Why You Should Care About Mezzanine Financing

Inc Startups

Mezzanine financing is one of them. But another potential source of financing could be mezzanine financing. What does a mezzanine fund look for and how does a subordinated loan work? Is mezzanine right for your company?

Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

Think of financing an acquisition as an exercise with two parts that work in concert: 1) structuring a desired deal with a suitable target and 2) obtaining the funding. Think about the whole capital structure and the impact to the various layers of financing. by Kenneth H.

Why Profitable, Growing Companies Can't Get Financing

Inc Startups

Years later I’ve done angel, venture capital, private equity, commercial debt, and mezzanine debt deals as a founder, operator or board member for companies of all sizes, and have a much better understanding of what works when.

Show Me the Money: What are my Financing Options for my Business?

Up and Running

Whatever the reason, it’s nice to know you have options when it comes to financing the growth of your business. Traditional banks, government programs, credit unions, micro-lenders, and mezzanine funds all have initiatives to help businesses at all stages of development.

Early Seed Financing Terms Endure… Whether We Like It or Not

Genuine VC

Dharmesh Shah had a great post up last week about the lessons learned from raising a mezzanine round of financing. But the more meaningful reason that early financing terms endure into future rounds is that negotiation away from terms already in place are just that – negotiation. Earliest terms matter most, even and especially in the seed round, because they set not only the base literal structure, but also the “tone” for future financings.

10 Steps To Scaling Your Startup Toward A Fortune 500

Startup Professionals Musings

Very few startups are cash-rich enough to self-finance aggressive second-stage growth. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing.

Defining Intercreditor and Subordination Terms in Deal Negotiations

Recent Buzzes - VC Experts, Inc.

In contrast to traditional mezzanine indebtedness, second lien debt was less expensive and did not dilute the sponsor's equity ownership. In the current post-credit freeze era, second lien financing is disappearing, and mezzanine and other subordinated debt options are reemerging to fill the gap between senior loans and equity with a wide range of intercreditor and subordination terms.

10 Keys To Evolution From A Startup To An Enterprise

Startup Professionals Musings

Very few startups are cash-rich enough to self-finance aggressive second-stage growth. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing.

The 5 Key Stages of Equity Funding

Growthink Blog

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. Put everything else on your "wish list" to buy with revenues from sales or additional financing.

The Next Business Stage Requires Aggressive Growth

Startup Professionals Musings

Very few startups are cash-rich enough to self-finance aggressive second-stage growth. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing.

IVC PE Survey: Private Equity Deals Booming in Israel

VC Cafe

There are five typical types of financing in the Israeli private equity arena: (1)buyout- One buyout deal valued at $75 million represented 27 percent of the aggregate deal value in Q3 2010, which compares with $48 million or 33 percent in Q2 2010 and $6 million or 3 percent in Q3 2009. (2)mezzanine

Scaling the Chasm

Seeing Both Sides

Financing: holy crap - we are running out of money in 6 months! Financing: The "hopes and dreams" financing stage is over. Financing: Is our market big enough to support another round (which puts the exit bar even higher)?

Decline in Private Equity Deals in Israel for Q1 2011

VC Cafe

One mezzanine financing accounted for $36 million or 17 percent of aggregate deal value, compared to $68 million (three deals) or 8 percent in the previous quarter, and $63 million (one deal) or 6 percent in Q1 2010.

5 Alternatives to Venture Capital

Inc Startups

In our view, there is entirely too much emphasis on raising equity financing through traditional venture approaches, instead of taking the time to find the right type of capital to match the specific needs of the company. Entrepreneurs at growing companies often rush to raise venture funding.

Venture Capital Access Program launches to aid women and diverse entrepreneurs

David Teten

We are in the midst of two great disruptions to American business: the internet’s ongoing disruption of most traditional industries: finance, healthcare, retail, finance, fashion, etc.

The Valuation Trap

Inc Startups

But the author makes a point at the end in a section called "The Valuation Trap" that I very much agree with: "A second iron law of startups might be that the higher the valuation of a startup, the fewer options it has for financing and exits…… once a company has raised mezzanine capital and is valued in the billions, its options are essentially to go public or find a very interested buyer with deep pockets.

IVC - Summary of Israeli Private Equity Deals - Q1 2011

Recent Buzzes - VC Experts, Inc.

