Monthly Archives: October 2012
To be a Venture capitalists broker you need money, you need to be considered an accredited investor, and you must know the risk involved. So let’s cut to the chase, how much money do you need to invest in VC? The government declares that you need a net worth of $1 million or a $200,000 annual income to be worthy of risking your capital in start-ups.
Simply put, we took money out of the equation, if you have the money, you’re an accredited investor, then let’s see if the risks are worth it to you to invest in VC. There are a number of risks associated with VC investments. To get a clearer understanding seek a professional’s advice, like that of Efraim Landa. VC investment risks are as followed: Read the rest of this entry
Sergey Brin and Larry Page, college peers whom didn’t like each other too much, both found a common interest in the idea of creating a solid way to search and find information on the internet. Knowing there are endless amounts of information available on the internet, many could benefit by such a product and Brin and Page knew there was a dependable niche awaiting such a product. Despite any differences Brin and Page had, they knew their idea was grand and stuck together to create something we all use today, Google!
How would one get started on such a great invention as Google? Brin and Page, decided they weren’t going to spend millions of dollars, that they didn’t have anyhow, on advertising or on high-end equipment, but the funding they would receive would be used to buy motherboards and other components to inexpensively build computers themselves. They wanted to create a fully searchable database before searching backing for funding. Venture capital firms are for the big boys, and Brin and Page needed great amounts of funding to start their project but Brin and Page knew their plan had to be solid before going that route. Page and Brin created a beta version of their finial product and this allowed their search engine to speak for itself. Read the rest of this entry
There are many types of funding options for entrepreneurship. A few funding options are credit cards, savings, Venture Capital, and borrowing money from others. There are so many options available today that it is very hard to pinpoint which funding is best for the business you’re starting. Knowing your options is half the battle. Once you narrow down a few of the options that fit your startup’s needs seeking expert advice is ideal, Efraim Landa can help in this area. Receiving funding from the wrong source can lead to wrong representation, and even worse, money loss!
Hoping to help you narrow down different types of funding options available for your startup listed are some of the most popular funding sources: Read the rest of this entry
Venture capitalists usually specialize in industries such as computer, biotechnology and the communications industries such as high technology companies including software, biotechnology, medical devices, media and entertainment, wireless communications, Internet, and networking startups. In the last five years, there is a big commitment from VC firms towards clean technology startups which include renewable energy, environmental and sustainability technologies and power management.
As technology progresses VC firms can benefit on the growth of a great startup company, and the company can get funding needed with the support from VC firms. This creates a win/win solution for each because many companies in the technology industry need more funding then most business loans provide. A few examples of companies that got their start from Venture Capital funding are Digital Equipment Corporation, Apple Inc., Genentech. These companies received funding as far back as the 1980’s. Knowing this, Venture Capital is nothing new and here to stay. Read the rest of this entry
Venture Capital isn’t available to every business that needs funding assistance. Venture Capital is appropriate for high-growth companies that are capable of reaching at least $25 million in sales in five years. Venture capitalists most often require a percentage of your company to hand over a huge bulk of money to help with your startup company. A Venture Capital company most often requires a place as a board member within your company as well.
Just because you’re willing to give a percentage of your company’s assets and willing to allow a Venture Capital company to act as a board member, this doesn’t mean it’s a done deal. There is more required for you to obtain Venture Capital. “One of the first hallmarks we look for is whether this is a high growth area or does this company have the potential for exceptional growth – growth that’s higher than you see in the typical Fortune 1000 company,” says Maha Ibrahim, a general partner in Canaan Partners, a venture capital firm with offices in the U.S., India, and Israel. “We want to invest in companies that will grow by leaps and bounds over the next five-to-ten years so that it justifies going to the public market or provides an exceptional exit that creates enterprise value.” Read the rest of this entry
When do you plan to retire from working your day to day job or from your own venture in entrepreneurship? How much money do you need to retire comfortably? How much money do you have saved for retirement at this time? How much money do you need to retire? Everyone should have a retirement strategy plan and should be answering these questions.
When creating your retirement strategy plan there are many things to consider. Seeking professional advice is a great idea.
A few important factors to consider in planning for your retirement are as followed:
- How much money do you currently have saved for retirement?
- Do you currently have any retirement pension plans?
- How much money do you currently earn?
- How much money can you afford to put into savings
- At what age do you plan to retire? Read the rest of this entry