New Market Emerging for Entrepreneurial Firms

(NewsUSA) – Investing in the stocks of publicly owned companies is much easier than it was a generation ago.

Whether the company allows direct stock purchases or makes its stock available through brick-and-mortar brokerages or online sellers, it’s easy for seller and buyer to connect. To help evaluate prospective stocks, buyers have magazines, online tools, benchmarks and rating systems at their fingertips.

By contrast, the options have been limited for those who are interested in investing in private or nonreporting public companies. This, in turn, has limited the possibilities for these companies to raise capital.

Today, the situation has changed. Entrex (www.entrex.net) has created a transparent marketplace for entrepreneurial businesses that mirrors the methodologies of the public market. In essence, Entrex has taken public market infrastructure and adapted it to create a venue for investing in private and nonreporting companies.

Entrex’s goal is to help investors find, research, track, manage and trade interests in entrepreneurial companies – provided these companies adhere to Entrex methodologies and disciplines. The multi-step process is simple, yet thorough, and favorable outcomes result in the business becoming an Entrex Ensured Company. CNN described the process as “a type of good housekeeping seal of approval.”

By submitting to the Entrex process, companies provide the financial community with a new level of consistency and transparency. This creates a new asset category for accredited investors, institutional investors and hedge fund managers. In return, this creates a new opportunity for both growth capital and liquidity for the shareholders of private and nonreporting companies. Much like the e v a l u a t i o n of public companies , E n t r e x evaluates the who, what and why:

* The “who” is provided through a 10-year business review and background check of the company’s chief executive officer and chief financial officer.

* The “what” summates both historical and projected financials in a consistent format delivered quarterly. A series of validation steps is conducted. which confirms customers, vendors, debt instruments and shareholder listings.

* The “why” is performed quarterly by independent researchers. Entrex works with various independent research companies and their professional certified financial analysts to establish the value of a share of the company on a routine basis.

 

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