Venture Capital Magazine

Hary S


Am trying to seek angel investors for my business, I want make partnership between my skilled, experience and expertize meet money and capital from angel investors, privately face to face without helping from venture capital company or company like that, please if anyone can answer mine would be much appreciated. http://fxmax.blog.dada.net

TheLegalist

Important tips for start-ups concerning venture capital, business plans, partners and potential legal issues. Presented by attorney Roman R. Fichman.

Nhat Le


I have a business plan and it’s nothing more than a concept (not working, prototype or beta version at all).

Is it possible for me to sell my ideas to venture capital… can you tell me what do they *expect* most from us in the presentation so i can practice and get comfortable when the time comes.

Any extra resource (links) you know and i need to know will be well appreciated!

nelsonblueskin

Ever imagine running your own tech start-up company? Bang Ventures is making that dream a reality with its You Be The VC contest (www.youbethevc.com). Take one part “American Idol,” one part “The Wisdom of Crowds,” and one part business incubator — add them up and you get one exciting competition, where your great idea might transform into the next Google or Facebook.
The prize? A complete launch pad for creating a successful start-up: investment capital, office space, programming/web development, legal, accounting and business strategy consultation, and marketing and sales support. Already, firms including Deloitte & Touche, one of the big four accounting firms, Vator.tv and Foley & Lardner, a prestigious law firm, have jumped onboard to lend their support to this innovative and dynamic effort.

This is an open call to people with great tech ideas to fill out the hassle-free application and profile at www.youbethevc.com and enter the chance to win their own start-up company. Here’s how it works:

1. To enter, go to www.youbethevc.com, create a profile and fill out the application with your company idea. If you don’t want to enter the contest but still want to be part of the entrepreneurial social network, you can still join as a member.

2. Proposals for companies in the “Web 2.0″ space, including social networking, advanced search, Enterprise 2.0 and mobile applications companies, will be considered.

3. Expert judges will narrow the field, commenting, questioning and assigning new tasks. The top 20 finalists will film a video pitch jointly on broadcast television and online video, and the public will vote on which three companies will win.

4. The winners will spend next summer in Cambridge, Mass. with a team of expert consultants, advisors and programmers building their start-up company.

“We live in a culture of entrepreneurs, but so many great business ideas are overlooked because they don’t have access to money and resources, as well as experienced advisors and the media,” said Mark Modzelewski of Bang Ventures. “You Be The VC will create incredible opportunities by reinventing venture capital and reinvigorating the startup process by transforming great ideas into great companies.”

“Having worked with many successful companies, from early stage ventures to blue-chip firms, our team is always energized by helping build businesses from the ground up,” said Ed Moran, head of the venture capital practice at Deloitte & Touche. “We are thrilled to support the You Be The VC effort. It’s an incredible way to tap the talents and ideas of great minds across the country and give them access to the expertise, funding and resources they need to succeed.”

“As an early Internet entrepreneur. I know how difficult it can be to start a business and navigate the venture capital system,” noted direct media marketing guru and WPP Partner Matt Straznitkas. “That’s what makes You Be The VC so attractive — this is a meritocracy where the best ideas win and get funded. Simple as that.”

“Having sold and taken public dozens of companies, I know that there are a million great business ideas out there, but most never make it because they can’t access the right expertise,” said Gabor Garai, a partner and chair of the private equity and venture capital practice at Foley & Lardner. “In backing You Be The VC, we know that we are helping to foster not just clever ideas, but great new businesspeople who are supported by a team of seasoned experts.”

More information about the contest, including rules and advice for entering, can be found at www.youbethevc.com.

About Bang Ventures

Bang Ventures is a New York-based investment firm with offices in Cambridge and is focused on early stage emerging technology companies.

Bang Ventures isn’t a VC firm. We help smart and driven people co-found fantastic new companies, providing entrepreneurs with a roof over their heads, mentoring, a deep network of contacts, marketing support, professional services and other technical support….and yes, funding as well.

Launched in 2007, Bang Ventures gets into the projects at the inception phase, evaluating opportunities and empowering entrepreneurs to develop strong companies. The firm is currently focused on investing in North America and Eastern/Central Europe in sectors ranging from Web 2.0 to clean tech to medical devices.

