Thursday, January 5, 2012
Tuesday, October 11, 2011
What is Venture Capital Fund?
Having your own business is one of the dreams and goal of the average person. Most of us would rather be their own boss than become someone else's employee. Unfortunately having your own business is not easy. Money is difficult to earn and more difficult to find, well unless you are already well off.
Starting your own business may take a lot of thinking, guts and money. Fortunately new entrepreneurs have other options in finding funds for their business. A venture capital fund is a private equity from outside investors.
People who provide these funds are called venture capitalists. These are a group of wealthy investors, financial institutions and investment banks that can gather investments. They invest in new businesses that are still starting in the industry. In return they get a portion of the equity and have a say in the company's decisions.
Business ventures
We often hear business ventures from rich people. Most investors who have enough money will embark on a limited partnership with a new company. This may sound good for aspiring entrepreneurs but it is not easy. Venture capitalists have now become more conscious and careful since the dotcom bust. They may not mind taking the risk but they have become more selective on where to invest their money.
Venture capitalists are usually executives from a firm. These investment professionals are referred to as limited partners. These are a group of people who have access to large sums of money for capital. These funds usually come from private and state pension funds, foundations, financial endowments, investment companies and other institutions.
Investors are usually grouped according to their interest. Most venture capitalists invest on starting companies. These companies are usually high-technology businesses such as electronics, computers, research and development. These funds usually last for ten years. The general partners or VCs receive a 2 percent management fee every year and require 20% of the net profits. They invest in more than one starting company for more returns in the long run.
Venture capitalists are very selective and most of the time has strict requirements. Apart from that they also have a say in the company's decisions which may not be good for the company. Venture capitalists are known to invest a lot of money in a short amount of time.
They may invest in advertising your company for magazines but are not exactly suited for your type of customers. Companies end up spending money at a faster rate before they can learn how to do it and earn positive returns in the process.
For other entrepreneurs who have a hard time getting their business plans approved they may turn to angel investors. Angel investors are individuals who also have access to large amount of capital and are willing to invest money on highly speculative start up companies. These businesses usually don't have a solid proof for their technology or have a great potential for its product or services at the start.
If you really need a venture capitalist fund make sure that you will pick a general partner that will work with you not just for the money. Venture capitalists can kick out the founders out of the way and bring in their trained CEOs. At the end of the day it is still a business that you can either work for or have it taken from you.
Starting your own business may take a lot of thinking, guts and money. Fortunately new entrepreneurs have other options in finding funds for their business. A venture capital fund is a private equity from outside investors.
People who provide these funds are called venture capitalists. These are a group of wealthy investors, financial institutions and investment banks that can gather investments. They invest in new businesses that are still starting in the industry. In return they get a portion of the equity and have a say in the company's decisions.
Business ventures
We often hear business ventures from rich people. Most investors who have enough money will embark on a limited partnership with a new company. This may sound good for aspiring entrepreneurs but it is not easy. Venture capitalists have now become more conscious and careful since the dotcom bust. They may not mind taking the risk but they have become more selective on where to invest their money.
Venture capitalists are usually executives from a firm. These investment professionals are referred to as limited partners. These are a group of people who have access to large sums of money for capital. These funds usually come from private and state pension funds, foundations, financial endowments, investment companies and other institutions.
Investors are usually grouped according to their interest. Most venture capitalists invest on starting companies. These companies are usually high-technology businesses such as electronics, computers, research and development. These funds usually last for ten years. The general partners or VCs receive a 2 percent management fee every year and require 20% of the net profits. They invest in more than one starting company for more returns in the long run.
Venture capitalists are very selective and most of the time has strict requirements. Apart from that they also have a say in the company's decisions which may not be good for the company. Venture capitalists are known to invest a lot of money in a short amount of time.
They may invest in advertising your company for magazines but are not exactly suited for your type of customers. Companies end up spending money at a faster rate before they can learn how to do it and earn positive returns in the process.
For other entrepreneurs who have a hard time getting their business plans approved they may turn to angel investors. Angel investors are individuals who also have access to large amount of capital and are willing to invest money on highly speculative start up companies. These businesses usually don't have a solid proof for their technology or have a great potential for its product or services at the start.
