Category Archives: Investors

Startup Company – What Are Accredited Investors and Why Should I Only Raise Money From Them?

Posted by on October 27, 2009 Comments Off

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Creative Commons License photo credit: B.O.G.D.A.N.Question:

I’m an entrepreneur and have finished my business plan. I’m getting ready to raise $2 million for my startup real estate company – but a friend of mine said I should only talk to accredited investors. I’m not exactly sure what an accredited investor is and I don’t understand why I can’t talk to anybody I want to about investing in my company?

Answer:

The term, accredited investors, has to do with securities laws – both federal and state – and making sure you comply with the very onerous restrictions that go with the fundraising for your start up company. I’ll give you both the short and long answer to what an accredited investor is in a minute. But the first thing you need to know is that if you raising capital from angel (AKA private) investors, you will almost certainly need more than just a business plan. You need what’s known as a Reg D Private Placement Memorandum – PPM – in order to comply with federal and state securities laws. Read more »

Become an Eb-5 Investor in the Southeast United States

Posted by on September 24, 2009 Comments Off

If you want to change your life by becoming both an eb-5 investor and a U.S. citizen, you have many options. One of the more popular areas for immigrant investors to settle down lately is Florida. Immigrants from rainy and snowy countries alike appear to enjoy the constant sunshine and populated beaches of the Southeast, and you just might count yourself among them.

According to recent studies, plenty of Europeans and Latin Americans are attracted to Florida, not because of its cheap real estate, but because they want to be American citizens while soaking up the sunshine. In fact, the recent interest in the area could help turn the state’s economy around faster than anticipated. Clearly, the immigrants benefit just as much from the decision to be an eb-5 investor in the area, as they get to come to the U.S. much faster than they would through other visas. Read more »

Finance Lenders – What it Takes to Impress Them and Get the Financing You Want

Posted by on April 22, 2009 Comments Off

Fixing a hole where the rain gets in
Creative Commons License photo credit: TheeErin

Some people believe finance lenders are out to get you. This thinking is born out of a misunderstanding of how they determine who to give financing too and on what terms. However, if you know how they arrive at their calculations, you will find the process is far from being ad-hoc and is actually very straight-forward. These lenders all have established formulas that look into the 4Cs: Capacity, Credit History, Capital, and Collateral. How solid you are in these areas will dictate how good of a candidate you are. Here, we take a look at each factor and give suggestions on how you can improve your score in each of them:

1. Capacity

Essentially, takes a look at how much you can borrow. This will look at factors like how much money you make and whether you can pay off the debt. The general rule is that your mortgage payments should not be more than 30% to 35% of your monthly income. This debt percentage should include not only the mortgage payments, but all other debts like auto loans and credit card debt. Read more »

Finding a Private Investor For Your New Business Venture

Posted by on February 19, 2009 Comments Off

Startupbusiness meeting 1 - 09
Creative Commons License photo credit: david.orban

Starting up in business is tough so if you want to make it a success you have to posses the right attitude and leadership qualities; you need to be a confident and motivated entrepreneur.

To make a good entrepreneur there are certain qualities that you need to have such as the following:

• Be a good leader
• Self confident and organised
• Confident and a risk taker
• Good communicator and competitive
• Prepared to work long hours
• Provide a unique service or product Read more »

Acquisition/Investment in Indian Companies by Foreign & Domestic Investors – Six Steps Mantra

Posted by on February 11, 2009 Comments Off

Kamal Nath
Creative Commons License photo credit: apesphere

Acquisition/Investment in Indian Companies by Foreign & Domestic Investors – Six Steps Mantra

Joint ventures, strategic alliances and acquisitions are the flavor of the day that enable fast growth focused companies to have rapid inorganic growth and expansion in new sectors. However, prior to engaging in a joint venture relationship or acquisition of an operating Indian company (“Investee company”), either by way of private placement, or secondary market, or subscription of substantial equity share capital, it is advisable for the Investor to carefully and stringently undertake the following six step mantra to avoid future surprises and heartburns:

