Vadim Kotelnikov    

Venture Investing

Strategies for Venture Capitalists and Corporate Investors

   

Business e-Coach     

 

Venture Investing Team Assessment by Using Innovation Football Business Model Sources of Sustainable Competitive Advantage Venture Investment Criteria - 3Ws: Team, Business Model, Sustainable Competitive Advantage  

Six Questions for Measuring the Potential Investment

  • How long will it take for profits to pay back the investment?

  • When will the cash stop flowing out and start returning?

  • Do we really have to make this investment?

  • What is the return on investment?

  • Is that return comfortably above the true cost of the capital invested?

  • Looking ahead, and allowing for interest rates, what is the future pay-off worth in today's values?

 

VC Investment Criteria

Stages of the VC Investment Process

Preparation: Clarify your investment motivation and define your investment criteria... More

Screening an Investment Opportunity

Tips for Business Angels

  • Who referred this opportunity to me? Do I fully trust their recommendations?

  • Do I understand and have experience in this industry sector?

  • What makes this investment opportunity unique among all the others?... More

Buffett's Investment Secrets

7 Contrarian Principles – Ignoring Convention

Valuation

The value of a startup is the future cash that can be taken out of the business, discounted back to the present. The key to successful business valuation and investing is accurately estimating the magnitude and timing of these future cash flows, which are determined by:

  • How profitable a company is (defined by how much its return on invested capital exceeds its weighted average cost of capital>>>

The Magic Investment Formula

The magic venture investing formula is simple: Invest in young, good, innovative, and growing companies while they are cheap.  >>>

 

 

Team

The ability of the Team Download PowerPoint presentation, pdf e-book/ Management Team to get the job done tops the list of venture capital investment criteria.

Very few innovative startups get funded Download PowerPoint presentation, pdf e-book by venture investors. The main reason for rejection is that though first-time entrepreneurs or radical innovators may have great technology or business ideas they lack skills for converting these ideas into a successful business. To venture capitalists, "ideas are a dime a dozen: only execution skills count."

Business Model

Many venture capitalists invest primarily in a business model Download PowerPoint presentation, pdf e-book.

An effective venture concept and business model produces the most sales, the best margins, the highest net profit and the lowest breakeven. It also produces the highest return on investment and the best liquidity. The risks involved with execution of a good business model are minimized.

Venture Financing: Key Documents Download PowerPoint presentation, pdf e-book

Startup Business Plan

Revenue Model

Sustainable Competitive Advantage

When asked what was the most important thing he looked for when evaluating a company to invest in, Warren Buffet replied without hesitation, "Sustainable competitive advantage“.  >>>

Sustainable competitive advantage Download PowerPoint presentation, pdf e-book is the prolonged benefit of implementing some unique value creating strategy based on unique synergistic combination of internal organizational core competencies, resources and capabilities, value-creating products, technologies, processes, and services that cannot be matched by competitors. It is an advantage that enables a business to survive against its competition over a long period of time.

Investment Criteria of Business Angels and VC Firms

Business angels and VC firms use somewhat different criteria for business plan evaluation and  Investment selection >>>

How To Get Startups Better Prepared for Venture Investment

Experienced venture capitalists know that ideas are a dime a dozen, only execution skills count.  Unfortunately, most inventors lack entrepreneurial Download PowerPoint presentation, pdf e-book and business skills. Few can demonstrate sound skills of converting ideas into a profitable business... More

 

 

Corporate Investing

3 Strategies of Market Leaders  Download PowerPoint presentation, pdf e-book

Corporations are a major ‒ and rapidly growing ‒ source of funds for new ventures. 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 discover  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... More

    

 

 

     

Vadim Kotelnikov, founder of 1000ventures - personal logo Coaching by Example

Innovation Football helps strengthen and assess startups

     

Innopreneurial simulation game "Innovation Football"
 helps strengthen an innovation team,
business model Download PowerPoint presentation, pdf e-book and sustainable competitive advantage
‒ all within few hours.  >>>

Venture capitalists seek comparability, Innovation Football offers it.
Innoball helps both convert ideas into a profitable business and  assess the strength of the startup, in particular its business model, business strategies, the team as a whole and each its member. >>>

Innoball - Innovation Football Benefits: Stronger Competitive Advantage, Business Strategies, Business Model, Entrepreneurial Games, Strategic Simulation, Vadim Kotelnikov

Innovation Team Assessment, Innovation Football, Innoball, entrepreneurial game, simulation

 

References:

"Venture Catalyst", Donald L. Laurie

"Sustainable Competitive Advantage", Whitney Tilson,

10 Most Common IPR Mistakes During Venture Capital Due Diligence