If you really need a venture capitalist fund make sure that you will pick a general partner that will work with you not just for the money. Venture capitalists can kick out the founders out of the way and bring in their trained CEOs. At the end of the day it is still a business that you can either work for or have it taken from you.
What do Venture Capitalists Want?
Venture capitalists come across a lot of companies that need funding everyday. Harsh as it may seem only 10 percent of the applicants will receive funding for their business. Each firm has their standards to uphold to be able to diversify their portfolio.
To be able to stay ahead of the competition you must be able to communicate what your company is all about and at the same sell it by giving what they want. There are many private equity firms in the market but even those that are willing support small business what to know that you are worth what they are paying for.
To be able to have a competitive edge against other applicants, ask yourself this: "what do venture capitalists want? By putting yourself in the shoes of an investor you will have an idea of what convinces them to provide funding for an emerging company. Apart from a topnotch and comprehensive business plan you also need to make a good impression to your investors.
Search for information on private equity firms and venture capitalists that might be interested in your business. There is a wide selection of venture capitalists that invest in different types of business.
What do investors want?
Any investor would want to know who they are dealing with. You and your management team's background will be one of their focuses. A highly successful business is made up of a competent and ambitious management. After all, these are the people who will be spending their money. Your and your management should be able to cope up with the changes and demands of your business. You must understand the nature of your business very well, including the challenges you will face in the future.
Investors want to know that the business they are going to invest in has an innovative idea with a great potential for growth. The target market of your business must be substantial and the same time rapidly growing. Your business must have a valuable product that has the potential for positive returns in the long run. Apart from that you must also provide them credible figures. This includes the changes that may occur when the economy shifts.
They want to know how you will spend the money and how will they earn. As an investor, you want to be sure that you're investing in the right place. They want to know how you are going to use the funds provided for growth and positive returns. They want to know when the pay day is and how long it's going to take. You have to convince them that they will earn money as soon as possible. They also want to know how long you're going to need the funds and how much your business is going to need.
These are things that you have to consider when presenting your business. In reality you are actually selling your product like a sale pitch. In normal cases there will always be more rejects than approvals. Even Angel investors have their own standards to keep. Your idea must not be just be brilliant but also profitable.
In the end the investor will always want to know what they are going to get with a good exit strategy for them. The gift of gab along with good business plan is the key in getting your investor's attention.
To be able to stay ahead of the competition you must be able to communicate what your company is all about and at the same sell it by giving what they want. There are many private equity firms in the market but even those that are willing support small business what to know that you are worth what they are paying for.
To be able to have a competitive edge against other applicants, ask yourself this: "what do venture capitalists want? By putting yourself in the shoes of an investor you will have an idea of what convinces them to provide funding for an emerging company. Apart from a topnotch and comprehensive business plan you also need to make a good impression to your investors.
Search for information on private equity firms and venture capitalists that might be interested in your business. There is a wide selection of venture capitalists that invest in different types of business.
What do investors want?
Any investor would want to know who they are dealing with. You and your management team's background will be one of their focuses. A highly successful business is made up of a competent and ambitious management. After all, these are the people who will be spending their money. Your and your management should be able to cope up with the changes and demands of your business. You must understand the nature of your business very well, including the challenges you will face in the future.
Investors want to know that the business they are going to invest in has an innovative idea with a great potential for growth. The target market of your business must be substantial and the same time rapidly growing. Your business must have a valuable product that has the potential for positive returns in the long run. Apart from that you must also provide them credible figures. This includes the changes that may occur when the economy shifts.
They want to know how you will spend the money and how will they earn. As an investor, you want to be sure that you're investing in the right place. They want to know how you are going to use the funds provided for growth and positive returns. They want to know when the pay day is and how long it's going to take. You have to convince them that they will earn money as soon as possible. They also want to know how long you're going to need the funds and how much your business is going to need.
These are things that you have to consider when presenting your business. In reality you are actually selling your product like a sale pitch. In normal cases there will always be more rejects than approvals. Even Angel investors have their own standards to keep. Your idea must not be just be brilliant but also profitable.
In the end the investor will always want to know what they are going to get with a good exit strategy for them. The gift of gab along with good business plan is the key in getting your investor's attention.
