Equity Investment Platform Preparation Best Practices

Startup Professionals Musings

If you are one of the thousands of entrepreneurs who need equity funding to get your startup going (no loans to repay), you are probably overwhelmed at the prospect of finding, contacting and pitching to the huge number of qualified angels and investment groups around the country.

Equity 254

5 Criteria For Splitting Equity In Your New Venture

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone.

Equity 257

7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. Startups are not required to have a formal Board of Directors, and can’t afford to implement many of the financial and operational controls required of public companies.

Equity 210

5 Things To Consider Before Selling To A Private Equity Firm

YoungUpstarts

by Adam Coffey, author of “ The Private Equity Playbook ” . One or two of the interested parties could be strategic companies, larger than yours, who are seeking to purchase your company, but for the most part, it will be private equity groups.

Agio On Hedge Fund Cybersecurity And The Difficulty Of Securing Private Equity Firms

YoungUpstarts

When thinking about how to start a private equity firm or a hedge fund, security should be on the list of priorities. Moreover, the company has experience when it comes to supporting the alternative investment area, specializing in private equity firms, asset managers, and hedge funds.

Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone.

Equity 224

The Difference between Debt Financing and Equity Financing: Which Is Right For You?

YoungUpstarts

You need money for operations, but most importantly, you need money to grow. When you’re looking for extra funds, there are typically two options: debt financing and equity financing. These are short-term loans that can help with everyday operations. Equity Financing.

Further Thoughts on Startup Operations

Both Sides of the Table

“I need somebody to run operations.&# I never said you shouldn’t have a VP of Operations. I think people understand this title to mean more somebody who handles operational issues rather than somebody who is more like a “chief of staff&# as a COO often is.

For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual. entrepreneur equity investors IPO startup exit

Equity 195

8 Secrets for Maximizing Startup Equity and Control

Startup Professionals Musings

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Understanding your business totally will give you much better operational control.

Equity 263

Are You Ready for Equity Based Crowdfunding?

Up and Running

Then, the unveiling of the Securities and Exchange Commission’s proposed equity crowdfunding rules reveals a panacea for growing your business’s coffers. Equity crowdfunding vs. donation crowdfunding. Equity crowdfunding differs from donation crowdfunding in two major ways.

Equity 152

Don’t Expect An Equity Investor For Your Non-Profit

Startup Professionals Musings

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. equity funding investor non-profit philanthropist

Equity 224

Debt Or Equity To Fund Your Start-up: Which Is Better?

YoungUpstarts

Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own. However, if you would rather share the risk, mitigate debt obligations and bring in top-level experts, invite equity investors. By Jenny Q.

Equity 196

Marketing Sweat Equity: Getting Your Startup’s First Sales—Without Spending Money on Consultants and PR

Up and Running

So, if you’re anything like me, your first startup will need to be self-funded and operated with a very lean budget. For example, one of my marketing campaigns revolved around providing a platform for successful entrepreneurs to answer questions posed by startup and small business operators.

When to trade equity for services

The Next Web

Giving up equity in your business, as an alternative to paying cash, often sounds like a great idea to cash-starved startups. But, giving up equity in your business is often a very big decision, and can come at a long-term price, both financially and operationally.

Equity 128

Startup Equity Crowdfunding Grows in Europe (NESTA Report)

VC Cafe

Amongst the different types of crowdfunding: Donation, Reward, Lending and Equity, the latter is on the rise as a fundraising mechanism for European startups. investors can then, through the platform, buy small parts of this equity stake. Decision on how much equity.

Europe 162

Dancing the Political Brand Equity Tango on Social Media

crowdSPRING Blog

Marketing and branding brand equity branding brands Donald Trump Hillary Clinton politics presidential campaign Social media social media marketingbThis year’s American presidential race has been one of the most contentious in modern history.

Government Grants Cost No Equity, But are Not Free

Startup Professionals Musings

A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. For example, federal and state governments don’t provide grants for starting a business, paying off debts, or covering operational expenses.

Importance of Finance to Your Business

The Startup Magazine

Ideally, all companies need finances for daily operations. This means for the initial capital investment must be well managed, with a thin line between debt and equity financing. Operational expenses.

Do venture capital firms or private equity funds offer debt financing for startups?

Gust

For venture capital, this is typically ten times the invested capital, and those returns can only be achieved through equity appreciation, not debt service. And if you are still at the startup stage, how do already have global operations in a dozen countries? Invested Interests debt financing private equity funds startup VCs venture capital firms The direct answer to your question is NO, VC and PE funds do not provide debt financing for any companies.

How to Scale a Venture Capital (or Private Equity) Fund

David Teten

I’ve listed them below in *very* roughly descending order of efficiency, measured by increased dollars one can put to work, divided by the operational dollars required to implement each strategy. . – Provide hands-on operational support for portfolio companies.

Private Equity and Social Media

David Teten

I’m giving a talk next month on “ How Private Equity Funds Raise Capital and Source Deals with Social Media” at Terrapinn’s Private Equity Latin America & Real Estate Latin America conference in Miami. Improve operations. Terrapinn’s Private Equity Latin America & Real Estate Latin America conference takes place on June 17 th -18 th at the Four Seasons, Miami.

Event Invitation: The London Business School 2011 Private Equity Conference

VC Cafe

London Business School is proud to present the London Business School 2011 Private Equity Conference. and Vincenzo Morelli (Partner – TPG Capital and Chairman of European Private Equity Roundtable). Panels : Value Creation – Driving LP returns through operational excellence.

