By Scott Levine on
7/13/2008 5:43 PM
Betsy Flanagan of Startup Studio interviews venture capitalist David Hornik of August Capital and the creator of VentureBlog.
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By Scott Levine on
7/5/2008 8:28 PM
Figuring out the type of business to open is only half the battle of an entrepreneur. Your choice of business structure will largely determine how your business income will be taxed. The most popular and familiar legal forms of business are C corporations, S corporations and Limited Liability Companies (LLCs).
These may look like just a few simple words on a page, but they could mean thousands of dollars to your bottom line. Many business owners choose S corporations because they provide limited liability, income flow-through to their individual income tax returns and tax-free merger benefits. But like other business structures, S corporations have their disadvantages. If you already have or intend to elect this entity or any other entity, you should understand how they are structured so you can establish a financial plan.
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By Scott Levine on
6/25/2008 8:11 PM
The Securities and Exchange Commission has adopted rule changes that will make it much easier for investors to sell securities they acquire in both private and public companies. These changes are expected to decrease the cost of raising capital and enhance the perceived value of stock used as consideration in acquisitions, with minimal impact on investor protection. These reforms are part of a broader package of changes being approved piece by piece by the SEC intended to make capital raising in the U.S. more efficient, particularly for smaller companies.
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By Scott Levine on
6/11/2008 2:07 PM
With big companies announcing layoffs almost daily, our economic success depends more than ever on entrepreneurs.
Unfortunately, recent research suggests, something in American culture makes half the population reluctant to even think about starting a business. Women, according to the Kauffman Foundation, are only half as likely as men to found a company. This gender gap actually grew last year: Startup activity increased among men, but declined among women.
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By Scott Levine on
5/29/2008 11:05 AM
In TrafFix Devices v. Mktg. Displays, the Supreme Court held that the existence of an expired utility patent covering a particular product design provides strong evidence that the design is “functional.”* Consequently, a party would be hard-pressed to claim non-functional trade dress protection for the previously patented design. In Keystone Mfg. v. Jaccard Corp., the W.D.N.Y. federal court explored how trade dress protection is impacted by an expired design patent.
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By Scott Levine on
5/19/2008 8:58 PM
Professors Colin Blaydon and Fred Wainwright published a piece on participating preferred in the July 2006 issue of the Venture Capital Journal titled "It's Time To Do Away With Participating Preferred." Participting preferred should go the way of the other risk-shifting terms that, now that the smoke has cleared, are seen as little needed. In today's world, particiption can be a negative signal to the marketplace about the investor's confidence in the company. It can also encourage future investors in later rounds of the same company to include it in their term sheets, thereby changing the risk/return equation for the early investors.
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By Scott Levine on
5/9/2008 11:58 AM
Venture capitalists are forecasting an active year for the industry with high growth in the CleanTech sector, an improving IPO market and fewer venture firms in 2008. These predictions are among the top line findings of the NVCA 2008 Predictions Survey. The results also show concerns about global investments in certain regions including China. Additionally, the industry believes fund sizes will become larger and returns for limited partners of venture capital funds will improve in both the short and long term horizons.
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By Scott Levine on
4/30/2008 4:52 AM
Although Angel investors account for a majority of initial startup capital, they only represent a fraction of venture dollars that flow into companies. In fact, over the last ten years, angel investing accounts for only approximately 3.8% of invested capital.
While in total dollar amounts Angels make up a small percentage of capital deployed, they play a significant role in the development of an early stage company. However, a new trend is emerging that involves angels investing debt instead of equity. This increased volume of debt deployed at the Angel level (particularly by angel groups) is creating liquidity at the seed level; thereby creating greater access to capital and liquidity.
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By Scott Levine on
4/22/2008 4:45 AM
In 2007, 462 Israeli high-tech companies raised $1.76 billion from local and foreign venture investors, 8.5 percent above the $1.62 billion raised in 2006 and 31.5 percent above 2005 levels.
In the fourth quarter, 115 Israeli high-tech companies raised $503 million, a 21 percent increase from the $414 million raised by 108 companies in the third quarter and a 5 percent increase from Q4 2006. Capital raising in the fourth quarter - the highest in five years - included an especially large financing round of over $100 million for MobilEye. Even after adjustment, the figures indicate a stable level of capital raised relative to 2006.
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By Scott Levine on
4/18/2008 1:44 PM
Companies fail for a host of reasons. Bad luck plays a role, sure, but disaster usually strikes because of a more fundamental flaw--in the original idea, the strategy, the execution or all of the above.
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