Monthly Archives: December 2012

How to Market Your Business

Business Plan

Business Plan

Just because you launched a new business does not make it successful. The books are filled with well meaning and very intelligent entrepreneurs who launched a business on a great idea but failed to complete the mission because of an inadequate marketing plan. Building the product or having a great idea is the easy part; what is difficult is attracting customers to your site or product. Effective marketing is a must for any business and it can be the one thing that has the power to make or break a business before anything else. Marketing is what actually brings in the dollars as it is the tool you will use to let people know about the availability of your product or service. It is imperative that you get close to them and communicate to them why they need what you can provide. Marketing is the means through which you reach out to them with that message. Read the rest of this entry

What Makes an Entrepreneur?

 

Entrepreneur

Entrepreneur

Entrepreneurs such as Efraim Landa may build very successful companies seemingly out of nothing but a good idea. To many it may seem as if they are simply great risk takers, but in reality there wasn’t one of them that ever said they set out to see if they could find the riskiest financial venture out there. Actually, for the most part most entrepreneurs are more likely to lack funds than to have plenty of resources. Every single one of them is different but in general they see an opportunity and do not feel like they are kept from pursuing it simply because they do not have an abundance of resources. Instead they have some common characteristics which help propel them into entrepreneurship in spite of the obstacles and come out with a successful business venture. Read the rest of this entry

Successful Companies Started During a Recession

 

Recession

Recession Sign

“Recessions are bad for business” is not an understatement by any means. The US has endured approximately 47 recessions since 1790. However, recessions although difficult to live through, especially for the venture capitalists, have turned out to be profitable for some very unlikely companies which got their start during one. Actually, some of the companies that are now household names were initiated during very rough economic circumstances. According to The Kauffman Foundation one study found that over half of the Fortune 500 companies of 2009 had been launched during a recession or at least during a bear market. Here are just a few examples of well established companies which got their start during a recession. Read the rest of this entry

The VC Market Today

angel investor

Angel investor

In the 60s and 70s most venture capital firms focused their investments solely on starting and expanding companies. Most of the time, these were breakthrough companies that dealt in one way or another with technology whether it was electronic media, medical technology or data processing. During the early years VC was nearly synonymous with financing technology. After many booms and busts and the great recession venture capital has become more diverse in its investments. The venture capitalist of today invests finances in entrepreneurship in many different industries such as retail marketing, energy consumption and even childhood education. A Herndon based education provider benefited from $125 million and a district based LivingSocial brought in $400 million. And an energy conservations company, GridPoint based in Arlington fetched $23.6 million. It’s not that these were headlining deals, or huge financial investments for the venture capitalist; it’s more that they are signs of a shift in the entire VC market to more versatile options. Read the rest of this entry

VC Market in the 90s

Drexel Burnham Lambert

Drexel Burnham Lambert Logo

The early 90s brought the emergence of venture capital and private equity asset classes out; but this came about through a series of cycles which included both booms and busts. The late 80s and early 90s gave us a savings and loan crisis, a real estate market collapse, and a wide variety of inside trading scandals. The early 90s brought on a recession which caused the high-yield debt market to shut down. But toward the end of the decade, more institutionalized private equity firms began to emerge and brought in the huge Dot-com bubble in ’99 and 2000. Read the rest of this entry

VC Market in the 80s

stock market collapse

Stock Market Crash

There were many public successes in the venture capital industry as the 70s came to a close and the decade of the 80s began. During the 80s there was a huge increase in the activities and growth of VC investment firms. In the early 80s there were only a few dozen of these firms but by the end of the decade there were over 650. Each of these VC firms was all looking for the next “big deal.” However, even though the firms increased greatly numerically, the capital that was actually managed by the firms only increased by 11%. Over the entire decade, the capital managed by these firms only rose from around $28 billion to $31 billion. Read the rest of this entry

The US VC Market and the health IT industry

Flag of the United States

Flag of the United States

US investments in Venture Capital have taken a strong liking to health IT sectors in recent years. Interesting enough, Efraim Landa, of Effi Enterprises, has a huge passion for the health IT sectors as he does for investing. InformationWeek.com discusses, Venture capital firms investing over $633 million into medical software and information services in 2011 alone. This was the highest level of investments given to this sector since the year 2001. In that time over $759 million was raised, according to figures from Dow Jones VentureSource.

In the last three years there has been a larger focus in the health IT category due to Obama administration’s federal incentive programs taking off, there has been a lot more focus on this industry as a whole. The Obama administration’s federal incentive program asks hospitals to adapt in new technologies and request the use of electronic health records (EHRs). Not only has this change increased funding in the health IT sectors as mentioned, but this has increased the Internet, mobile devices, and information management software categories as well. It’s great to see the domino effect being played out in our economy in a positive light due to one change in how we operate our day to day tasks in business. Read the rest of this entry

The VC Market in England

Flag of England

Flag of England

England has deep roots in the Venture Capital market. Venture capital appears as early as after the Second World War. General Doriot in UK founded the Technical Development Corporation, and did so in 1962. Then come year 1965, European Enterprises Development (EED), set up in Paris. EED was very successful regardless of the times and the drastic measures of our economy downfall. Venture Capital firms had a few ups and downs thereafter, as did everyone else, however, from 1977, the EEC started to study the market and was seeking frivolously after high tech start-ups. Seems like nothing has changed, right? Read the rest of this entry