Venture Capital — Things that You Should Know
"Venture capital" is a term that is often heard in business discussions. But more often than not, the more common belief is that this is rather complicated and difficult to understand, especially for those who are new in the game of business. For entrepreneurs and anyone who may be interested to get into business, it is important to understand what this is all about.
Venture capitalists and firms are composed of people and firms that have pooled in their resources in order to invest in businesses, whether to start-up financing or for company expansion, for the purpose of earning profits within a short period of 3-7 years. The goal is to increase the company's value so as to yield more profit at its exit, which may be an initial public offering or what is commonly known as IPO. Other exits include an investor's buyout, a merger, or an acquisition.
These firms concentrate on a certain field or area. It is therefore important that you know what these areas are. This is called investment criteria. If you have a specific area in mind which does not match that of the firm, there are many other firms that you can find. You just have to know where to look.
The web is one source of venture capital firms. Make a search on the internet. Some sites are helpful enough to provide listings of these firms as well as other tips such as how to draft your proposal, how to raise venture capital, among others.
When you've found the investor to match, it is then time to draft your proposal. It should be truthful, direct and thorough. You might want to ask a professional to check on your proposal before submitting it. Your proposal should leave a mark in the minds of the capitalists, since they have to go through tons of them. An estimate of 1 in every 400 proposals gets approved, so it is imperative that your proposal be impressive.
When we talk of profit and earnings, we're not talking of a few thousand dollars in a year. These firms seek a return of up to five, even ten, times the initial investment, not to mention the management fees and other fees that they require.
This explains why these firms tend to take the reins of the company. That is why it is important that you organize a solid management team that knows what they're doing and at the same time is able to handle the pressure from these capitalists. But while it helps if you appear to manage the company well, it is still important to listen and follow the strategies that these firms provide. Aside from being tried and tested policies, following their decisions will also benefit you in the long run should you need more capital.
Venture capital is a wise investment alternative for both entrepreneurs and capitalists. You and the investment firm have a common goal, and that is to receive as much profit as possible after a short period of time.
If this is not what you want or does not seem feasible to you, then there are other financing options that you can avail of. The important thing is to weigh all pros and cons before deciding anything.
Venture capitalists and firms are composed of people and firms that have pooled in their resources in order to invest in businesses, whether to start-up financing or for company expansion, for the purpose of earning profits within a short period of 3-7 years. The goal is to increase the company's value so as to yield more profit at its exit, which may be an initial public offering or what is commonly known as IPO. Other exits include an investor's buyout, a merger, or an acquisition.
These firms concentrate on a certain field or area. It is therefore important that you know what these areas are. This is called investment criteria. If you have a specific area in mind which does not match that of the firm, there are many other firms that you can find. You just have to know where to look.
The web is one source of venture capital firms. Make a search on the internet. Some sites are helpful enough to provide listings of these firms as well as other tips such as how to draft your proposal, how to raise venture capital, among others.
When you've found the investor to match, it is then time to draft your proposal. It should be truthful, direct and thorough. You might want to ask a professional to check on your proposal before submitting it. Your proposal should leave a mark in the minds of the capitalists, since they have to go through tons of them. An estimate of 1 in every 400 proposals gets approved, so it is imperative that your proposal be impressive.
When we talk of profit and earnings, we're not talking of a few thousand dollars in a year. These firms seek a return of up to five, even ten, times the initial investment, not to mention the management fees and other fees that they require.
This explains why these firms tend to take the reins of the company. That is why it is important that you organize a solid management team that knows what they're doing and at the same time is able to handle the pressure from these capitalists. But while it helps if you appear to manage the company well, it is still important to listen and follow the strategies that these firms provide. Aside from being tried and tested policies, following their decisions will also benefit you in the long run should you need more capital.
Venture capital is a wise investment alternative for both entrepreneurs and capitalists. You and the investment firm have a common goal, and that is to receive as much profit as possible after a short period of time.
If this is not what you want or does not seem feasible to you, then there are other financing options that you can avail of. The important thing is to weigh all pros and cons before deciding anything.
Sources of Venture Capital News
Venture capital is one industry that has been around for the past 60 years or so. However, just like any industry, it continues to evolve and change. Much of its development can be attributed to the internet. Because of it, things are faster and easier. Any updates on venture capital and any venture capital news are readily available to the rest of the world through the internet.
