Transformative Capital is a strategic advisory and hybrid equities firm based in Los Angeles, CA.  Transformative provides highly effective strategic advisory services to provide companies with the resources they need to obtain capital and achieve high growth.

The combined management and affiliates of Transformative possess deep entrepreneurial, business and financial experience.

In order to help companies accelerate their success, Transformative does a deep analysis of the human, capital and market needs of a business and becomes pro-actively engaged to deliver the strategy and tools the company needs to succeed, which may include Transformative investing as a principal, providing access to capital from private and institutional investors, strategic deal making, business development, sales and M&A.

Transformative also employs a private-to-public value strategy that utilizes a process driven approach to value creation and liquidity. Utilizing this strategy, Transformative matches and merges validated early-stage companies with micro and small cap public companies in order to accelerate growth by acquisition and greater access to the public capital markets. This approach was conceived to generate growth and returns typically associated with early-stage venture opportunities, but do so with reduced risk and accelerated liquidity.

Transformative focuses its energy and resources on companies and clients in what we affectionately call the W.E.S.T. industries.

These industries, which worldwide have an aggregate market of over $500 billion include the following:

We help focus the transformative impact of a company to deliver positive results for all involved - investors, entrepreneurs, employees, communities and the planet.

Our mission is to improve the quality of life and create great value, wealth and abundance for entrepreneurs, executives, investors, shareholders, employees and communities, through our active support of global sustainability. We seek to achieve our mission through the convergence of Purpose, Passion & Profits by focusing on transformative, sustainable companies that consciously strive to make a positive difference, while achieving compelling profitability.

The most popular exit strategy for venture capital investments has traditionally been through an Initial Public Offering ("IPO"). The primary driver of this strategy is that on average, public companies sell at higher price multiples (15-30 times) than private ones (4-8 times earnings), according to research conducted by Mergerstat and Done Deals. The table below summarizes this trend :

A primary challenge for typical early stage companies and investors is how to provide an exit. Even in the best of situations, traditional venture backed investment requires a three-to-seven year wait with high risk before the first dollar of return on equity. This challenge has increased with tougher initial Public Offering IPO criteria and resulting slowdown in IPO events.

Transformative takes a strategic approach to financing and rendering advisory and business services. By providing funding shortly before, during and after merging validated early stage companies into synergistic micro and small cap public companies, new opportunities are created for participants to benefit from liquidity and typically higher public valuations. The merger provides the public company with renewed growth and corresponding investor interest. The entrepreneurs of the early stage companies have a stronger base on which to accelerate the growth of their business and avoid the distraction of finding a suitable exit. The synergistic strength of the combination generally leads to greater value and less dilution than traditional venture capital investing.

• Early Stage Companies
  There continues to be a plethora of viable early stage and small private companies. Many of these have compelling solutions and are generating or initiating strong growth. However, they need cash, infrastructure and channels to successfully expand. They are faced with the need to establish all of these in order to successfully execute.
  
  We also are respectful of the commitment of our entrepreneurs, and strive to protect their need to be in charge of their vision and benefit from their hard work. Unlike traditional venture capital or angel investors, we work with our early-stage companies and clients to strategically engineer a liquidity event from inception and develop a systematic plan for achieving company goals and objectives with the least amount of time and dilution.

• Micro and small cap public companies
  Particularly over the past five years, an abundance of micro and small cap public companies have emerged (there are over 6000 in the cap range of $5-100M in the US alone). Many of these have viable businesses (cash-flow breakeven or better, predictable revenue), capable management teams, sound infrastructure and established channels. However, their financial projections are no longer attractive to the investment community. They require new product or service initiatives, management and/or capital to rekindle interest in their stock and make them attractive for new financing or acquisition.
  
  With our post-merger and public company clients, we provide access to highly experienced professionals, such as broker-dealers, market makers, IRPR firms, lawyers and accountants and provide strategic advisory services targeted at increasing company revenues, profitability and the value of shareholder equity. Moreover, we provide access to a myriad of financing alternatives, such as equity investment, convertible debt, standby equity distribution agreements, asset based lending, receivables and purchase order financing, lease financing and bonds.