Author Haytham Al Fiqi

~Venture Capital – Knowing Your Funding Options
~Venture Capital: The Basics
~Astellas Venture Capital: Aim Big
~Pitfalls to Avoid in Applying for a Venture Capital
~Finding Angel Venture Capital in Honolulu
~5 Tips for Traveling By RV

~Venture Capital – Knowing Your Funding Options

Posted: 01 May 2022 10:19 PM PDT

Venture Capital – Knowing Your Funding Options

Entrepreneurs and business experts have defined venture capital as a financing style between a capitalist and entrepreneur with a common goal of a handsome return in a short period of time, maybe 3 to 5 years. But while there are several resources on the definition and characteristics of this topic, few have actually discussed the options that this kind of business set-up has.

Before taking the plunge, know what these options are and how they can be applied to your current business plan.

The funding option depends on the stage of the company's progress. Investment firms can invest from $50,000 up to $20 Million. If the company is still at its earliest stage, where a concept or invention is still to be developed or proved, the option is called seed financing. Here investment is spent on marketing and product development. Product ingenuity and market research are the areas being focused.

When the company has already developed its product and marketing strategy but needs money for the actual production and initial marketing, the funding option is called start-up financing. This is the common option for new entrepreneurs and inventors. Here funds are spent for the production and initial marketing. Amounts can range from $50,000 to $1 Million.

Sometimes a company already has its products and may have initially introduced them to the market, but receives little or no revenue at all. In this case, the entrepreneur may need financial assistance at this stage, called the first or early stage. The amount usually ranges from $500,000 up to $15 Million, depending on the extent of the changes that need to be made. It could be that the product needs to be revised or developed to make it more saleable, or it can be a mere repackaging or change in advertising strategy.

The next option is called the second or later stage. Here the company has its products and may have received revenues, and has the potential of making it big in the near future, but for some reason has no funds at hand. It could be that there are some loans that need to be paid, or other financial schemes that need to be complied with. That is why venture capital firms invest from $2-15 Million to help the company.

Some profitable companies want to expand, but does not want to put in more capital out of their own money. Their goal is not to keep the company for many years but for it to quickly grow in order to make an IPO within a few months, say 3-18 months. This option is called the third or mezzanine stage. Amounts range from $2 Million to $20 Million.

Similarly, this next option needs an investment before an IPO, but the time frame is within 3-12 months. This is called the bridge. Investment is also between $2 Million to $20 Million.

Remember that there is a specific option for each stage that your company has. The key is to know what options to use. Similarly, you must know where to find these venture capital firms. You must also develop a concise but comprehensive business proposal to present to them. Lastly, keep in mind that venture capital is not the end-all but just the beginning of more challenging things to come.

The harder you work for something, the greater you'll feel when you achieve it.

Wake up with determination. Go to bed with satisfaction.

~Venture Capital: The Basics

Posted: 01 May 2022 10:07 PM PDT

Venture Capital: The Basics

A lot us have ideas, but the real challenge is making them a reality. There are a lot of opportunities in the business industry but the real challenge is making out. Earning money is as difficult as finding. No one really want to be a cubicle drone but without any capital most of us become regular employees.

There are ways to start a business. If you have a great idea that has a big potential, there are ways to access funds for your business. Venture capital funds are one of the sources of seed capital for your start up company.

Venture capitalists invest on start up companies with big potential and high growth. These are usually high technology companies that may lead returns in the long run. The downside of this is the venture capitalists get a share of your company and have say on the company's decisions. A person who has always dreamt of becoming their own business may find this a tad uncomfortable.

The low down on Venture capital

There are some venture capitalists that provide financial services to start up companies. These are usually companies that are entirely new, with mostly an idea and a business plan in their hands. Venture capitalists are willing to make risky investments on businesses that banks loans and capital markets are afraid to make.

Companies that they invest in are usually high technology business such as computer and electronics. They are also interested in development and research.

Venture capitalists are general partners that offer limited partnership to a company. These general partners are usually made up of executives from a financial firm. They have the ability to pool in a large amount of capital. These funds are usually taken from pension, foundations, insurance companies, financial endowments and financial institutions.