Aside from the internet, there are other sources of venture capital news. Old, traditional sources such as newspapers and magazines continue to provide the necessary updates and information that venture capitalists and entrepreneurs need. These are also good sources of legal updates in the field of venture capital.
But any information that we can find in magazines and newspapers can also be found in the internet. Aside from the printed materials in circulation, they also operate websites where the articles are posted.
Newsletters and emails are also sources of news. Subscription to a specific site sometimes includes subscription to their daily or weekly newsletters. Here service providers help entrepreneurs by providing them with useful articles and practical information. Contributions from business experts and capitalists can also be found in these newsletters.
Discussion groups and forums are also good venues to post updates. Here you are able to exchange ideas and interact with fellow entrepreneurs like you. They can provide you with tips in the different aspects of venture capital, from raising venture capital to drafting of proposals to exit strategies.
Articles on venture capital are not limited to business pages or sites. There are sites which are specifically dedicated to venture capital. These sites post news and provide video streaming as well. News articles are sometimes classified into more specific topics such as buyout news, industry news, fund news and transition news.
This makes it easier for the reader to choose which articles to read. So if you are interested in buyouts only, for example, then you don't have to go through all articles to find the news that you want. The articles are also arranged by date, also to make it more accessible.
Because the internet is worldwide in scope, these articles can therefore be accessed by practically everyone anywhere, in the same way that we can read news and updates in their countries. This goes to show that venture capital is a worldwide phenomenon. In the US alone, close to $29.9 billion was used for venture capital investment in 2007.
Also, capitalists are not looking at the US markets only but have considered funding companies and businesses in China, India and other developing countries in Asia. This is good news for these countries with vast manpower resources but limited funding.
Through these articles, you become informed of the latest trends in VC. Last year, the trend was towards early stage investing. It was estimated that 35 percent of VC investments will go to seed and early stage deals. On the other hand, expansion-stage funding decreased.
There are some really good websites which provide venture capital news and more. Aside from news, they also provide listings of venture capital firms and the companies that they helped fund.
Find these websites and bookmark them. For young entrepreneurs, these sites are useful for them to know more about venture capital.
Aside from the internet, there are other sources of venture capital news. Old, traditional sources such as newspapers and magazines continue to provide the necessary updates and information that venture capitalists and entrepreneurs need. These are also good sources of legal updates in the field of venture capital.
But any information that we can find in magazines and newspapers can also be found in the internet. Aside from the printed materials in circulation, they also operate websites where the articles are posted.
Newsletters and emails are also sources of news. Subscription to a specific site sometimes includes subscription to their daily or weekly newsletters. Here service providers help entrepreneurs by providing them with useful articles and practical information. Contributions from business experts and capitalists can also be found in these newsletters.
Discussion groups and forums are also good venues to post updates. Here you are able to exchange ideas and interact with fellow entrepreneurs like you. They can provide you with tips in the different aspects of venture capital, from raising venture capital to drafting of proposals to exit strategies.
Articles on venture capital are not limited to business pages or sites. There are sites which are specifically dedicated to venture capital. These sites post news and provide video streaming as well. News articles are sometimes classified into more specific topics such as buyout news, industry news, fund news and transition news.
This makes it easier for the reader to choose which articles to read. So if you are interested in buyouts only, for example, then you don't have to go through all articles to find the news that you want. The articles are also arranged by date, also to make it more accessible.
Because the internet is worldwide in scope, these articles can therefore be accessed by practically everyone anywhere, in the same way that we can read news and updates in their countries. This goes to show that venture capital is a worldwide phenomenon. In the US alone, close to $29.9 billion was used for venture capital investment in 2007.
Also, capitalists are not looking at the US markets only but have considered funding companies and businesses in China, India and other developing countries in Asia. This is good news for these countries with vast manpower resources but limited funding.
Through these articles, you become informed of the latest trends in VC. Last year, the trend was towards early stage investing. It was estimated that 35 percent of VC investments will go to seed and early stage deals. On the other hand, expansion-stage funding decreased.
There are some really good websites which provide venture capital news and more. Aside from news, they also provide listings of venture capital firms and the companies that they helped fund.
Find these websites and bookmark them. For young entrepreneurs, these sites are useful for them to know more about venture capital.
