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May 30, 2010

Still need Capital? (Reminder)

Reminder :
Limited Time Special Offer:
Click here and Get VCgate Today and Receive Two Essential Guides FREE!

VCgate is proud to announce the limited time offer of our Venture Capital and Investors Database along with two BONUS complementary guides for just $97. The two new guides, entitled How to Approach & Raise Capital from Angel Investor and The Easy Way to raise Venture Capital, are essential tools for anyone seeking to raise new capital for their startup or small business. With each guide normally priced at $39; for you, this limited time offer represents a significant savings.

The first guide, How to Approach & Raise Capital from Angel Investors, is an excellent source of information for any individual seeking or planning to raise capital from angel investors. The guide provides information on the various types of angel investors, the benefits of having angel investors, the proper way to approach and work with angel investors and what to expect from working with angel investors. If you purchase the Venture Capital and Investors Database for $97 today, you will receive this $39 value FREE!

That is not all!

The second guide, The Easy Way to raise Venture Capital, provides a step-by-step analysis of how to get you and your company the venture capital it needs. Within this guide you will get essential information on the different sources of venture capital, from venture capital firms to individual wealthy professionals, information on the benefits and expectations of these various sources, along with information on how to meet and secure investors. At $39, this guide also comes FREE with the purchase of our Venture Capital and Investors Database for just $97!

Although these two guides provide important information for anyone seeking capital, they are only secondary to the invaluable tool that is our Venture Capital and Investors Database! At this great price, you will have access to over 4300 investment sources from around the world. Get all the contact information you will ever need for investors from just about every industry, from media to biopharmaceuticals to computer software and business services. With a specially designed user interface, searching for the perfect investor becomes easier than ever. VCgate’s database provides the ability to search for investors by your business stage, industry and location. Do not wait any longer, try it today!

To purchase VCgate’s Venture Capital and Investors Database, along with the two BONUS guides, go to www.VCgate.com. If you have any questions or comments do not hesitate to reach us at support@VCgate.com or by calling us at (347)983-0156.

Try it today, as this is a special limited time offer!

Get VCgate’s Venture Capital and Investors Database now and get funding way ahead of the competition!

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Entrepreneurs Can Go From Startup to IPO on Their Own Terms!

If you are the concerned entrepreneur who is looking for venture capital and are worried about loosing your say on key changes in your company, you have no need to worry anymore! There is a way you can steer your company to success on your terms! Jeffry Bussgang wrote Beating the VC Game based on his success. To order this powerful book, click here.

Click here to find investors to get you from startup to IPO!.

The book, Mastering the VC Game was written by Jeffry Bussgang, who himself is a successful entrepreneur who has founded a company known as Upromise, which is a unique marketing company that is based on consumer marketing. The main object for Upromise is that it helps consumers save for their children’s college education and it was a successful business which was later sold to Sallie Mae.

Mr. Bussgang has also done his share of investing and is a partner at Flybridge Venture Partners, which is a vc firm that is solely dedicated to startup companies and he understands the stress entrepreneurs go through when they are seeking funding for their ventures. He understands that quite well from his own experience and likes to share his entrepreneurial experience with new entrepreneurs and show them how they too can succeed.

Click here to buy the VCgate Venture Capital, Angel Investors, and Private Investors Database and receive instant access to 4300+ investors worldwide!.

You can also find resources from VCgate to help you with your quest to raise the capital you need to get your startup off the ground and shoot for the stars. You too can be like Mr. Bussgang and be a successful entrepreneur! Now, for a limited time offer, you can get the VCgate Guides on How to Raise Venture and Angel Capital, a $78 value for FREE if you buy the VCgate Venture Capital, Angel Investors, and Private Investors Database! Act now and get your keys to success! Click on the Amazon.com link to order Beating the VC Game.

All the best and good luck!

Amir

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Did You Know That You Too Can Qualify for Venture Capital?

Did you know that you too can qualify for venture capital? That’s right, with the proper preparation and an executive team with the “right stuff,” you can do it! You can get in front of a serious investor who might just see your venture as that perfect opportunity.

Click here to buy the VCgate Venture Capital, Angel Investors, and Private Investors Database and get the VCgate Venture Capital and Angel Investor Guides!

That’s right. With the right preparation and searching, you can get the right investor for you. So how can you find the right investor for yourself? Well, before actually contacting an investor or writing your teaser email, you need to do your homework. What is your homework? Well, it is the creation of your business plan. The business plan is everything that the investor needs to know about your business to determine whether he feels that it is an opportunity or not.

Now, don’t get to excited. You do not want to show your entire business plan right away. Your business plan should have three versions. These three versions are the following:

A. Your Executive Summary is the cover sheet of your business plan and this is a short outline of your business plan. Typically, your executive summary should be a stand-alone document and should not be more than one to three pages. The executive summary should be a small concise description about the basics of your business plan and is should be given to investors who are already interested in your venture and has requested your executive summary. There should be no company secrets or intellectual property on the executive summary. That should be reserved for the master plan.

B. The Slide Presentation is the second form of your business plan. It should have more information about your company than the executive summary, but it should not reveal everything in your master plan or the business plan. This needs to be done in a presentations program, such as Apple Keynote or Microsoft’s Powerpoint. The slide presentation should be no longer than ten slides, and the text should be large enough for the investors and their researchers to view the presentation in a meeting room.

C. The Business Plan is the culmination of all the work you have done. This is the big one. Your complete business plan should contain all your market research, your intellectual property, patents, and also commercial secrets. The key is that when an investor is interested in your venture and is willing to look at your business plan, you should make sure that he signs nondisclosure agreements not to disclose any of the secrets, IP, or patents in your plan to competitors.

Armed with this information, you should go out there and get the funding you need to get your company in the fast track.

Click here to get all you need to successfully raise capital for your company!

VCgate can give you the resources to help you on your quest in raising that much needed capital for your business and get you to compete with the big guys!

All the best and good luck!

Amir

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May 28, 2010

Today you still have a chance…

Today you still have a chance to get your hands on my special bonus package.

This is the best bonus package I’ve offered for VCgate investors database…

Grab the best bonus offer for VCgate, ever:
Click here for the two bonus + VCgate investors database

All the best,

Amir

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May 27, 2010

URGENT!!!! Get Access to Secret Investors + Get the VC and Angel Investor Guides FREE!!!

You still have a chance to get both the Venture Capital and Angel Investor Guides for FREE.

Click here to access the Database which even gives you access to secret investors which other entrepreneurs may not have access to!

Get both the Venture Capital and Angel Investor Guides for FREE when you buy the VCgate Venture Capital, Angel Investors, and Private Investors Database!