This may seem a very good idea for a starting company but there is downside to this. In the business world nothing is free and general partners require 20% of the net profit of the company. They also need a 2% management fee every year.

It's also not easy to attract venture capitalists. They often have strict requirements. They will no invest on companies that don't have proof of their technology. They may agree to meet up with you but that does not mean you're already in good terms. Most of time 999 business plans get rejected out of 1000. They can reject you for a lot of things that may even seem trivial at the moment. The hurdles don't stop there.

General partners may help your company to jumpstart and expand. But they won't just let you make the decisions when they have invested a lot of money on your company.

In some instances this may lead to problems especially when general partners only care about making money for themselves. They may invest in advertising but not in the right places for your customers. Some of them like to spend too much money and the sudden growth is too fast.

Before you find yourself a venture capitalist make sure you are aware of their impact in your company. A venture capital fund may seem convenient at that time but you should always look ten steps ahead. Look for a general partner that will help your company grow not just add weight to their wallets.

Sometimes later becomes never. Do it now.

Sometimes we're tested not to show our weaknesses, but to discover our strengths.

~Astellas Venture Capital: Aim Big

Posted: 01 May 2022 09:45 PM PDT

Astellas Venture Capital: Aim Big

The foundation of every business, other than its product, is money. Earning money these days is as hard as finding one. Apart from a competitive market, a worldwide economic recession is also looming ahead. Venture capitalists have also become more cautious since losing from the dotcom bubble burst. Fortunately there are still venture capitalists willing to take on start up companies.

Science and technology has been a great interest for private equity firms. They prove positive returns in the long run as demands of a fast pace world continue. In the world of biotechnology, Astellas Venture Management is one of the sources of venture capital funds.

The company focuses on start up biotechnology companies. Its investment portfolio includes public companies such as Adherex Technologies, Memory Pharmaceuticals, and EPIX Pharmaceuticals. Private companies under them include F2G Ltd, FASgen, Inc., TaiGen Biotechnology Co., Ltd., and Alba Therapeutics Corporation.

Astellas established a branch in the America in 2006. The headquarters were located at Los Altos, California.

Astellas and biotech

Most venture capitalists invest in high technology businesses. Most of them prefer companies that apply innovative technology to their product or services. They invest large amounts of capital to start up businesses that have a lot of growth potential in science, research and development.

One of these private equity firms is Astellas Venture Management. Astellas was originally founded in Tokyo Japan. The company was formed after Yamanouchi Pharmaceutical Co., Ltd. and Fujisawa Pharmaceutical Co., Ltd. merged. Both of these companies have already been investing in biotechnology companies in Japan before Astellas was formed. Astellas is now managing funds of clients from Yamanouchi and Fujisawa, including new limited partnerships.

The focus of AVM is to find companies that have innovative technology and assist its growth by using its experience and network in the field of biotechnology. They offer investments for companies that have the potential to become leaders in the global market. They prefer emerging companies that are developing pharmaceutical seeds and new drug platforms.

AVM is obviously a big firm. They have a comprehensive resource available to their clients from personnel networks to marketing operations. Apart from investments it also provides companies with scientific and technical proficiency, experience in drug development, marketing knowledge and long-term perspective. This is a big opportunity for those companies who want to have rapid growth and success.

For those companies with a very ambitious management team this will be good partnership for them. AVM caters to no less than large markets that span globally not just locally. Their parent company called Astellas Pharma Inc. is one of the top pharmaceutical companies. This gives them the edge when it comes to experience. They are a cut above the rest when it comes to disease areas such as Immunology and Urology. The form is interested in the fields of Cancer, Pain, Diabetes and metabolic diseases.

Having a pharmaceutical company is both good for entrepreneurs and investors. One of areas that are cannot be touched by recession is health care and medical services. Although being responsible for the well being of many people is a challenge it can also be rewarding.

If you wish to delve in to a more competitive atmosphere and target a large market then you can go AVM, provided that you do have the scientific capabilities to back it up.

Dream it. Wish it. Do it.

