How Not to Raise Traditional Capital... How to Raise "Guerilla" Capital
We have compiled a list of some practices which seem sure to kill your chances to attract investors. Ignore these lessons at your peril. * Poor market research, weak business plan * An unfocused, "shotgun," approach to which venture capital sources to approach * Does not have enough seed capital dedicated to the capital raising effort * Does not allow ample time for raising the capital * Seeks too much capital, or sets too large a minimum initial investment for the project or company. * Does not have enough of their own capital committed to the project. * Does not have a clear picture on the use of proceeds. * Does not have a rate of return projected on the investment * Does not guarantee an...
How to Joint Venture and Qualify a Strategic Alliance Partner
Joint venture marketing is perhaps one of the most lucrative marketing strategies you can use immediately to build relationships, share knowledge, consolidate resources and make money. Use of a proper strategy, in conjunction with project management skills is a potent formula that, when done correctly, will help you accelerate growth as opposed to trying to do things on your own. Essentially, in a JV Plan your company resources are consolidated with another (or multiple) companies by where "through consolidation of resources" all parties have a chance to share in the benefits derived from the venture. As was stated earlier, we have found joint ventures to be one of the most overlooked and under...
Executive Search Firms at The Intersection of Human Capital & Investment Capital
The venture capital industry competes in a volatile marketplace typified by high risk and high reward. Venture firms invest millions of dollars on seasoned executives and entrepreneurs who present great promise of creating significant shareholder value with the identification of the next big idea or innovation that will revolutionize an industry. Whether an investment yields financial rewards depends on the delicate balance of innovation, market conditions, leadership strategy and countless other uncertainties. In making the complex calculation of whether to invest in a promising new venture, many venture capitalists often overlook one critical factor - the human capital component. After an investor...
Alphabet Soup - The Acronyms of Relief For the American Economy
p>For many in the commercial real estate markets the question has been where are all the deals? Banks, investors, and developers are clearly under duress, yet few truly distressed deals have come to market. According to a recent report from a major investment brokerage firm, sales of commercial assets were down 70 percent from one year earlier by the end of the first quarter in 2009. The combined influences of banks attempting to postpone foreclosures to preserve capital and the proliferation of complex securitized loans have conspired to stall markets and leave most wondering what next? On the residential side of the equation the loss of consumer confidence, jobs, and the disappearance of available...
Should You Really Go to a Top MBA School?
Umm...absolutely, and especially if you plan on going into finance. And here's why. The education you get at HBS or Stanford isn't necessarily all that much better than what a top 50 business school offers in terms of academics. However, the difference between a Harvard and University of Minnesota (Carlson) can be compared to...perhaps, a high end country club in the Northeast vs. a luxury sports club in Manhattan. Both clubs have nice facilities and both clubs offer the same functional purpose. However, the difference here is access. The nice country club may only accept members with net worth over $5M, whereas the luxury city sports club will take anyone who can pay the monthly $200 fee. People...
The Small Business Administration (SBA) was created by the United States government in 1958 to provide a clear and efficient path for small businesses to acquire capital. The SBA raises capital by selling SBA Guaranteed Certificates to various public and private investors. The capital acquired is then dispersed as debentures to licensed Small Business Investment Companies (SBIC's), who in turn invest in small business portfolios with the intent to stimulate the flow of private equity capital and long-term loans to small businesses. SMALL BUSINESS INVESTMENT COMPANY (SBIC) SBIC's contribute equity and/or debt capital to small businesses and may be viewed as small, regionally-focused private equity...
Private Money - Will Your Deal Attract It?
Want private money? Well, as you might have figured out, you can't just walk up to a potential private lender, tell him or her about your "deal", and expect them to write a check. No way. If you want to be successful in raising private capital for real estate, you have to learn how to "attract" private investors to you. So what's the secret? Or to paraphrase a famous movie title: "What do Private Lenders Want?" The short answer is: put yourself in the private lender's shoes, and think about what you would want before you invested your children's inheritance is some real estate deal. Now, what I'm about to tell you may shock you. It's not the "easy-no effort" seminar version that gets you all excited...
