Friday, September 30, 2011

Be yourself !!!!!!!!!!!!!!!!!!!!!!

One of the unexpected, unintended consequences of the Great Recession has been the opportunity given to — or forced upon — budding entrepreneurs.

Some of these owners of new dreams and fresh ideas have found their way to Tacoma Angel Network, a group of South Sound investors who meet every two months to review proposals and possibly supply early funding.

The group was formed in 2006 and counts 24 members. Since the founding, TAN members have invested some $10 million in more than 60 presenting firms.

Brian Haynes, president of Tacoma’s Rainier Connect, was named chairman of the investors’ network two years ago.

“We’re regrouping a little bit this year,” he said this week. “We’re having a membership drive. I’d say we had a very successful year. There’s been a renewed interest the last two years. Investments in the area are picking up again.”

When the group began, he said, “there was a flurry of interest.”

Now, he said, “I would say it’s renewed. We still have the core group, and we’re picking up a few new people.”

It’s difficult to quantify the profits earned on investments, he said, because the average “exit,’ or greatest returns, come after five to seven years.

“There’s a lot investment that’s not liquid,” he said.

John Rodenberg is a certified business advisor at the Tacoma Business Center at Bates Technical College. He is also on the TAN membership committee.

“People who are out of employment for the long term are looking to start a business,” he said. “They need funds for debt or equity, and we’re an outlet. There are plenty of applicants.”

Alongside that, he said, “there’s a new pool of people who are looking for places to invest.”

The process begins with an application (available at www.tacomaangelnetwork.com), which is followed by a grading process. A screening committee chooses the most likely candidates, and three are given the chance to present their ideas at each meeting.

Investments may – or may not – follow. The decision to invest is left to each member.

Members must meet a set of criteria in order to join.

They must have an annual income of $200,000, or personal assets of at least $1 million, or be a member of a legal entity, such as a family trust, with $5 million in assets.

Members pay an annual fee of $350 and are not required to invest.

As the latest membership drive begins, TAN has set an upward limit of 50 members.

“We don’t want to get gigantic,” Haynes said.

Some groups have hundreds of members and act primarily as networking venues. Some require annual investments, and others act as funds rather than allowing individual investments.

“Angel” capital differs from venture capital in that it typically comes at an earlier stage of business development. Also, with the Tacoma group, successful candidates are given the chance to work with business mentors within the network.

Investors expect a 10-times return, and prefer scalable enterprises.

Holly D’Annunzio, owner and managing member of D’Annunzio Consulting Group of Tacoma, acts as a member of TAN’s servicing committee. She joined the group two years ago.

“The word is getting out on angel investing,” she said. “It’s rewarding in a lot of ways. It brings out the capitalist in you.”

“These are not mom-and-pop businesses,” she said. “We’re not looking for someone who opens one restaurant – we want someone who will open 200.”

Most founding members of the group remain active but have given the leadership roles to a new slate of officers.

Since 2006, Haynes said, the group has seen candidates from all business sectors.

“Food, retail products, biotech, fuel, social networking, gaming, health care, professional services,” said Rodenberg.

“Nondrag windshields for trucks, after-market for motorcycles,” said Haynes. “There have been some really interesting technology plays. It’s amazing. That’s why it’s so interesting.”

Haynes, Rodenberg and D’Annunzio have all invested through the network.

“You only put in the money you can afford to lose,” D’Annunzio said.

Her first investment was not as successful as she had hoped.

“I’ve got a Ph.D. in seed capital,” she said.

“I think this is the route to the economic future of the U.S.,” said Haynes. “The money goes directly into jobs. Each one I’ve invested in, they’ve hired. It’s all leading-edge businesses. That’s what the U.S. is all about. The money is supposed to flow into the best ideas. It’s between the investor and the applicant.”

He echoes D’Annunzio.

“It’s capitalism at its best,” he said.

One of the primary goals of the network, he said, has been reached.

“This started out to prove there was a substantial investment base in Tacoma. We’ve proved that.”

