Archive for the ‘Risk Capital’ Category.

Reviewing Government’s Role in Kick-Starting Entrepreneurship

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Posted by: Robert W. Price

The U.S. government has spent billions of dollars bailing out troubled companies. Is it time for Uncle Sam to invest in new entrepreneurial firms as well? Harvard Business School Professor Josh Lerner makes the case for limited government involvement in his book Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed—and What to Do about It.
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Honoring Angel Investor Luis Villalobos - New Fellowship For MBA Students At UCI

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Posted by: Robert W. Price

New Fellowship Fund for Graduate MBA Students at UC Irvine Established to Honor Leading Businessman and Tech Coast Angels Founder, Luis Villalobos

The friends and colleagues of recently deceased businessman, entrepreneur and Tech Coast Angels founder, Luis Villalobos, are establishing an endowed fellowship fund to be awarded to a graduate MBA student at the Paul Merage School of Business at University of California, Irvine.

The fellowship, entitled the Luis Villalobos Endowed Fellowship in Entrepreneurship, is designed to honor the business leader in perpetuity. According to Tech Coast Angels Orange County President Richard Sudek, “Luis spent most of his life mentoring and training new entrepreneurs. It’s appropriate that this endowment should continue his mission to help and assist young entrepreneurs.”

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Pioneer of Angel Investing Dies - Honoring Luis Villalobos

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Posted by: Robert W. Price

Luis Villalobos, pioneer of angel investing, died October 01, 2009 in Orange County California. He was 72.

I first met Luis in the mid-1990’s when I was teaching entrepreneurship classes at Pepperdine University in Southern California. I had just completed my MBA at Pepperdine, and as a graduate student I created a unique program for educating entrepreneurs.  We actually called it a “bootcamp” in my class work. It became the first formal certificated entrepreneurial management program. There were few educational resources available for entrepreneurs at that time. But we had created “real-world” curricula, program materials, and invited domain experts as guest lecturers to support our lesson plans.

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Videos - Inside the World Of Venture Capitalists

National Venture Capital Association (NVCA)

Posted by: Robert W. Price

“Venture Voices” is a video series produced by the National Venture Capital Association. These videos offer an intimate look at various aspects of the venture capital asset class as told by pioneering VCs both past and present. We invite you to view these 12 short videos to understand the unique relationship between venture capitalists and entrepreneurs, and the world class innovation that’s brought to market as a result.
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Governor of Connecticut Wants To Support Angel Investing

Posted by: Robert W. Price

Connecticut’s Governor M. Jodi Rell recently announced the release of the state’s first-ever Economic Strategic Plan. It is a detailed, statewide blueprint for keeping and growing jobs, making the state more business-friendly and investing in the infrastructure and technology that will keep Connecticut competitive in the 21st Century.

“This plan will shape policy and priorities as we recover from the current economic downturn and as we make our state’s economy second to none in the years ahead,” Gov. Rell said. “The goals are simple: Jobs, jobs, jobs - the same goals I have had from the beginning. We want a vibrant, diverse and safe state, a place where everyone has a chance to enjoy success and the quality of life that makes Connecticut so special.”

An interesting item from the plan:

- Implementing an Angel Investor Tax Credit, giving a tax break to individuals, corporations or institutions that invest in qualified start-up enterprises in areas such as biotechnology, digital media and “green” technology.

NOTE: This is an Adobe PDF file.
>>Download the Report in PDF

Source: Town Times

Ask an Angel: What’s New in Angel Investing?

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Posted by: Robert W. Price

Q&A with Experienced Angel Investors

Knox Massey, managing director of Atlanta Technology Angels in Atlanta, GA and ACA board member, and William H. Payne, a member and active participant in Vegas Valley Angels in Las Vegas, NV and Frontier Angel Fund in Whitefish, MT share their views on the effect of these challenging economic times on valuation of new deals and follow-on rounds.

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Free Guide: Raising Venture Capital

Special Guide for Raising Money From Venture Capitalists and Angel Investors 

Is your company “really” investor ready? Do you know how to market and sell to outside investors? Do you have a sound financing strategy? Here is what Anita Roddick, founder of The Body Shop, once said: “There are only two ways of raising money: the hard way and the very hard way.”

