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The VC Market in India

Flag of India

Flag of India

This year has been a bit rocky for the VC market in many countries, India isn’t alone. Even though times are rocky, it is still a good time to take a look at businesses that are doing well in this economy and those star-ups that are built on innovation and fulfilling a dire need in this day and age. Efraim Landa is an expert in finance and can educate a business that is already formed or a start-up company in just which route it should take.

India’s VC Market’s primary focus is now on “low-entry valuations, significant and tangible value additions to portfolio companies, and most importantly, exits”, according to Business Today.  The Best VC Funding firms are spending a lot more time researching and agreeing upon sound investing decisions, without their decisions being dictated by the normal way of things and the thinking of the larger crowd.  Read the rest of this entry

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The VC Market in Israel

Flag of Israel

Flag of Israel

Today’s economy and the history of Venture Capital play together in a very important role. VC firms are getting smarter as the recession hits us all from our wallets to the bank. Efraim Landa is an expert in this market, and can lead you to being accepted in VC funding regardless of these changing times. There are about 70 active venture capital funds listed in Israel’s VC Market alone, 14 of these are international VCs but have offices in Israel, the others operate in Israel and benefit the economy of Israel. Investinisrael.gov discusses staggering numbers for VC firms in recent years. In the year 2010, “391 Israeli high-tech companies raised $1.26 billion, 13% above the $1.12 billion raised in 2009, but 39% below 2008 levels which was then the highest amount raised in 7 years. In the fourth quarter of 2010, 100 Israeli high-tech companies raised $344 million – 25% above the $275 million rose in the fourth quarter of 2009, and slightly up from the $341 million raised in the third quarter of 2010” Read the rest of this entry

How to Get Financing for a New Company

Private Equity financing

Private Equity financing

One of the most difficult challenges an entrepreneur faces is raising capital for start-up. Efraim Landa is an entrepreneur who has faced these financial challenges and co-founded a company who can offer advice for start-up and emerging businesses. The first thing that needs to happen is that there must be a clear-cut business plan in place. If the business has no plan for success investors and other possible financing options will not be as quick to “buy in” on the idea no matter how good it is.

Business Plan

A business plan should inform potential investors about how the business will function, how profits will be realized and a projected growth rate. These must be reasonably stated and if possible include research data. A business plan should give potential investors or lenders a good look at the company’s real potential. Without a proper business plan investors will not have anything concrete on which to base their decision of whether or not to invest in a company.

It is important to create ways to present the company’s information through a presentation. It should include information about your project, the market and marketing strategies, and how the business will be managed. Also explain why the product is important and why it will sell. This, in conjunction with a well written business plan can be the “selling point” for a business.

Potential Investors

After the plan is in place it’s important to identify any potential investors. There are many options and companies like Effi Enterprises that are established to help entrepreneurs find investors. They can provide the guidance needed and they are also private equity investors. Get informed on the options available and pursue the routes that seem most productive.

Company Valuation

A term sheet should be created which outlines why the company is a good investment. This will include a valuation. If it is uncertain there should be at least a reasonable estimate of the company’s worth. Investors will be interested in helping establish a business in which they will be able to reap financial benefit in the long haul.

Investors

Angel investors are usually individuals who are willing to offer start-up financing for a new business. Venture capitalists offer financing options for new and start-up businesses in exchange for controlling interest and a portion of the profits. There are several types of private equity financing options available. It may be in the company’s best interest to work with a consulting business such as Effi Enterprises which is a company who helps start-up businesses locate various types of funding options. They can also help with preparing or reviewing business plans. One area in which a business needs direction is in locating angel money and other sources of business capital.

Getting Started

Once a firm or individual is located which can help provide financial backing for the business, set up an appointment. Be prepared and present the business plan and the proposition is a very honest manner. Let them know how the business started and how it is functioning presently. It is important to convince them that the company is a good investment. Be prepared to discuss how business strategies, investment strategies and financial arrangements will be handled. It is imperative that the potential investor can see the progress of the company so far and its great potential for profit.