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Successful Companies that Got Started with Venture Capital

Genband

Genband Inc Logo

When a business starts up, usually the largest challenged that the founders will face is securing funding to keep it going long enough to get it off to a great start financially. Effi Enterprises is a venture capital firm which helps supply entrepreneurs and emerging businesses with the funds needed to reach the next level of growth. A venture capitalist invests into an emerging company by purchasing part of the company. This is a relatively short term investment in a company with the expectation that the company will grow enough to bring in a sizeable return. Efraim Landa, who is an entrepreneur himself, invests venture capital into a start up business expecting that the company will experience this growth inside 10 years. There are many different businesses that use funding provided by a venture capital firm to help them reach a great level of success. Read the rest of this entry

What is Effi Enterprises?

 

Private Equity

Private Equity

Effi Enterprises was established in 1993 for the purpose of helping emerging companies in a wide variety of ways. Efraim Landa, who co-founded the company, is also an entrepreneur and understands many of the difficulties that start-up companies must deal with to become successful. Effi Enterprises has a goal of helping create value for customers.  Effi Enterprises has been offering expert help and advice to emerging growth companies and seasoned companies in both the United States and Israel. They are in the business of consulting and offer private and finance equity specifically to high tech companies as well as those in the medical field.

Entrepreneurships are difficult in the very best of situations. But when it comes to the financial aspect it can get very complex. Effi Enterprises has experience with helping businesses with these planning and decisions in a wide variety of ways. They can bring hands-on managerial experiences to the company as well as offer many different types of leadership interventions.  They can also help in areas like negotiating licensing.

One of the most important activities that an emerging company must do to be successful is create a business plan. Effi Enterprises can help with this procedure to ensure the proper information is included.  The business plan can be an integral part of obtaining various types of investments such as Venture Capital. Having a solid business plan in place gives the business some real numbers and information that can be shared with potential investors. It can make or break a deal.

They can also help start-up businesses or entrepreneurs explore and secure various other types of financial funding.  Using strategic planning experts can help a business with private equity financing, divestitures, and IPO’s. They can also offer their expertise in the area of developing and implementing marketing strategies.

Effi Enterprises has been largely involved in the medical market and those which develop high tech medical equipment. Co-founder Efraim Landa has a strong foundation in this arena as he has worked with companies which develop technological equipment such as pain free glucose meters and cardiac imaging equipment. Effi Enterprises has worked with companies such as Health Center Imaging of Fairfield County, LLC, CMT Medical Technologies LTD and Philips Medical.

With their broad base of experiences with various businesses in different stages of growth they can help companies establish a service network, a direct sales force or a dealer network. The expertise and experience helps them know how to handle making financial projections or developing divestiture strategies and other strategies to increase revenue. They assist by providing short term or long term management assistance.

With the experience behind Effi Enterprises they do not use a cookie cutter approach but instead tailor make plans and strategies to fit the needs of each individual company. The company was formed and continues to provide management consulting services which are specifically pertain to capital formation and marketing strategies. Effi Enterprises is dedicated to helping entrepreneurial companies in the ways that will be of the most benefit to the future of the company.

What is an IPO?

 

IPO

IPO

Effi Enterprises was founded by Efraim Landa for the purpose of encouraging growth of emerging companies. One of the ways they achieve this is through IPOs. Effi Enterprises offer their expertise in this area as well as many other financial components of establishing a successful business.

Definition of IPO

When an investment banking firm takes a company public through raising investments, the transaction is called an Initial Public Offering, or IPO. Investment bankers are cautious about representing private companies and need to be assured that there is an adequate amount of public interest before proceeding. Their own fees will be based on the amount of capital the transaction will raise so they want to be certain it is worth opening the company up for private investing.

Advantages of an IPO

There are a wide variety of benefits that can be achieved through an Initial Public Offering. There is significant access granted to the investment capital and it fosters credibility because of the supporting interest of an investment banking firm. It will also provide the company, as well as the public investors with professional advice during the time of the transaction; and research reports and analyst coverage will be generated to ensure that the public remains informed. These will provide a strong base of public information that can be beneficial to the company later on. They can become excellent PR sources that help inform future investors about the health of the company.

Disadvantages of an IPO

There can be a few disadvantages of an IPO. For instance, it is more costly than a reverse merger transaction or a direct public offering. There will also be more need to form ways of keeping the investors informed such as having the additional responsibility of managing meetings or setting up conference calls. And the success of an IPO is largely dependent up on the investment banker as well as the current condition of the market.

Are there any costs for an IPO?

There are five basic fees that will be associated with an IPO. There are accounting and legal fees that will have to be covered. A professional adviser will assess a fee. And there are filing fees as well as financing fees that will be assessed. The fees associated with accounting, legalities, filing and the professional advisor will depend largely on the complexity and size of the transactions. It will typically cost in the thousands for an IPO, but it can cost up into the millions. The financing fees which will be charged will be based primarily on the funding that is raised through the investment banking firm.

Tips for Investing in IPOs

It is best to maintain a long term focus than to hope for a quick turnaround on investments. But even when staying focused on long term prospects a good IPO is difficult to find. Every type of investment has particular risks that are associated with it but IPOs are very different than investing in average stock. There are some things to keep in mind if an IPO is the desired choice. Firstly, you will need to do some research on the company, its financing, competitors and its industry health. It may be difficult at first to locate information, especially research data, since they have not been among public companies which are covered by analysts.

It is essential to read the prospectus. This will lay out the risks as well as opportunities of the company along with financial proposals for the money brought in through the IPO. Look for finances which are being distributed to fund research, expansions or marketing. Read objectively considering if the prospectus gives a balanced outlook concerning projections and financial earnings outcomes.