GKH) , a leading Israeli corporate law firm specializing in M&A, joint ventures, venture capital and equity and debt financing. FIMI had the third largest deal - a $36 million mezzanine financing of Alon Brands.

IVC - Summary of Israeli Private Equity Deals - Q3 / 2010

Recent Buzzes - VC Experts, Inc.

GKH), a leading Israeli corporate law firm specializing in M&As, joint ventures, venture capital and equity and debt financing. By Marianna Shapira, Research Manager, IVC Research Center Introduction. IVC Reports: Private equity deal value stands at $277 million in Q3 2010.

Summary of Israeli Private Equity Deals - 2010

Recent Buzzes - VC Experts, Inc.

GKH) , a leading Israeli corporate law firm specializing in M&A, joint ventures, venture capital and equity and debt financing. In 2010, six mezzanine deals attracted $145 million or 9 percent, compared to $67 million (6 deals) or 13 percent in 2009.

Super Specialized Wine and Film Private Equity Funds

Entrepreneurial Growth Culture

Based in the United States, Bacchus Capital Management specializes in mezzanine and private equity wine industry investments, principally in California’s premium wineries. First, the mix of interdisciplinary experts in the media, finance, entertainment, and wine distribution industry that compose the operating and sourcing teams behind these funds.

Ten Takeaways from Deloitte’s 2010 Israel VC Indicator Survey

VC Cafe

13% of respondents believe this gap to be in Mezzanine financing and no venture capitalist believes that there is no investment gap.

Hedge Funds and Venture Capital

Will Price

As an example, see $60m Brightcove financing led by Maverick Capital. First, this is reminiscent of the late 1990s when the mezzanine market proved to very lucrative. If the company is looking for mezzanine financing, a passive hedge fund investment makes perfect sense. Brad Feld and Jason Mendelson kindly asked me to serve as a guest blogger on Ask the VC. Today's question and my response follow. The original post can be found here.

Is the Debt and Equity Gap Here to Stay?

Recent Buzzes - VC Experts, Inc.

Raising finance remains extremely challenging, especially for small to medium-sized enterprises (SMEs) looking to raise smaller sums. Recent research carried out by Smith & Williamson indicates that the availability of funding for SMEs is likely to remain in short supply as the banks continue to be unwilling to either lend directly or to finance private equity transactions. In response, Alistair Darling made a number of announcements around SME financing in his final Budget.

Welcome to SBA Ventures LLC.

Inc Startups

The program is an offshoot of its Small Business Investment Company capital investment program, which licenses private equity firms to invest mezzanine capital in more established small companies.

LLC 58

The Second VC Round – A True Test of Scalability

Scalable Startup

The second round can also be a mezzanine, or pre-IPO round, or even the IPO itself. In one scenario in my career I was with a company that had taken only one round of equity financing. The Second Round, or “B Round”, or “Follow On” round can be the achilles heel of a startup. It requires much more than a first injection of funding especially in the current healthy seed and angel investing environment.

5 Key Numbers A Buyout Firm Uses to Value Your Company

Inc Startups

Let’s assume the investor will finance half of the purchase price of your company--$1 million of the total purchase price of $2 million. One million dollars of that purchase price pays off the debt the previous investor borrowed to finance your original deal, leaving $2.68

Q1 VC Numbers Are In.Here's the Good, the Bad, and mostly, The.

Seed Stage Capital

Dow Jones also states that later-stage financing rounds accounted for 55% of all venture investment in the first quarter of 2009, up from 47% in the same quarter last year. Some VC firms started investing in mezzanine rounds, and some even went much further.

SBIC 130

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

I believe some VCs have entered the early-stage market as simply an option on future financing rounds. As some of the last generation of startups have gotten bigger many VCs have also chased later-stage investments that were traditionally dominated by growth equity or mezzanine funds.

Dubai - A Destination Of Choice For Private Fund Managers

Recent Buzzes - VC Experts, Inc.

Whilst Bahrain is recognised as the first financial centre in the Middle East, with its focus on banking and Islamic finance, the emergence of the DIFC in 2004 and the Qatar Financial Centre in 2005 were hugely significant for the region.? Benjamin's practice focuses on the formation of closed-ended funds for institutions investing into private equity, infrastructure, real estate, mezzanine debt and other alternative assets classes.