Kinds of Venture Capital Jobs
Venture capital is one fast-expanding field in the industry. Every year, there is an increase in the number of venture capital firms not only within the country but also in other parts of the world.
Taken individually, these firms have likewise expanded by providing their services not only within the state or country but even overseas. With the rise of venture capital firms is the rise of venture capital jobs.
There are only a few capitalists in a firm, so it is impossible for them to do everything. As they incorporate to make a firm, these capitalists are called partners, which may be of two types. One type is called a general partner or venture capitalist. These are the capitalists that we see and are known as such. They are executives who may have been former chief executives or senior executives in their previous companies.
The investors are called limited partners. They may be individuals or institutions such as pension fund, foundations and other insurance companies. These limited partners may or may not be known by the public.
These capitalists receive compensation in the form of annual management fee, which is 2 percent of invested capital, and carried interest, which is 20 percent of net profits.
What other jobs are available in venture capital firms? It is a given that these jobs are business related, so an educational background in business or finance is necessary.
There is therefore the need of accountants and financial analysts. These are the people who screen proposals and recommend approval of qualified ones. Some also work as researchers, focusing on the trends in a specific field or industry. There are also those who work on products and process development. In general, these employees are called associates. After working for a couple of years, they may be promoted to senior associate position, and so on.
There are others who work as financial advisers and consultants. These are the people who work on a project basis. Their services are sought only when the need arises. They are usually people who are financial experts with respect to the industry that the firm hopes to work on. They also have an extensive background on the economic and financial status of the industry.
The firm may also employ managers. These are the executives who would manage the affairs of a new company that the firm funded. Usually they form part of the management team or board of directors. These managers, together with the management team, run things around the company. They see to it that the company follows the procedure and policies that the firm has imposed, and give remarks and recommendation on how things can be improved.
There is also what we call as entrepreneur-in-residence or venture partners. Their responsibility is in bringing in deals for the firm. They are employed for a specific temporary period, usually as the firm begins to operate.
Capitalists are not the only people in a venture capital firm. There are still others working to make it an efficient, well-organized entity. So if you want to pursue a career in venture capital, there are many venture capital jobs available for you.
You can search internet listings and classified ads for any vacancies. Now is the right time for you to join this booming industry.
Taken individually, these firms have likewise expanded by providing their services not only within the state or country but even overseas. With the rise of venture capital firms is the rise of venture capital jobs.
There are only a few capitalists in a firm, so it is impossible for them to do everything. As they incorporate to make a firm, these capitalists are called partners, which may be of two types. One type is called a general partner or venture capitalist. These are the capitalists that we see and are known as such. They are executives who may have been former chief executives or senior executives in their previous companies.
The investors are called limited partners. They may be individuals or institutions such as pension fund, foundations and other insurance companies. These limited partners may or may not be known by the public.
These capitalists receive compensation in the form of annual management fee, which is 2 percent of invested capital, and carried interest, which is 20 percent of net profits.
What other jobs are available in venture capital firms? It is a given that these jobs are business related, so an educational background in business or finance is necessary.
There is therefore the need of accountants and financial analysts. These are the people who screen proposals and recommend approval of qualified ones. Some also work as researchers, focusing on the trends in a specific field or industry. There are also those who work on products and process development. In general, these employees are called associates. After working for a couple of years, they may be promoted to senior associate position, and so on.
There are others who work as financial advisers and consultants. These are the people who work on a project basis. Their services are sought only when the need arises. They are usually people who are financial experts with respect to the industry that the firm hopes to work on. They also have an extensive background on the economic and financial status of the industry.
The firm may also employ managers. These are the executives who would manage the affairs of a new company that the firm funded. Usually they form part of the management team or board of directors. These managers, together with the management team, run things around the company. They see to it that the company follows the procedure and policies that the firm has imposed, and give remarks and recommendation on how things can be improved.
There is also what we call as entrepreneur-in-residence or venture partners. Their responsibility is in bringing in deals for the firm. They are employed for a specific temporary period, usually as the firm begins to operate.
Capitalists are not the only people in a venture capital firm. There are still others working to make it an efficient, well-organized entity. So if you want to pursue a career in venture capital, there are many venture capital jobs available for you.
You can search internet listings and classified ads for any vacancies. Now is the right time for you to join this booming industry.
