Private Equity and Venture Capital Managing Successful Portfolios
www.exed.hbs.edu
Find venture capital firms, startups & transactions. Free Trial
VentureDeal.com
Professionally written plans designed for venture capitalists.
www.MasterPlans.com
Learn how Venture Capital Works. Prepare to Pitch Investors
howventurecapitalworks.com/VC
Earn your Masters in Teaching. Approved & Accredited. 100% online.
www.Kaplan.com/Education
Request Info from Schools offering Certificate Programs In Your Area!
www.collegebound.net
CWA has over 850 VC firm & 90 Angel Network contacts. Affordable Prices
www.capitalwestadvisors.com
Accredited University, Affordable Teaching Degrees with Licensure
www.WGU.edu
Reach 450 angel investor groups for $250 with a single submission
www.OPEN-deals.com
Request Info from schools offering certificate programs in your area!
www.do-something.com
Advice for growing companies and private investors includes information on investors, deal structures and legal strategies.
www.growco.com
Stanford Business School site - focus is on the development of new research and courses to understand the impact of information and communication technologies on firms, industries and markets.
www.gsb.stanford.edu
Stanford Graduate School of Business site - a clearinghouse, helping students, alumni and entrepreneurs take advantage of the wealth of information and assistance available within Stanford University and the wider community.
www.gsb.stanford.edu
Stanford Graduate School of Business site - effort to understand the issues involved in managing emerging companies, with particular emphasis on founding conditions and the subsequent impact of those decisions.
www.gsb.stanford.edu
Assistance on financing small business in Canada - provides workshops and educational modules. Section of Strategis, an Internet site for Canadian businesses and consumers.
strategis.ic.gc.ca
Overview of the venture capital industry with a focus on India.
www.indiainfoline.com
Teaches course in venture capital and private equity. Provides informational and educational resources.
www.people.hbs.edu
Directory of private equity and venture capital firms. Also provides brief overview of industry.
www.professionalfirms.com
Private Equity and Venture Capital Managing Successful Portfolios
www.exed.hbs.edu
Find venture capital firms, startups & transactions. Free Trial
VentureDeal.com
Guide to Venture Merchant Financing
Is Venture Merchant Financing Right for your Business?Venture merchant financing (VMF) has become appealing for the small biz owner whose business is growing fast – so fast, usually, that it's hit the wall in terms of growth, and needs a cash boost to help it to the next level. Although venture merchant financing is over 400 years old, few small businesses have even heard of this type of financing.
There are three top things to know about venture merchant financing:
- How much will it cost you?
- What are the terms of the agreement?
- What are the qualification standards your company must meet?
Action Steps
The best contacts and resources to help you get it done
Activities funded
Venture merchant lenders might finance clients' trade activities, including distribution and imports, or any number of factors to help the business leap to the next level.
I recommend:
For a great source of all things VMF, go to vFinance. They offer information, an investor directory, and other great tools. Check out Business Finance: Funding Resources for free business loan courses/guides, checklists, and more!
Designing your pitch
If you've determined that venture merchant financing is the way to go, then there are many online resources to help you choose the right firms to approach and plan your pitch.
I recommend:
Check out the VC Quiz to evaluate your biz for VMF. Then visit VC Pitch for step-by-step helpers through the process.
What they offer
Venture merchant capitalists offer funding backed by assets (for example, accounts receivable), inventory, or purchase orders. Many also offer advisory management services, as well.
I recommend:
Saints offers investment capital and advisory services for emerging companies. Merchant banking organization Capstone Group offers several financing options.
The cost of cash
While venture merchant financing has its benefits, in terms of fairly immediate cash, its drawbacks are significant. The main downside? The cost, which ranges from about one-third to one-half of your company's profits during the relationship. Because the financing is so high, most VMF agreements last three years or less.
I recommend:
Check out ABFJournal for listings of many types of investors that serve the asset-based lending industry. Business Finance, 'America's Business Funding Directory,' allows you to search more than 4,000 business loans and capital sources.
Go to the government
Or, more specifically, to a government-sponsored venture capital program involving Small Business Investment Companies (SBICs), which provide long-term loans, equity capital, and management help.
I recommend:
See an SBIC program summary which also provides links to individual SBICs.
Tips & Tactics
Helpful advice for making the most of this Guide- Building Capital: Once your business builds its asset base, it's time to look for less expensive financing.
- Think you're qualified? Businesses most likely to qualify for funding have strong managers, good business plans, and strong growth potential.
- Look out for Fees: Most venture merchant banks charge interest (and late fees for delinquent payers).
- Read the fine print: Make sure you know what you're agreeing to before you sign the deal. Don't let the need for money blind you to a deal that will break you in the end.