Did you know that there are secret investors out there?

Who are these secret investors? How large are their funds and can they benefit your business?

The fact is that there are many secret investors which do not publicly investors and they can range from angel investors and venture capitalists to strategic corporate investors. Why are they reclusive? These secret investors want only to hear from serious entrepreneurs in whom they can invest and many do not want to be inundated with poorly crafted business plans.

Secret investors can be a great benefit for your company, especially if they are members of wealthy families who have large investment funds earmarked for worthy entrepreneurs who may be of interest in a particular family’s business or other functions.

Click here to find the database that can give you access to secret investors!

For a limited time, when you buy the complete VCgate Venture Capital, Angel Investors, and Private Investors Database, you will not only get access to these above mentioned secret investors, but you will also get the VCgate Venture Capital and Angel Investor Guides FREE!!!

You will have the whole complete package that can get you access to investors and the information on how to win over these investors and receive the capital you so desperately need.

All the best,

Amir

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May 25, 2010

Company in Mineral Industry Gets Funding As Investment Firm Begins Tenth Seed Funding Program

Great news for entrepreneurs who are diligent stamina and well thought out business plans can move forward and receive the funding you need for your company. Investors are looking for new opportunities and entrepreneurs are getting funding by these investors at a rapid pace!

Click here to see how you can join the fun and find funding for your company!

The great news about the funding companies are getting comes on the heals of the news that in the past year the FirstSteps program from First Capital to invest seed funding in worthy entrepreneurs has secured its tenth investment. In a press release that was released by First Capital on May 17, 2010, the investment firm has announced that it has just completed its tenth investment in new revolutionary startups in the tech industry through its FirstSteps seed funding program. Some of the companies that First Mark Capital is investing in are companies who are designing cloud computing, open source software, and ubiquitous broadband penetration are some of the startups that are receiving seed funding.

First Mark Capital has created the FirstSteps program to provide seed funding to companies who are in the above mentioned sectors of the tech industry and have disruptive technologies that can change the entire industry. The FirstSteps program is designed to provide seed funding for these new startups and to give them the needed first funding to get established. Some of the first startups to receive funding from the FirstSteps program include AppFirst, which has received $1 million in seed funding through the program after gaining high awards for its technologies. AppFirst is a startup that has created the first SaaS monitoring program to help the infrastructure of cloud computing companies.

Other venture capital news includes the announcement of Applied Minerals just receiving $1.5 million in funding round. Applied Minerals is a company that mines halloysite clay from the halloysite mine that it owns in Utah. Halloysite clay is an aluminum-laced clay that is used for technical ceramics and in catalytics. The company has secured the conditions to receive $1.5 million in private placements. The funding is intended to further the production goals of Applied Minerals.

The point is quite clear. There is funding out there for you. You just need to look for it and find it. It can be difficult to do it on your own and the two examples above show that funding is indeed there for those who are diligent enough to find it.

Click here to buy the VCgate Venture Capital, Angel Investors, and Private Investors Database!

You don’t have to look for the funding you need on your own! That’s the great news. Simply look up VCgate and see the database that can give you access to over 4300 investors worldwide in a user-friendly interface. Act now and receive the VCgate Venture Capital and Angel Capital guides FREE with the purchase of the VCgate Venture Capital Database! You can get the complete guides and the database that can get your business on the rails and make it into a roaring train of success! Act now to take advantage of this limited offer!

All the best, and good luck!

Amir

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Enormous Airlines, Energy and Biopharmaceutical Deals Being Made

Recently, there have been a number of new investment deals taking place throughout the airline, green energy and pharmaceutical industries. Within the airline industry, Avolon has announced new investments totaling more than $1 billion. Within the green energy industry, BrightSource Energy, Inc. announced over $100 million in new venture capital, all while the biopharmaceutical company NeuroTherapeutics Pharma, Inc. announced more than $40 million in new capital investments. The variety of industries receiving new venture capital is an important sign regarding the overall health of the global market place for investment and growth opportunities.

The biopharmaceutical company NeuroTherapeutics Pharma, Inc. recently announced the closing of its Series B round of financing, which totaled $43 million. The Chicago, Illinois-based firm focuses on developing new treatments for a variety of disorders involving the central nervous system. Currently, the market for new treatments for central nervous system disorders, such as Alzheimer’s, multiple sclerosis and Huntington’s disease, is in high demand. Investors involved in the newest round of financing include Fidelity Bioscience, SR One, Pfizer and MPM Capital. Past investors, who also invested capital in this latest round, include Thomas McNerney & Partners and Novo Ventures. The new venture capital comes in concert with NeuroTherapeutics’ plan to expand its manufacturing capabilities.

If you are a small business seeking venture capital to increase your operational capacities, try VCgate’s Venture Capital and Investors Database today!

Another company making news is the solar power utility BrightSource Energy, Inc. BrightSource recently announced that is has raised $150 million dollars from a variety of investors in its Series D round of financing. This new capital brings this Oakland, California-based company a total of $300 million in venture capital. As a leader in the industry, BrightSource is in the perfect situation to increase its market share. The new capital will go towards the advancement of the company’s partnership with utility giants Pacific Gas and Electric and Southern California Edison to develop over a dozen solar power plants across the U.S. over the next few years. The new round of financing includes both old and new investors, including Draper Fisher Jurvetson, the California State Teachers Retirement System and Alstom, whose investment with BrightSource could reach $55 million.

Although $150 million in venture capital is a sizable chunk of change, Avolon, an increasingly important player in the aircraft leasing business, recently announced the completion of raising $1.4 billion in initial capital. The Dublin, Ireland-based Avolon is in the works to purchase over two dozen aircraft for future leasing purposes. Avolon, which has acquired a well versed group of individuals to run the company, seeks to capitalize on its internal expertise to become a leading player within the large market for aircraft leasing, which handles the financing for 40% of all new aircraft deliveries. Of the $1.4 billion, major private equity firms contributed $750 million, $400 million came from a number of major banks and an additional $215 million comes from Germany’s DVB Bank.

Join those who continue to receive venture capital today! Get access to over 4,300 venture capitalists and private investors with VCgate’s Venture Capital and Investor Database now!

Although raising capital may not seem like an easy task, the examples provided by NeuroTherapeutuics, BrightSource and Avolon prove that it is not an impossible task. To further improve your chances of getting the venture capital that you or your small business need by getting VCgate’s Venture Capital and Investors Database today! VCgate’s catalog includes 791 individuals or firms providing capital to biotechnology companies, 286 opportunities for those within the energy industry and 686 individuals of firms providing investment capital within the business services sector. Do not let this opportunity pass you by. Take advantage of this great resource and take your business to the next level today!