This Friday at NYU-Annual Stern Private Equity Conference

David Teten

The Stern Private Equity Club will host its 8 th Annual Stern Private Equity Conference on Friday, March 1 st , 2013. New York Presentations and Conferences Private Equity Venture Capital

Dancing the Political Brand Equity Tango on Social Media

crowdSPRING Blog

Marketing and branding brand equity branding brands Donald Trump Hillary Clinton politics presidential campaign Social media social media marketingbThis year’s American presidential race has been one of the most contentious in modern history.

Dancing the Political Brand Equity Tango on Social Media

crowdSPRING Blog

Marketing and branding brand equity branding brands Donald Trump Hillary Clinton politics presidential campaign Social media social media marketingbThis year’s American presidential race has been one of the most contentious in modern history.

Equity financing: great for rapid growth startups

Berkonomics

There are three classes of equity investors for early stage businesses that we have not yet considered. The advantage to getting the attention of a super angel is that most operate informally and make quick decisions with little due diligence.

Equity 101

Raising Capital from Friends and Family: Gifts, Loans, Equity

Business Plan Blog

Raising Capital from Friends and Family: Gifts, Loans, Equity. Typical sources of capital include personal saving, home equity loans and loans or investments from “Friends and Family.” This equity is typically in the form of preferred equity (i.e. Equity.

The Skinny on Equity-Based Crowdfunding Opportunities

Growthink Blog

In this article, I will give you an overview of the JOBS Act and most specifically its potential for equity-based crowdfunding, and give you an update on what's occurred since April.

Equity 110

IVC PE Survey: Private Equity Deals Booming in Israel

VC Cafe

I sraeli Private Equity is experiencing some serious growth, according to the IVC- GKH Quarterly Private Equity (PE) Survey conducted by IVC Research Center. Private Equity is relatively less developed than VC in Israel but with deep pockets.

How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . In venture capital in particular, early-stage companies are often operating in frontier industries, where the rules are unpredictable and conventional analytic frameworks may be misleading.

How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm

David Teten

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. Also see Preqin’s Key Due Diligence Considerations for Private Equity Investors. . VC and private equity are very illiquid on both the investing and the personnel side. Bloomberg Beta open-sources their entire operating manual on Github, where their website lives.

Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

Convertible Equity, A Better Alternative To Convertible Debt? As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. Startups. Mobile. Gadgets. Europe. Video. Enterprise. Venture. Social. GreenTech. Gaming.

The 5 Key Stages of Equity Funding

Growthink Blog

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds.

What is Sweat Equity Worth?

www.entrepreneur.com

Answers Ask Entrepreneur Home Business Operations Business Opportunities Sales & Marketing Advertising & PR Finance & Accounting Franchises Home Business Human Resources Internet/E-Commerce Legal Issues Starting Up Technology Most Recent Answers How Can I Streamline My E-Commerce Operation? What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Sweat equity is just one component of early-stage valuation.

What’s the Difference? Venture Capitalist vs. Angel Investor

The Startup Magazine

In short, venture capitalists usually work with a firm and expect to be involved in the operations and growth decisions of a business. A business angel gives an entrepreneur money in exchange for a percentage of equity in his or her business.

How Private Equity Funds Are and Should Be Using Social Media

David Teten

Fewer private equity funds are using social media for outreach, but 2xPartners , Healthpoint Capital , and MCM Capital Partners are notable exceptions. Private equity investing is a relationship business. We’ve chosen one PE and one VC as case studies of how social media is being used by institutional private company investors: MCM Capital Partners (mcmcapital.com) : MCM Capital is a lower-middle-market private equity fund based in Ohio with over $125 million under management.

A VC: Employee Equity: How Much?

www.avc.com

Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. And the amount of equity you need to grant to accomplish these hires is also an art and most certainly not a science. However, a rule of thumb for those first few hires is that you will be granting them in terms of points of equity (ie 1%, 2%, 5%, 10%).

Should Equity-Based Crowd Funding Be Legal?

Growthink Blog

Letting small companies sell equity stakes online would be a huge boost to those firms—like angel investing on steroids. Broadening the Base Currently, equity-based crowd funding falls under strict Securities and Exchange Commission rules governing angel investing. First, the SEC largely limits private-equity investments to accredited investors—those with $1 million or more in net worth, among other tight standards. Funding is the lifeblood of any small business.

Conference Notes on Sourcing Deal Flow & Developing New Business for Private Equity

David Teten

I enjoyed participating in last week’s Capital Roundtable Private Equity Masterclass on “ Best Practices for Sourcing Quality Deal Flow & Developing New Business ” (May 26 th , 2011). Glickman, Resilience Capital Partners LLC Luke Johnson, Platinum Equity LLC Robert B. Zubin Avari, Charter Oak Equity LP Christopher A. Gebelein, Private Equity Growth Advisors LLC Sven A. Question : How does Charter Oak Equity source their deals?

Update on the JOBS Act and Raising Equity from Crowdfunding

Growthink Blog

The JOBS Act makes equity-based crowdfunding much easier The JOBS Act makes it possible to raise funds from investors and donors through certain crowdfunding sites in exchange for equity in your company.

Cash-strapped? How to pay for services with your startup’s equity

The Next Web

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. Pitfalls in sharing equity. Tips for compensating with equity.

Equity 124

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. If you did, why would you be consulting for sweat equity instead of investing as a VC or for yourself?