Posts tagged Venture
Strong Bootstraps: An independently minded entrepreneur talks about what it takes to make it without venture capital
Sep 5th
Strong Bootstraps: An independently minded entrepreneur talks about what it takes to make it without venture capital
John spent much of his young life moving from city to city as his father taught at different universities across the United States. He received a bachelor’s degree in environmental studies from UC Santa Barbara, studying a field for which he held much interest. During the real-world process of trying to get a job, however, John quickly discovered that “tech was a little more the reality.” He had taken several science and computer courses in high school, and had done some programming on his More >
Funding Alternatives to Venture Capital
Sep 5th
Funding Alternatives to Venture Capital
For many years, companies have relied on venture capital financing to grow and expand their businesses. Recently, most venture funds have been reduced in scope and size to deal with the current economic environment. Unfortunately, this has had a substantial effect in the broader economy by limiting entrepreneurship and innovation – key component of economic success.
Without venture capital, many business owners try to finance their companies by looking for a business loan from a lending institution. However, business loans are only given to companies that have strong collateral and can show profitable operations. Companies will also More >
Tips for Successful Venture Capital Meetings
Sep 5th
Tips for Successful Venture Capital Meetings
We spent a lot of time talking about the overall process of raising venture capital â but I think where a lot of entrepreneurs fall down is in those first few meetings.
1. Go in with your eyes open. This is a rather all-encompassing suggestion and idea, but itâs one of those things thatâs hard for first-time entrepreneurs to do. When I first started raising money I had no clue what the process entailed.
2. The pitch matters. I harp on the pitch a lot. And a great pitch doesnât automatically close a deal. But More >
The Ideal Length of Your Business Plan & The Use of Common Stock in Venture Capital Transactions
Sep 5th
The Ideal Length of Your Business Plan & The Use of Common Stock in Venture Capital Transactions
How long should a business plan be A business plan needs to be whatever length is required to excite the investor, prove that management truly understands the market, and detail the execution strategy. From surveys of investor needs, Growthink has found that 15 to 25 pages of text is the optimum length in which to accomplish this. Anymore and the time-constrained investor will be forced to skim certain sections of the plan, even if they are generally interested, which could lead them to miss More >
The Structure of a Venture Capital Investment By Abdul Razaq
Sep 5th
The Structure of a Venture Capital Investment By Abdul Razaq
When a venture firm decides it is interested in investing in your company, it will offer you with a term sheet, which is essentially an offer letter. If you are a business owner than you conscious that one of your business challenges is getting your company funding. To put it simply, an investment firm will give money to a promoting company.
While this investment can be a tremendous boon to a tiny division of the companies pursuing it, in the vast majority of cases it presents the entrepreneur with a “Faustian Bargain”. More >
Derisking to Make Your Business More Attractive to Venture Capital Investors
Sep 4th
Derisking to Make Your Business More Attractive to Venture Capital Investors
Derisking is the process of removing risk factors from your business in order to make it more attractive to an outside investor or to an outside buyer. It is one of the most important factors in the grooming process in order to be an attractive company to invest in i.e. “Investor Ready”.
There are dozens of areas and hundreds of ways in which a business may be exposed without knowing it. In the normal course of business an owner may not worry about these factors, as they are within the “comfort More >
The Ideal Length of Your Business Plan The Use of Common Stock in Venture Capital Transactions
Sep 4th
The Ideal Length of Your Business Plan The Use of Common Stock in Venture Capital Transactions
How long should a business plan be? A business plan needs to be whatever length is required to excite the investor, prove that management truly understands the market, and detail the execution strategy. From surveys of investor needs, Growthink has found that 15 to 25 pages of text is the optimum length in which to accomplish this. Anymore and the time-constrained investor will be forced to skim certain sections of the plan, even if they are generally interested, which could lead them to miss essential More >
Raising Private Venture Capital for Your Own Business
Sep 4th
Raising Private Venture Capital for Your Own Business
The idea of starting your very own business can be exciting, but the cost of getting it started can prevent you from being able to follow your dream. Too many new businesses fail and therefore traditional lenders are very careful who they give money to. Even if you approach them with a quality business plan, expertise in the necessary areas of operating it, and a commitment to make the business work they could turn you away.
As a result of these types of frustrations many people turn to private venture capital in order to More >
The Management of the Team Section of the Business Plan – Don’t Just Include Resumes & The Term Sheet’s Role in Raising Venture Capital
Sep 4th
The Management of the Team Section of the Business Plan – Don’t Just Include Resumes & The Term Sheet’s Role in Raising Venture Capital
The Management Team section should include biographies of key team members and detail their responsibilities. It is important that these biographies are not merely resumes that include the educational backgrounds and previous job titles and responsibilities of the team members. Rather, biographies should highlight the most relevant past positions that the individuals have held and specific successes in each. These successes could include launching and growing new businesses or managing divisions of established companies.
Team member biographies More >
The Pros and Cons of Venture Capital
Sep 4th
The Pros and Cons of Venture Capital
The goal of every business is to be successful in their efforts and continue to grow. However, they often come to a crossroads where they are going to have to invest more money if they want to experience growth and additional profits. It may be money needed for new equipment, a larger building, or a number of other items that can be found to keep a business operating at its very best.
Many business owner’s turn to venture capital in order to finance the such ventures for their business. This is a type of loan More >
