Securing Second- and Third-Round Venture Capital Financing
Widget sales are booming -? the competition is scrambling, demand is up, and the books are finally treading water. Your core management team has big ideas for the future of Widget Inc. Opportunity is abundant; but how will you fund that next big leap? As your start-up matures, obtaining second- or even third-round funding may allow your business to expand and grow into new opportunities identified after your business was established. If your product or service has proven itself in the marketplace, you may be a candidate for an additional round of funding.Some possible uses of post start-up funding include:* Penetration of new markets, either by industry or geographic location* Development of new products or services that compliment your key lines of business* Acquisition of competitors, staff and/or facility expansion, or new equipmentDamage ControlIf your company is struggling to make ends meet, post start-up financing is not an effective way to address red ink. Consider other methods of debt management such as refinancing, streamlining systems of production, and bootstrapping before looking for additional funding.
Investors will not be interested in extending additional funds to companies that have not yet established themselves firmly in the marketplace.Identifying Post Start-Up Funding SourcesThe best source for post start-up funding may be your original investment partner. However, sometimes asking your investor-partner for additional funds can be a lot like asking your parents for a raise in your allowance. You're going to have to really prove a need for it, and even then, your original funding source may have woke up on the wrong side of the financial plan.Should this prove to be the case, there are additional sources to consider, including:* Lending institutions (banks)* Venture capital firms* New private investors* Other professional service providers within your core management teamIf you developed a list of potential investment partners prior to start-up, renew your contact with these individuals. By telephone or letter, convey the success your product or service has experienced, as well as your purpose for the post start-up funding. With a solid track record in hand, you may be surprised to find how many potential second-round investment partners you have.
In addition, you'll be in a stronger position during the negotiation process, meaning you won't have to give up as much control to achieve your desired result.Tips For Maximizing Post Start-Up Funding* Don't commingle funds. Avoid falling into the trap of using new funds to level the books. If you obtained additional funding for expansion, do not deviate from the plan. Address any cash flow problems or existing debt service independently from your company's expansion needs. * Learn from past mistakes. Undoubtedly, your company's start-up phase was a learning experience unlike any other. Recall the lessons learned from handling your initial start-up capital.
Now that you've established a strong working relationship, call in your management team to gather additional opinions on the best way to disburse funds on each project.* Look for new opportunities along the way. As you implement your expansion plan, be on the lookout for ways to streamline and maximize the results of your efforts. Don't be afraid to upgrade your plan; remember that your business plan should be a "living" document, able to flex as the status of your market and the general economy change..
Jim D. Ray is a seasoned entrepreneur and president of Web Presence, a national web design firm exclusively serving the small business market sector. To learn more, or for a free quote for your own web site, visit the Web Presence web site at: http://www.web-presence.net?>http://www.web-presence.net.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?
Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
(ContentDesk) November 26, 2004 -- A celebrated group of New York's foremost Pastry Chefs will kick off the 2004 holiday season with GINGERBREAD HOMES FOR ANIMALS, an exhibition and fair at Central Park's Dana Discovery Center, to benefit New York's at-risk animal population. The event, set from Wednesday, December 1st through Sunday, December 5th, will feature each pastry maker's creation of a unique gingerbread house, inspired by an animal he or she loves. The one-of-a-kind edible sculptures will be sold by raffle. Admission to the exhibition and fair is free.GINGERGBREAD HOMES FOR ANIMALS is presented by Rational Animal and hosted by a list of prestigious city gourmets and animal-related organizations. Held during the holiday season, its goal is to illuminate the plight of the city's most needy four-legged inhabitants and raise awareness and funds for them.
In addition to the edible sculpture exhibit, the fair will feature a list of daily activities including animal-related...
Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
Hedge funds > Gingerbread Homes for Animals - December 1st-5th at the Dana Discovery Center in Central Park - A Benefit for NYC's At-Risk Animals
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
Channel 933 and The Mighty 1090 Raise Funds to Help a San Diego Boy Learn to Walk
San Diego, Ca (ContentDesk) November 10, 2005 -- San Diego radio stations, corporate sponsors and families all
pitched in to help raise funds for The Dream Factory and Patrick Ivison, an 11 year old San Diego boy. Patrick was accidentally hit by a car when he was only 14 months old and has been confined to a wheel chair ever since. BUT, he wants to learn to walk.The Dream Factory recently granted Patrick his first month's tuition at Project Walk in Carlsbad Ca. Even though his mom Jennifer knew that the three year tuition (over $90,000 and none of it covered by insurance)was going to be tough, a grass roots campaign was started by her with garage sales and other local fundraisers. People from all over the world have now seen Patrick's story in the San Diego Tribune, CBS-TV National News and at www.helppatrickwalk.orgThe Bowling for Dreams fundraiser was attended by Scott & BR from the Mighty 1090, The San Diego Gulls Hockey players and AJ from AJ's Playhouse on Channel 933.Patrick's...
Hedge funds > Channel 933 and The Mighty 1090 Raise Funds to Help a San Diego Boy Learn to Walk
Fundamentals of Headlines, Copy and Design in Communication
While there are many opinions about what constitutes good headlines, copy and design, most professionals agree that these individual elements of the ad must work together. In combination, they must grab attention, convey a persuasive message and portray a consistent identity.An ad that's too cluttered can't convey a message quickly enough to engage the reader or viewer. One that's out of character with the product or service will be confusing rather than convincing.An effective headline (or a broadcast ad's opening moments) must immediately capture the audience's interest and pull them into the ad. A good rule of thumb is to look for the inherent "drama" in what you are offering, and capitalize on that to create an alluring ad.Examples: "We're Losing Our Minds" -- a university ad appealing for funds. And "You Don't Have to be Jewish to Love Levy's" -- a bread company ad featuring a Chinese man biting into a whopping pastrami sandwich.Next, the photo or illustration amplifies the message....
Fundamentals of Headlines, Copy and Design in Communication
Hedge funds > Fundamentals of Headlines, Copy and Design in Communication
SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Pressed for cash, many people will take money out of their individual retirement account (IRA) as a means to get quick access to capital. They do this even though they have to pay taxes and generally if they are younger than 59 ?, also pay a 10% penalty on the money they withdraw.Only as a last resort should one touch their retirement savings for anything other than retirement expenses. But, in those cases when you need to tap into your retirement savings, a way to get money out of your retirement account without paying the penalty and deferringthe tax was just made available beginning in 2002, as a result of a tax law change.Under the new law, those with a small business and no employees or only a spouse as an employee can establish Solo-Owner 401(k) plans and take a loan from those plans. The loan from the Solo-Owner 401(k) is not treated as a withdrawal. As such it is not subject to tax and the 10% penalty for early withdrawal as long as you repay the loan on time.You can roll over...
SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Hedge funds > SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Hedge funds student loans Securing Second- and Third-Round Venture Capital Financing
Loans are Not Only for Homeowners, Get Tenant Loans
Loan market is increasing with increasing cost of living. Earlier it was believed that if you own a home there are better chance for getting a loan. This is not a false statement; yes your home can get you better deals. But what about those people who are living as tenants and lacking anything to offer as collateral. Are they left out from the race of getting a loan?.???.
No they won't?..with the arrival of tenant loans, popularly known as unsecured personal loans, you can apply a loan...
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Hedge funds > Loans are Not Only for Homeowners, Get Tenant Loans