Regards,

Amir

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May 24, 2010

Do You Know the Six Mistakes That Can Put You Out of Business?

Are you making the six lethal mistakes that can put your company out of business? This is very important and there is a great white paper out from SAP and clearly outline the six mistakes that companies are making today. It is very important to pay attention to these six mistakes during these times of economic downturn. These mistakes outline everything from how to properly evaluate your customer base to the transparency you have with your investors.

Get these FREE white papers by clicking here.

The SAP white papers also point out that times of economic downturn can be a great time of success for the astute entrepreneur. For example, many household brands that we know today have been founded during difficult times and even the great depression and have been very successful in those times when they were founded against all the doubt of their detractors. The key is how you run your business. There are six simple mistakes that companies make quite frequently that can ruin those companies if they are left unchecked.

These white papers are also explain in great detail what these six mistakes are and how they can ruin your business if left unchecked.

Click here for the free white papers.

Remember. The advice from these white papers can save your business or can educate you in not making the same mistakes that have brought down other companies.

All the best,

Amir

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May 23, 2010

URGENT: Before it ends… Get The VC & Angel Investor Guides Free!

A limited time offer, you can get both the Venture Capital and Angel Investor Guides for FREE!

Click here to see how you can get the VCgate Venture Capital and Angel Investor Guides free!

This is a limited time offer to get everything you need to be able to raise the capital that you so desperately need to build your company. Read about what angel investors and VC firms require before they invest. You will also find out about business angel groups or angel investor networks, which are networks of several angel investors who invest together.

You can get both guides for free when you buy the VCgate Venture Capital, Angel Investors, and Private Investors software directory. With VCgate investors software directory you will gain access to over 4,300 Venture Capital, Private Equity firms, Angel investors and Angel networks, private investors, strategic corporate investors, and secret investors.

Who are secret investors?

These are usually reclusive angel investors or private investors who do not advertise their services to avoid being inundated with poorly crafted business plans.

You will be able to sort out investors from either their industry, geographic, or stage preference, giving any entrepreneur the ability to find an investor that is fit for his stage, industry, or geographic location. What’s great is that the VCgate Venture Capital Database covers investors worldwide, with investors in 46 countries and who’s capital combined adds up to over $900 billion.

Together with this great resource at your fingertips to raise capital, you can take advantage of the two free gifts to read up on what both angel investors, venture capitalists, and other institutional investors are looking for and how you need to orchestrate your business plan to make yourself attractive to these investors.

Click here to buy the complete VCgate Venture Capital, Angel Investors, and Private Investors Database and get the VCgate Guide on How to Raise Venture Capital and Guide on How to Raise Angel Capital free!

Remember, this is a limited time offer, so act now to take advantage of this great deal that can fund your company with the much needed capital to grow and be successful!

All the best,

Amir

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May 21, 2010

Why Angels Invest

Angel investors are individuals who put money into a new or growing company thus gaining an equity share in that company. If and when the company reaches certain revenue milestones or is sold, the angel receives a portion of the profits agreed to in advance. Their investments range from $5,000 to $500,000 and tend to occur at the pre-seed or seed stage of funding – that is, the earliest stages, when the company is just beginning.

As such, angel investors assume more risk than venture capitalists, who prefer to invest at later stages (Early, Later, and Mezzanine) after the company has already demonstrated its ability to grow towards profitability.

For investors, young companies are a greater risk than “proven” companies. Thus the term “angel”.

Angels invest for four basic reasons: personal relationship with the entrepreneur; belief in the cause; the thrill of the investment game; and last but not least, return on investment. Make no mistake: An angel investor is not a charity. However, angels do invest for reasons other than profit.

Personal Relationship with the Company or Entrepreneur

Angels often to know and like the entrepreneurs they invest in. The angel might be a friend, family member, colleague, mentor, or friend of a friend of the entrepreneur. That’s why it is imperative for entrepreneurs and businesspersons to establish and maintain relationships with all of their influential personal connections.

Belief in the Cause or Mission of the Company

Angels enjoy investing in companies they believe in. For example, if the CEO of Acme Widgets demonstrates to the angel that Acme’s widgets will improve lives or revolutionize the way widgets are distributed, the angel will be more likely to help out at an early phase of Acme’s development. Angels often like the idea that they have found something unique in which to participate.

(Not-so-) Cheap Thrills

The psychology of an angel can be likened to that of a stock trader crossed with Indiana Jones. They enjoy the thrill of discovering a young company, funding them, guiding them towards success, and cashing in when certain milestones are reached (revenue windfalls or the sale of the company.)

ROI

Just because they tend to have adventurous, idealistic, or altruistic spirits, angels would like to see a handsome profit from their endeavors. In fact, the earliest investors of a company usually the see the highest rates of return when that company hits it big.

When seeking angel capital and writing your business plan to present to investors, keep in mind the four points described above. Knowing the psychology and motives of an angel investor can mean the difference between a great idea that never comes to fruition, and a great company that flourishes.

Discover How to Raise Capital From Angel Investors

Dave Lavinsky from Growthink has created a step-by-step guide that shows you exactly how to find angel investors, set up meetings so you can pitch them, and then negotiate favorable investment terms.

Want to learn more?

Click here to raise capital from angel investors.

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Angel Investors vs. Venture Capitalists

Angel investors and venture capitalists are similar in that they both invest money in new and established companies at any stage prior to IPO (initial public offerings.)

The similarities end there, as you will soon see.

As a rule, angels and VCs can be distinguished from one another by their behavior in four main areas: 1) level of professionalism; 2) whether the money spent is the investor’s own money or someone else’s; 3) whether the investor expects a seat on the company’s Board of Directors; and 4) size and growth stage of investment.

1. Professionalism

Angel investors do not make a full-time job of investing money in companies. They are wealthy by means other than investing, and have other commitments. Rarely do angel investors work through a venture capital firm. Instead, they work directly with the entrepreneur. Angels are not always in the equity capital game for profit; some angels invest simply because they like the entrepreneur or believe in the cause.

Venture capitalists, on the other hand, are full-time investors. They regularly commit funds to growing companies and manage a portfolio of company investments. Their primary skill is risk management - that is, they invest in a range of companies and work to profit handsomely from the overall spread. The chief concern of a VC is return on investment (ROI).

2. Personal vs. Institutional Money

Angel investors are known to invest their own money rather than that of an institution. They are typically independently wealthy and are not under any outside pressure to invest wisely. If an angel loses money on an investment, he suffers alone.

