Community Development Venture Capital Pays Off
(ContentDesk) October 22, 2005 -- CDVCA (www.cdvca.org), the network for the rapidly-growing community development venture capital (CDVC) industry, is pleased to announce several recent successes in its field. Three prominent CDVC funds, Coastal Ventures II, Pacific Community Ventures, and SJF Ventures, have realized significant financial returns through the sale of privately-held companies. CDVC funds provide equity capital to businesses in underinvested markets, seeking market-rate financial returns, as well as the creation of good jobs, wealth, and entrepreneurial capacity. "We are thrilled about these early successes in our industry," said CDVCA President Kerwin Tesdell. "These premium exits confirm what many CDVC investors have been saying for years: mission-driven venture capital investments can create important social impacts, while providing a handsome financial return." Coastal Ventures II, LLC, a fund managed by CEI Ventures, Inc., a leading CDVC firm, exited its investment in Portland, Maine-based Recruiternet Inc., a provider of corporate applicant tracking and talent management software solutions.
Founded in 1999, Recruiternet received an equity investment from Coastal Ventures II in June 2001. In September the fund exited with a better than 7X return, and the potential for significant additional upside from a two-year earn out. During the past four years over 30 jobs were created, offering inclusive stock options that provided between $10,000 and $200,000 to many employees. No jobs are being eliminated as a result of the acquisition, and further employment growth is expected in coming years. "We are delighted that just four years after making one of the first investments in our second fund, our investors are already realizing significant returns," said CEI Ventures Partner Mark Kaplan.
"And we're pleased to have supported the growth of a global company creating good employment opportunities here in Portland, Maine." Pacific Community Ventures (PCV), another top CDVC fund, recently had a dual financial and social success of its own when it sold Timbuk2 Designs Inc. to a private equity investment group. Timbuk2, maker of built-to-order messenger bags, laptop bags, and other urban-themed totes and accessories, is an icon in its industry recognized internationally for its classic messenger bag. The sale of Timbuk2 provided a greater than 4X return for Pacific Community Ventures in under three years. And due to a special set-aside negotiated by PCV at the time of investment, Timbuk2's employees will share in the buyout proceeds, with over $1 million being distributed to the company's 40 non-management employees.
"The Timbuk2 sale is a double-bottom line home run," said Eduardo Rallo, Managing Director at PCV and Timbuk2 Board Member. "PCV's investors are receiving a well above-market return on their investment. Equally important, Timbuk2's lower-income workers are able to share in the financial upside of the value they have helped create." Noted CDVC fund SJF Ventures also had a winning exit recently when it sold its stake in HDS Cosmetics Lab, Inc., maker of the Doctor's Dermatologic Formula (DDF) line of premium skincare products. The company provides skin care products designed to treat aging, acne, sensitive skin, hyperpigmentation and environmental/sun damage. HDS grew its sales by 60 percent in 2002 and 50 percent in 2003, and SJF Ventures exited its investment in less than three years with a 70 percent internal rate of return.
HDS has hired approximately 100 workers in the last two years, providing strong manufacturing job creation in a low-to-moderate income area of Yonkers, New York. "VCs only get paid when they cash out. Therefore we are always looking to invest in quality companies that want to get to scale rapidly and can offer us a premium exit," said Dan Hoversten, SJF Ventures Managing Director. About CDVCA The Community Development Venture Capital Alliance (CDVCA) is the network for the rapidly growing community development venture capital (CDVC) industry. CDVCA supports and promotes the CDVC industry through advocacy, investment, research, consulting, and communications.
From 55 funds managing $400 million in capital in 2000, the industry has grown to 82 funds managing $870 million in capital at the end of 2004. In 2003, 80 percent of capital commitments to CDVC funds came from banks and non-depository financial institutions (insurance companies and pension funds). About Coastal Ventures II, LLC Portland, Maine-based Coastal Ventures II, LLC is a venture capital fund managed by CEI Ventures, Inc. CEI Ventures was founded in 1994 to mobilize private capital markets while advancing social goals. CEI Ventures manages two venture capital funds with total commitments of $25.54 million.
These funds make equity investments in companies exhibiting the potential to grow profitably and provide attractive financial returns. Through these investments, CEI Ventures seeks to create quality employment opportunities, to promote progressive management practices, to support socially beneficial products and services, and to enrich distressed communities. About Pacific Community Ventures San Francisco, California-based Pacific Community Ventures (formerly Silicon Valley Community Ventures) opened its doors in 1999 to develop and invest in businesses providing economic gains to low-income communities in California. PCV helps companies in traditionally overlooked areas to gain access to capital, business advice, and critical business resources that will accelerate company growth. Currently, PCV targets existing businesses throughout California, but has a particular focus on the Bay Area and Los Angeles.
About SJF Ventures SJF Ventures is a venture capital fund that invests in and assists high growth companies with successful environmental and workforce strategies. SJF has $30 million under management and a portfolio of sixteen companies in the cleantech, technology-enabled business services, and natural consumer products industries. SJF has offices in Durham, NC and Philadelphia, PA and invests in expanding companies throughout the Eastern U.S. with sales of $1MM to $20MM. Contact: Kerwin Tesdell President, CDVCA (212) 594-6747 x18 Mark Kaplan Partner, CEI Ventures(207) 772-5356 x110 Eduardo Rallo Managing Director, Pacific Community Ventures (415) 442-4300 Dan Hoversten Managing Director, SJF Ventures (215) 545-1750.