(i) Due Diligence/Operations Audit: Extensive legal and financial due diligence of the Investee company is advisable to assess Investee company’s track record in compliance with Indian laws, statutory obligations and regulations applicable to it. The due diligence exercise (which usually takes between three (3) to four (4) weeks depending on availability of documents) not only enables the Investor to assess potential liabilities, evaluate unknown and potential, disclosed or undisclosed liabilities but also enables the Investor to assess the feasibility and viability of the proposed acquisition and rationalize enterprise valuation. If required, Investor can demand creation of an escrow account for safe deposit of a part of the acquisition cost, parked for an agreed period to mitigate against any future liabilities of the Investee company. Read more »

Finding Investors For Your Start Up Business Ideas

Posted by on February 11, 2009 Comments Off

Mi Cielo a la orilla del mar
Creative Commons License photo credit: teresawer

There has been a recent wave of websites and TV shows about people starting their own business and following that path from bright idea and individual entrepreneur to small business start-up and then potentially to multinational, depending on the product or service. But what kind of audience are they broadcasting to? Well, it turns out a lot of us Brits want to start up our own small business. According to Business Link, over 10 million of us would like to start up our own business at some point.

So the encouragement is there and let’s face it, a lot of us like to be the boss. However, the whole process is easier said than done. The people who took part in the survey were asked what the main obstacle to starting up their own company was. Many cited financial concerns, be it the current UK financial climate or perhaps their own overdrafts, mortgages and debts. How would they cope if they started, but couldn’t generate enough initial funding to keep it going? After all, they’ve got the idea, the business plan, the desire, and maybe even a few colleagues. But how do they find the right people? Read more »

Start-ups – If Your Goal is Investment Or Acquisition by a Big Company You Are Patenting Wrong

Posted by on February 11, 2009 Comments Off

intrusion
Creative Commons License photo credit: sergeant killjoy

Do you treat your patents as a fence or a tollbooth? If you wish for your start-up technology company to obtain investment from or acquisition by a bigger player, you had better understand the difference.

Most start-up technology company entrepreneurs and CEO’s understand that patents can be key to establishing the value of a new business idea. Typically, entrepreneurs and CEO’s such as yourself will engage patent attorneys to build an IP portfolio that protects the start-up’s technology and products to the fullest extent possible. The motivation for this effort and expense is, of course, to to protect your start-up’s idea from use by others. As management of a start-up you may be seeking to build an ongoing business around the patented technology, but often the goal of building a solid patent portfolio is to make your business an attractive target for investment or acquisition by a larger company. Read more »

The Economic Meltdown You Are Not Hearing About

Posted by on February 11, 2009 Comments Off

Chicago (www.photo.org.es)-50
Creative Commons License photo credit: A. www.viajar24h.comThe number one issue on the plate for nearly everyone is the economic meltdown that occurred in 2008 and is carrying through to 2009. Although we here bad news in the media, most don’t describe the really ugly things occurring.

The Banks

2008 was a bad year for banks. Given what you hear on the news, most of us would think things were calming down. They are not. If anything, they are worse. For instance, are you area that regional banks are failing at a rate of more than one a week? How about the fact the federal government cranked $165 billion dollars into the 8 biggest American banks, but they still lost $418 billion in value? The latest estimates place the total capitalization of all banks in the US at 1.8 trillion dollars. That’s not bad until you realize the latest estimate of bad debt in the industry is 3.6 trillion dollars. Read more »

Survival Tips For an Economic Depression

Posted by on February 9, 2009 Comments Off

banks 002
Creative Commons License photo credit: the tony santos

t is not the end. Dark clouds of recession are certainly hovering around the financial horizon. The economic indicators point towards a downtrend in business, which means problems for real estate investors, businesses and job seekers. Gas prices have hit an all time high. It is certainly time to prepare for a rainy day.

Banks are reeling under subprime losses. Real estate seems so unreal. The U.S. Government is finally seeing red in their economic predictions. What options do individuals, investors and regular employees have in this economy? What should small businesses do to prepare for the recession? Certainly none of us can afford to take things lightly. Read more »

Top 3 Reports Every Business Owner and Investor Must Have

Posted by on February 9, 2009 Comments Off

253 - Boothin It
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A question I commonly hear is what reports should I use for my businesses and investments? I have several customized reports I use, but today, I’m going to share the 3 standard reports I use – these are reports that can be pulled from my accounting software. I use QuickBooks but these reports are standard in all accounting software packages.

- Report #1: Statement of Cash Flows -

Where does my cash go?

Does this question sound familiar? Many business owners and investors are constantly trying to answer this question as they scramble to make payroll or mortgage payments. Read more »

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