You have the idea and you have the motivation, but do you have the money? The credit environment right now stinks and you aren't thrilled with the idea of applying for business loans. Fortunately, you have other options for raising seed capital. If you are creative-minded and determined, you can locate the money you need to start your businesswithout asking a business bank to help. Tap angel investors Angel investors are wealthy individuals who deploy their money in business start-ups. They don't do it because they're nice people; they do it to make money. A successful small business start-up can provide an investment return that's well in excess of what exchange-traded stocks or bonds might produce...
There is bad news for oil exporters to the United States. Earlier in September 2009, the administration of President Barack Obama indicated its readiness to lower US overdependence on oil as part of efforts to cut down on emissions and develop a clean-energy economy. Nigeria, with proven crude reserves in excess of 36 billion barrels as of 2007, supplies 10% of USA's annual oil demand. The new rhetoric from Washington, which is the top importer of Nigerian crude, could not have been more devastating to the sub-Saharan nation. The Nigerian economy is overwhelmingly dependent on oil, which accounts for 81% of government revenue and more than 97% of export earnings. Myopic policies pursued by...
Discounted Cash Flow Analysis Fundamentals.
ign="center"> DCF Analysis is one of the most popular valuation methodologies in use today. DCF Analysis offers several advantages over other valuation methodologies: Advantage nr. 1: Ability to customize the financial model which is the basis for the valuation to any given business situation. DCF Analysis is most universal and can be used to value any business, provided a reasonable financial forecast can be created. Knowledge of financial modelling techniques allows to customise the financial model for any business venture and business development scenario. As such, using the DCF Analysis we can value any business no matter how unique the business model is. This is in sharp contrast to the...
Is There Start-UP Capital For New Ventures
- Yes, there is capital available for new ventures. Remembering that the majority of new ventures fail, it is important that the presentation of the new venture must be properly packaged. - There is no institutional venture capital for startup businesses. The institutional capital is only available once a new company has proven the need for the product or service. - Startup ventures are generally funded by angel investors that are prepared to take the risk. Angel investors are generally wealthy individuals and some of these are organized and have professional managers performing due diligence. - If a venture is to be funded in this economy it will need to prepare the following: A detailed business...
How to Get Money For Business Opportunities
Are you thinking of starting your own company? The idea of owning your own business is exciting, but just how are you going to get the money to open on your own? There are several ways you can get money for business opportunities, but they often require a great deal of commitment and dedication. Make sure you are really ready to make your company work before you try to get started. As a business owner you will need money to pay for rent, equipment, merchandise, employees, and other bills. To obtain this money you can either work for it yourself or ask for a loan. Many people tap into their savings when getting money for business opportunities since loans are so difficult to get in the early stages...
Looking for higher than average profit from your property investments without high risk is something that appeals to people who do not have the time to manage their investments on a day to day basis. Joint Venture investing can solve this problem. Like any property investment there are risks involved of course, but with Joint Venture investing you can be investing in property developments that have already had approval and are well on the way to being started. When property developers approach a bank for funding they understand that at least 60% of the property needs to be pre-sold before the bank will release development capital. This protects the bank from funding a property that only gets half...
How To Set Up A Strategic Alliance
Setting up alliances with joint venture partners will enable you to generate additional income, expand your marketing network, cross refer business and extend your service offerings, at typically, no extra cost to you. It does take time, however, to establish the partnerships. The time investment is often mostly upfront, and once established, the time spent in maintaining the relationship is minimal. A joint venture partner is someone who targets the same clients as you and your services/products are non-competing. This strategy is most practical for businesses with a small or non-existent marketing budget. Attributes of your ideal joint venture partner: - They have a business relationship with your...
Everyone is always focusing on capital when they are discussing business. They need venture capital to get started. They need additional capital to keep going. What they are generally discussing, what they commonly are referring to is the financial aspect of business, the cash. What they often forget to mention, or they forget to factor in is relationship capital. Regardless of what product you are selling, what service you are marketing, you are going to be selling to relationships. You may never see a single customer's face and you may never even hear their voices. You may only do your business online over the computer. Who exactly do you think is placing the order at the other end? You don't...
