Tag Archives: Venture

General Investing

Get Capital From Investors And Venture Into Your Own Business

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If you desire to proactively launch your own new business, you ought to possess business acumen including skill, knowledge, and capital. Entrepreneurial ability of finding ways to raise capital comes next. It is then that you can commercialize your ideas and turn them into reality. Therefore, you must know about how to secure the startup finance to properly stay on track. Even before you raise capital for the startup, you need to identify different sources of funding, like small business angel investors to know which one is the most attuned to your needs.

Angel investors and venture capitalists help find ways to raise capital through equity financing. In turn, they expect a huge return on investment (ROI) in the form of acquisition by investing in the business equity. It is certainly an avenue to explore for many entrepreneurs, as angel investors may be their only option to raise capital for their new business. Investors for small business let the new business owner pay back the amount taken as loan throughout a fixed duration of time. This allows the business owner to concentrate on making more profits through their products and services rather than worrying about paying back the investors immediately.

An entrepreneur, who determinedly believes in his venture, must be able to present his business proposal well enough. The investors for small business would see through an entrepreneur’s viewpoint, his new ideas, unique selling proposition (USP) of the product(s), and would enable the business owner to raise capital and provide funding for his new business endeavor.

Whether you are a start-up entrepreneur, a small company owner, or own a middle market company, small business angel investors would help raise business capital to ensure your business success. With professional help and guidance, you can compete effectively in the marketplace and get customers to grow your business. You would have enough money to invest in the project and equipment. Implementation of marketing plans would be possible through investors for small business. Not only this, you can build a strong task force by offering lucrative job opportunities, attracting great talent, and training your staff. Small business angel investors present numerous benefits, which include competitive products or services, sustaining the business during downturns, developing strategic differentiation strategies, improving your balance sheet, and paying off any debt while investing in new projects.

General Investing

Understanding The Changing Landscape of Venture Capital Investing

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Venture capital is the funds provided at the early stage and growth stage to high potential, growth companies by institutional investor or high net worth individuals in the interest of generating higher returns. Understanding the changing landscape of venture capital investing, which has been significant over the past few years, requires knowing what a venture capitalist looks for in its investments.

Tracing the history of venture capital will lead you to 1946, just after the World War II. Georges Doriot, a former dean of Harvard Business School and founder of INSEAD, is considered to be the father of venture capitalism. In the early stages, venture capital was used to fund breakthrough projects in electronic, medical, or data-processing technology.

According to PriceWaterHouseCoopers, the venture capital investing has grown by 50% in the USD during the first half of 2010 to USD 6.5 billion in 906 deals. With the increase in confidence about the economic outlook, the venture capital investing in 2010 is set to surpass 2009 levels. It must be understood that venture capitalists are looking for high returns and hence the investments goes to sectors which hold more promise than the others. Few such sectors are software industry, clean technology sector, biotechnology, Industrial/Energy industry and internet specific companies lead the pack here. This is quite a change from the 1980s scenario.

California, New York and Massachusetts are the three prominent US states to receive 70% of the total deals and 65% of the VC funding. Even though, these numbers show a rise as compared to the same timelines of 2009, it is still below par to the 2006-2008 averages. As compared the earlier funding, most of them went to the medical related or internet based companies. Venture capitalists are now becoming more comfortable investing in new technologies as compared to in between years where a proven model was the more preferred flavour.

General Business

A Joint Venture Combination is Like Partnership Business

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A Joint Venture Agreement is a document that sets out a type of partnership agreement put together for some specific purpose. The agreement spreads the risk attached to the project among the various parties to the agreement as well as details the sharing in any of its success and profits. It also sets out the profit as well as the risks to the agreement for each of the participating parties.

The joint venture agreement gives an element of control to the project since it establishes the extent of the agreed to actions as well as setting the supervisory protocols for the smooth functioning and efficient operations of the business venture. In addition, the agreement bears in mind each party’s best intentions for achieving the general business goals.

Usually, such a bargain will be made and entered into on a specified date between the parties to the agreement. It shall set out the business purpose of the agreement as well as define the terms of the agreement which may specify the abovementioned starting date and shall continue till terminated, dissolved by law or ended by other stated provisions. The joint venture agreement may further define the terms as they are used in the agreement.

The obligations of the parties involved shall name who will be responsible for all of the decisions and operations of the business as well as compensating them for services rendered. It shall also state how the profits and losses shall be owed at the end of each fiscal year.

The agreement shall also name the business participating in the joint venture that will have complete, total and special influence to manage and control the business for the purposes as stated in the agreement. Affiliates of the arrangement may take part in rendering services on behalf of the joint venture. Also, parties to the agreement as well as affiliates may have interests in businesses that do not form a part of the relationship. The joint venture agreement shall also specify the persons or persons who shall pay the expenses of the partnership.

Each of the parties to the agreement shall be indemnified by the other for losses, judgments, liabilities, expenses as well as for amounts paid as completion of claims sustained by the partnership. In case any of the parties suffers a loss but this is not due to neglect or bad faith and that the course of action taken was in the best interests of the joint venture, then none of the parties will be liable to pay the other for such losses incurred. The arrangement may be dissolved in any of the following instances:

• Bankruptcy, withdrawal removal or insolvency of either party
• Through sale or other disposition of all or most of the significant assets
• Mutually agreed to by the parties to the agreement

Furthermore, the joint venture shall keep adequate books and records of its place of business giving a true and accurate picture of the business transactions. In case any of the provisions of the agreement shall become invalid it would not affect the outstanding provisions of the agreement. All notices that are required should be in writing and will be deemed to have been given when deposited in the postal mail or through certified mail or be addressed to the rightful address of the parties to the agreement.

By using pre-defined joint venture agreement forms to enter into a project there are not only substantial savings in time but also totality is offered in these documents which can be tailor-made to suit individual needs. In addition, the language and attributes of these documents adequately meets the necessary stipulation of a legally binding document.