Venture capitalists are under pressure to invest wisely, because they spend other people’s money. Venture capital firms manage a “fund” or pool of money gathered from outside sources - such as pension funds, corporations, wealthy individuals, and others. A venture capital firm’s prime directive is to make money, grow the fund, and share the wealth among the funders.

3. Control Over the Company

Angel investors generally do not request a seat on the Board of Directors of any company they invest in. They might serve on a Board of Advisors, but Advisors do not have corporate voting rights. Therefore, while angel investors do play a role in the growth and success of companies they invest in, they do not have as much control as a venture capitalist has.

Venture capitalists almost always require voting rights and a Board seat. This way, VCs retain some control over that in which they have risked their money. As mentioned above, VCs are in the business of profit, not idealism.

4. Size and Stage of Investments

Angel investors generally invest no less than $5,000 and no more than $500,000 in a company. They invest early – usually at the “pre-seed” ($5-100K) and “seed” ($100-500K) stages. At the pre-seed and seed stages, most companies are still in the research and development or early revenues phase of their business plan.

Venture capitalists invest far more equity capital. Minimum investments are typically $2 million, sometimes as high as $20 million – and sometimes more. VCs invest at the Early, Later, and Mezzanine stages. That is, they buy equity in companies that are demonstrating the ability to grow.

In some cases an angel investor can also play the role of a venture capitalist (as a fund participant) and vice-versa (outside the VC firm in which she works), but as you can see, the two terms are distinct.

Go Out There And Get Funded!

Now that we’ve explained the differences between angel funding and venture capital, the ball is in your court. You should decide which one to pursue, make a game plan, and take action.

Click here if you want to raise angel funding.

Click here if you want to raise venture capital.

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May 20, 2010

See How You Can Get The Venture Capital and Angel Investor Guides Free!

Guess what! We have created a great deal. I’m sure that you have heard about our latest guides that we have published about how to raise angel capital and venture capital. Well, you guessed it, you can get both of these guides for free! That’s right get these two guides, $78 value for free, if you take this special offer!

Click here and take advantage of this great offer!

There is a great opportunity for you to get the two guides on how you can raise funding for your company. Best of all you can get this great deal when you purchase the VCgate Venture Capital, Angel Investors, and Private Investors Database. This database can give you access to over 4,300 investors with over $900 billion in capital worldwide.

With this database you can do your own research and not have to go through the trial and error method to find the right investor for your company. You can quickly find investors according to their stage, geographic, or industry preference. This way you can discriminate to choose only those investors who are more incline to see your opportunity. You will have investors who can understand your industry, geographic location, and stage. VCgate has investors in all those preferences in its database.

Act now on this limited time offer! - Click here

All the best, and good luck!

Amir

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May 16, 2010

Would You Make These 3 Mistakes?

Here’s a new video with some great cautionary advice about raising venture capital.
Click here for the raising Venture Capital video.

This video shows you 3 “trick” questions venture capitalists will ask you, and then explains the right and wrong ways to answer them.

Regards,

Amir
VCGate.com

P.S. If you’re like most entrepreneurs, you’ll probably answer them wrong… and that can threaten your chances of getting funded.

Would You Make These Mistakes? - Click here to find out.

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How to Pitch Venture Capitalists (New Video)

If you want to raise venture capital, you should watch this video:
Click here to raise Venture Capital.

Meeting with the venture capitalist and giving them the right presentation is the MOST important part of the venture capital raising process.

This video shows you exactly what topics you should cover during a venture capital presentation. And it also highlights mistakes to avoid when pitching VCs.

Very helpful advice.

Regards,

Amir
VCGate.com

P.S. After you watch the video, be sure to download the free VC presentation template. (It’s located right below the video).

Click here to watch the video and download the free template.

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Who Else Wants to Raise Venture Capital?

I thought you’d be interested in this:
Raise Venture Capital - Click here to check it out.

It’s a free report about how to raise venture capital.

The report shows you how to create a targeted list of investors who will actually want to hear your pitch.

And it also reveals how to “cut through the clutter” so you can quickly start lining up dozens of VC meetings.

Regards,

Amir
VCGate.com

P.S. This report challenges conventional wisdom, so it will probably ruffle some feathers… but it’s full of great advice, especially if you’re looking for venture capital.

You can download the report for free, here:
Click here for the raising Venture Capital free report.

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May 13, 2010

What Do Angel Investors Want?

Are you starting a business, or looking to expand your business? Angel investment may be a good option for you.

“Angels” are experienced investors, and usually are successful business people in their own right. That means they can provide you with more than just capital – they can provide you with valuable advice to help grow your business.

If you are seeking angel investment, then you should know how to approach these investors correctly. And in order to do that, you need to understand what angel investors are looking for, and how they judge potential investment opportunities.

Here are four things angel investors want to see before they invest.

1. Excellent return on investment (ROI) potential

Angel investors will never invest if they do not believe they can make a solid profit out of the investment, because they are taking on the risk. Angels are looking for “home runs” – investments that allow them to make as much as 100 times the investment amount. According to a study by the Center for Venture Research, angel investors earn an average annual return of 26% across all investments. However, most angels are prepared for the reality that at least one-third of their investments will fail.

2. Familiarity with the entrepreneur

Angel investors usually prefer to know the entrepreneur before they would invest in the business. As a result, a lot of angel investing takes place among “friends and family.” But smart entrepreneurs network to find friends and family members who can introduce them to high-net-worth individuals.

3. Chance to nurture a new business

Angel investors love to nurture the business they invest in, in order to help it grow, and to make more profit from it in the process. Most angels are experienced businessmen themselves, and use their existing client networks to boost the revenue earning potential of the new business. They may lend their expertise at every step, from hiring capable staff to helping build networks of loyal clients. Angels become even more interested in funding a venture if they have handled a similar business in the past. This is why angels look for companies where they will be able to add value to the business.

4. A taste of action

Finally, there are some angel investors who simply love to be a part of the action. For them, it is exciting to invest in a new business; to watch it grow and prosper. They find it a lot more exciting than investing in the stock market, where the investor has a lot less direct contact with the business.

Now that you know what angel investors are looking for, go out and get funded!

Click here to learn how to raise capital from angel investors.

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How to Document Your “Exit Strategy”

What do all investors have in common?

They are all motivated by your exit strategy. In other words, they want to know how they will “cash out” on the investment in your company. They want to know what your strategy is for taking them from Point A to Point B.

You may not know the answer right now – and after all, the future is hard to predict. But any savvy investor will want to make sure that your goals are aligned, and that you are both looking forward to a “liquidity event,” where you will both reap significant rewards.