Private Equity
Introduction Private equity is medium to long-term finance provided in return for an equity stake in potentially high growth unquoted companies. Private equity isn't new-it's been around in various forms for almost 25 years, including the Barbarians at the Gate-style hostile takeover of RJR Nabisco by Kohlberg Kravis Roberts (KKR) in 1989. Private equity is booming, with buyout firms poised to raise more than the previous record of $215 billion, set in 2006. Private equity is a broad term which commonly refers to any type of non-public Ownership Equity securities that are not listed on a public exchange. Private equity is very much a 'people' business and the investment professionals involved...
Business owners at either start up or sometime in the business existence need financing. Many a joke has been offered regarding financing offers when you don't need it, however if you need financing to survive that becomes a different story. Business owners must be able to assess whether they are candidates for traditional or non- traditional financing. Traditional lenders want to grow your business; they are not looking to fix your problems. When business owners have to attract additional equity the problem usually is that they have to give up a healthy piece of the ownership of the firm. So who are these 'Traditional 'lenders? It is essentially a short list: Banks and Trust Co's Independent...
"7 Insider Tips To Joint Venture Success"
Most marketers miss out on huge chunksof available profits by not doingenough joint ventures. It’s the easiest way to leverage onresources you wouldn’t otherwise have. There’re probably two reasons why jointventures are not used fully. These arethe fear of work and fear of failure. But do you know, you’ve failed in thefirst place by having this mindset? While I’m not here to preach, I do wantto emphasize, no marketer is ever anisland. You’ve got to leverage yourtime and resources with fellowmarketers to improve yourself and tomaximize your success. The magic word here is leverage. Leverage everything you do, includingjoint venture, which is one of the mostpowerful...
Set Up China Joint Venture in ShenZhen
Shenzhen is one of the best choices for doing business in China. Situated in the Pearl River Delta, Shenzhen is the first Special Economic Zone since China carried out reform and open-door policy 30 years ago. Shenzhen has an area of 1953 square km’s and a population of more than 10 million. Shenzhen is the best city both for living and working in China, as well as the fastest growing city in the world. In Shenzhen you can enjoy the sound infrastructure and the intensive industrial chain for trading, manufacturing and value investment. Since Shenzhen is bordering Hong Kong, you can also take great advantage and opportunity from the “one country, two systems” policy. Introduction of Joint...
The Two Main Joint Ventures
A joint venture allows two or more companies to work together for a common goal. When it boils down to it there are really only two types of joint ventures. 1. Co-ownership - this is where you and your joint venture partner are actually partners you build the product, web site, marketing and other aspects related to your company and jointly run. This is a powerful strategy but you have to be very careful who you choose to work with or you will be miserable and not have success. However if you do this right you could have one of the most successful companies in the world. Many companies that you know of today are the result of a joint venture between two or more people. 2. Promotion only - this is an...
B2 Digital, Inc. BTDG.PK Receives All Cash Offer for Shares(Hot Penny Stocks)
B2 Digital, Inc. (Pink Sheets:BTDG - News) announces it has received an all cash offer from an Investor Group for all the outstanding shares of the Company. A Special meeting of the Board of Directors has been called to consider the offer which is scheduled for 9:00 AM this morning EST. About B2 Digital B2 Digital is dedicated to seeking acquisitions and joint ventures within the resource sector and in particular mining properties that contain gold and silver reserves. Management of its subsidiary has many years of experience in the exploration and operations of mining assets. B2 Digital is currently in the process of divesting itself of some of its technology assets. More information on B2 Digital...
Financial Assistance For Small Business?
ign="center"> Financial assistance by the sites There are a lot of information and source guide with right to the small business resources and this is the small business administration. It is also referred as SBA. SBA can offer a person with a number of financial assistance options of programs which are especially for small business purpose. This includes section 7 of subsection A of 504 and this elaborates on disaster assistance loans. What the Section says: The section specifies that, there will be a review of the eligibility of requirements, and of the loan programs which are provided by the SBA. This also includes the provision of surety bonds, equity capital needs and such loan programs. There...
