2009 Venture Investment Outlook
Tuesday January 6, 2009
Thinking of getting venture capital funding for your business this year? If so, you'll want to pay close attention to Joey Tamer's 2009 Venture Investment Outlook. As you might expect, the economy has tightened up investment dollars. And with the IPO market drying up, valuations on acquisitions will likely be lower. Still, funds have money to invest, and if the promised U.S. capital gains tax cuts go through, that's a free extra 15% return for investors.
Want to get ready for venture funding? Here are a few key steps and help to guide you through them:
- Write (or re-write) your business plan.
- Review your business plan for mistakes that will keep you from getting funded.
- Re-organize as a standard "C" corporation (or whatever the appropriate structure is in your country). VCs typically don't invest in LLCs or "S" corps. Start the process early rather than have it delay your funding deal.
- Get your financial statements in order.
- Understand your real market potential and make a realistic estimate of it. A ridiculously high or low estimate will turn off potential investors instantly.
- Build and work your network to find potential investors.
Comments
Your points of advice are excellent. I would just add one more - Enlist an Advisory Board. This would be about 3 executives with experience and knowledge in your business domain who act as mentors to you, and advocates to investors, or even sources of investment funds. In my blog at http://startupprofessionals.blogspot.com, I recently highlighted details of how to pick an advisory board, and the value it brings.
Great point, Martin. Should’ve thought of it myself, especially considering I serve on four advisory boards myself!
Thanks for the good advice. These are some great things to do to re access your business goals.
Timely tips from Scott Allen. There are winners and losers. Many big companies are losing market share to small rivals. So, there are many losers and some winners in the boom and bust cycles. Many people in the business world are concerned about doom and gloom, ground realities, insolvency and bankruptcy in turbulent local and global markets. Even top lawyers, accountants, market analysts and auditors are already fired and facing long-term unemployment. There are no short-cuts for sustainable success and prosperity. Businesses need bespoke survival strategies to reduce losses, improve efficiency, increase revenue, gain sustainable competitive advantage and outperform market competition. The strategies would help create new business opportunities and job. Many investors target niche or captive markets where consumer demand still continues to grow by over ten percent annually to 2030. http://www.FixyaExperts.com