New Jersey Entrepreneur

 On Tuesday, September 19th the Venture Association of New Jersey had guest speaker, David N. Feldman who recently authored the book Reverse Mergers: Taking a Company Public without an IPO speak on  that topic.

David gave insight to the audience as to this alternative way for a company to go public rather than through an initial public offering. A reverse merger basically is the merger of one company (in this case companies that might have been a candidate for doing an IPO) into a pre-existing company that is already public and which basically a shell company withtout any operating areas.

As noted by David, reverse mergers have become more poular as of late due to a number of factors: 1) the maturation of the reverse merger industry as being perceived as a legitimate vehicle 2) the latest SEC rules have created more transparency in the process 3) the costs associated with Sarbannes-Oxley which has contributed to the disappearance of small cap IPO's 4) recent changes in the PIPE market 5) it addresses a new stage of the company's growth cycle as to when it may be accomplished versus the timing of an IPO and 6) it gives access to countries such as China who are desire to enter the US public markets.

Healthcare Intelligence LLC and Motion Golf Studio gave eight minute presentations as companies seeking funding are regularly given opportunities to speak to the audience and highlight their business model and funding needs.

Healthcare Intelligence LLC in its presentation offered a new model for managing healthcare costs, while Motion Golf Studio presented technology for evaluating golf swings that is being targeted to retail golf stores and possible franchises in the near future.

The Venture Association of New Jersey meets monthly at the Morristown Hyatt. For more information visit www.vanj.com