Category Archives: Venture Capital
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
No matter your stance on the great Bubble debate, 2014 was a relatively remarkable year for those involved in the venture capital industry. Overall there was an increase in investing, valuations and fundraising. There was also a huge trend for industries to consolidate. Last year, about 4% of the firms who raised any funds accounted for just less than half of all capital raised. This led many to think that the VC industry was beginning to decline and shrink. However, after much research, most VCs continue to be excited about how their opportunities are lining up especially when it comes to tapping into the upcoming transformative tech companies. Read the rest of this entry
The private equity market is showing great promise for 2015 and beyond. The choices for new ideas and business concepts are seemingly endless, the entrepreneurs are eager to get their start-ups running and the loan rates are relatively low. Investors have the potential to make huge profits from smart new tech companies that aim to make life easier for consumers. By focusing on a select group of start-ups, venture capitalists can expect to spend more money on fewer investments, but they can also expect a bigger return for their money. 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
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
In a time of needed recovery in many countries around the world from the recent economic downturn, many begin to wonder how this recovery can happen. What is that actually drives an economy and pushes it towards growth and success? What factors need to be focused on to stimulate this recovery quickly? Individual economies have experienced downturns in the recent years, but as an interconnected global economy, the financial crisis was not enough to stop growth. To propel the global economy forward, factors such as physical capital, labor, productivity, and investment need to be prioritized.
What is the State of the Global Economy?
The economies of the world are constantly becoming more integrated through trade and investment into one global economy that has grown rapidly over time. In 1970, the world produced about 12 trillion dollars worth of goods and services and 2010; world production reached 41 trillion dollars. In four decades, global GDP has increased almost four times. The pace of the global economy’s growth is gradual and consistent. Individual nations may experience extreme economic boosts and downturns, but the overall global economy continues a slow uphill movement. Even after a significant global financial crisis like 2009, there was a dip for that year but global GDP had fully recovered by the next year and even exceeded pre-crisis levels by the year after that Read the rest of this entry
Efraim Landa is a venture capitalist who provides both funding and expertise to emerging companies. A venture capital firm typically works with a startup company that needs funding and support to handle those first turbulent years until they can make an IPO. When a VC firm invests in an emerging company it basically purchases a portion of the company in exchange for a profit that will come as the company matures. It is generally expected that a company will be able to transition from its inception to an IPO inside of 10 years with the average being somewhere around 5 to 7 years. The venture capital firm provides the necessary funds to keep the business running efficiently until the time when a profit can be made. Entrepreneurs and venture capitalists such as Efraim Landa also offer their working expertise to the business to help ensure their successful business venture. Many successful entrepreneurs have stated that the expertise that is gained from experienced businessmen is more valuable than the funding that was secured. Read the rest of this entry
A venture capital firm invests money in a start-up business as an investment which has the potential of bringing in a substantial return down the road. When an entrepreneur comes up with an idea and starts a business they typically lack know-how and funding. Efraim Landa offers both through his VC firm, Effi Enterprises. A venture capital firm will provide the funds that are necessary to grow a business to the point it can sustain itself and then make a profit; and mentorship can provide the wisdom and experience that a new business needs to make it successful on every level. The VC firm invests in the company in exchange for equity when the company makes its Initial Public Offering (IPO), or is acquired by another company. VC firms usually invest with the understanding that it may take 6 to 10 years to realize a substantial profit or return on their investment. Although it is a high risk investment, it also carries with it a potential of a high return. Read the rest of this entry