Could You Be Setting Your Business Plan Up For Failure?
y"> David E. Gumpert, author of Burn Your Business Plan, often tells the story about how he and his partner failed to raise money after sending their business plan around to venture capitalists and meeting with several others to make presentations. Disappointed by the fruits of their labor, they considered giving up on their venture in 1995. Fortunately, on the advice of their board of advisors, they chose to divert their time from massaging the business plan to making sales. The financing, they were told, would come later. Turns out, they sold enough to stay afloat through 1996. In 1997, sales failed to grow as quickly as they expected, so they decided to seek financing again. This time, they...
The current number of immigrants in the country is about 37.46 millions and the 32% remains illegally in the US territory1. According to the Border Protection, Counter-Terrorism, and Illegal Immigration Control, approved last year by the government, the aliens who work and live undocumented in the country will have strong and drastic penalties, but how hard will be the stroke of missing such a great quantity of consumers and entrepreneurs, as immigrants are, for the US economy? As shown by studies done in the last year, the contribution of immigrants in the US economy is everything but insignificant. One of the conclusions of a national survey commissioned by the National Venture Capital Association...
Investor Crap Games
> Ask not how much money you'll make from a speculative investment. Instead, ask how likely you are to lose your risk capital. Most investors will find better odds wagering their money in Las Vegas, Macao or Monte Carlo than being angel investors to private companies. Private company speculation is far riskier than betting on stocks to appreciate in value. Your money will be in jeopardy for years. There's no liquidity in a private company speculation. You can't sell it to another investor! Worse still, if you don't meet your private company's expanding needs for risk capital, the company is likely to fail. Angel investors should reflect on the Uncle Remus' tale of Brer Rabbit and the Tar Baby. The...
Low-tech labor-intensive industries, why embarked on a large scale to the Mainland's passion? How to reduce costs simply to prevent the evolution into a compressed labor costs, is in front of a mainland government to solve problems. Dongguan: an unusual reverse flow of migrant workers upgrade their skills into a way out Decision of the traditional industries in Dongguan, "Dos and Don'ts" of now, is to go or stay? Remain so, how to stay? A kind of lingering sentiment is spreading among migrant workers PRD. See, but it also touched by. At 11 o'clock on the February 15, drilled through the clouds and the sun, to a crowded bus station in Dongguan City, Tim...
A Review Of The Fibonacci Global Hyip Income Opportunity
vate Venture Capital Club known as Fibonacci Global is one way to get into an HYIP. They offer a low risk investment service that is said to give off a pretty good return in the future. They say that their goal is for long term profits along with low risk. For that reason they only invest funds into companies that sell products or services. They claim that they will and do not fund a high-tech or bio-tech company startup because of the low success rate and high risks. Who they are Fibonacci Global HYIP is basically just an investment company that allows for just about anyone to take place in the action. If you find that you believe in what the Fibonacci Global HYIP is doing then you can be a part of...
Wall Street's Lost Decade
As we enter the second decade of the 21st Century, Wall Street is in an upbeat mood since the financial upheaval experienced in late 2008. Bringing good news to investors and Governments around the World, but the bad news is that the first decade of the 21st Century a decade were stocks had an average of a minus 10% return. Much has happened since the start of the new millennium, and the heady first years of a credit boom, that somehow went bust in late 2008. And Wall Street has illustrated one illusion that investing in stocks during this period was good business. By the close of 2009, an estimated average of 10% has been lost on existing stocks traded by Wall Street. An investor who bought 100 US...
A Million Dollar Idea - Going For the Power Play
Boldness has power and an audacious attempt to make your first million without any risk can be a liberating experience, not just financially. The beginning of an idea, the seed of a reality before you is quite an exciting experience and delivering and following through on such an idea is easy if you do one thing. Most people have a million dollar idea nearly once a week, but rarely do they make a million dollars...no, they just amuse themselves at how creative they are as they drive to work yet again and change nothing. Peace of mind is important to most people and keeping the status quo is much more comfortable than acting, however, most people do not recognize the one thing they should do when...
