One of the more common turn downs by Early Stage investors is to politely say that the deal under review "is too early for our fund."
“Early” is just one of those imprecise words that requires extra definition. If, for example, you ask several college students the definition of an early class you can bet the answers will range between 7 am and 11 am. You might even find a night owl or two who prefers to take a first class in early afternoon.
The same seems to be true for venture capital fu... Continue reading »
The U.S. Small Business Administration (SBA) announced today that it will award grants to state and local economic development agencies, business development centers, colleges and universities to support programs for innovative, technology-driven small businesses under SBA’s Federal and State Technology (FAST) partnership program. Applications for the grants are open now through April 11.
The FAST Program is designed to stimulate economic development among small, high technology businesses ... Continue reading »
What should your projections target in terms of investment performance for VCs and angel investors?
Here are some clues. During the last twenty years, the Venture Capital Index returned roughly 25% to venture capital fund investors. But this industry performance significantly understates the investment goals of most VCs. VCs don’t write checks to startup companies that might deliver a mere 25% investment return–they look for companies that have the potential to deliver far more. Here’s why.
... Continue reading »
S&P 500 Won't Go Up Forever this Fast!
In 2013, the S&P 500 stock market index returned a robust 32% to investors. When wealthy individuals are feeling flush from the growing value of their traditional investments in real estate, mutual funds and other securities, they tend to be more open-minded to backing ambitious entrepreneurs…perhaps just like you.
But don’t wait. At any time, stock market sentiment can change causing wealthy individuals, angel investment club members, and venture cap... Continue reading »
According to the U.S. Census Bureau, there are about 10 million self-employed workers or about 6.6 % of reported jobs. But these numbers are dropping since the recession.
"The market for self-employment was significantly weakened by the recession. However, as full-time employment in traditional workplaces continues to improve we expect entrepreneurial opportunities to follow suit with time," says Matt Ferguson, CEO of CareerBuilder and co-author of "The Talent Equation." "A rebound in housing... Continue reading »
Speak Up S Corps!
Congress is on the hunt for new sources of tax revenues. Oddly, just at a time when Congress is exploring lowering the tax rates large corporations pay, it is targeting one of the largest groups of small business owners to boost tax revenues.
Should we take it? No!
What’s the issue?
Most entrepreneurs who operate corporate business entities have a choice in how they report business profits to the IRS—they can pay standard corporate tax rates or they can usually op... Continue reading »
Approximately one-third of startups fail within the first two years of operations and another one-third close their doors by the seventh year in business. It’s a disturbing record of under-achievement especially since entrepreneurs tend to be incredibly hard working innovators and well-educated.
Why? What is it that is causing so much pain and money loss in the venture-building community? While other entrepreneurship educators and writers like to focus on what it takes for entrepreneurs to s... Continue reading »