Venture Capital?

October 4, 2009 by · 2 Comments
Filed under: Blog 

I run a consulting firm specializing in helping large US and International contractors and construction owners in the construction industry in the areas of pre-construction and project management. The business is generating income but I want to expand the model and develop a utility management tool (software) that reflects my business philosophy and approach. In order to do this I need financing, but I don’t want to take a loan, I prefer equity based financing. Any ideas where to start and how to approach this?

Unless you deal with “angel investors” (rich folks who like to invest in speculative deals and, as a rule, are passive investors), you will not likely get straight equity financing from anyone for an early-stage venture.

Most VCs, if they’re interested, will want to invest via secured debt, which is then convertible into preferred stock. Also attached to the money will be budgets, board seats, and oftentimes management control. Expect VCs to be actively involved in your business, from both a strategic and an operational viewpoint.

The days of straight equity financing for startups is – as a general rule – long gone, so I suggest you tweak your realistic expectations slightly if you are going to deal with professional VCs.

Good luck.

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venture capital?

September 30, 2009 by · 2 Comments
Filed under: Blog 

Henry invested $12,000 in a new restaurant. When the restuarant wwas sold two years later, he received $27,000. Find his average annual return by solving the equation 12,000(1 + r)^2 = 27,000

Well he gained $15,000 (subtract the 2 numbers) in 2 years so $7,500 would be your answer.

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Venture Capital

October 2, 2008 by · Leave a Comment
Filed under: Blog 

This segment of UHY’s Business in the Eye of the Storm details raising venture capital. Visit www.businessintheeyeofthestorm.com for more information and other informative videos.

Duration : 0:8:58


[youtube 7VsEyWxIuP4]

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