When forming your exit strategy, it’s a good idea to study similar firms that have achieved liquidity events, either through mergers, acquisitions, or initial public offerings (IPO).

Make sure that you describe these companies in your business plan. Show how these companies have achieved successful exists, and highlight the reasons for their success. Did they achieve success because of their marketing strategy? Or because of a technological advantage? Whatever the reasons, note them in your business plan.

You should also take note of the value of comparable firms, at the time of the liquidity event. And also, try to understand and explain the drivers of that valuation. Was it related to the earnings of the firm, or the number of customers the company had acquired? You should then use these numbers as a benchmark in planning your own exit strategy.

Furthermore, if you’re aiming for an acquisition, then you should list the firms that may be a good fit to acquire your company, and state the reasons why. Similarly, if you’re aiming for an IPO, then you should document the milestones for achieving this exit.

IPOs and acquisitions are the most common exit strategies laid out in business plans. However, IPOs have become less common in recent years. Of course, you can’t predict what’s going to happen in the future. Most reasonable investors won’t demand an overly detailed exit strategy. But they will want to make sure that the exit strategy is on your mind. Investors want to know that you’re committed to growing the long-term value of the company.

Most of the time, investors will only “cash-out” on their investments when the company reaches this exit (usually acquisition or IPO). So it’s critical that you document your exit strategy in your business plan.

However, your exit strategy is only one of several sections that you need to get right, if you want to get funded.

Click here to download a proven business plan template for just $1.

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May 12, 2010

New Markets Can Be Great Opportunities for Investors and Entrepreneurs!

If you are an investor or entrepreneur, you might want to get into the new emerging markets that are popping up like mushrooms after a rainstorm. One of the fastest emerging markets that are appearing is the alternative energy market. This market is just getting started and is looking for all kinds of new technologies that are environmentally friendly and more cost effective.

Click here if you are an entrepreneur to find the right investor, or if you are an investor who wants to find the right opportunity!

Some of the latest news in emerging markets include the latest investment. At May 11 Solaria announced today that it has just raised $45 million in funding to excellerate growth. Solaria is one of the world’s largest solar energy companies which develops revolutionary photovoltaic modules. The funding came from some prominent investors, including CMEA Capital and DBL Investors. The main thing that is attracting these investors to Solaria, is that this emerging market is huge and many power and utilities companies are looking to alternatives in generating electricity, including solar and wind power. In fact, solar power is growing in popularity because of its efficiency and how quiet it is. Solar power needs to be generated in mass amounts to be able to power massive neighborhoods. Furthermore, Solaria is starting to gain a steady customer base in North America, Europe, and other markets. There is more good news for those of you who are in the emerging alternative energy and clean-tech markets. For those of you who are entrepreneurs who are in the clean-tech and alternative energy industries, you might even be eligible for government grants. With the growing move in many different nations to go “green,” there are many government grants available for companies who have a promising technology that can provide stable alternative energy sources to help diminish the use of fossil fuels. This includes US entrepreneurs in this industry. This can be proven with today’s announcement of Evolution Solar, which has initiated a grant from the US Department of Energy for $62 million for concentrating solar power. According to this recent press release, the US Secretary of Energy, Steven Chu has stated that such investments, as the one given to Evolution Solar, are given only to those companies who are developing revolutionary systems to harness energy, like solar energy to be able to generate affordable energy for large areas. The point is quite clear. There are many different emerging markets ranging from the alternative energy and clean-tech industries to nano-tech and bio-pharma industries that show great promise for ROI and many great opportunities for both investors and entrepreneurs alike. There are many different emerging markets for all kinds of different industries out there that the savvy entrepreneur and investor can seize upon.

Click here to gain access to access over 4300 investors easily and buy the database with 7 days money back GUARANTEED, if you’re not satisfied!

Regardless of what industry you are in, there is an opportunity out there for you. You just need to look and take your time and do the research. With a little time and diligent research, you can find the right opportunity for you.

All the best, and good luck!

Amir

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May 11, 2010

You Too Can Get Funding, If…

Guess what! You too can get funded, if you do the following. See how these following companies got their funding. There are many things that you need to prepare before you can get funding and become a large company. For example, let’s look at the first example. Internet and data infrastructure company, Infineta announced that it has just closed $15 million in series A funding from major investors. Who are these investors and why did they invest in Infineta?

Click here to get access to a list of over 4300 investors which is updated on a regular basis!

According to the General Partner of North Bridge Venture Partners, Paul A. Santinelli, Infineta has a technology which is game-changing. Now what does this mean? It means that the technology that Infineta has developed can disrupt the market and is designed to meet the need that many of the IT providers need and eliminates a problem in the industry. In this case the problem is the large volumes of data being communicated throughout the IT infrastructures. See what else Mr. Santinelli has to say. He further stated that there is a growing requirement for data centers and different companies requiring optimum connectivity that can be cost affective. Infineta received funding from North Bridge Venture Partners because it has the technology to meet this need.

Time and time again, entrepreneurs need to meet a certain demand in their industry and to find out what this demand is, research needs to be done. Every industry is different and you also need to find an investor who has expertise in your industry and will be able to know what the demands are in your industry. It is your job, however, to research the markets in your industry and see if your product can meet the demand in the industry. Let’s look at another example of how this works.

On May 4, 2010, Internet Pawn has announced that it has raised $1.5 million in initial equity funding for a revolutionary internet business model. What has attracted investors to Internet Pawn? Well, quite simple, Internet Pawn is the first internet pawnshop in the United States and is a leader in a new market appearing with internet commerce. During difficult financial times, many consumers are facing difficult decisions to make and sometimes it might come to pawning certain items to gain money for everyday expenses. The pawnshop industry is over 3,000 years old and has been a time-tested industry for asset-based loans. Moving this industry to the internet was the way that Internet Pawn raised its funding. The two investors who invested in Internet Pawn, Daylight Partners and Access Ventures. Both investors agreed to the vision of the company’s cofounders, creating an online pawnshop would disrupt the pawn market and the internet market as well.

One of the investors, Jay Campion from Access Ventures, stated that he was intrigued with the idea of Internet Pawn and its loan policy has a lending policy that is interest free for six months and makes it highly competitive with the typical pawnshops that are in brick and mortar.

Click here to find the right investor for you!

These are great examples of how entrepreneurs have presented their ideas and found funding to turn them into reality. There is an investor for almost every industry, you just need to look. It will take some time, but VCgate will help you find the right investor for you with its easy-to-use database, which lets you contact the investor directly from the interface. You can email each investor or several investors at a time with the single click of the mouse. Remember, when contacting an investor cold, whether through VCgate or not, make sure that your teaser email is convincing to get the investor’s attention. You can do it.