Can Stem Cell Therapy Be Used to Treat Chronic Lyme Disease?
Can stem cell therapy be used to successfully treat chronic Lyme disease? The answer is apparently "yes" according to Amy Scher, who is the self-proclaimed first woman to use stem cell technology to treat her debilitating case of chronic Lyme disease. Amy went to India for the treatment and is now completely free from the chronic Lyme disease that she suffered with for years. Others with financial viability are following her lead due to the lack of options currently available to suffering victims of chronic Lyme disease in this country. However, in the US, a controversy continues to gather ammunition, arguing whether taxpayers should pay for something that private venture capital is quite capable of...
Private Equity Designation Program
Why do private equity designations exist? This is a fundamental question and the answer reveals how important the buyout industry is and why getting properly trained is so important. If you'd like to know why PE training programs and designation are important you should consider why the buyout industry as a whole is important. This is not a question of whether you agree with their general purpose of buyout firms, to put it generally: restructuring and steamlining companies to produce more profits and run these firms more efficiently as well as simply holding portfolio investments expected to perform better and expand. Rather, you have to understand that these are multi-billion dollar firms...
The Investor's Perspective
Investors, which can include wealthy individuals, strategic alliances, financial institutions, venture capital firms, stock brokerage houses, etc., want to know, among other things, six basic things about your capitalization plan: 1. Who are you? Including your management team's background in the business plan or prospectus. More experienced management teams have a greater probability of raising capital. Do what you can to form an experienced board of directors, executive officers or at least an ancillary advisory board. They should also be able to give you some capital contacts of their own. 2. What will you do with my investment? A detailed "Use of Proceeds" statement should be included in the...
As Oil Prices Rise, So Does Interest in Energy Ventures
As the worldwide demand for energy increases, and oil prices rise, many venture capital firms have begun to focus on the alternative energy sector. In fact, in June 2005, Pasadena, CA-based solar company, Energy Innovations, raised $16.5 million in venture capital led by Mohr Davidow Ventures. At around the same time, Nanosolar raised $20 million (also led by Mohr Davidow Ventures), solar startup HelioVolt, based in Austin, TX, secured an $8 million investment from New Enterprise Associates, and Kleiner, Perkins, Caufield & Byers led a $16 million investment in Miasolé, a thin-film solar firm. The current focus on energy investments, and particularly "clean energy", will hopefully be a...
Limited Liability Corporations
A limited liability corporation is what many refer to when they are inquiring about the LLC. An LLC offers small business owners the same benefits of a corporation plus more. Compare the two here: LIMITED LIABILITY Many business owners are trying to decide between an LLC and a corporation. Both offer owners of the business limited liability. Corporation entities, however, are required to hold certain meetings and maintain paperwork formalities. The LLC offers the ability to run a business without additional formalities. OWNERSHIP The limited liability company issues membership units and its owners are called members. The corporation issues shares of stock and the owners are called shareholders. In...
Finding a Guy That Will Help Fund the Capital Venture
When people need money, the first thing that usually comes to mind is the bank. This is because someone with a good credit record can easily get funding to renovate the home or buy a car. But with the increasing rates in interests, the idea of even going to the bank could be difficult. Luckily, there is another way to get the money if the entrepreneur wants to start up a business and this could be done by approaching a venture capital investor. In the state of Arkansas, there are companies and people who can help make that dream a reality. All the person has to do is send that proposal and hope that it gets approve. Sometimes, the entrepreneur will have to wait months before hearing a reply. This...
Big Dog and Business Negotiation Techniques
When negotiating a business deal with a smaller up and coming company the larger company may wish to consider their position in the game and what the end goal for the smaller company is. That is to say what is the little company trying to achieve. For instance the little company wants PR value from being able to say they have the larger company as an account or is partnering with them. Why? Well perhaps they wish to leverage this with a second round of venture capital funding or use it to sell more large accounts and often there are reasons of ego also involved. Being the larger company you can often all them to use public relations and tell others that they are doing business with you as that costs...
