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Millions worth of equity stake to be donated to charity

Added: (Wed Nov 15 2000)

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Millions worth of equity stake to be donated to charity

November 16, 2000 - bizinfoport.com staff
Maxelerator.com announced the launch of its South Asian operations at a small gathering of investors and its staff. Maxelerator.com was formerly named Metaincubation and is an incubator division of InfoCosm Inc. (www.infocosm-inc.com), a multi national conglomerate with presence in North America and Asia. In the same speech Pankaj Goel, the Chairman of maxelerator.com announced that they would give 3% of all the equity payments they get from the clients to charitable organizations. Maxelerator.com accepts payments in the form of equity from its clients.

Maxelerator.com was launched in July with wide ranging attention from media and industry experts. "$1 Billion Deal..." Chicago Tribune wrote and "Incubating the Incubators" was how The Daily Deal viewed it. "Maxelerator.com accepts the payments for services in a combination of debt and equity." Mr. Goel, Chairman and CTO of maxelerator.com said. "We have estimated our portfolio to be worth more than $85 million and have several more (deals) in the pipeline." Mr. Goel informed. "The Internet is in its infancy in South Asia and with our presence here we can dominate the market in this region." Anoop Pandey, a company representative in South Asia said. "We have plans to execute more than $1 billion (worth of deals) in coming years,กจ he added. A Billion worth of deals would mean 30 million worth of equity, so much depends on how effectively can the newly launched company meet its projections.

Is an equity stake worthwhile for a charitable organization? This was the sentiment expressed by some of the persons gathered for this announcement. "It is." Mr. Pandey said. "It is not something that you can take to market right away but when one of the companies (the charity organizations own the equity of) go public it will be more beneficial than a large number of cash donations." the company chairman said. "...Besides we accept payment in equity ourselves and we are profitable." When quizzed by the staff reporter, the company chairman said that they will create a portfolio for the charity organizations they work and every time a company goes public the charity organization can cash in the stock. "This is the appropriate occasion to make this announcement because we can not launch our operations in South Asia and not do anything to solve the problems of this region" he added.

Mr. Goel said that the charitable organizations have to promise to spend the money they get from this deal on food, clothes and education of children in the third world countries. Mr. Goel is in Delhi at this moment to supervise the launch of South Asian operations of maxelerator.com. "He has never cared about money." Anu Agarkar currently in charge of InfoCosm operations said about Mr. Goel. "He just wants enough to provide (for his family). Rest of it he would spend on charity." She added. She also informed that they are planning to come out with "...more such ways to help (the needy children or others)".

Mr. Goel said that the company would set up InfoCosm Help Consortium and a trust fund that will hold the cash and equity payments made. They will also find a number of not for profit organizations to take up the ownership of this fund. "They can't take it to bank right away but it would get them a lot of cash later on." Mr. Goel said. They are planning to start working on setting up this fund and consortium right away and the first contribution would be from the InfoCosm Group of Companies with 3% equity stake of InfoCosm and maxlerator.com being put into this fund to begin with. "It is probably worth a lot at this time." This fund could be used to purchase the services from the InfoCosm Help Consortium, he informed. "We can accept the equity in this fund as payment for services from (the not for profit organizations)." He stated.

The company is projecting at closing more than US $500 million in deals in next five years. That would mean there is US $15 million worth of equity stake being dished out for charity. "We accept payment in equity from our clients so we pay the charity organizations what we get." Mr. Pandey said. All that remains to be seen is how effectively can the company meet its projections. If they do this would be a considerable amount dished out for a charitable cause. This timing of this announcement coincides with the name change announcement made in Chicago. The incubator was originally known as Metaincubation. The reason for name change was not known at this time.

The company requested the newspaper to print their contact information with this news story to help them get this message across to the charitable organizations. The information about maxelerator.com and InfoCosm Inc. can be found at www.maxelerator.com and www.infocosm-inc.com. The newspaper will also dedicate a section to track the progress of the Help Consortium and the Help Fund. Please check back this section periodically to get updates on the Help Fund.

The effort to create the InfoCosm Trust Fund had already begun at the time this story went to press.

Contact Information

Asia
Pankaj Goel
Chairman of the Board/CTO
www.maxelerator.com
pgoel@maxelerator.com
+91-11-786-0157

North America
Richard Fischman
CFO
www.maxelerator.com
rfischman@maxelerator.com
+1-847-590-9350

www.infocosm-inc.com
www.bizinfoport.com

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