Joseph Lizio


No matter what the market is doing this month or this quarter, there are still strong, pre-public companies looking for growth capital to expand into new markets, launch new, wanted products, or too simply increase market share.

Down markets usually close the doors for IPOs or new secondary offerings.  Thus, companies poised to take the next step, going public, are forced to pull their registration and wait, or hope, for a quick turn in the economy.  Globally, 83 companies pulled their IPOs and some 24 others postponed their offerings during the first quarter of this year; mostly citing declining markets and recession concerns per The New York Times.

So, what can these companies do?

Many are looking too venture capital to raise enough cash to get them through the next few months or years until the IPO windows open again.  But, Venture Capital comes with many strings that could be detrimental or hindering including lost of control and dilution.

There are other ways – private placements.

According to Wikipedia, ‘…a private placement is an offering of securities that are not registered with the Securities and Exchange Commission (SEC). Such offerings exploit an exemption offered by the Securities Act of 1933 that comes with several restrictions, including a prohibition against general solicitation. This exemption allows companies to avoid quarterly reporting requirements and many of the legal liabilities associated with the Sarbanes-Oxley Act.’

There are some caveats regarding the amounts that can be raised through private placements.  Under 504, companies can raise up to $1 million in a 12-month period.  Under 505, companies can raise up to $5 million in a 12-month period – with restrictions to the type and number of investors.  Under 506, companies can raise any amount provided their investors meet very strict guidelines – usually institutional investors including banks and financial institutions, pension funds, and insurance companies who are still, despite declining markets, liable for hundreds of billions in capital that must be efficiently put to work.

Benefits of private placements for companies include:

-         Can be used by mature companies, start-ups, or anything in between.

-         Much lower cost to issue than an IPO.

-         Little or no reporting requirements.

-         Limit the amount of information that a company has to disclose by limiting the number and type of investors.

-         Can issue debt and/or equity.

-         Can raise capital quickly.

-         Great for small issues or issues encumbered by complex security measures. And most important,

-         Can be sold to some of your stakeholders like your suppliers, your distributors, your retailers, or your franchisees – companies that already know you and respect your organization.

In conjunction with these private placements, the SEC has adopted Rule 144A of the Securities Act of 1933 that allows these securities to be traded amongst each other – provided the seller and investor are qualified institutional buyers with over $100 million in investable assets.  The goal of this rule was to create liquidity for these private, restricted shares as well as foster foreign companies to seek equity in the US market.

John Jacobs, Executive Vice President of Nasdaq, stated, “The amount of capital raised last year (2006) through the 144A market – $162 billion – was bigger than all the IPOs and secondary offerings on Nasdaq, the NYSE, and Amex put together.”

Further, the 144A market continues to grow as organizations like the Nasdaq are creating electronic trading platforms for these private placements.  Prior to these new trading platforms, investors of these shares were extremely limited with these investments.  They would typically buy and hold these securities until the investee went public.

Bottom line, if your company needs public type money but does not want to wait for the IPO markets to reopen, private placements may be the way to go.  Start by talking with you CPA, your national bank, or your investment banker.

Boris Tomson


How to find Capital Related articles :

Capital budgeting is very important in small business venture capital. It is the process of making investment in capital expenditure. Capital expenditure refers to expenditure and the benefits that are expected over a period of time, especially exceeding one year. The chief characteristic of capital expenditure is that expenses are incurred aggressively at one point in time. The benefits are realized at different points in time in the future. Capital expenditure decisions are also called long-term investment decisions.http://finance-info.synthasite.com

Capital budgeting is very important in small business venture capital. It is the process of making investment in capital expenditure. Capital expenditure refers to expenditure and the benefits that are expected over a period of time, especially exceeding one year. The chief characteristic of capital expenditure is that expenses are incurred aggressively at one point in time. The benefits are realized at different points in time in the future. Capital expenditure decisions are also called long-term investment decisions.

