What You Need to Know About Venture Capital

When a venture capitalist takes the decision of investing in a small company, he or she does so after carefully studying the business plan for a period of up to 3 years. Generally the offers that enter this process are those that are different and innovative with a high potential for success. Venture capital funds follow a different set of rules than those established by banks. For instance, a venture capitalist will give great importance to the documents presented, the experience and profile of the entrepreneur, the idea of the business and the product it will offer to the market, and of course its innovative qualities.

Venture capital is obtained after going through a complex process. Depending on the kind of venture capital we are talking about, the investor may choose to buy shares (ordinary or preferred), or agree to receive advances on their bank accounts.

Venture capital is not intended to remain indefinitely invested in the company. Its intervention should be ad hoc and limited in time. The output can be achieved by: reduction or amortization of capital, the repurchase of securities by original partners at an agreed price, the resale of securities to a financial or industrial group, and by the sale at a capital development.

The capital gains that the venture capitalists obtain come essentially from the sale value of the shares they bought. The risks they take are: never being able to sell the shares, or losing everything if the company disappears.

You may be wondering, who are these investors? Well, venture capital can be given by angel investors, venture capital companies, or venture capital funds that help small business that have innovative or different ideas.

We present you here a list of factors that venture capitalists will take into account when choosing a company:

For investors what the company does and how it does it is important. They will want to know whether the business produces, creates, develops or recovers.

Status of the capital investment: public, semi public or private. The criteria for entry to the capital of a company can vary depending on the nature of the company that owns the fund.

Minimum and maximum amount granted: there is no need to contact a speaker funds from 1million Euros while your need for investment is estimated at 200,000.

The areas of funding are particularly important to venture capitalists because some may look for specific areas: technology, innovation, etc. As well, as if coverage is requested for a small or large geographic area.… Read More

The Art of the Start by Guy Kawasaki – Book Review

The Art of the Start, The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything, offers readers both good news and bad news on starting up a company. The good news offered by Guy Kawasaki rests upon his background as a venture capitalist. Kawasaki is the managing director of Garage Technology Ventures, an early stage venture capital firm. According to their web site, “Garage Technology Ventures is a seed-stage and early-stage venture capital fund. We’re looking to invest in extraordinary entrepreneurs who have the ability to build great teams and great companies.” Thus the good news revolves around strategies to pitch business ideas to venture capitalists, positioning your company, writing a business plan, “making mantra”, etc. These are all important activities and based on sound advice. Kawasaki offers exercises, tidbits and suggestions on redefining thinking in entrepreneurial terms, all helpful to early stage entrepreneurs.

The bad news revolved around bootstrapping and the fact that there was only one chapter on this truly important topic. The Art of the Start seemed slanted toward the “come up with an idea, write the business plan, pitch to venture capitalists, secure early stage venture, increase sales, find additional venture, liquidation event road”. I strongly favor bootstrapping, self funding and virtual business ideas over the borrow tons of venture capital funds to succeed path, and fully understand that reader bias could have crept into this perspective.

If your entrepreneurial idea absolutely requires the significant capitalization that venture capitalists offer, The Art of the Start should definitely be at the top of your list. There is an execellent section on pitching to venture capitalists complete with the questions which are likely to be asked and suggestions on the best answers to offer would be venture investors. I found the book to be well written and thought provoking, particularly enjoying the final chapter, The Art of Being a Mensch (and the three foundations of menschhood), which Kawasaki recommends that the reader reads first. So, the good news is, though there are more aspects to this book than venture funding, you should definitely read this book if you’re thinking of venture capital funding. The bad news is that statistically, entrepreneurs are better off finding alternatives to venture capital funding and might be better off reading books focused on alternatives to venture capital funding. Regardless, I enjoyed The Art of the Start and found it an interesting read.… Read More

What To Expect When Applying For Life Insurance?

For many, Life Insurance is the most affordable, reliable and secure way to ensure their families have enough financial resources in place in the event of a loss. Applying for Life Insurance is now easier than ever with options to apply right on-line.

THE APPLICATION PROCESS: The Life Insurance application will ask for some basic information including:

– Name, address

– Height, weight, date of birth

– Habits and lifestyle (smoking habits)

– Medical history

ALWAYS TELL THE TRUTH! When getting life insurance quotes, it’s important to tell the truth. The information you provide helps the insurance company calculate the policy premiums and if an insurer discovers you have lied on your application about basic information OR lifestyle/habits, it could result in an increase to your premium, the cancellation of your policy or coverage, or the denial of your claim.