Do Commodities Belong In Your Portfolio?
Copyright 2006 Rafael Velez
Although it may sound frightening and risky to many investors, if handled correctly, commodities could be the missing piece of an investor's portfolio. What exactly are commodities? Commodities are any mass goods traded on an exchange or in a cash market including: cocoa, coffee, eggs, lumber, orange juice, soybeans and sugar just to name a few. Industrial metals are also included with copper, aluminum, zinc, nickel, silver, and lead ranking among the most popular industrial metals holdings.
Finally, the most widely followed commodities include oil, natural gas and gold.
The diversification benefits equal or surpass those of other asset classes like fixed income and real estate. The primary reason for this is their correlation, or lack thereof, to the stock market as represented by the S&P 500 (Correlation describes how similar the price movement is between two investments).
Commodities have historically exhibited...
Do Commodities Belong In Your Portfolio?
Hedge funds > Do Commodities Belong In Your Portfolio?
Tips for an easy card processing
By Soli Katir
www.credit-card-magazine.com
Most businesses conduct their transactions with the help of credit cards. Moreover, personal transactions could also be carried out through the use of credit cards. Credit card has become very essential for shoppers since it eliminates the need to carry a large amount of cash. It gives convenience both to the customer and the seller because transactions can be done any time you want it. It helps in managing your money easier and can be especially used during emergencies.
Using credit cards on online transactions boost your business profit against your competitor.
Here are the three key elements needed for credit card processing:
1.
Payment gateway - combination of secure software and hardware that transmits payment information from customer to merchant, provides interface, credit card processing, billing, reporting and operational services.
2. Internet...
Hedge funds > Tips for an easy card processing
DREAMS ABOUT MONEY
Dream One. I was on a curvy road that led to Fort Knox, Kentucky. Beside the road, were several people who shouted "go on, go on" and gestured for me to go on down the road. Suddenly, at a bend in the road, I encountered several huge men, dressed to the teeth in knives and guns, with bandoleers of ammunition around their chests. I began to battle these demons, all the while calling on the name of Jesus to help me.
The batttle raged, I was getting weak, and then, the Lord gave victory. Immediately afterward, huge sums of money started falling out of the sky. I then woke up.Dream Two. I dreamed I was by a bank. I could clearly see this bank; the name was Deutches Bank and I was in Germany.
The entrance was barred but then, a man came up to me and handed me a huge gold key. He said, "This key unlocks the door of that bank where the money the enmey has stolen is located." I then unlocked the giant door to this bank. (Note, shortly thereafter, retribution of stolen funds from...
DREAMS ABOUT MONEY
Hedge funds > DREAMS ABOUT MONEY
Growing Global 2005 to Feature Todd Buchholz, Former Director of White House Economic Policy
St. Louis (ContentDesk) August 10, 2005 -- Growing Global 2005, the region's premier international business luncheon, will feature Todd G. Buchholz, former White House economic advisor, network news analyst and best-selling author of the influential book "Market Shock" on Friday, September 23, 2005 in a special program at the Ritz-Carlton Hotel from 11:00 a.m.?1:30 p.m.World Trade Center Saint Louis will host Growing Global 2005, which is designed for top international executives, government officials and educators. The public is invited to attend this important annual event, which will focus on the U.S economy, overseas job outsourcing, international business and the impact of terrorism.Mr. Buchholz is a former director of economic policy at The White House who earned advanced degrees from Cambridge University and Harvard Law School.
He is a contributing editor for Worth magazine and contributes to The New York Times, The Wall Street Journal and Forbes.
Mr. Buchholz...
Hedge funds > Growing Global 2005 to Feature Todd Buchholz, Former Director of White House Economic Policy
Friends or Foe, The Importance of a Contract!
No matter what business you are in, how old you are, how long you have been doing business or who you are doing it with, a very important part of doing business is a contract. This is really the only thing that is there to make sure your partners do what they say they will do. It is also the only line of defence you have if you don't see eye to eye with your partner, which usually happens in business.Whether it is with a friend, a family member or a stranger off of the street, you must have a contract to protect both of your interests as well as your business. If you don't have a contract, no matter how successful your business is, without one, you leave yourself open to have it all taken away from you. A contract is especially important as many issues will come up down the line, such as:1.
How much Money is invested by Both Partners.2. How much of the Company each Partner Owns.3. When and How is the monetary investment paid back to each partner.4. Who controls and oversees the...
Friends or Foe, The Importance of a Contract!
Hedge funds > Friends or Foe, The Importance of a Contract!
Offshore Markets - Looking Better All The Time!
The World's Market Capitalization is ShiftingEmphasis in major market capitalization is shifting away from established industrialized countries toward emerging markets.US market dominance has dramatically declined. The present tendency in the US to excess equity market valuation will accelerate the movement of capital to more attractive emerging markets. Share valuations in Asia, often at 1 1/2 times book value, compare most favorably with characteristic multiples of 6 for similar companies on the US market. Major US pension funds, e.g., CALPERS, are in high gear to diversify internationally by direct investment in emerging market growth companies.It will be some time before confidence in the Japanese capital market fully returns.The less liquid European equity markets, compounded by economic Uncertainties, remain unattractive.The move of investment capital will clearly be toward the emerging economies of Asia, Eastern Europe, and Latin America.World Economic Opportunities are Moving...
Offshore Markets - Looking Better All The Time!
Hedge funds > Offshore Markets - Looking Better All The Time!