Category Archives: economics
What can venture capitalists expect for the last part of 2015? If the first two quarters are any indication it does not look too bad. However, that is not without some concern in key areas. Venture capital backed companies saw 1,819 deals in the first half of the year and raised over $32 billion. Globally, these figures were reflected with an impressive $59.8 billion. The first two quarters of 2015 were representative of about a 49% increase over the increases seen in the same two quarters of last year.
What is driving growth?
There were some very large deals in the first part of this year that drove funding trends worldwide. Presently, VC funded companies are on the rise and in the first half of 2015 there were over 100 mega rounds. Just the second quarter saw 61 deals that raised over $16 billion investment dollars. Driving this growth are lower interest rates. It is expected for this growth trend to continue throughout the remainder of the year since interest rates are remaining pretty much the same.
Another factor behind the trending growth is more participation in mutual funds, VC funding and hedge funds. Right now, the amount of available capital remains huge. Companies being backed with venture capital funding are staying private for longer periods of time and some of the best companies have a decent variety of funding options. These trends are also seen on a global basis and startups continue to reshape the markets across the board from hospitality to transportation and healthcare. Read the rest of this entry
Last year brought many changes to the state of venture capital around the world. The fact is that fewer deals were actually made. The interesting part, however, is that the deals were made at a higher cost, showing an increase over that of 2013. That growth has continued in 2015, mainly in terms of tech companies. The market hasn’t come close to being saturated with new, inventive ways to save time, save money or enhance social media usage as we know it. These areas still show promise worldwide for the near future. Read the rest of this entry
If the venture capital market continues with last year’s trend, the outlook in the U.S. for the remainder of 2015 proves to be interesting. The trend is for investors to make fewer deals, but at a higher cost. The prices in VC market have gone up and we can expect to see more of that. Read the rest of this entry
The state of the global economy is very important to the venture capitalist like Efraim Landa. Over the last few decades there have been many changes in the VC market. There was a time when the venture capitalists was only interested in investing in their local businesses but over the last few decades as international options have become available, the VC market has continued to expand and to strengthen the global economy. Specifically many areas that were struggling have experienced some level of economic progress due partly to regulations which allowed for international investments. Just where does the global economy stand today? How serious was the latest recession and how has it affected the investment potential of VC firms around the world? Read the rest of this entry
Current Economic State in Europe
The European economy has experienced extreme economic trouble due to the recent worldwide economic crisis and has yet to embark on a recovery. The economy is expected to shrink in 2013 for the second consecutive year. The European Central Bank announced the region’s banks planned to repay less than half of expected amount of low-interest loans from last year and Moody’s Investors Service has downgraded Britain’s government bonds from its top AAA rating. While many countries around the world have suffered from the economic downturn, Europe has continued to struggle and has yet to show progress towards revival. Read the rest of this entry
As a venture capital firm, Effi Enterprises seeks out emerging businesses that are in need of the funding necessary to grow into a thriving, public company. These early-stage companies have extreme potential for improvement, but assistance from a firm like Effi Enterprises is all they lack. In exchange for equity in the company, venture capital firms will invest large amounts of financial capital into the startup to give it the boost necessary to become successful. As an entrepreneur, Efraim Landa, the founder of Effi Enterprises, understands the importance of innovation and the promotion of small business to the overall success of the economy. Read the rest of this entry
Effi Enterprises is a venture capital firm, which can provide funding along with managerial and business plan assistance to small companies in exchange for equity in the company. As a venture capital firm, Effi Enterprises searches for early stage businesses that need the necessary funding and business advice to succeed. Effi Enterprises can also assist businesses in becoming public companies in ten years or less. Venture capital firms are always watching the global markets, looking for emerging markets with extreme potential for investment opportunities. The venture capital industry has expanded around the world, and in recent years, Effi Enterprises has also become increasingly involved in global investments. Read the rest of this entry
The Federal Reserve System is the central banking system of the United States. Under a presidentially appointed Board of Governors located in Washington D.C., there is a network of 12 Federal Reserve Banks and 25 branches. It was officially established under Woodrow Wilson and the Federal Reserve Act of 1913.
Early Beginnings of the Fed
This modern federal banking system traces its origins to the First National Bank that was established by Congress at the urging of Alexander Hamilton. Many agrarian minded Americans were unsettled by the idea of such a powerful and extensive banking system and Congress refused to renew it after its twenty-year charter expired in 1811. In response to inflation after the War of 1812, Congress decided to charter the Second National Bank of the United States. However, after the passionate objections of President Andrew Jackson that a central bank was a threat to the liberties of the American people, Congress once again refused to renew the bank’s charter. State chartered banks and unchartered “free banks” with no federal regulation carried America’s banking for the next quarter century. This system was characterized by inadequate bank capital, risky loans, and insufficient reserves against bank notes. Even after the National Banking Act of 1863 attempted to stabilize American banking by allowing for the creation of nationally chartered banks, giving them the sole power to issue bank notes, bank runs and financial panics ensued. After multiple depressions in the economy, Congress began to take action, setting the stage for the emergence of a decentralized central banking system. First, the Aldrich-Vreeland Act of 1908 established the National Monetary Commission to generate a long-term solution to the country’s serious banking and financial difficulties. This Commission created a plan that called for one central institution, called the National Reserve Association, under the control of a board of primarily bankers, with the power to issue currency and multiple branches across the nation. Receiving aggressive opposition, this plan was never passed but it did prepare the way for the passage of a banking and currency reform program where central banking was placed under public, rather than banker, control. Read the rest of this entry
As a venture capital firm, Effi Enterprises seeks out emerging businesses that are in need of the funding necessary to grow into a thriving, public company. These early-stage companies have extreme potential for improvement, but assistance from a firm like Effi Enterprises is all they lack. In exchange for equity in the company, venture capital firms will invest large amounts of financial capital into the startup to give it the boost necessary to become successful. In demand-side economic theory, the government must take action to stimulate the economy when it is need and give it the necessary boost for recovery.
Introduction to Demand-Side Economics
Demand-side economics is an economic theory characterized by the idea that economic growth will be created by increasing the demand for goods and services. Also known as Keynesian economics, demand-side economics strives to stabilize the economy through using government intervention. To stimulate the economy, demand-side economics suggests the government should lower taxes on the middle and working class and increase government spending. To prevent inflation, the government should raise taxes and reduce their spending. Proponents of demand-side theory believe that when the economy is in a recession or economic downturn, the government should step in and take action to stimulate it. Read the rest of this entry
Efraim Landa is an entrepreneur that has founded Effi Enterprises to assist early-stage businesses in obtaining the funding and managerial assistance necessary to propel them into a public company in ten years or less. Effi Enterprises understands the importance of investment and production efficiency to the success of a business and the economy as a whole. These are the principles that underlie Supply-Side Economics.
Introduction to Supply-Side Economics
Supply-side economics is a macroeconomic theory that emphasizes the importance of increasing the efficiency of production, or supply, as the key to an economy’s potential for long term growth. It maintains that aggregate supply constitutes the primary driving and stabilizing forces in the economy. Focusing on alleviating barriers to higher productivity in supply, supporters of this theory advocate for lowering marginal taxes and deregulating heavily regulated industries. Read the rest of this entry