Raising Money For Your Business Venture

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Be Careful Using a “Matchmaker” to Help You Raise Money

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Entering Into a Relationship With a “Matchmaker” May Pose Risks

By: Robert W. Price 

There are an increasing number of online “matchmaker” services that “find” venture capital and angel investors for entrepreneurs. The characteristic that these “finders” all share is their preferred method of being compensated. It is a fee that usually consists of a percentage of the money raised.

As this report “The Search for Venture Capital: Beware of “Finders” Operating As Unregistered Broker-Dealers” prepared by the law firm DLA Piper points out, there is potential liability for Start-Ups. The potential problem with using a finder is that the finder may be operating as an “unregistered broker-dealer” of private securities.

NOTE: This is an Adobe PDF file. Download the Report in PDF

How do you know you have the right investor?

What Makes a Great Venture Capitalist?

Now that you know and understand the specifics of your business—you know your numbers cold, you have the financials prepared, you understand how much you need, and grasp the fundamentals of valuation—it is about finding and evaluating the right investors for your specific deal. But navigating through the universe of investors can be confusing, even for the most experienced entrepreneurs. 

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A Plan To Restore Venture-backed IPOs?

A Plan To Restore Venture-backed IPOs?

Posted by: Robert W. Price 

The National Venture Capital Association (NVCA), comprised of more than 450 member firms, is the premier trade association that represents the U.S. venture capital industry. NVCA’s mission is to foster greater understanding of the importance of venture capital to the U.S. economy, and support entrepreneurial activity and innovation. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members.

The NVCA released a four-point plan to revive the slumped market for VC-backed IPOs. Two of the pillars are aimed at public authorities (tax incentives & SOX/RegD reform), while the other two are aimed at the private sector (ecosystem enhancements like helping form more boutique I-banks & creating new liquidity paths via secondary direct markets).

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More Signs Of Capital Starvation For Entrepreneur

By: Robert W. Price  

More Signs Of Capital Starvation For Entrepreneur
The National Association of Seed and Ventures Funds (NASVF), a nonprofit organization formed in 1993 to encourage development of new businesses, surveyed 5,000 early-stage venture capital professional to get a handle on how bad things are. And they are bad.
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Angels Stop Investing In Tech Start-Ups

By: Robert W. Price  

Source: New York Times 02-03-09

Technology entrepreneurs are having a devil of a time finding angels.

Angel investors are the optimistic financiers who give entrepreneurs their crucial first infusion of cash to bring their ideas to life. Now, in the midst of a punishing economic downturn that is sparing few companies, these patrons are cutting back on their bets and threatening the very foundation of the technology economy.

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Venture Capitalists Clamp Down on Start-Ups

By: Robert W. Price  

Source: New York Times 02-02-09

The last three months of 2008 may be remembered as the quarter when U.S. venture-capital investing fell off a cliff, raising fears the worsening recession will dampen an entrepreneurial sector that’s historically helped to regenerate New England business, The Boston Globe’s Robert Weisman reported.

“Given what’s happening in the macro economy, most venture guys took the opportunity to hunker down, look at the companies in their portfolios, and prepare for what could be a difficult 2009,” Ajay Agarwal, managing director at Bain Capital Ventures in Boston, told The Globe.

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Microfinance Success Brings New Challenges

Microfinance Grows Up: Success Brings New Challenges for Investors, Practitioners, in Emerging Economies
Microfinance — the business of providing financial services in small transaction amounts to poor, underserved markets — has taken off in recent years. With financial sectors in many developing countries maturing and microfinance institutions (MFIs) themselves growing rapidly, capital markets have been quick to enter the fray, providing ample funding for expansion. But microfinance’s evolution in countries throughout Asia and Eastern Europe has cast a spotlight on changes now buffeting the industry as private investors arrive in force and traditional microfinance values are questioned.
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Book Review: First Professional Venture Capitalist In America

In the wake of World War II, Georges Doriot helped found the world’s first public venture capital firm, American Research and Development. Doriot (1899–1987) was also a professor at Harvard Business School for 40 years. This article is an excerpt from Creative Capital: Georges Doriot and the Birth of Venture Capital (HBS Press) describes how ARD first came to “marry” investors and innovators.

>>Read Article At Harvard Business School 
>>Learn More: Evolution about risk capital industry in the United States 
>>Buy Book at Amazon.com