All the best and good luck!

Amir

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May 10, 2010

guides bonus

Dear Small Business Owners and Entrepreneurs,

Limited Time Special Offer: Get VCgate Today and Receive Two Essential Guides FREE!

VCgate is proud to announce the limited time offer of our Venture Capital and Investors Database along with two BONUS complementary guides for just $97. The two new guides, entitled How to Approach & Raise Capital from Angel Investor and The Easy Way to Raise Venture Capital, are essential tools for anyone seeking to raise new capital for their startup or small business. With each guide normally priced at $39; for you, this limited time offer represents a significant savings.

The first guide, How to Approach & Raise Capital from Angel Investors, is an excellent source of information for any individual seeking or planning to raise capital from angel investors. The guide provides information on the various types of angel investors, the benefits of having angel investors, the proper way to approach and work with angel investors and what to expect from working with angel investors. If you purchase the Venture Capital and Investors Database for $97 today, you will receive this $39 value FREE!

That is not all!

The second guide, The Easy Way to Raise Venture Capital, provides a step-by-step analysis of how to get you and your company the venture capital it needs. Within this guide you will get essential information on the different sources of venture capital, from venture capital firms to individual wealthy professionals, information on the benefits and expectations of these various sources, along with information on how to meet and secure investors. At $39, this guide also comes FREE with the purchase of our Venture Capital and Investors Database for just $97!

Although these two guides provide important information for anyone seeking capital, they are only secondary to the invaluable tool that is our Venture Capital and Investors Database! At this great price, you will have access to over 4300 investment sources from around the world. Get all the contact information you will ever need for investors from just about every industry, from media to biopharmaceuticals to computer software and business services. With a specially designed user interface, searching for the perfect investor becomes easier than ever. VCgate’s database provides the ability to search for investors by your business stage, industry and location. Do not wait any longer, try it today!

To purchase VCgate’s Venture Capital and Investors Database, along with the two BONUS guides, go to www.VCgate.com. If you have any questions or comments do not hesitate to reach us at www.VCgate.com or by calling us at (347)983-0156.

Try it today, as this is a special limited time offer!

Get VCgate’s Venture Capital and Investors Database now and get funding way ahead of the competition!

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May 9, 2010

Are You Venture Capital Material?

Here is the question. I know you are a diligent entrepreneur and that you are working hard to raise enough seed capital to get your venture on track, but are you venture capital material? This will be a question that many venture capitalists will ask before they begin the due diligence process or even look at your business plan.

Click here to find venture capitalists who might be willing to invest in your venture!

So, now, you need to become venture capital material and that can be a process. A company does not become venture capital material over night. To get to that stage to receive series A funding, you need to work and you will need to show promise to the venture capitalist and he needs to be convinced that your venture will produce a good ROI on his investment. Let’s take a look at the following companies and why their investors decided to invest.

One of the more recent companies receiving venture capital this past week include Axtria, which is a marketing analytics startup based in Morristown, New Jersey. On Thursday, May 6, this company announced that it has closed $2.5 million in series A funding from Sequoia Capital India and other investors. So what did the investors state that was the crucial deciding role in them investing in this startup? Well, according to private investor, Richard Braddock; the market potential of the company’s product shows enormous potential. Now, what does this exactly mean? This means that the investors saw a good potential in the market for new technologies in sales and marketing analytics and believe that this company can produce a good profit in years to come. This is very important. Remember, venture capitalists invest other people’s money and they are very keen on how they invest this money. The want to be sure that their ROI is worth their investment, which is the case in Axtria.

Managing Director of Sequoia Capital India, Sandeep Singhal stated that Axtria appears to be a leader in the market. In other words, its technologies are disrupting the market. This is more evidence that Axtria is venture capital material.

Another important thing you need to realize is that when you are looking for venture capital, you must anticipate that the investors you do business with will expect to have a seat on your board of directors. The board of directors is the governing body of the company and should include chief executives of your company and some investors. There is a caveat with this. The majority on the board of directors has the control of the company’s future and the fate of the company’s management. Though having a venture capitalist or two on your board of directors can be beneficial to the company, having too many outside investors can take the governing powers of the company from your company away from you. Now, let’s get back to Axtria, notice that Mr. Braddock and one of the investors from Sequoia Capital India joined Axtria’s board of directors. This is good for a startup, because most venture capitalists and large private investors have connections with serious clients and other resources that can improve the performance of a company that is already performing well.

Now let’s look at the criteria for investments that the venture capital or private equity firm is looking for and do you fit these criteria? Fitting the criteria is crucial for winning the investment from a vc firm. Let’s look at the criteria for Sequoia Capital. The criteria are as follows:

A. Clarity of purpose. Does your company have a clear understanding of how and what it will produce?
B. Focus. How focused is your company?
C. Being frugal. How can your company manage its money and how far can it go with a small amount of money?

These are just some of the criteria on Sequoia Capital’s website. You also need to choose a vc firm with the same industrial, stage, and geographic preference that fits your company.

Click here to find a list of 4300 investors and be able to sort them out by industry, geographic, and stage preference to match your company!

You too can be venture capital material, like Axtria. It takes work and sometimes this can be a stressful path to get to this stage. If you have the stamina, the strength, the ambition, and the will to make your company successful and you have big dreams, you can get there and become venture capital material.

All the best, and good luck!

Amir

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May 7, 2010

Alternate Sources of Funding Emerge from Economic Instability

As many small business owners and entrepreneurs can tell you, getting loans from big banks and large financial institutions is harder than ever. With so many bad debts, mismanaged books and overleveraged investments, big banks and other large financial institutions are either unwilling or unable to make the same kind of investments that they were just two years ago. Gone are the days where big banks would loan money to anyone with a business plan. Now, small business owners and entrepreneurs, no matter how well established or well positioned, are being turned away. However, when one door closes, another opens. All small business owners and entrepreneurs should become aware of Community Development Financial Institutions, or CDFIs.

If, like many other business owners, you are struggling to find fresh capital CDFIs may be just what you are looking for. Smaller institutions within the U.S. that focus largely on communal and economic development, such as nonprofit organizations and small and local banks, can qualify to receive the CDFI designation from the U.S. Treasury. Upon receiving the designation, these smaller institutions receive expanded access to capital, financial services and credit. In turn, these institutions then have the capacity to expand their provisions of financial support to the small business owner and entrepreneur.

Finding investors and fresh sources of capital can be difficult. Make the search easier by getting VCgate’s extensive Venture Capital and Investors Database today!