How and Where to Find Venture Capital Insurance
Venture capital insurance is one topic which may seem complicated to most people. But once you try to understand how the system works, you'd soon discover that the topic is not that difficult to grasp. This explains why more and more new entrepreneurs have chosen this financing alternative than the more common ones like bank loans and mortgages. Through books and the internet, you will learn more about venture capital.
Venture capital is provided by venture capital firms to start up or build small businesses. The idea is to provide funding and control the company operations in order for the company to grow within a couple of years, and for the firm to receive more than what it has invested. That is why most firms focus on high-return industries such as those related to technology and internet businesses.
You can find some listings of venture capital firms in your area. Or it can be that someone you know also knows some people working in these firms. Referrals or recommendation from your friend will give you an edge for approval of your proposal.
Do not submit your proposal to any firm available. That would only waste your time and energy. It is important that your proposal be in the same field as the investment criteria of the firm that you've chosen, so do some research beforehand. Also, this firm must also be compatible with your company's financial needs as well as growth strategies.
There are ways to submit your proposal, the most common of which is through email. In doing so, make sure that you personalize the correspondence. Know where and to whom the email be sent. Nothing can be more distasteful than mass emails. Another way is by posting them in the internet. There are legitimate sites where you can post funding requests. Some capitalists find it more convenient to browse through these websites rather than receiving massive emails everyday.
Avoid submitting them in trade shows. For one, you are required to pay before you can attend. Also, the capitalists that attend these shows are second-rate ones, not the type of businessmen which you would want to deal with.
Since these industries have made extensive research in their field of choice, and since they have the necessary experience in managing related companies, it is therefore important that you draft your proposal well. Make a thorough research.
Know the product that you wish to sell and the market that you wish to enter. Your proposal should be short yet complete. More importantly, it should be truthful. These investors can easily detect any false claims or mere hype in the proposal.
There are some softwares available that will guide you through the drafting process. There are also some websites which provide for outlines that you can follow. If possible, you must seek help from a professional to check what you've drafted before submitting them.
Finding venture capital insurance is one thing. Working with venture capital funds is another story. It takes a lot of hard work and perseverance in order for one to be successful in the business that you wish to establish.
Lastly, there is no assurance of success or profit, not even for the venture capital firms. But of course, if you hit the jackpot, the rewards can also be high.
Venture capital is provided by venture capital firms to start up or build small businesses. The idea is to provide funding and control the company operations in order for the company to grow within a couple of years, and for the firm to receive more than what it has invested. That is why most firms focus on high-return industries such as those related to technology and internet businesses.
You can find some listings of venture capital firms in your area. Or it can be that someone you know also knows some people working in these firms. Referrals or recommendation from your friend will give you an edge for approval of your proposal.
Do not submit your proposal to any firm available. That would only waste your time and energy. It is important that your proposal be in the same field as the investment criteria of the firm that you've chosen, so do some research beforehand. Also, this firm must also be compatible with your company's financial needs as well as growth strategies.
There are ways to submit your proposal, the most common of which is through email. In doing so, make sure that you personalize the correspondence. Know where and to whom the email be sent. Nothing can be more distasteful than mass emails. Another way is by posting them in the internet. There are legitimate sites where you can post funding requests. Some capitalists find it more convenient to browse through these websites rather than receiving massive emails everyday.
Avoid submitting them in trade shows. For one, you are required to pay before you can attend. Also, the capitalists that attend these shows are second-rate ones, not the type of businessmen which you would want to deal with.
Since these industries have made extensive research in their field of choice, and since they have the necessary experience in managing related companies, it is therefore important that you draft your proposal well. Make a thorough research.
Know the product that you wish to sell and the market that you wish to enter. Your proposal should be short yet complete. More importantly, it should be truthful. These investors can easily detect any false claims or mere hype in the proposal.
There are some softwares available that will guide you through the drafting process. There are also some websites which provide for outlines that you can follow. If possible, you must seek help from a professional to check what you've drafted before submitting them.
Finding venture capital insurance is one thing. Working with venture capital funds is another story. It takes a lot of hard work and perseverance in order for one to be successful in the business that you wish to establish.
Lastly, there is no assurance of success or profit, not even for the venture capital firms. But of course, if you hit the jackpot, the rewards can also be high.
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