Category: Venture Capital

Writing up an effective business plan to attract investors or lenders includes at least three essential items. Part I described the ins and outs of an income statement. This article defines the necessary elements of the balance sheet and Part III outlines the importance of the Cash Flow statement. Putting together a well-polished set of financial statements may be the key to securing the business financing you need. A balance sheet is a measure of how much your business is worth. It can be created […]

When you’re ready to enlist the help of venture capital, angel investors or even your local banker to secure funding for your company, preparing a solid and effective business plan is essential. While the business concept and information on key leadership is certainly important, investors and lenders are always going to want to get down to the nitty-gritty financial details of your firm. They want to know how your business shakes out by the numbers – how much your company is worth and what is […]

Start-up companies have traditionally been out of luck when it comes to scoring venture capital funding, but the VC landscape has seen some definite shifts in the past few years. Now entrepreneurs just starting out may have more financing options than ever before. The progression of technology is helping to make venture capital investment groups more attractive and easier to form. Investors can come together from different parts of the country or even the globe and meet together as often as possible […]

To many entrepreneurs their companies are their babies, their dreams, their passion. And yet there may be a time to let it go or at least relinquish some control of it. Such an instance might be when an early buyout offer is received. A buyout is when another company offers to purchase a majority hole (51 percent or more) of a business, either in stock shares or partnership rights. When the deal is struck, the new owner can continue the business unchanged, but he or she could also merge it with […]

Every stage of owning and growing a business requires a lot of funding. Traditional small business loans are not available or even appropriate for all these stages. Fortunately there are several other viable sources of financing, among which are venture capitalists (VCs). VCs are investors who provide promising companies with cash in exchange for an equity stake and the hope of greater profits in the future. There are venture capitalists seeking for opportunities in every market segment and many […]

Many companies need a helping hand when they are struggling to tide them over until business picks up. A bridge loan is a common means of business financing for just that purpose. Before diving into a bridge loan however, it is important to understand all it entails. First, a bridge loan – also known as a swing loan or gap financing – is a temporary business loan using collateral such as real estate or inventory. The collateral could also be receivables, fixed assets, or intellectual property. […]

In the process of growing a successful company, finding the next round of funding is always on the business owner’s mind. Initial Public Offerings (IPOs) can be an exciting avenue to cash but they can also be complicated and expensive. In some cases a private placement round may be more effective. What is Private Placement? A private placement is a securities offering not to the public, but to a select group of private investors, typically institutional investors like insurance companies, banks, […]

Angel investors and venture capitalists have been a major source of funding for small businesses in the past, but according to a recent survey by Massolution, crowdfunding may soon overtake both groups as the financing vehicle of choice. The survey found that crowdfunding is on track to provide more funding to small businesses by 2016 than VCs. The crowdfunding industry has grown from just $880 million in investments in 2010 to $16 billion in 2014 and a projected $34 billion for 2015. By contrast, […]

Once your business has gotten through its seed funding round and the gears of success are start to turn, your next step is likely to get another infusion of capital through investment. This is the arena of venture capitalists. They look for thriving small companies that can bring them large returns on their investment. If you have made it to the stage where you can attract the attention of VCs, your business is in a good spot. Once you are ready to take on some of those investors, the key is to create […]

Angel investors and venture capitalists get a lot of attention when it comes to small business financing, but in reality startups get much more business funding from family and friends. A report from Fundable.com found that 2013, friend and family members poured $60 billion into small businesses while venture capitalists invested just $22 million and angel investors contributed only $20 billion. In fact 38% of all startup entrepreneurs in 2013 raised money from their loved ones, with the average […]