The key to success is to focus on goals, Not obstacles.

~Pitfalls to Avoid in Applying for a Venture Capital

Posted: 01 May 2022 09:30 PM PDT

Pitfalls to Avoid in Applying for a Venture Capital

Most entrepreneurs know what they have to do when searching for venture capital. But there also common mistakes that you have to avoid when presenting your business. An applicant can be rejected for a number of things.

Most venture capitalists are only required to approve a certain number of business plans they come across everyday. Your business must have a competitive edge over others that will get the attention of the investors.

You have prepared all of your legal documents and practiced your pitch a thousand times only to get rejected. At some point, you won't even know why you got rejected. Don't wonder if applicants get rejected over something trivial. To be able to increase your chances of getting approved you must know what to do and the common pitfalls to avoid when applying for a venture capital.

Do not want

Don't be too technical. Investors pay more attention to number and figures because they understand them better. Although this may give the impression that you know your business like the back of your hand, the investors may not understand you. Your presentation should be able to communicate well with your audience.

Don't give false hopes. Overly optimistic projections may ruin your credibility. Investors rely on credible financial projections not expectations. Unless your assumptions on future earnings are back up by credible sources, don't mind bringing them up. It's better to present realistic figures that can be achieved by the business.

Do not provide incomplete financial information. You must present both past and projected financial data. Historical financial information informs your investors what the company has accomplished and communicates future projections. You will need balance sheets, income and cash flow statements.

Sales are not the solution to all problems. Investors are looking for businesses that have potential for long term returns. Earning in small profits that can be collected in a timely basis proves a better survival strategy. Earning large amounts of profits while loosing money at the same time will ruin your business.

Concealing problems of the business is not a good idea. Investors also understand that all business has problems. State the whole story and inform them how you will manage and solve it in the future. Owing up to past and existing problems is better than hiding them. As long as you can present a solution your investors will understand.

Low price leverage. The low price strategy can only be achieved by one leader in an industry. It's not a good sign to your investors if you are relying on a low price rather than the quality of your product or service. Wal-mart is one the few who can manage to capitalize on this strategy.

Overconfidence in your product is also not a good idea. Your idea maybe unique but you should always remember that the possibility of a competition will always be there. Every business profits from a need and any smart entrepreneur knows that. Your ideas may different but looking at the whole picture you may also be focusing on a need that others are also addressing.

State the facts in print. All entrepreneurs have a clear vision of what their business is but not all of them are good in putting them in print. It's important to be the author of your own business plan than get outside help that may not be bale to capture your thoughts.

Do something today that your future self will thank you for.

Don't stop when you're tired. Stop when you're done.

~Finding Angel Venture Capital in Honolulu

Posted: 01 May 2022 08:53 PM PDT

Finding Angel Venture Capital in Honolulu

More and more companies worldwide are seeking venture capital to finance their companies. This is shown by the remarkable increase in the number of investors and firms. Firms spend billions of dollars yearly on these investments. As a result, firms have expanded their network and there emerged this new group called angel investors.

While the firms in the past concentrated on building companies within their geographical area, firms and angel investors have gone international that they are now funding companies in some parts near the Pacific and even as far as Southeast Asia. That is why even if you reside in Honolulu, you can still find angel venture capital.

Angel investors are basically the same as venture capital firms in that they help finance start-up companies. But the similarity ends there. Angel investors are wealthy individuals who are willing to invest personal funds, while firms are sometimes funded by other institutions. They may be composed of a few or more investors, depending on the amount that they contribute.

Their investments usually range from a few thousand dollars to about $2 Million, committing to contribute specific amounts of investment every year rather than to give the amount in bulk at one time. Venture capital firms have higher investments because they can finance up to $10-20 Million.

Firms usually focus on the fields of technology in their investment criteria, while angel investors are open to other industry sectors like software development, production and services. This means that if your proposal is innovative and not technology-related, then there is a bigger chance for you to raise angel venture capital than ordinary venture capital.

While firms may finance companies in their later stages and also in their expansion, angel investors focus more on start-up companies, resulting in a more risky investment.