C.R. Roberts: 253-597-8535 c.r.roberts@thenewstribune.com

Jg

Posted via email from jg2010's posterous

‘It brings out the capitalist in you’ | Business - The News Tribune

‘It brings out the capitalist in you’ | Business - The News Tribune

Thursday, September 29, 2011

Flint accelerate - Board Advisors - Transformational Catalysts for Entrepreneurial Organizations

Flint accelerate - Board Advisors - Transformational Catalysts for Entrepreneurial Organizations:

'via Blog this'

How I Mentor Startups & Entrepreneurs

I'm figuring out how to mentor people and companies as I go. Over the past 4 years I have met with literally thousands of founders, wantrepreneurs, operators, dreamers, doers, social media "gurus" and other people who make up the rich fabric of our t

Jg

Posted via email from jg2010's posterous

Wednesday, September 28, 2011

WNYT.com - Techapalooza showcases start-up businesses

WNYT.com - Techapalooza showcases start-up businesses

Get.com Gets $1M of Seed Funding from Angel Investors

Get.com Gets $1M of Seed Funding from Angel Investors

York Angel Investors Refine Business Model :: Wire Service Canada

York Angel Investors Refine Business Model :: Wire Service Canada

Untitled

News

Press Release | Business

Press Release: York Angel Investors Refine Business Model

Submitted by yorkangelinvestors on Sep 22, 2011 - 07:54 AM | Bookmark and Share

|

Business

York Angel Investors introduces a fee-based business model, recognizing the professional time and value delivered to entrepreneurs through the business plan submission process.

September 20, 2011 – Toronto, Ontario -- York Angel Investors (YAI) today announced their migration to a fee-based business model, recognizing the professional time and value delivered to entrepreneurs through the business plan submission process.

“We are a not-for-profit organization comprised of best-in-class business leaders.  Through our screening process, YAI delivers tremendous value to entrepreneurs seeking funding, business connections and ultimately break-through business success,” said Scott MacCannell, President, YAI.  “By applying a nominal fee-structure to the various stages of our collaborative work with entrepreneurs, we are acknowledging the mutual value of the process and applying a filter to the tremendous volume of business plans we receive.”

Our portfolio companies benefit from our member expertise in information technology, clean tech, energy conservation, retail, healthcare, pharmaceutical, online applications, enterprise and Software as a Service
The fee structure is not designed to financially burden entrepreneurs though will cover some of the hard costs incurred in YAI operations.

Effective September 16, 2011 the fee structure is as follows:
• Review of Funding Application ($35 + H.S.T.)
• Informal Presentation to and discussion with a small group of YAI Members ($75+ H.S.T.)
• Formal Presentation to YAI Members at one of the York Angels Monthly Investment Meetings ($175 + H.S.T.)

About York Angel Investors

The Angels are a group of accredited investors with a broad range of professional experience. Their individual and group focus is to create a return on investment for themselves and the businesses they work with.  Their involvement provides entrepreneurs with funding, and importantly advisors who counsel portfolio companies, based on their own success, on how to expedite and manage growth.

YAI’s portfolio companies benefit from our member expertise in information technology, telecommunications, internet, online applications, enterprise, Software as a Service, retail and pharmaceutical.  The collaborative mentorship approach and strategic financing supports entrepreneurs through various stages of early growth.  These critical investments often represent the bridge between the self-financed or seed stage and the venture capital and/or private equity level of funding.

-30-

For more information please contact:
Marilyn Schaffer
416-400-5629
mschaffer@xtminc.com

Add a new Comment

Jg

Posted via email from jg2010's posterous

Untitled

News

Press Release | Business

Press Release: York Angel Investors Refine Business Model

Submitted by yorkangelinvestors on Sep 22, 2011 - 07:54 AM | Bookmark and Share

|

Business

York Angel Investors introduces a fee-based business model, recognizing the professional time and value delivered to entrepreneurs through the business plan submission process.

September 20, 2011 – Toronto, Ontario -- York Angel Investors (YAI) today announced their migration to a fee-based business model, recognizing the professional time and value delivered to entrepreneurs through the business plan submission process.

“We are a not-for-profit organization comprised of best-in-class business leaders.  Through our screening process, YAI delivers tremendous value to entrepreneurs seeking funding, business connections and ultimately break-through business success,” said Scott MacCannell, President, YAI.  “By applying a nominal fee-structure to the various stages of our collaborative work with entrepreneurs, we are acknowledging the mutual value of the process and applying a filter to the tremendous volume of business plans we receive.”

Our portfolio companies benefit from our member expertise in information technology, clean tech, energy conservation, retail, healthcare, pharmaceutical, online applications, enterprise and Software as a Service
The fee structure is not designed to financially burden entrepreneurs though will cover some of the hard costs incurred in YAI operations.

Effective September 16, 2011 the fee structure is as follows:
• Review of Funding Application ($35 + H.S.T.)
• Informal Presentation to and discussion with a small group of YAI Members ($75+ H.S.T.)
• Formal Presentation to YAI Members at one of the York Angels Monthly Investment Meetings ($175 + H.S.T.)

About York Angel Investors

The Angels are a group of accredited investors with a broad range of professional experience. Their individual and group focus is to create a return on investment for themselves and the businesses they work with.  Their involvement provides entrepreneurs with funding, and importantly advisors who counsel portfolio companies, based on their own success, on how to expedite and manage growth.

