CapsulePen LLC is Joseph Cote's latest foray into making people's lives a little easier. In a nutshell, it is a pill case that is shaped like a pen, with magnetic end caps that allow 7 pens (one for each day of the week) to fit seamlessly together to form a weekly medication organizing solution that will help you lead a supercharged lifestyle well into a long life. With no money of his own, Joe has been bringing the CapsulePen to market and is only 2 months away from getting his product onto as many shelves as possible, wherever pills are sold. To date, Joe has raised over $250,000 to execute on his vision, and the company currently has a pre-revenue valuation of over $1 Million Dollars.

1. Attracting
Investors
Raising Capital & Managing
Relationships
For by Joseph Cote, CEO/Founder of

2. Why raise money?
1. The more people in the parade, the greater the noise!
a. Fast Growth needs more horse-power.
b. Accountability to your investors makes a better
product/service.
2. Spending your own money is down-right silly.
a. Investors will almost Always reinvest in your next project
if the previous one has been successful, and they will
tell their friends.
3. Investors work for you without a salary
a. They care just as much as you do.
4. Gaining assets that are out of reach:
a. Example 1: Dance.Com & 10% ownership.
b. Example 2: Net 45 billing terms on manufacturing, it
means no future borrowing to fund manufacturing, AND
a free injection mold!

3. What are you afraid of?
1. Losing control?
a. Don’t give any up. A genuine leader is not a searcher for
consensus but a molder of consensus.
-Martin Luther King, Jr.
i. Voting and Non-voting shares, having a vision
that is bought into- not bought out.
2. Nags, Drags and Nervous Nellies?
a. Don’t invite them in.
b. Only take money from people you TRUST!
c. You set the valuation that you need.
d. A greedy investor can ruin the party for everyone.
e. A great negotiator is a greater investment, so stick to
your guns.
3. No interest?
a. There are 7 Billion people in the world, and 25 million
millionaires.
4. Find partners and investors that COMPLEMENT your growth strategy.
a. My investors include a medical device manufacturer, a pharmaceuticals advertising executive, a venture
capitalist, a world famous attorney, a business consultant and an
accountant. I call them my dream team!

4. Everything is possible.
1. There is a clause to address every concern...
a. Contracts are personal, and are there to protect
growth, not hinder it.
i. Voting clauses.
ii. Clauses that remove ownership.
iii. Lawyers know how to make ANYTHING
happen, they are ALWAYS committed to the
deal, and a good one can even help you
keep the structure simple.
iv. Use EchoSign when managing lots of
signers on an operating agreement or
other document.
2. Creativity is the key to compromise....
a. If you are negotiating, it means the investors are
attracted to your plan. You'll need to change tactics, offer
trades, be flexible, resilient and resourceful to make it
to the end of the negotiation.

5. I've decided to raise
capital, now what?
1. Be attractive, not promotional:
a. Convincing is compromising.
2. Get Noticed:
a. If your idea hasn't been covered by major media outlets,
it isn't appealing and isn't worth investing in, no matter
how great you think it is. What gets noticed? Big, bold
ideas with big returns: if you can dream it, you can do it.
3. Call people, tell your story to everyone!
a. Former bosses know how brilliant you are, even if you
didn't always see eye to eye with them.
i. Long-time friends do to!
b. Enter contests like the NGLCC Roll the Dice
Competition in Dallas this summer.
c. Go to industry specific trade shows.
4. Get Help!
a. You can't do this alone, no one can, and it isn't any fun
that way anyway!

6. I've decided to raise
capital, now what? (cont'd)
1. The Upper Hand:
a. If an investor has more experience at this than you do,
you are going to lose in the negotiation, just like you
would lose a boxing match against a champion.
i. Find a secret weapon, a trusted advisor with
your best interest at heard and as much
experience as is possible.
2. A picture is worth a thousand words and video has about
60 pictures per second.
a. Do the math and get your message into video in a
compelling, charismatic format that tells your story.
Kickstarter.Com is a great outlet for this, with the added
bonus of raising capital WITHOUT selling equity.

7. Understanding Dilution...
1. When you've spent your first round of capital, and you
can't make money yet because your product isn't
launched, what happens?
a. At this point, everyone is as broke as they would be if
your company had failed, and the new investor who puts
in another Million has just increased the company's
value by that much, so, all previous investors should be
thankful, and happy to have their ownership percentage
reduced by the appropriate percentage.
b. When the pie gets bigger, each slice becomes a smaller
percentage of the total.

8. Managing Investors...
1. Communicate, don't coddle:
a. Quarterly Updates:
i. Your time should be spent developing and
selling, not managing relationships that don't
result in revenue... investors will understand.
b. Honesty is the only policy:
i. Fear of disappointing your investors shouldn't
stop you from disappointing them, and it gets you
to the solution quicker than procrastination.
1. Example of 4 prototypes
c. Temper-Tantrums are for Two Year Olds:
i. When an investor starts to have too many
feelings, treat them like a child: Let the investor
have their tantrum, don't react, re-establish
boundaries, and keep the discipline.
ii. Example: Mediation let my investor be heard,
didn't cost anything, and ultimately allowed me to
win on every point of the negotiation through
patience and solid explanations of my positions.
A good negotiator is a great investment and the
investor will see that and be happy to concede
knowing his investment is safe.

9. Renegotiating is
reinvigorating!
1. Re-Negotiation:
a. If some aspect of a current or future partnership
feels like a loaded gun, disarm it, take out the bullets:
i. We've all had deals go sour, but they don't
have to.
1. They go sour because they are set up
wrong. One side has achieved too much
within the contract negotiation.
2. The go sour because of unaddressed
resentments, address them!
a. Go to the partner, tell them your
concern, tell them your solution,
send them the corrected contract.

10. Joseph Cote - Serial
Entrepreneur
1. I am Joseph Cote. Serial entrepreneur and founder of successful brands,
always focused on enabling people to live life to the fullest, through things
like dance and Pilates. I studied advertising at the University of Tennessee,
Knoxville and moved to New York City shortly thereafter. When the
opportunity for me to take a position at the (then) largest publisher of dance
related media arose, I jumped at the chance to put two of my passions (the
arts and advertising) together. After two years and several promotions, I left
the dance media publishing business for the apparel manufacturing industry
and launched a woman's active wear brand called Pilates Sport. The brand
quickly grew to receive a purchase order from QVC, America's largest
home shopping network. At that point, I decided to sell that business and
return to dance media publishing. I took over the day to day operations of
Dancer Publishing Co. in October of 2007. In June 2009, I purchased both
Dance.Com and Dancer Magazine, creating a new entity entitled Dance.
Com LLC and moved all of the business online. My next entrepreneurial
venture was the relaunch of lighterliving, a healthy consumables and media
company with distribution via QVC. When I took over in 2011, the company
was in the red, when I left a year later, it was comfortably in the black, and
had been diversified into markets beyond just QVC with new and highly
profitable revenue generating products.
2. Contact:
a. Phone: 646-483-4354
b. Email: joe@capsulepen.com