The decisions concerning capital budgeting are crucial because they are long-term oriented and are irreversible in nature. The efficient running of a firm is reflected by the way decisions are made for the effective utilization of the firm’s financial resources. Such capital budgeting decisions are considered to be of paramount importance in heavy investment, long-term commitment of funds and impact on profitability.http://finance-info.synthasite.com

The capital budgeting decisions generally involve very large amounts of capital funds. However, the availability of such funds is very limited. It is essential that thoughtful and wise decisions be made concerning investment of capital funds. This would, result in flow of profits for the firm. Capital budgeting involves employment of capital funds in the activities of the firm on a long-term basis. This increases the financial risk involved in such investment decisions, and necessitates careful and efficient planning. This is because, any wrong and unwise decision may prove disastrous for the small business venture capital firm.

http://finance-info.synthasite.com

harjeetkaur


Entrepreneurs and companies who are seeking venture capital often negotiate with one or more venture capital firms on a number of important issues. These issues include the amount of capital to be raised, the investment terms, etc. The document which summarizes these terms is known as a “term sheet.”

The term sheet is similar to a letter of intent, that is, it is a nonbinding summary of the key points of the transaction. These points are later covered in detail in the Stock Purchase Agreement and related agreements signed at the time of execution of the transaction.

The value of the abbreviated term sheet format is that it speeds up the process of consummating a transaction. Specifically, it allows the parties to agree on the general terms of the transaction rather than having to debate less important details. In addition, because it is not binding, it allows the parties to take their discussions to the next level without the danger of committing too much. Note, however, that some parts of a term sheet may be binding. Typically the binding aspects only refer to confidentiality and disclosure issues.

Venture capital firms, and not the companies seeking capital, typically prepare the term sheet to include the terms under which they are willing to invest their capital. Alternatively, when seeking capital from angel investors, firms typically create their own term sheets for the angels to review. This fact tells a bit about the balance of power in an investment transaction. Venture capital firms are often more sophisticated and have more power than the companies seeking capital. Alternatively, angel investors are typically less sophisticated and have less power, and are more prone to consider the investment terms as laid out by the company seeking capital.

Getting to a term sheet is a key milestone in the capital raising process. Although not all term sheets result in a transaction, the term sheet shows that both parties are legitimately interested in executing a transaction. It is then up to the investor and company to agree upon the details.

OhashiMedia

Presentation from Göran Eriksson and John Garcia

ComputerHistory

[Recorded May 1, 2007]
A 1951 graduate of Harvard Business School, Arthur Rock began his career as a security analyst in New York City before joining the corporate finance department of Hayden, Stone & Co. In 1957 he worked with Alfred “Bud” Coyle to raise financing from Sherman Fairchild to found Fairchild Semiconductor, the company that established Silicon Valley as a world center of innovation in integrated circuit technology.

Mr. Rock moved to California in 1961 and formed a partnership with Tommy Davis. Together they invested $3 million and returned $100 million to their investors. After establishing his own firm, Arthur Rock & Co in 1968, he worked with Fairchild co-founders Gordon Moore and Robert Noyce to launch Intel Corporation, the largest, and by many measures, the most successful semiconductor company in the world today. He notes that “It was one of the few times that I helped start a company that I absolutely knew in my own mind was going to be a big success. I raised the money just on the telephone in something like two days.”

Arthur Rock served as Intel’s first Chairman of the Board and Chairman of the Executive Committee. Based on this experience he has proclaimed Rock’s Law, a corollary to Moore’s Law, which says that “the cost of capital equipment to build semiconductors will double every four years.”

Mr. Rock also invested in and held early stage board positions at pioneering scientific computing company, Scientific Data Systems; at Teledyne, which grew into one of the most successful technology conglomerates in the history of American business, and at Apple Computer. He has contributed to the local community by supporting the San Francisco Museum of Modern Art, the San Francisco Opera, and the California Institute of Technology. In 2003 he donated $25 Million to establish the Arthur Rock Center for Entrepreneurship at Harvard Business School. Professor of Business Administration Howard H. Stevenson says “Arthur Rock is part of the history of American business and entrepreneurship.

sweetie pie


a. commercial paper
b. venture capital financing
c. mezzanine funds
c. short-term commercial bank loans

I think the answer is: a.