How To Handle Job-Hopping Questions During An Interview
One of the symptoms of the nineties' explosive economy with plenty of leading-edge opportunities to choose from, higher salaries, promotions in responsibility and title, and constant recruiter calls wooing the best from one company to the next, is that many professionals were left with resumes that reflect high turnover. Although recruiters were very much involved in promoting the job-hopping of the era, they are now in a place to be highly selective and many of them, and their client companies, are placing emphasis on the stability issue in selecting their potential employees. How do you effectively address a job-hopping history? A key is to shift the paradigm from 'stability of employment' to...
When it comes to the field of medical research then there is a very thin line between success and failure. Having an edge over competitors and keeping it, is the thing that many research companies strive for, but not all achieve. Competition is high and anything that can give a company an angle to work with is usually grasped with both hands. The amounts of money that are involved in this industry are quite staggering. Billions of pounds are spent on research every year and that is because the financial rewards for coming up with a breakthrough are also considerable. But companies are always looking for ways to become more efficient and make the most of the budget they have. No one wants to spend...
The Smart Garage of the Future
The Smart garage of the future will have many things for instance; as you walk towards the garage door it will open like the grocery store doors. If you take out the keys, your car the door of your car will open. As you get in the car it will start automatically and when sit down the hydrogen maker box will disconnect from your hydrogen cell car's gas tank, which has been making fuel all day. The garage door light will be set based on the ambient light outside and in the garage and will adjust accordingly. As you back out of the garage the garage door will close automatically using a sonar sensor. As the garage closes it will then turn into a giant mirror so you can see behind you as you back out...
Finding A Business Loan In Colorado
The state of Colorado offers business funds in the form of venture capital funding, employment creation, and to businesses in targeted communities. Apart from loans to invest in equipment and real estate, the State also makes available funds for development of community infrastructure and other community related projects. This article provides a list of loans and grants available for businesses in Colorado. Business Loans in Colorado: The federal as well as the state government run many business loan programs in Colorado. Some of the relevant programs are listed below. 1) Certified Capital Companies (CAPCOs) Six capital companies certified by the state government provide funds to businesses in...
You want to buy a new company, expand operations, acquire a business, or raise capital. You've decided to go for venture capital funding versus a bank loan for a multitude of reasons from the risks involved to the amount you need to carry out your plan. Do you know as much as you'd like about gaining capital? Most people don't. Their expertise is in their business, not in capital funding. Here are ways to protect yourself from vultures, deals you can't afford, and the nightmares of both. Some quick explanations: A venture capitalist (VC) is a person, group of people, company, or group of companies with money to invest in your business. A VC broker represents you (or possibly a VC) and arranges...
Outstanding Business Professors at WVU - Part 3
Students appreciate teachers that can show them how the material they teach can be applied to the real world. Dr. Richard Riley, an accounting professor at West Virginia University's College of Business and Economics, goes beyond relating his material to the real world for his students. He puts them in it. Graduate students that enroll in Riley's Accounting and Business Consultation course run a complex simulated business, compete with their classmates, sell a portion of the company to venture capital investors and prepare and deliver a performance report to those same VC investors. "There is a certain element of pride involved in that program," Riley said. "The fact students are in competition with...
Investing In Healthcare
The baby boom cohort has changed the world in which we live and the lens through which we view it. The aging of this cohort (roughly one third of the population) will continue to usher in dramatic changes across most business sectors and areas of our lives in the years to come. The boomer demographic in North America is also presenting unique challenges for government run social programs and presenting unprecedented opportunities for businesses with the right entrepreneurial mindsets and resources. While boomer consumptive patterns have evolved over time, there are still strong correlates between their wants/needs (and the wants/needs of their children) and the flow of capital across virtually all...
If you were to ask an entrepreneur what factors are most important to the success of his or her business, you're most likely to hear - finding and keeping the right employees, affordable health insurance, protecting intellectual property and cutting through typical government red tape. Entrepreneurs who are not earning a profit may not be concerned yet about corporate income taxes. Those who do not own their own building may not be worrying about property taxes, although they are paying them indirectly through rent or lease payment. In order to create a healthy environment for the entrepreneurs, it is important to keep local and state taxes down. There are some legislatures who might panic at the...
