or
winery. Yes, it's a much more symplified way to get
funding for new projects than it used to be. And, you
don't have the collateral and loan payment issues you have
when you get funding from more traditional lending.
But, it is not without it's complications.
We hear from "angels" (those investors with capital
who are assumed by the SEC to be sophisticated enough that
extensive public disclosures are not needed) that there are at
least four major ways to complicate your private placement and
cause them to shy away.
- Improper valuation of the company. Because these
investments are much more informal that public placements,
sometimes the valuation of the company – used to determine
how much money gets you how much equity – can either be
missing or faulty. This is especially true when the new
private placement went first to family members and