YAI’s portfolio companies benefit from our member expertise in information technology, telecommunications, internet, online applications, enterprise, Software as a Service, retail and pharmaceutical.  The collaborative mentorship approach and strategic financing supports entrepreneurs through various stages of early growth.  These critical investments often represent the bridge between the self-financed or seed stage and the venture capital and/or private equity level of funding.

-30-

For more information please contact:
Marilyn Schaffer
416-400-5629
mschaffer@xtminc.com

Add a new Comment

Jg

Posted via email from jg2010's posterous

Austin startups finding investors through social network

Austin startups finding investors through social network:

'via Blog this'

Monday, September 26, 2011

Best Crowdfunding Sources for Seed Capital: GrowVC

Best Crowdfunding Sources for Seed Capital: GrowVC

Best Crowdfunding Sources for Seed Capital: GrowVC

Venture capital style crowdfunding for startups with GrowVC GrowVC is an equity-based crowdfunding system.  This means that  individuals who give you money become investors and own equity in your company just as with regular venture capital.

Jg

Posted via email from jg2010's posterous

Saturday, September 24, 2011

Untitled

Megan Muir.jpg

CONTRIBUTED BY
Megan Muir
megan.muir@dlapiper.com 

Canadian futurist Richard Worzel recently posted a piece entitled 9 Trends in Innovation on his blog, FutureSearch. His "trends" list is made up of approaches he believes will lead to innovation and success. From his list, I’ve pulled some sections that struck me as particularly applicable to a tech startup with the goal of significant long-term growth. Read the entire piece here.

Exclusivity is overrated; fanaticism is more valuable

Worzel acknowledges that “creating fanatics is not easy. It takes years of work, meticulous attention to detail, and outstanding customer service.”  Fanatical customers are not only frequent purchasers of your products, but they can be evangelists out in the business or consumer world for your technology and influence others to give your products a try.

Create ecosystems, not products

“If you look at the best technology names in the world today, they don’t create individual products, they create systems that interact and support each other. . . .”  He cites Google as an example, with its free email, news, data storage, etc., which has resulted in an interconnected, integrated system.

“It’s not the customer’s job to know what they want”

If what you are doing is truly new or different, your customers may not know they want it until after they have tried it.

Seek beauty and perfection in what you offer

Quoting Steve Jobs, Worzel says “you want to create something ‘insanely great.’”

Eat your own lunch – and everyone else’s

As your market changes, your product offerings will need to change. More established companies may fear that releasing new products will cut into existing sales.  As Worzel points out, “whether you introduce changes that eat into your existing sales or not, someone else will. So the question then becomes: do you want to cannibalize your sales, or let one of your competitors do it?”

Jg

Posted via email from jg2010's posterous

A Futurist's Take on Innovation

A Futurist's Take on Innovation

Maynard proposes lowering angel investor tax credit threshold | Hartford Business

Maynard proposes lowering angel investor tax credit threshold | Hartford Business

Monday, September 19, 2011

Diving Ice Age Mexico - Archaeology Magazine

Diving Ice Age Mexico - Archaeology Magazine

New Tomb at Teotihuacan

New Tomb at Teotihuacan

Untitled

Entrepreneurs everywhere want to fly with the angels  -  angel investors that is.  But more often than not, dreams have been shattered because the entrepreneur either wasn't ready or didn't know what to expect when seeking investor financing.  Here is what you need to know to be able to fly with the angels.

 

No Revenues – No Investment

 

Are you just starting your business?  If so, you must realize that angel investors have a very low probability of investing in a company with zero revenues.  They only want quality projects with experienced principals who are liquid, that have a strong management team, and that have a clear cut exit strategy.  So the first lesson to learn is that angel investors want to see some history.  This proves to them that your product is attractive to real customers who will pay real money.

 

New Investors Don't Pay Old Investors

 

So to get your business started you will most likely end up putting your own money into the business or seek the help of friends and family.  Most entrepreneurs then fall into the trap of thinking that an angel investor will come along with financing that will enable the business to pay back the loans from friends and family, as well as the money the entrepreneur himself has invested.  It's better to learn now that angel investors don't want to take out other investors.  They want to see 100% of their investment put into the business to make it grow.  So the lesson to learn here is to focus on your business growth strategy, and that usually means re-investing all the profits and cash flow from the business back into the business.  But that's really one of the keys to growth – re-investing your profits back into the business.

