True Venture Capital

May 31, 2008 by admin · Comments Off
Filed under: Finance 
John Lux asked:


We in corporate finance and venture finance often lose site of the goals and purposes of what we do.

We can easily see that it does not matter how the money is raised; there must be a fair exchange for the team, for the technology, and for the money.

The real goal of corporate finance is to see that the company has more than enough money to achieve its goals.

Now that we say it, we know it could not be anything else. What else could it be?

In seeing this, we know immediately what venture capital is not.

Venture capital is not giving the company too little money to succeed so that you can buy it up cheap later, stealing all of the good work of the entrepreneurial team.

Venture capital is not loading the entrepreneurial team down with straightjacket agreements.

Venture capital is not setting a cheap value on the company so you can make a huge gain out of a share of the company that should belong to the people that daily contribute their sweat.

True capital would not keep control of the company to wrest control from those executives who know best how to manage. The real purpose of the capitalist is not to second guess management. Management, not capital, is on the firing line and best knows how to achieve the goals of the company.

True corporate finance is seeing that the company has more money than it needs. True venture capital motivates and encourages the team. True venture capital values the team and acts accordingly. True venture capital is part of the team.

True corporate finance is more than capital. It is a partnership of equals; it is support that is more than financial; It is on the tam that shoulders the burdens and fights the fights.

Only true venture capital is entitled to share in the rewards of the team.

When a company is adequately financed, the entrepreneurs and their team are not deprived of enough pay to support themselves and their families. They are well rewarded for their work by industry standards. They are not deprived of pay or working for a pittance so that the venture capitalists can have a larger return on their money.

A company only has enough money when it has enough money to meet the unknown.

A company with good finance can afford those things it needs to win in the combat of business.

Real finance gives these things to the company.

The real goal of any venture capital is to see that the company has more than enough money to achieve its goals.



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Business and Venture Capitalists

May 28, 2008 by admin · Comments Off
Filed under: Investing 
Alex Denver asked:


As an entrepreneur interested in start-up investment and at the same time being an individual concerned with the risk involved in that investment, you should better know the industry in and out. Venture capital is provided by Private banks, Investment banks etc. Venture capital is also fund provided by entrepreneurs/professionals who are interested to invest in expanding businesses for the sake of high rate of interest. There are many governing factors, which are taken into consideration before starting a new business, some of them are:

· Working premises

· Machinery

· Funds

· Other assets and liabilities

Well-managed venture capital firms are generally private partnerships funded by private firms, wealthy entrepreneurs and the venture capitalists themselves. Lets get familiar to some of the terms that are used to define the funding of start-up businesses:

Venture Capital: This is a kind of equity investment generally suited for start-up companies or growing businesses.

Venture Capitalists: The term venture capital means financing an early stage business, which involves higher risk investments with a potential for above-average returns. The person making such investments is known as venture capitalists.

Angel Investor: A person providing venture capital to start-up businesses is often referred to as an angel investor. Angel investors are entrepreneurs who look for higher rate of return in comparison to traditional investments.

When it comes to obtaining money and funds, there are many banks, which are willing to pay a certain sum of money from the available packages. Then there are venture capitalists and angel investors who invest for the sake of large profits.



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What do you call a company that own/run or invest in different companies?

May 25, 2008 by admin · 5 Comments
Filed under: Investing 
helplesswonder asked:


Let’s say I started this company, whose main purpose is to invest and/or own other companies. For instance, BG enterprise is the company and let’s say it owns a “main-stream” blog, real estate company, and a flea market, what would BG enterprise be considered as? Could it be considered a venture capital firm, an investment firm, or what? Remember the main purpose of bg enterprise would be to own or invest in other companies..

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Where can I read up on how to earn funding from angel investors, especially here in Silicon Valley?

May 18, 2008 by admin · 2 Comments
Filed under: Investing 
zeptozorro asked:


I am interested in finding out how to raise money for my startup company. I need to know how to work with angel investors (or venture capital firms) to raise enough money and not lose my company in the process. If it matter, I live in California near Silicon Valley. Thanks in advance!

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how to raise capital for high risk ventures?

May 3, 2008 by admin · 1 Comment
Filed under: Investing 
Killer asked:


For an film production or theatrical production. Showing ways to raise capital. how costs are covered and how profitability is calculated. any help would be helpfull thanx

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