In some cases, insurance companies will accept your application answers for health-related questions. However, some will require an in-person medical exam. Typically, for lower coverage amounts of up to $250,000 or less, a simple health questionnaire is likely. For higher coverage amounts or for customized individual insurance policies a detailed health screening is more common. Where this is required, your insurance provider will arrange for a medical examiner to visit your home or office, or you will be asked to attend a clinic selected by the insurance company, where they will review your personal and immediate family medical history, take your blood pressure, check your physical attributes, take a blood & urine sample and also review your lifestyle habits that could affect your overall health, including exercise, smoking, alcohol, stress, hobbies, etc. Depending on your age, there may be additional testing like an EKG, X-Rays, or cardiovascular tests.

Once examined, an insurance underwriter will review your application and medical exam results and either deny or approve your request to purchase. If approved they will then move forward with issuing the policy or coverage. If the policy or coverage is issued, you may be assessed an additional risk-based premium, depending on your health status.

In the end, take the time to educate yourself about your life insurance options and be honest throughout the application process. A good insurance broker can help you through the process and find the policy that provides the coverage you need at a price you can afford.

If convenience is what you are looking for, you can research and apply right online Some providers will even give you an answer on your application status right then and there.

For those of you who do not like the idea of completing even a simple health questionnaire, there is always the option to purchase a minimal amount of life insurance that will help cover final expenses (less than $25,000). For many of these types of insurance, where your acceptance is guaranteed and the enrollment process does not require any type of medical screening, you will pay a little more for the guaranteed enrollment.… Read More

Finance Quotes, That is How You Get the ideal

When you are hunting for funding to begin a project, obtain a residence or perhaps a automobile, it can be always advisable to examine prices and get the very best deal obtainable. Depending on what you may need to finance, there are many areas which you can find quotes. The web has lots of bargains which are available but you must know exactly where to look. You are going to see the kinds of funds obtainable and after that you are able to determine which 1 functions finest for you. You’ll find two ways to get funding which you can select from. It is possible to go for a secured or unsecured loan.

The secured loan is economical as you may have collateral that acts as safety. If you go for this option, you are in a position to pay reduced interest rates and also your month-to-month prices are reduced. The industry is overwhelmed with these lenders.

So for them to become able to have customers they have to come up with competitive loan packages to ensure that you may select the 1 that you just feel suits you best. They use finance quotes to tell you regarding the package they’re supplying. You also get a description from the terms and conditions which are supplied by the lender. They act as a deciding element about which loan package you are going to pick.

To become capable to access the very best finance quotes, you’ll be able to search on line and you can then select the one particular that you simply feel is suitable for your needs. Finance quotes are there to provide you alternatives and also give you an estimate of what you are going to devote prior to you essentially commit oneself to it.… Read More

Who Can You Trust With Your Financial Future?

In this current economic environment, you may be thinking you can’t trust anyone else with your money. You may think you’re better off handling your own finances. But with this frustrating turmoil, it is more important than ever to have an expert financial planner and investment manager on your side.

Fortunately, there is an entire organization whose members have committed as fiduciaries to keep only their clients’ best interests in mind when conducting their services.

The organization is called the National Association of Personal Financial Advisors, or NAPFA, and its group of focused members has signed a commitment to put their clients’ interests above their own. Among more than 30,000 professional Certified Financial Planners, only about 1,500 of them are willing to make the required commitment to become part of NAPFA. These are the professionals you need to look to when seeking investment management services. These are the professionals you should trust with your money.

“Brokers at many of the large national financial firms are essentially sales people, trying to earn commission by selling their clients the latest ‘product’ the firm is pushing,” says Martin Hopkins, president of Hopkins Investment Management and a long-time advocate for integrity within financial planning. “NAPFA members must meet certain qualification requirements, and we recognize that it is in our best interest to give our clients the best advice possible, in order to grow and succeed with them.”

NAPFA “fiduciaries” work as fee only, meaning they don’t receive commission, kick-backs, or benefit of any kind, seeking instead to focus solely on the best investment strategies for their clients. Income source is fully disclosed and is usually a percentage of assets managed, putting them on the same side of the table as their clients. Many of the brokerage firms, on the other hand, claim to operate as “fee-based,” but it is little more than a thinly veiled attempt to hide the fact that they can also earn commissions on the investments they recommend to clients. This attitude is exactly what has contributed to the slow implosion of the global financial world.

“Independent fiduciaries like those within NAPFA are not beholden to sales goals and demanding executives who see numbers, not people,” adds Hopkins. “We like to think of ourselves as professional counsel, personally working with our clients to provide an ongoing service that takes everything into account, from college and retirement planning to estate planning and beyond, with a holistic approach to managing and growing what each individual client has and currently earns, as well as any future earning potential.

It may be tempting right now to try to handle your financial planning on your own. But in order to succeed, it is far safer to have an expert on your side. The key is in finding someone you can trust with your money, and that is NAPFA’s sole purpose. It’s about putting you at ease with the assurance that you have placed your future in the hands of someone who knows how important … Read More