Selecting, valuating, structuring, monitoring, and exiting venture investments

The core e-coaching guide:

Venture Investing Coach for Private and Corporate Investors

STRATEGIC   ALIGNMENT

YOUR   ARTS   AND   SKILLS

Yourself

► Setting Your Goals

► NLP - the Technology of Achievement

► Decision Making

► Effective Communication

► Negotiating

► 21 Secrets of Self-Made Millionaires

Your Business

► Venture Funding Stages

► Understanding Venture Financing Chain

► Investment Opportunity Selection Criteria

Think Pad Inc. - a Home Run (case study)

► Ways of Realization of Financial Returns

► Venture Planning Chart

► The Funding Round Chart

First-Round Funding: Recent Trends in Silicon Valley

► Business Plan: What Every Investor Wants to Know

Business Plan Evaluation by Investors

► Business Angels

Business Angel Syndicates

► Corporate Investing in External Ventures

Corporate Investing through Venture Capital Firms

GE Equity (case study)

Nortel Telecom (case study)

Captech Corp. of Mitsubishi Corp. (case study)

► How To Get Well Prepared Clients (just direct them to this page)

► Spotting Trends

► Search for Opportunities - Tips for Angel Investors

► How Investors Read a Business Plan

► Evaluating Management Teams

► Due Diligence

Sample Due Diligence Request and Check List

10 Most Common IPR Mistakes During Venture Capital Due Diligence

► Business Valuation

Valuation of a Start-Up Company

Valuation Quantification Techniques

Business Valuation Model

The Business Valuation Model combines relative indicators for future performance with basic financial data (Revenue, Variable, and Fixed Costs) to value the business. This valuation method can be used for business purchase, sale, or establishment. The model uniquely applies your intuitive business and market knowledge to provide a 3 year performance forecast and a business valuation. The model is compact and easy to use with minimal input requirements.     US$39     Buy now!

► How To Structure Your Deal

The Key Terms for Most Seed Investments

Typical Terms of Preferred Stock

Model private stock purchase agreement

Private Placement of Convertible Stock: Sample Term Sheet

► Venture Acquisitions

Acquisition Letter Sample

 Why MBS in Venture Investing?

Main Target Users

• Private investors - first-time or would-be business angels

• Non-financial corporations - first-time or would-be venture investors

• 'Neophyte VC funds' that are at an early stage and whose teams are managing their first fund

Growing Corporate Venture Capital

In today's new entrepreneurial economy, the real shareholder value is created by companies whose corporate strategies include well-developed venture strategies. Partnership between small innovative firms and large corporation is mutually beneficial. While entrepreneurial companies can identify  technology and market opportunities and move faster to capitalize on them, they can achieve enormous leverage through technology and distribution agreements with large global corporations.

In United States in 1994, only 2% of venture capital investments was corporate venture capital, but in 2000, corporate venture capital accounted for 17%, nearly $20 billion.

By 2000, spinouts, a new form of creating and financing a high-tech company has become more popular. This novel approach has a number of advantages over a merger or acquisition and it plays an increasingly high role for high-tech companies.

Growing Market of Business Angels – Early Stage Private Investors

As investments of formal venture capital (VC) companies in early stage start-up companies have been decreasing since 1999, the role of private venture capital investors, such as business angels, has been increasing. In US, the average VC funding per deal grown from US$ 2.7 million in 1994 to US$ 13 million in 2000. These days, VC companies prefer to invest in larger deals at a later development stage. At the same time, the number of business angels in growing. In US, in 2000, business angels put US$ 40 billion behind 50,000 deals. The number of business angels in US is estimated to be 400,000. This number grows at an average rate of 20% per year. In Europe, the estimated potential of annual angel investment is as high as US$ 30 billion.

Though the investment potential of business angels is significant, the size of the angel market could potentially become 10 to 20 times larger. It is estimated that only 7% of potential business angels in US invest in start-up ventures. The remaining 93% are virgin angels who would like to invest but don't do it for a number of reasons. Main reasons why business angels do not do more investment are:

• lack of proposals matching their investment criteria

• lack of quality business proposals

• lack of trust in the entrepreneur or management team

• lack of experience in valuating and pricing deals, and

• lack of experience in due diligence and monitoring.