The Problem With Patent Due Diligence in Mergers and Acquisitions and How to Fix It
As a business or investment professional involved in mergers and acquisitions ("M & A"), are you conducting patent due diligence according to the standard practices of your M & A attorneys and investment bankers? When patents form a significant aspect of the value of the transaction, you are probably getting incorrect advice about how to conduct due diligence. The due diligence process must take into consideration the competitive patent landscape. If competitive patents are not included in your vetting process, you may be significantly overvaluing the target company. In my many years of intellectual property and patent experience, I have been involved in a number of M & A transactions...
A Shareholder Voting Agreement is a legal contract among shareholders of a corporation relating to the voting of shares. The shareholder voting agreement often covers how members of the Board of Directors are to be elected and sometimes covers major corporate events such as mergers and acquisitions. Venture capital investors often expect a shareholder voting agreement to be executed in connection with their investment in a start up company. Voting Agreements are enforceable pursuant to state statutes enacted in all 50 states. For example, the pertinent statute of Indiana's State Statutes reads: Sec. 2. (a) Two (2) or more shareholders may provide for the manner in which they will vote their shares...
Venture Leasing and Equipment Financing
First, what is venture leasing? It is financing for equipment put up by venture capital investors. They fund pre-profit startups. This lets beginning companies that are growing get their operating equipment essentials such as furniture, computers, manufacturing equipment, and laboratory equipment. The companies supported by venture capital normally have a negative cash flow. They need additional equity to move ahead with their business plans. There are advantages to venture leasing as opposed to traditional venture capital. Venture leasing doesn't have the shortcoming for the pre-profit startup that comes with traditional venture capital like board representation by the venture capitalist, investor...
China Equity Investment Report, 2009-2010
Equity investment includes private equity (PE) investment and venture capital (VC) investment. In 2009, there were 542 equity investments occurred in China, including 114 PE investments and 428 VC investments; the equity investment valued US$22.4 billion, average PE investment was US$164 million, and average VC investment was US$8.8 million. The remarkable 19:1 gap between average PE and VC investments mainly resulted from the fact that PE investments are often made in the enterprises that are making profits and need larger amounts of money for mergers and reorganization, while VC investments mostly are financial investments made in the enterprises that are developing or expanding their business and...
Business Plan Executive Summary - What is It?
First, what the executive summary is NOT:o It's not an overture or a prelude to the main body of the business plan - something that introduces the theme of the plan and sets the mood with sweeping imagery and generalities about "opportunity," "innovation," and "meeting needs".o It's not only for summaries about the company's executives.o It's not just an introduction to the business plan. Now, what the executive summary is:o It's your business plan in miniature, an overview.o It must be clear, logical, interesting, and exciting.o It's your best sales pitch, on paper. What's the purpose of the executive summary? The main purpose is to spark the reader's interest. The first reader of your plan will...
The Rise and Fall of the American Chip Industry
The semiconductor chip is at the core of what we think us as technology. Computers, cell phones, iPods, medical equipment, avionics, etc. have only been possible because of the chip. The American chip industry has been damaged by the recent economic slowdown like most industries, but more importantly, the chip business in the United States has been in a slow fall for 30 years. In January global chip sales dropped by almost a third from the previous year, to $15.3 billion (Semiconductor Industry Association). Overinvestment in chip factories has resulted in steep losses of over the last 2 years. The chip business has been compared to farming. If too many farmers plant cotton, then the price of cotton...
The Green Gimmick - What a Difference a Decade Makes
Lately, as a retired or rather semi-retired consultant I've had the chance to read lots of business plans, actually more than I care to. In fact, I've helped re-write a few, yes, too many. One thing I've noticed as of late is that so many of these start-up entrepreneurs work to add in a little bit of "green" into the scene; but why? Because, like alternative energy, recycling, and environmental concerns; green is in. Now let me tell you some of my observations and why I am worried that we are busy building a green bubble. Yes, that's right the next bubble to burst will be the alternative energy bubble that we are blowing up. Many of the business plans I've been scouring through do not have any...