Category: Venture Capital

There are seemingly millions of articles out there on the Internet handing out advice on how to financially run a better business and it can be difficult to sort through all the static. In reality, there are a few basic principles that when followed will lead to success time and again. 1. Have Focus and Stick to It A business will be successful and find the needed investors when it has a clear mission and fulfills a real need. It is important to define your company’s meaning and then make financial […]

Having enough cash on hand – working capital – to pay for day-to-day operations is essential for creating a successful small business and yet accomplishing that task is actually much tougher than it sounds. It will require some careful thought and planning. THINK BIG Start by making some long-term plans and projections for your business. You need to have a very good estimate of how much money you plan to bring in over the course of a month and during the whole year. You should also think through […]

The world of venture capital is constantly evolving, with investors looking for different products and services. There are a few things that tend to remain a priority with venture capitalists, however. If you are hoping to attract some investment capital to your firm, here are a few of those traits that VCs are hoping to find. Capable Networkers It is no secret that getting face-time with venture capitalists is much easier if you network your way to them rather than cold-calling or emailing. […]

Fledgling startup companies are often in search of a cash infusion via angel investor or venture capital. The problem is these types of funding are hard to come by for small businesses without much history. Many startups will try to follow conventional business wisdom to grow until they can attract and angel or VC. However, there times when sticking to traditional paths may not be the best way to obtain the desired financing. Sometimes as a business is getting off the ground, there may be significant […]

Traditonally, one of the biggest windfalls for fledgling companies has been the support of angel investors. These individuals or groups provide much needed capital to small businesses in exchange for convertible debt or equity in the company. In the past the only way to land angel investor deals was to make loads of business contacts, do lots of networking and make lots of pitches to individual or investment groups in the hopes that one might be interested. Today, more and more angel investors are […]

Small businesses are often in need of funding for everything from new equipment and inventory to real estate space to hiring new employees. The traditional sources of business financing include bank loans, venture capitalists, friends and family and just plain boot-strapping. Some entrepreneurs also turn to their credit cards or short-term online loans to fill their working capital gaps. There may be yet another option that while rarely used can be sometimes fit the bill – inviting employees to […]

If you are prepared to give that information, you can kick your stress level down a notch and get to work at finding the right VC or angel investor

In the course of trying to raise money for your business needs, you have the choice of seeking dilutive or non-dilutive financing. Each has a role to play, but it is important to time them right to make the most of your ownership. Dilutive financing is any type of capital received by your company that diminishes your ownership. This includes deals with angel investors and venture capitalists when you give up a portion of your equity to gain their cash. It also includes any public or private rounds […]

A successful investment campaign for your growing company will include pitching your firm to the right investors or lenders. And part of convincing those people to invest their cash in your company is presenting them with a succinct and promising business plan. The first two parts of this article discussed the income statement and balance sheet, and this last part goes over the importance of the cash flow statement. A cash flow statement tracks how your company generates and uses cash during a […]