A Texas-based company reportedly has raised $9 million in venture capital funding in an attempt to enlarge its railroad crosstie business. This corporation manufactures these crossties from recycled plastic.
IntegriCo Composites Inc. originally started in the manufacturing business in 2007. It has since announced that funding has come from a number of companies. Some of the funding has also been raised through railroad company veterans. The company credited its new Chief Executive Officer with bringing some of these new investments. The CEO has a background in being a former president of a composites materials design and manufacturing company.
As the example of IntegriCo demonstrates, funding for a company is essential. This can involve the raising of finances through the selling of shares – a process that will need to adhere to both federal and state laws. Such a process can be extremely complex.
A valuable resource for companies that are starting up or expanding is an attorney who understands business formation matters. Choosing the type of business formation entity is essential when it comes to company start-ups and the advice of attorneys can be invaluable. The type of business entity chosen may vary dependent upon the size of the company, its ownership structure and the amount of liability that it may face.
Also, inevitably paperwork will need to be prepared, contracts or partnership agreements created and reviewed, and tax considerations will also need to be taken into account. Beyond business startup, attorneys can assist with this paperwork and consult with directors and officers as a company develops and grows.
Source: Plastics News, “Texas firm wins funding for railroad crosstie business,” Don Loepp, Jan. 1, 2014