 

 

 

Angels Take Their Time

 

The next thing cash strapped entrepreneurs must realize is that there is a time consuming process involved with angel investor financing.  If your business plan does make it into the hands of an angel investor group, it will usually go to a selection committee first where only the best business plans meeting the criteria of the angel investor group will have the opportunity to be presented to the group.  The selection committee may take 30 to 60 days to review your business plan and approve it for the investment group to actually look at.  The actual investment group may only meet once a quarter, so the entrepreneur may be looking at another 60 to 90 day delay before even getting the chance to present his business plan.  So if you are looking for funds to meet next week's payroll, this is not the place to be looking.

 

Keep It Short and Sweet

 

When the entrepreneur finally does get his chance to present his story, he will not be given all the time in the world.  If he is lucky, he will get a 20 minute time slot to make his presentation.  You should plan on the first 10 minutes being your actual presentation and the last 10 minutes being a question and answer period.  Spend your first 8 minutes focusing on your product and about 2 minutes on the investment portion itself.   Limit any power-point presentations to no more than 10 slides.  Here you should have only 2 slides dedicated to the product and 8 dedicated to the investment.  Be confident, but truthful.  These investment groups have been there done that too many times and they have developed exceptional intuition skills – so don't even think of bluffing your way through.

 

Due Diligence Is A Slow Process

 

If you are lucky enough to receive a favorable decision at this level, the angel investment group will then start their due diligence.  The due diligence process will vary for different types of companies, but be prepared to have the investment group thoroughly examine every area of your business including  the financial, legal, labor, tax, IT, environment and market/commercial situation of your company. They will also be looking into intellectual property, real and personal property, insurance and liability coverage, debt instrument review, employee benefits and labor matters, immigration, and international transactions as well.  You should plan on a 3 to 12 month time-frame for this process.

So if you have added all this up, you are looking at a minimum of 6 months and maybe as long as 18 months.  Not exactly cash in a flash.

Funding Comes In Stages

 

If you have survived this far, you will be more than ready to cash that check.  Now comes another realization – the funding may come in stages, not all at once.  Angel investors are usually groups of high net worth individuals who join together to make the investment.  This spreads their risk.  It also means that the investment group will have to collect the investment funds from the members of the group and the cash is not sitting in their checking accounts just waiting to be disbursed to you.  There may be as many as 10 or 15 individuals putting in an average of $30,000 each to fund the angel group investment.  So expect the funding to come in stages, not all at once.

Notice something else – 10 to 15 individuals each putting in $30,000 will only add up to somewhere between $300,000 and $450,000.  So the last lesson for today is that your $1,000,000 payday will not be coming from angel investors.  That's the turf of venture capitalists.

Once you learn what to expect from angel investors, you can prepare yourself to fly with the angels.  If you need flying lessons, contact Performance Advisors LLC and we can help you with the process and maybe even introduce you to some real live angels in the process.  

 

My thanks go out to Dave Miller of Strategic Transitions Inc. for his valuable insight and contribution to this article.

Jg

Posted via email from jg2010's posterous

Thursday, September 8, 2011

People's Daily Online The Communist Party of China (CPC)

People's Daily Online The Communist Party of China (CPC):

'via Blog this'

The TableTech rundown: Boston start-ups trying to upgrade the restaurant experience

The TableTech rundown: Boston start-ups trying to upgrade the restaurant experience

China's spilled secrets

China's spilled secrets

Untitled

Bookmark and Share

 

This event sells out quickly so it is important that you pre-register. Thank you!

Topic: Venture Startup and Financing SIG: Selling Your Venture – Putting Lipstick on the Pig
It was a fast and furious IPO window, but that window looks like it is shut tight as the global economy goes into a stall yet again – but don’t despair, M&A is here!! Tech co’s that made it through the IPO process have cash and many more existing well known tech names (Facebook, Microsoft, Apple to name a few) have hundreds of milllions – and in some cases several billion - in the war chest and they are starting to go shopping for companies, technologies and people. Come to this seminar to hear strategies to maximize your ventures “saleability,” including the following:

• What sectors + industries are hot areas for M&A over the next 12 months and why
• Planning process for preparing your venture for sale – avoiding diligence bombs
• Building a Buyer funnel – strategies for looking for realistic Buyers
• Understanding the Buyer mindset – what are they looking for and why when building a target lists
• What is your value? Effective valuation approaches and techniques
• Building a venture from the start with M&A in mind, a 3 year plan
• M&A deal term sheet discussion – asset deals, stock deals and more
• Avoiding deal pitfalls + landmines
• Getting to a close – what you need to do to make the sale happen

Our speaker for this evening will be Tom Cervantez, who is a co-chair of the Venture Startup and Financing SIG and a principal at Business Counsel Law Group (a tech corporate law boutique) and several investment bankers + CEOs that have been there/done that. Come get some great advice to help you & your venture get out the M&A window before that shuts too!!

Speakers:
Tom Cervantez – Founder and Co-President, Harvard Angels & Partner, Bizlaw

Tom Cervantez is an active angel investor in the computer, communications and networking sectors and runs the Harvard Angels (angel group for Harvard Business School NorCal Alum and Harvard Club SF) and the Golden Gate Angels investor group in San Francisco. Tom is also a partner with Business Counsel Law Group in San Francisco, working with emerging companies, venture funds and computer software and hardware providers. He advises clients in matters involving securities, capital structure planning, private placements, mergers and acquisitions, venture financing and licensing transactions. He also advises domestic companies expanding into foreign markets, and international companies seeking investment or product distribution in the United States. Tom holds a Bachelor's in Business Administration, magna cum laude, from Loyola Marymount University, a JD from Harvard Law School and a MBA from Harvard Business School. Tom can be reached at tcervantez@bizlaw.com

Ron Heller – Senior Director, Newforth Partners
Heller has been an investment banker for 15 years, the last 10 focused on technology sector private placements. Before Newforth, he consulted on private placements for Venturi & Co. and Garage Technology Ventures. His clients have included Wine.com, PhatNoise, AgileTV, Kestrel Solutions and Zeevo.

From 1999 to 2001, Heller was a director at CSFB Technology's Equity Private Placements Group, where he managed private equity placements in the U.S., Asia and Europe. There he assisted 18 companies, including Zhone Technologies, China NetCom, Sanctum, Eachnet, Interwoven, OmniSky, Reciprocal and AllAdvantage, raising approximately $1.5 billion.

He was a vice president managing private placements, mergers and acquisitions for Houlihan Lokey Howard & Zukin and earlier at Venturi & Co. He performed similar services for Frost & Berman, Smith Barney, Bain and Co. and NuMarket Communications, a division of Trammell Crow.

Location:
Silicon Valley Bank
2400 Hanover Street
Palo Alto, CA 94304

Agenda:
6:30 - 7:00 pm  Registration and Networking
7:00 - 8:30 pm Presentation

Cost:
$35 for non-SVForum members
$20.00 for SVForum members

Note: There is an additional $10.00 charge at the door - if not pre-registered.


Seating is limited! It is very important to pre-register for this event. It does sell-out and we may need to turn people away. Please note: Because of Paypal's new policies, we can no longer accept American Express cards at the door.

Venture Startup and Financing SIG
 

Jg

Posted via email from jg2010's posterous

Doughmain Receives $5 M of Seed Funding from Private Angel Investors

Doughmain Receives $5 M of Seed Funding from Private Angel Investors

Tuesday, September 6, 2011

3 Elements for Every Business Plan

3 Elements for Every Business Plan

3 Elements for Every Business Plan

3 Elements for Every Business Plan

Defending a Jungle Kingdom - Archaeology Magazine

Defending a Jungle Kingdom - Archaeology Magazine

NewNet Envirotech and Clean Energy Investor Summit 2011, London, presented by NewNet

NewNet Envirotech and Clean Energy Investor Summit 2011, London, presented by NewNet:

'via Blog this'

Business Line : Markets / Stock Markets : Private equity, venture capital funds hit $50 b

Business Line : Markets / Stock Markets : Private equity, venture capital funds hit $50 b

Untitled

1,500 companies got investments in last 6 years: Report

Chennai, Sept. 6: 

The Private Equity (PE) and Venture Capital (VC) industry is coming of age in India and has played an important role in the growth of the Indian industry across sectors.

Over the past six years, PE/VC investment has touched nearly $50 billion, which is a significant proportion of the total investment into India Inc. In comparison, capital raised through Initial Public Offerings (IPOs) during this period was $31 billion.

Even assuming that the PE investment is at par and assuming an average stake of 25 per cent, the total market value of PE investee companies would be at least $200 billion.

The market capitalisation of the Bombay Stock Exchange is around $1,400 billion. At a conservative estimate, PE is already about 15 per cent of the market. There are multiple assumptions as some of these are unlisted, but this gives a good sense of the scale of PE investment, according to a report on PE in the Indian Corporate Landscape released by the Indian Private Equity and Venture Capital Association (IVCA).

The report, ‘Fourth wheel', compiled in association with Grant Thornton says the total foreign direct investment (FDI) inflow into India over the past six years was about $116 billion and a good proportion of this was PE. It may be useful for India to lure more PE as it pitches for more FDI, according to Mr H.V. Harish, Partner, Indian Leadership Team, IVCA.

In the last six years, around 1,500 companies have received PE investments. Even if a third of these were to be listed over the next few years, they will form a significant chunk of the total number of companies going for IPO.

Bright future

PE investors have played a significant role in the development of several sectors, including technology, telecom, healthcare, retail and education, over the past decade. PE investments have grown from $2 billion in 2005 to $19 billion in 2007. Thereafter, investment value fell to $6.2 billion in 2010, a growth of 25 per cent over the last six years.

Mr Sudhir Sethi, Chairman and Managing Director, IDG Ventures India, expects $70-75 billion of PE and VC investments in India during 2010-2015. Nearly $22 billion is expected to be required for follow-up funding of current PE-funded companies. Then, around 2,000 companies in information technology, IT-enabled services, manufacturing, engineering and construction and healthcare, are expected to attract around $30 billion in new PE and VC.

There will be new investment in sunrise sectors such as telecom (driven by developments such as 3G), BFSI (driven by grant of new banking licenses), energy (supply–demand gap), education (as regulations become more favourable) and retail (favourable government policies and increasing foreign participation), Mr Sethi said.

The recent events at Satyam and Subiksha have clearly raised concerns among investors about the reliability of financial information and the integrity of management. Hence, robust diligence is the need of the hour and PE investors are clearly focused on enhancing quality of due diligence, the report says.

| -->
Ads by Google
'; if (google_ads[0].type == "image") { s += ''; } else if (google_ads[0].type == "flash") { s += '' + '' + '' + '' + ''; } else if (google_ads[0].type == "html") { s += google_ads[0].snippet; } else if (google_ads[0].type == "text") { // Adjust text sizes to occupy the majority of ad space. if (google_ads.length == 1) { ad_title_class = 'ad_title_large'; ad_text_class = 'ad_text_large'; ad_url_class = 'ad_url_large'; } else { ad_title_class = 'ad_title'; ad_text_class = 'ad_text'; ad_url_class = 'ad_url'; } for(var i=0; i
' + google_ads[i].line1 + '
' + google_ads[i].line2 + ' ' + google_ads[i].line3 + '
' + '' + google_ads[i].visible_url + '
'; } } document.write(s); return; } // -->

Jg

Posted via email from jg2010's posterous

Business Line : Markets / Stock Markets : Private equity, venture capital funds hit $50 b

Business Line : Markets / Stock Markets : Private equity, venture capital funds hit $50 b

Untitled

1,500 companies got investments in last 6 years: Report

Chennai, Sept. 6: 

The Private Equity (PE) and Venture Capital (VC) industry is coming of age in India and has played an important role in the growth of the Indian industry across sectors.

Over the past six years, PE/VC investment has touched nearly $50 billion, which is a significant proportion of the total investment into India Inc. In comparison, capital raised through Initial Public Offerings (IPOs) during this period was $31 billion.

Even assuming that the PE investment is at par and assuming an average stake of 25 per cent, the total market value of PE investee companies would be at least $200 billion.

The market capitalisation of the Bombay Stock Exchange is around $1,400 billion. At a conservative estimate, PE is already about 15 per cent of the market. There are multiple assumptions as some of these are unlisted, but this gives a good sense of the scale of PE investment, according to a report on PE in the Indian Corporate Landscape released by the Indian Private Equity and Venture Capital Association (IVCA).

The report, ‘Fourth wheel', compiled in association with Grant Thornton says the total foreign direct investment (FDI) inflow into India over the past six years was about $116 billion and a good proportion of this was PE. It may be useful for India to lure more PE as it pitches for more FDI, according to Mr H.V. Harish, Partner, Indian Leadership Team, IVCA.

In the last six years, around 1,500 companies have received PE investments. Even if a third of these were to be listed over the next few years, they will form a significant chunk of the total number of companies going for IPO.

Bright future

PE investors have played a significant role in the development of several sectors, including technology, telecom, healthcare, retail and education, over the past decade. PE investments have grown from $2 billion in 2005 to $19 billion in 2007. Thereafter, investment value fell to $6.2 billion in 2010, a growth of 25 per cent over the last six years.

Mr Sudhir Sethi, Chairman and Managing Director, IDG Ventures India, expects $70-75 billion of PE and VC investments in India during 2010-2015. Nearly $22 billion is expected to be required for follow-up funding of current PE-funded companies. Then, around 2,000 companies in information technology, IT-enabled services, manufacturing, engineering and construction and healthcare, are expected to attract around $30 billion in new PE and VC.

There will be new investment in sunrise sectors such as telecom (driven by developments such as 3G), BFSI (driven by grant of new banking licenses), energy (supply–demand gap), education (as regulations become more favourable) and retail (favourable government policies and increasing foreign participation), Mr Sethi said.

The recent events at Satyam and Subiksha have clearly raised concerns among investors about the reliability of financial information and the integrity of management. Hence, robust diligence is the need of the hour and PE investors are clearly focused on enhancing quality of due diligence, the report says.

| -->
Ads by Google
'; if (google_ads[0].type == "image") { s += ''; } else if (google_ads[0].type == "flash") { s += '' + '' + '' + '' + ''; } else if (google_ads[0].type == "html") { s += google_ads[0].snippet; } else if (google_ads[0].type == "text") { // Adjust text sizes to occupy the majority of ad space. if (google_ads.length == 1) { ad_title_class = 'ad_title_large'; ad_text_class = 'ad_text_large'; ad_url_class = 'ad_url_large'; } else { ad_title_class = 'ad_title'; ad_text_class = 'ad_text'; ad_url_class = 'ad_url'; } for(var i=0; i
' + google_ads[i].line1 + '
' + google_ads[i].line2 + ' ' + google_ads[i].line3 + '
' + '' + google_ads[i].visible_url + '
'; } } document.write(s); return; } // -->

Jg

Posted via email from jg2010's posterous

Sunday, September 4, 2011

Untitled

The Velocity of Angel Investing

At the Angel Excelerate program that I attended, Brad Feld was kind enough to take some time and speak to us from Tuscany. He said some enlightening things when it came to angel investing.

As I listened to him speak, I found myself drifting back to Finance classes I took at the Booth Graduate School of Business. If angels don’t know about Portfolio Theory and Efficient Market Hypothesis, they ought to brush up on it. In an indirect way, that’s exactly what I heard when Mr. Feld spoke.

Instead of trying to invest a lot of money in a few winners and taking a lot of risk, invest a the same amount of money a little at a time in many of promising start ups, spreading out your risk.

That sounds like buying the S&P in a low cost mutual fund instead of stock picking.

Brad made a great point when it came to valuations as well. He said to constantly invest over time. Then market fluctuations won’t matter. When the market is frothy you will buy some highs, but when the market is low, you will buy some lows. It all evens out in the end.

That sounds just like Efficient Market Theory, and putting away a little money monthly for retirement.

Then he turned his sights on the angels themselves. Angels shouldn’t just write a check and give it to the business. Angels need to add value.

The first way to add value is to make a decision in a reasonable amount of time. Hemming and hawing doesn’t do anyone any good. It kills the entrepreneur, and the more the angel thinks the less risk loving they become.

If you are not enthusiastic about the opportunity, don’t invest.

He also talked about market size. It’s important to have a general idea about market size, but you can’t size a market and put it on an Excel spreadsheet. The spreadsheet you create isn’t going to tell you anymore than the research you do on the market sector the entrepreneur is attacking.

Next, show belief in the entrepreneur and business team. If you don’t believe in them, don’t invest. You will have to support them at some point during the process. So, give them confidence. Mentor them.

Bring more people to the table. It ideally will be customers. But it could be other investors, people who make connections for the business, or next round investors. You don’t have to be involved in the day to day operations, but be on the perimeter helping in any way you can.

I really think that old pit traders can make great angel investors. They have the necessary characteristics. They can size up an opportunity quickly. They understand risk/reward and can write a check. They are used to weathering ups and downs. More old broken down traders looking for something to do ought to consider joining a local angel group. We have a few in Hyde Park Angels and they are great members.

I thought it was a great two part presentation. It’s why Feld is looked upon as one of the best angels out there today.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

You might be interested in:

Please enable JavaScript to view the comments powered by Disqus. blog comments powered by Disqus

Jg

Posted via email from jg2010's posterous

The Velocity of Angel Investing

The Velocity of Angel Investing

Saturday, September 3, 2011

Untitled

Untitled

Paleontologists have yet to fully trace the origins of many of the giant, hairy beasts that lived during the most recent ice age, which lasted from about 2.6 million to 10,000 years ago. Many of these animals, whose massive bodies conserved heat effectively, were thought to have evolved in Eurasia from animals that managed to survive and adapt to an increasingly cold environment.

The new fossil from the Zanda Basin in Tibet may provide an alternative evolutionary explanation for some of those animals, said study coauthor Xiaoming Wang, a vertebrate paleontologist with the Natural History Museum of Los Angeles County.

Wang's international team did not go to the Tibetan highlands expecting such a find. Tibet's elevated plains are relatively untouched paleontologically, and the scientists were simply looking to learn about the history of the area's animal life from whatever fossil evidence they could dig up. Team members would often walk five to 10 miles in a day, scanning the earth for signs of fossil fragments.

It was Wang who discovered a neck-bone fragment poking out of the ground one August afternoon in 2007. He had barely begun digging when his hammer hit the skull. He brushed away dirt, baring giant teeth.

Short on supplies and with just a few days left on the expedition, Wang and colleagues were faced with a dilemma. They could wait for their next trip to take the fossil home — but leaving it partially exposed would make it vulnerable to the elements.

Instead, the team decided to dig out the fossil as fast as they could. The scientists sped to the nearest hospital, about 60 miles away, and begged a doctor for plaster to protect the fragile specimen. Without the plaster to encase the bones, Wang said, the fossil "would have fallen apart into a thousand pieces before we got back into Beijing."

"The doctor was really gracious," Wang added. "We managed to convince him that this is a special case, that he will be able to make a big contribution to science."

Several months after a harrowingly bumpy ride back to Lhasa and then Beijing, the researchers realized the significance of their discovery: It was a new species of rhinoceros that had developed cold-hardy attributes at least a million years before the ice age got underway. The rhino, about 10% lighter than its ice age descendant, had a hairy body and a flattened horn useful for sweeping away snow to get at vegetation.

The team also found other creatures — blue sheep, snow leopards and Tibetan antelope — that had acquired similarly snow-ready qualities. Perhaps this part of Tibet had been a specialized breeding ground for cold-tolerant animals that were able to thrive and spread once the big freeze hit. It will take more digging to find out.

Jg

Posted via email from jg2010's posterous

Untitled

Untitled

Untitled

Sign up for our Newsletters |   Email the Editor Email the EditorPrint  Printer friendly page

Under-30 entrepreneurs fail to woo investors with startup pitches

Founder2Founder gave young CEOs a chance to pitch to five potential investors. But as stats show VCs straying away from IT startups, some of these sales pitches fell on deaf ears.
8/30/2011 6:00:00 AM By: Christine Wong

Under-30 entrepreneurs fail to woo investors with startup pitches

It’s a nightmare for most of us: a big white screen, a PowerPoint
presentation, and nowhere to hide.

But that age-old format recently gave some of Canada’s most ambitious young entrepreneurs an opportunity they had only dreamed about: five minutes to pitch their business ideas to a group of potential angel investors.

The pitch night was the final event of Founder2Founder (F2F), a 10-week program providing 10 teams of startups with information seminars, guest speakers and mentoring from 10 corporate veterans. Originally called Young Entrepreneurs’ Club, the program took place in Toronto but drew participating teams from as far as Kingston and Waterloo, Ont. All team members had to be under 30 years old.

Eight teams ended up pitching on the final night to about five potential investors at Toronto’s Yorkville Media Centre. There was no prize to be awarded, so teams vied solely for the feedback of their peers, and the interest (and money) of the investors in attendance. While the chances of any team walking out of the room with a cheque were slim, organizers said the program was more about mentoring than money.

“Everyone sort of developed a lot. (It’s been) very impressive when you look at (the startups) from day one to near the end of the 10 weeks. And I think a lot of people gained a lot of insight throughout the process as well,” says F2F co-founder Jeremy Einhorn.

“It’s about fostering the relationships, gaining insight and then moving forward as best they can with their businesses,” he adds.

Mentors included Buytopia co-founder Michelle Romanow and branding guru Jamie Salter, who’s credited with crafting Lady Gaga’s Polaroid Corp. endorsement deal, and pairing up actress Sarah Jessica Parker with fashion label Halston. The advice from those mentors proved priceless, says Einhorn, whether any of the startups ultimately get funding or not.

“It’s so unbelievable. We have (mentors) that come out and say ‘You have a great idea, drop out of school. Go do your idea, school’s for fools, look at me’ kind of thing. And you have other guys that say ‘No, no, no, stay in school,’” Einhorn says.
Page Navigation 1) Pitches given, only feedback received. - Page 1
2) Business ideas include analytics for loyalty programs. - Page 2

Next Page >> << Back


add@name.com?subject=Interesting IT Business.ca Article - Under-30 entrepreneurs fail to woo investors with startup pitches &body=Check out this article I found and though you would like: Under-30 entrepreneurs fail to woo investors with startup pitches | <a href="> Email a Friend Print This page


-->

Jg

Posted via email from jg2010's posterous

Free finance clinics for SMEs | Manchester Evening News - menmedia.co.uk

Free finance clinics for SMEs Manchester Evening News - menmedia.co.uk

Apocalypse Soon?

Apocalypse Soon?