Because of the higher risk, there is the necessity to yield a higher return, between 20-30%. That is why they are more careful in screening and choosing their investments. Members themselves help in the screening process. Presentations are done in their regular meetings, and it is during such time when they individually decide to invest or not. Application is often a multi-step process. What investors usually look for are companies with a potential growth of 1,000% in 5-7 years.

If you seek angel venture capital, you must have a fully-developed product. Because capital is rather minimal, it must be spent in the actual production and marketing and not on product development or research. A unique, innovative product or service will greatly impress these investors.

Also, show them that you have potential customers. Make a demonstration on how fast the business is most likely to grow. Lastly, find a strong, competent management team. This will give the investors confidence in your proposed company.

Having rather smaller resources than most firms, these investors operate in networks. This is to share the risk among them.

It is estimated that there are 225,000 angel investors and thousands of angel investor networks in the US, and still growing. This means that there are more angel investors than venture capital firms, which are approximately 600. With the many investors available, finding angel venture capital in Honolulu should not be a problem.

Browse through websites, make a few searches. Some angel investors, although not based in Hawaii, do finance companies in this State.

Success doesn't just find you. You have to go out and get it.

Push yourself, because no one else is going to do it for you.

~5 Tips for Traveling By RV

Posted: 01 May 2022 08:12 PM PDT

5 Tips for Traveling By RV

Are you in the process of planning an RV trip? If you are and if this is your first time doing so, you may be looking for some guidance. After all, traveling by RV for the first time can be fun and exciting, but it can also be worrisome at the same time. For that reason, five helpful tips, which are ideal for first time motor home travelers, are outlined below.

1 – Map Out Your Route Ahead of Time

Deciding where you want to travel to by RV is an important component of doing so. Of course, you have the ability to change your mind or make side trips along the way, but you should always have an idea of where you will be going. This is important for a number of different reasons, including overall satisfaction and safety.

2 – Research Activities and Attractions Along the Way

In conjunction with the above mentioned tip of mapping out your intended travel route, doing so enables you to research activities and attractions that are located along the way. When traveling by RV, half of the fun is all of the stops that you are able to make. Of course, you can be spontaneous, but having an idea of exactly what you can do and see while traveling by RV is ideal for safety, as well as making sure that you don't miss out on any great opportunities.

When it comes to researching activities and attractions that are along your way, the internet is a great place to start. If you are taking steps now to prepare for an RV trip that isn't set to happen for another month or so, you may want to request free vacation guides. These guides are easy to find online.

3 – Make Sure Your RV Is Stocked Full of Activities

Making sure your RV is stocked full of fun activities is another great tip that beginners should implement. If your upcoming motor home adventure is an extended one, you may spend a good percentage of your time on the road. Of course, looking out the window to sightsee is a nice, enjoyable activity, but it may not hold your interest for long. That is why fun activities should be examined. These activities may include movies, using a laptop computer, playing handheld electronic games, reading, or enjoying another fun hobby, such as knitting.

All RV travelers are encouraged to make sure that they have fun activities for the road, but it is extremely important for parents to do so. There is nothing worse than being stuck on an RV with unhappy children.

4 – Pack for Your Trip Ahead of Time

All first time RV travelers are encouraged to start packing early. In fact, the earlier the better. Many supplies, such as food and travel size toiletries can be packed or put in an RV without disrupting your current daily needs.

To help ensure that your next RV trip is fun, as opposed to one that is filled with complications, create an RV trip checklist. This checklist should include specific items that you would like to bring, such as clothing, food, drinks, eating utensils, towels, wash clothes, and so forth. To help get you started, many websites have free printable camping checklists, which can serve as great guides. Be sure to check off items from your list when you pack them in your bags or place them on your motor home.

5 – Always Keep Safety in Mind

As with any recreational activity, it is important to remember that there are some risks associated with traveling by RV, especially in areas that you are unfamiliar with. For that reason, a number of steps should be taken to protect your safety. Be sure to leave an itinerary with someone that you know and trust, always be aware of your surroundings, always keep a cell phone nearby, and be sure to have a fully stocked first aid kit.