The Riegle Community Development and Regulatory Improvement Act of 1994 established the CDFI designation along with making the financial resources available to those institutions, in the form of the CDFI Fund. As the big banks close their doors, these smaller institutions open theirs. In 2008, 41 institutions gained the CDFI designation; with greater demand, in 2009, that figured grew to 55 institutions. There are currently 859 CDFI designated institutions in the U.S.

Although these institutions are a good alternative from big banks and other financial institutions, for those small business owners and entrepreneurs seeking investments, there are a few, yet not insurmountable, drawbacks. In order to receive financial assistance, whether it is in the form of investment capital or tax credits, companies must be willing to sit down with a CDFI institution and spend some time going through a bit of bureaucratic paperwork. A number of variables are considered when reviewing an application for funding, including a willingness to make business adjustments, a plan to positively affect the local community and the capacity to repay loans.

When seeking investors and investment capital, one should explore all avenues. Get VCgate’s Venture Capital and Investors Database today and get the funding you need now!

Getting investment capital from CDFIs today requires more effort than getting investment capital from a major financial institution did two years ago; but, the effort is hardly impossible. According to the CDFI Fund, since its inception, the fund has awarded over $1.1 billion to various CDFIs. For 2010 alone, the operating budget of the CDFI Fund increased to more than $240 million.

As financial resources remain tight around the country, it is always important to be aware of new opportunities for capital investments. CDFIs and the CDFI Fund are just a few of a growing list of options available to small business owners and entrepreneurs seeking funding. Additionally, individuals and companies seeking venture capital, investment opportunities and other financial resources should take advantage of VCgate’s Venture Capital and Investors Database; where one can get easy access to thousands of venture capitalists, angel investors and venture capital firms. Within the database, those seeking capital can get easy access to 594 investors within the manufacturing industry, 339 investors within the electronics industry and 686 investors within the business services industry. If you seek venture capital, do not let this, or any other opportunity, pass you by. Try VCgate’s Venture Capital and Investors Database today and get the funding you have been waiting for now!

Regards,

Amir

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May 6, 2010

Investors Need Opportunities from You!

Boy, do I have some great news for you! Even if you are not in the tech industry or in the healthcare industry, you can still have great chances to raise funding! The truth is that there are many new opportunities out there that investors are looking for and your company could just be it.There are all kinds of new industries available for investment opportunities.

Click here to access $900 billion in funding, some of which can fund your venture!

One great example about why the future looks bright for entrepreneurs is that just recently, on May 5, there was a conference for developers and entrepreneurs. This conference was spearheaded by some of the major global financial institutions, such as Paypal and others. This conference was great for those of you who are developing a new product, such as new software, new devices, new medicines, or new ways to have recreation. This conference was about peer funding, which is basically where entrepreneurs got together and you could get ideas on how other entrepreneurs got financing to realize their ideas, and more.

Speakers at the conference included the following speakers: Nathan Beckard of Venture Archetypes, Lewis Gersh from Metamorphic Ventures, and others. This conference is not the only good news for entrepreneurs.

Clean-tech or clean energy is also another industry that is being heavily funded today with many communities and corporations are looking to find cleaner forms of energy and are becoming more environmentally conscious. This provides the clean energy and clean-tech markets prime for the investors to find the opportunities that they are looking for. Today’s article from Associated Press has announced that there is quite a bit of venture capital available for entrepreneurs in the clean energy industry. In the first quarter of this year, the article goes on to state that already over $733 million in venture capital has been invested in entrepreneurs who are in the clean energy industry and are developing new sources of energy that are environmentally friendly. This means that if you are developing solar energy devices or powerful wind generators, etc., there might just be that vital funding for you.

College students are also hopping onto the entrepreneurial bandwagon with DormNoise receiving $500,000 in series A funding. This is an entrepreneur of the true sort and a shining example of how you can also make your ideas fly. The founder and CEO of DormNoise, Jay Rodrigues is only 21 years old and was already able to raise $500,000 in series A funding from DN Ventures LLC, and PRESENT e-Learning Systems, Inc. Before securing this funding round, Mr. Rodrigues has also raised $450,000 from family and friends. His idea was sparked from the hectic dorm and college life by creating a complete collegiate calendar system that can seamlessly coordinate every aspect of college life from classes, social functions, personal affairs, etc. This program also lets you to sync your calendar together with campus calendars, not just to your computer, but also to your smartphone. Though young, the future looks bright for Rodrigues and you can also have the same bright future if you put your mind to it and give it all you got.

The point is that the conditions are great for entrepreneurs who are looking to build their businesses and there are many opportunities that investors are waiting for to invest in. All entrepreneurial societies are looking very optimistic and all believe that the ambitious entrepreneur can raise capital. You need to be firm and steadfast. Keep upbeat and make sure that you have a business plan that can show for itself.

Click here to find the resources that can find the right investor for you!

Remember that if you have that entrepreneurial fire, you can do it. Have a business plan ready and use the resources at VCgate to get the funding you need.

All the best and good luck!

Amir

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May 5, 2010

More Good News for Tech Entrepreneurs!

If you are an entrepreneur in the tech industry, I’ve great news for you! You know very well that the tech industry is ever evolving and you know that investors might be looking for you. Great examples of tech companies that have recently received funding include Netronome, which has announced that on May 5 it has secured $23 million in series D funding from DFJ Esprit being the lead investor. Netronome is one of the leading companies that is in the internet flow market. In fact, Netronome has grown to be a rather influential company, who’s products have helped change the way that networking technologies are being developed. Your company can also achieve this level with the right funding.

To begin your quest to receive the funding needed to get your to the level of Netronome, click here and gain access to over 4,300 investors worldwide in many different industries, including the tech industry!

New tech companies are also securing mezzanine funding to begin their IPOs. Just yesterday, May 4, USA Technologies has received the funding to commence $3 million in public offering. USA Technologies designed the E-port systems to enable many of the world’s cashless payment systems. It is a leader in the development of cashless payment systems and intends to use the capital to forward its public offering, raise corporate capital, and working capital to give its E-port project a head start. As USA Technologies goes public it will offer its stock on the market for $0.90 a share to the public.

Along with tech companies, internet companies are also doing well. Also on May 4, 2010, an online pawn company, Internet Pawn has raised $1.5 million in series A equity funding. There are some new investors who joined in with the company founders in this funding round. These new investors are Daylight Partners and Access Ventures and this proof that internet companies can show enough market disruption. Proof of this is that being based in Texas, Daylight Partners rarely invests outside of its geographic area, but Internet Pawn being the most disruptive internet company seen for a while, Daylight Partners did not hesitate to seize on the opportunity.