On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

And this is happening in mezzanine (pre-IPO) deals as well. Or worse yet they may never get financed. Raise at “ the top end of normal &# but not so high that future financings in a corrected market become impossible. This post originally ran on TechCrunch.

Summary of Israeli Private Equity Deals - Q2 2011

Recent Buzzes - VC Experts, Inc.

GKH), a leading Israeli corporate law firm specializing in M&A, joint ventures, venture capital, equity and debt financing. For larger Israeli companies seeking private equity financing or potential acquisition, foreign private equity funds play an important role.".

2006 Predictions

Florida Venture Blog

We expect the strong market for venture financings in Florida to continue. This reinforces a recent trend of sponsors raising new funds in the more difficult market of 2003, including Banyan Mezzanine, Ballast Point, and Inflexion. 4) Venture and mezzanine funds in North Carolina, Georgia, and Tennessee continue to increase their emphasis on the Florida market, often joining with Florida firms to provide funding for local companies.

UPDATE: Raising Capital: Why VCs Need Grand Slams

Entrepreneurship Blog

Personally, I think that hedge funds will have a hard time getting into early-stage investing but they definitely could become a force in later-stage investing because it seems logical that mezzanine financing valuation techniques would be similar to the manner inwhich publicly traded stocks are priced. In regards to my posting on why VC's need grand slams , I'd like to point out two more interesting articles that help elucidate the process of VCs raising money.

ProfessorVC: Survey says VC's invest on Gut Instinct

Professor VC

One other chart worth noting is the the expected returns from various private capital providers (Banks, Asset based lenders, Mezzanine, Private Equity and VC). I also teach Entrepreneurial Finance at San Jose State. ProfessorVC. The last blogger in Silicon Valley.

US VC, PE and Hedge Fund Managers May Face Restrictions on Marketing to EU Investors

Recent Buzzes - VC Experts, Inc.

The non-EU jurisdiction would be required to (1) have certain standards to combat money laundering and terrorist financing, (2) grant reciprocal access to marketing of EU funds in its jurisdiction and (3) have agreements in place with the EU regarding exchange of tax and monitoring information. By Mary Kuusisto and Timothy M.

Upsizing Your IPO - What You Need to Know About 430A - Part 1 of 2

Recent Buzzes - VC Experts, Inc.

His clients include domestic and foreign investment banks, New York Stock Exchange listed companies, foreign corporations, leveraged buy-out funds and mezzanine investment funds. In the lending arena, he has represented senior and mezzanine lenders in acquisition financings.

Startups & VCs: Learn How to Design, Market, & Eat Your Own.

500 Hats

Categories A Few of My Favorite Posts Big Ideas, Hot Air Blog the Blogging Bloggers Books, Movies, & Media Conferences & Events Dave, Friends, Family Facebookaholic Finance & Economics, Capital Ideas Fun, Funny, Silly Games, Sports, Frisbee Geeks, Tech, Startups Life Lessons Marvelous Marketing Metrics & Measurement Microfinance, Social Entrepreneur Music, Art, Food, Travel Politics & Foreign Policy Prediction Markets Search, SEO/SEM, etc She Blinded Me With SCIENCE!

Upsizing Your IPO - What You Need to Know About 430A - Part 2 of 2

Recent Buzzes - VC Experts, Inc.

IPOs are subject to FINRA Rule 5110 (sometimes referred to as the Corporate Financing Rule). The underwriters of your IPO will be FINRA members, and the Corporate Financing Rule will limit the amount of compensation they (and other distribution participants for that matter) may receive in connection with the IPO. The Corporate Financing Rule also prohibits certain practices that FINRA has determined to be "unfair or unreasonable" and contains filing and disclosure requirements. [14].

Growth & Arrogance vs. The Power of a Customer Centric Culture | Art Papas, Bullhorn | BoS USA 2015

Business of Software Blog

And GE’s response was look, we usually do mezzanine stage funding, later stage companies, but we got to get into the internet game and you guys seem like great guys. You gotta talk to finance, I think they got a problem in billing, you need to talk to professional services, they have a project that’s off the rails. From growth arrogance to customer-centric culture Art Papas, CEO, Bullhorn.

Think Your Start-up Is Venture Worthy? Think Again.

techcrunch.com

Tweet View Comments Sarah Lacy Feb 19, 2010 Pepperdine has a new study out that attempts to shed some light on the clubby, shadowy world of private finance. Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves.