A company planning an IPO usually appoints a lead manager whose initial job is to determine at what price stock shares should be sold. This manager, called a book runner, usually works usually comes to the price in one of two ways: 1. The company sets the price (fixed price method), or 2. The price […]

Owners of a private company often do not take their company public for the following reasons: – Businesses are required to reveal significant amounts of private financial and business development information, which leads to increased competition. – “Going public” can be an expensive process with ongoing expenses in business requirements, extensive legal involvement, and larger […]

Although many entrepreneurs seeking capital approach angel investors, friends or family, or venture capitalists for the money, an alternate source of lending always exists with an investment banker. Investment banking is an alternative lending source where a borrower seeks significant capital for a venture. By definition, “An investment bank is a financial institution that assists […]

Funds are Usually Brought Into a Business In the Following Order: 1. Individual personal assets – the money and assets you invest or pledge as collateral. 2. Family and friends personal assets. – the money and assets your friends and family pledge as collateral. 3. Crowdfunding – people from across the USA or the world […]

Even though a large number of venture capital deals are completed in the United States, the non-US VC community is expanding exponentially. Worldwide VC serves as a tool for economic development, as many emerging countries progress in their growth, expansion and modernization. In many regions, such as India, VC funding seems to be one of […]

Venture capitalists are compensated through a combination of management fees and carried interest. Management fees: – VC firms typically receive a 2 percent management fee of the committed capital paid to them from the remaining money in the investment fund. – This money is used to help pay for the day-to-day operation expenses of the […]

Did you see the 60 Minutes TV reporting the extreme amount of problems in consumer credit reports? Fort million people have errors in their credit reports. While a substantial number of these are errors get repaired through the regular channels of contacting the credit bureau, lots of people are unsuccessful in getting the errors removed […]

That is a question I frequently get asked. It can be a bit like the Holden verse Ford debate? Even though everyone is different, however, after financially educating over 550,000 people from over 17 different countries over the last 15 years I have seen clear patterns of what has made a large majority of my […]

Types of Venture Capital Funds Let’s do a quick review of the types of venture capital funds. VC firms differ in their investment approaches. Some companies – Invest for a quick turnaround, by going public-selling within the public equities markets – Invest for the long-term, planning for slower growth, but strong tax benefits – Invest […]

Venture Capitalists What is a venture capitalist? A venture capitalist is an individual who makes investments in businesses before the firm goes public. In addition to bringing money to the business venture, capitalists usually bring managerial and business-specific talent to the business, and will take assume equity and generally a board seat in return for […]