What do all these companies have in common and why were they able to win such large investments? The answer is quite simple. Their executive and management teams were high in spirit and overcame the doubts of all their peers. You can do it too. Furthermore, you’re not alone. VCgate can help you find the right investor for you. We know that contacting investors cold can be a challenging task, but you can do it with all the resources available to you through VCgate and its affiliates.

Click here to find the right investor for you and see how you can appear in the venture capital news companies like the above mentioned companies!

Remember, you can do it. With a carefully thought out business plan and the determination to raise the needed capital, you can do it. We believe in you and the are here to help. So, get out there and go get them!

All the best and good luck!

Amir

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May 4, 2010

The Tech Industry Groomed for Investments!

If you are an entrepreneur in the tech industry and are looking for funding, you might be in luck! Fresh from all the latest business news, Google announced on May 3, 2010 that they are planning to expand their vc staff and are looking for more opportunities to invest in new technical ventures. The point is that the tech industry is ever evolving and tech companies are looking for new technologies to invest in to keep up with the market. Google is no exception.

Click here to find the investor who can realize your dream! You can even find strategic corporate investors here!

Google’s VC arm is investing very actively lately, by investing in eight tech startups last year and in two new ones this year. There is one hitch, however. Google is a typical strategic corporate investor and will invest only in those startups that serve the interest of Google and that means that you may have to eventually sell your company to Google. You might not want to do that, but on the other hand if you choose an investment from Google and they buy your startup, you can generate a large enough profit to be able to begin another startup.

If you are not in the tech industry, don’t worry! There is some funding for you also. Other industries are doing just as well as the tech industry when it comes to closing investments. Other industries doing well today are the biotech and medical industries with many companies in the biotech and medical industries closing investments or projected to close investments in this week. Some of these include Stratatech, which closed a $3 million in funding round to advance a clinical trial of a living substitute skin graft. Stratigraft has already been approved by the FDA in the US and is ready to undergo Phase IIb in clinical testing.

InTouch Health is another company in the medical industry that has received funding. The leader in tele-medicine has won a whopping $10 million funding round from Invest Michigan! Growth Capital Fund to continue to finance the revolutionary telemedicine technologies that InTouch Health is developing. InTouch Health is already one of the largest leaders of the telemedicine industry, allowing physicians to perform real-time consultants with their in hospital patients and communicate with both their patients in the hospital and the attending physicians and nursing staff. These systems use multimedia technology for physicians to view the vital data of their patients for their consultations.

Click here to find the right investor for you and tap into $900 billion in funding worldwide!

Remember, almost any industry is prime for investments if you find the right investor. The intelligent investor will always invest when times seem tough. Remember what Warren Buffet said. “When people get greedy, I get scared, when people get scared, I get greedy.” This means that when most people are tight with their money, that’s the time to invest and smart investors will seize any opportunity that they believe will yield a high ROI, so go for it. You can do it!

All the best and good luck!

Amir

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May 2, 2010

How Can You Raise Capital for Your Venture?

You’re tired and being a CEO of a startup company in desperate need of cash, you are probably wondering how to raise the necessary capital needed for your venture to succeed. You have probably raised a few hundred thousand dollars in your own sweat equity and maybe you were lucky enough to even get into contact with an angel investor who invested another hundred thousand dollars in your company. That’s all good, and I am sure that your business plan is out of this world plus you have a great management team who can get the job done. You think that you have everything an investor would want to see.

Click here to find over $900 billion in Venture Capital worldwide.

The thing is that you need some serious financing to raise capital. That is, you need to get a serious investor who has deep pockets and can invest large sums of money in your venture.

How do you get a venture capitalist to invest in your venture? Well, that does take quite a bit of work on your part to prepare a sound business plan with all the proper market analysis to win the investor over. For this you need to spend some of the “sweat equity” that you accumulated to get the right professionals who can provide the correct numbers and the realistic estimates that investors will be willing to look at. Then you need to sway these investors in your favor.

Think about forming a sales pitch for your company. As mentioned before, while earning your sweat equity in a marketing job, now use those skills to form your financing pitch. Your financing pitch should be both written and oral. The written version should be your teaser email and your executive summary; the oral version should be a carefully honed elevator pitch. Of course, building a good rapport with the prospective investor is also crucial. Remember, when you want funding from a venture capitalist, you are selling him some of the equity in your company. Plus, I mentioned before that venture capitalists have deep pockets, so here’s why that is. Unlike the angel investor who invested in your venture or your friends and family who have a limited amount of money they can give, venture capitalists have access to large funds that can reach over a billion dollars to invest. Why is this? Simple. Angel investors invest their own money in your venture and they budget a certain amount for their investments and budget other sums for other expenses. A venture capitalist, on the other hand, works for a venture capital firm which usually manages a fund. This means that a venture capitalist has a huge weight on his shoulders because he is not investing his own money. He has to answer to the vc firm that employs him for the investments he makes. Usually the funds that a venture capitalist makes investments from is either endowments, pension funds, or the private funds of wealthy families. The owners of the funds entrust the venture capitalists to make wise investments that allow the funds to grow.

What is a venture capitalist interested in when he wants to make an investment in your venture? The most important thing to a venture capitalist is the ROI or return of investment. One thing you need to know about investors in general is that, firstly they are opportunists and secondly, they are risk takers. Every investment is an opportunity to yield a high ROI, but it’s also a risk. The point is that although investors take risks, they are not random risks. The risks are calculated and are only taken after the due diligence has been done on the venture. If an investor feels that your venture has too low of ROI and a very high risk, he will be less likely to invest. On the other hand, if the ROI is high and the risk is low, you will more than likely get funded. You need to prove to the investor that your venture is the best opportunity for him and that it is well worth his investment. You need to make sure that you are prepared for the due diligence process, which can be rather nerve wrecking. A venture capitalist rarely makes decisions on his own. He has all the experts needed, such as market analysts and will study every aspect of your venture to determine whether it will provide enough ROI to be worth his investment. You will be asked a series of tough questions by both the investor and his partners. Furthermore, a venture capitalist will not just want his share in the company equity either. In most cases, a venture capitalist will want a controlling position in the company, most commonly a seat on your board of directors. The board of directors is the governing body of your company and should be evenly divided with investors and company executives.

Having the venture capitalist sitting on your board of directors is not all bad. In fact, it can benefit your company. Because a venture capitalist has such deep pockets, he has resources that can benefit your company and improve your business. This means that you can get the edge needed to join the big boys. You can do it! You just need to work for it and eventually you will come up with the right strategy.

Click here to download the VCgate Venture Capital Database and gain access to over 4300 investors worldwide!

All the best, and good luck!

Amir

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