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Last Update: Sunday December 17, 2017

Key Idea: Tell Your Story Well To Attract Investors

Great ideas are simple to explain and compelling when backed up with your track record.   More...

Key Question:

A: 

You have to have a great story to tell and you have to tell it with passion. But there is more.

Q: What else did Andy say you need in order to take your company public and actually convince investors to give you money?

A: Timing. If you think back about what was happening in 1996, the dot com flurry was just beginning. Andy admits that it was a good time to go public since his business was so different from the high tech, cyberspace-driven upstarts mainly from Silicon Valley. Andy's story was about a company that would turn around and put money into people who would otherwise never be able to start a business. Can't you hear the violin playing? Yes. The Medallion Financial story is tugs at the heart strings of successful people.

We know that we are successful because other people believed in us. It may have been our parents or a grandmother who loaned us a $1,000 to get started in business. Immigrants don't have connections to people with means with they arrive in the US. Medallion Financial is an oasis in the desert.

Also, by the time Andy took the business to Wall Street, it had a perfect lending track record. Andy raised $50 million with his first offer then went back a year later and raised an additional $50 million. Even though they did not need the money, because the stock price had gone up 50% and more investors wanted to be part of the success, advisors told Andy to make a second stock offer.

Two years later, Medallion had people clamoring for the stock so they made a third offer and raised another $50 million dollars. Andy said, "We didn't really need the capital but again the economy was good and our stock was doing well." So, the lesson is, you raise money when you don't need it.

Think about it

Should you sell stock in your company? Did you know that you can do what Andy did and go to Wall Street or you can do a Direct Public Offering?

Clip from: Medallion Financial

New York City:  Meet Andy Murstein.   He is the grandson of the founder of a taxi business.   Andy has transformed that business to be a bank for immigrants, minorities, and women.

Andy's grandfather began as an immigrant taxi driver.  By the time Andy's dad joined the firm, they had a fleet.  They then began financing the acquisition of taxi medallions for new immigrants.  They became a Small Business Investment Company (SBIC) and now, after an IPO and subsequent rounds, Andy is buying up finance companies.  Within just three generations, this family business will have become a billion dollar business!

Medallion Financial has become a large SBIC quickly because they were already  making loans to immigrants and minorities to buy their taxi's medallion.  Andy is doing exactly what his grandfather suggested: "Stick to your niche and you'll get rich."


National Association

You can find an SBIC near you.   Listings are within the website of the Small Business Investor Alliance.

Medallion Financial Corp.

Andy Murstein, CEO

437 Madison Avenue
New York, NY 10022
212-328-2100

Visit our web site: http://medallionfinancial.com/

Office: 212-328-2100

Business Classification:
Financial Services

Year Founded: 1937

Tell Your Story Well To Attract Investors

ANDY: A lot has happened since I saw you last Hattie. In 1995, we were still a private company and we then went public the following year and the company has doubled since that point.

HATTIE: Wow.

ANDY: We bought 15 companies since you last saw us seven years ago. When you saw us last our portfolio was about $200 million. Today we manage over $600 million. We got this one after we raised our second equity offering. So we just took the money and bought companies and lent it to small businesses. Now we do mezzanine financing out of Minneapolis. We do SBA loans out of Hartford Connecticut. We do Taxi-Top advertising out of New Orleans. We do asset base lending here out of New York City. So we're really evolving into a full-service financial company.

HATTIE: What does a person need to put together to get that first 50 million? Do you see what I'm saying?

ANDY: Yeah. You need a good story. I mean, as funny as that sounds, you really need people -- not only do you have to believe in it, which is very important. You have to have a passion for what you do because people could see if you are serious about it and if you really have the heart to go out and grow your business. So you need the passion. You need people to believe in you and to also share that passion. So, every cycle there's a different wave of companies that basically Wall Street becomes enamored with. Again, it's jumping on the bandwagon when the timing is right. You could have the greatest company in the world, and if the timing's not right, you're not going to be able to raise money.

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