Who may apply?

Indigo Funding will only accept a Project Funding Application submitted and signed by a principal or the principal's legal counsel.

When to apply?

Indigo Funding provides very thorough information through this site, receives many funding requests, and acts promptly in conducting initial Project evaluations; therefore, there are short deadlines once a Project Funding Application is submitted. Submit an Application only after you have studied the information at this site and are ready to proceed in the event your Project is accepted by Indigo Funding. Any Project that is submitted more than once will not be considered by Indigo Funding.

Application

Indigo Funding will only review or consider a Project for which it has received a completed Project Funding Application along with the available supporting documents itemized in the Application. The Project Funding Application is available both in MS Word (online completion) and PDF (print and complete) formats.

Supporting Documents

A list of possible supporting documents is found in the Project Funding Application form; however, a business plan is preferred. If you do not have a business plan contact us and we can recommend a firm. Funding is project-based you will not be required to provide a personal financial statement, a credit report, or personal tax returns.

The Acceptance Process

After you submit your Project Funding Application and supporting documents Indigo Funding will evaluate the Project data, may request additional information, and, within approximately 7 days, will provide an acceptance decision. If your Project is accepted you will have up to 7 days to sign and return the Direct Private Placement Consulting Agreement. If you do not sign and return the Direct Private Placement Consulting Agreement within 7 days you will need to resubmit after 90 days.

Preparation and Understanding the Private Placement Memorandum

During the first 10 days following agreement on the initial terms, or longer as reasonably necessary given the circumstances of the Project, Indigo Funding will conduct a confirming preliminary due diligence investigation of the Project, outsource the preparation of the private placement memorandum (PPM), and review and prepare the offering for Indigo Funding investors. The private placement memorandum must be prepared by professionals. Exceptions will not be made. The PPMs are done at cost by MBAs employed by an external professional document company that is experienced with the standards needed to pursue funding from Indigo Funding's sources. This is done to ensure that the document is done correctly to the standards our Investors require and at the lowest cost to the Project Sponsor. Normal pricing for PPM’s drafted are significantly higher. In addition, the PPM breaks down the share/deal structure, includes the Investor Suitability Questionnaire and Subscription Agreement along with acting as a disclosure document affording you and your company protection from liability.

Business plans are, by themselves, are not designed or effective in raising capital. The use of one to raise capital may result in legal or even criminal actions taken against the business owner. What is needed is a "mechanism" that provides the legal protection, pertinent company information and investment structure necessary for a company to effectively solicit and receive capital investment.

Placement

During the placement phase the investment company will pursue Direct Private Placement with Indigo Funding investor partners. This process may involve the conditional sale of one or more interests in the company, the "condition" being final approval of the Project following a final due diligence process, or it may involve a joint venture or co-investment with an investor or lender. Placement is not guaranteed.

Letter of Intent or Conditional Commitment

Once there has been a successful placement, the investment company will issue a Letter of Intent to proceed with an equity investment and/or a Letter of Conditional Commitment to proceed with a loan. This document will include a recital of the investment or loan terms and due diligence/closing expenses. You will have the unrestricted option of proceeding or declining to proceed under the terms as presented.

Final Due Diligence

After the Letter of Intent or Letter of Conditional Commitment is issued and approved, the investment company and other investors will conduct a final due diligence investigation of the Project which may include an on-site inspection. The confirming due diligence process can usually be completed within 15 days unless there is a delay caused by a third-party contractor (e.g., appraiser). If the investment company does not approve the Project for the stated investment it will attempt to remedy any problems or re-negotiate the investment.

Contract and/or Commitment

An investment contract and/or an unconditional loan commitment will be submitted by the investment company once due diligence is complete.

Closing

The equity and/or debt investment will be finalized at a closing generally within 10 days of an investment contract and/or a loan commitment.