Category Archives: Business Financing
It’s hard to keep up with changing trends. Some facts are familiar to anyone who reads the news. Unemployment is high. Growth is slow. Shale gas is a big deal. But beyond the caps-lock headlines, subtler, but no less significant, shifts are changing the U.S. economy and reshaping the global financial order. Below is a list of things to consider that have a global impact on our economy Read the rest of this entry
There are various factors that determine an exchange rate. Trade value, inflation, and interest rates, to name a few. These are basic principles to help understand the concept. Increased demand for a currency is due to either an increased transaction demand for money, or an increased speculative demand for money. The transaction demand for money is highly correlated to the country’s level of business activity, gross domestic product (GDP), and employment levels. The more people there are out of work, the less the public as a whole will spend on goods and services. Central banks typically have little difficulty adjusting the available money supply to accommodate changes in the demand for money due to business transactions.
Interest rates are determined normally by a Reserve Bank governor that determines economic policy for a currency. Interest rates can also be manipulated to stimulate an economy by strengthening or weakening a currency. Read the rest of this entry
Chile is a sophisticated market for venture capital transactions, thus almost all types are present in the Latin America jurisdiction, including direct M&A (both as corporate acquisitions and minority investments) and convertible debt. Nevertheless, the investment in venture capital through investment funds, created by the uprising of third parties’ funds are administrated by a fund manager is a widely used structure.
Investors have been acquiring businesses and making minority investments in privately held companies since the dawn of the industrial revolution. However with a few exceptions, VC in the first half of the 20th century was the domain of wealthy individuals and families. Read the rest of this entry
Securing capital is a primary concern for today’s entrepreneur and small businessman. There are many options available such as venture capital or angel investors. These professionals offer the funds the business may need in order to grow or create a new line of products. The primary purpose of these types of capital is to help the business achieve a level of success until it can be traded publicly. Publicly traded stocks can fall into different categories and offer investors different levels of returns. It might be a lot simpler if there was only one kind of stock, but it would not allow for as much versatility either. Even though most companies trade common shares, there are other classes of stocks as well. Read the rest of this entry
The search giant Google has made multiple acquisitions in the past year. During the first quarter alone, they spent nearly $300 million on eight acquisitions according to the paperwork filed with the government. Google’s reasoning behind the numerous acquisitions is simple to “generally enhance the breadth and depth of their expertise in engineering and other functional areas, their technologies and product offerings.” The shocker is not so much that they made so many acquisitions in the first quarter of 2013, but that they spent so much doing it. Of course the largest fear is that the search giant might not be able to develop the acquired businesses or technologies further which is the goal of the venture capitalist. Read the rest of this entry
In recent years, we’ve seen a huge growth in investors’ interests in “untapped,” “developing,” “frontier” markets but what exactly does VC in Southeast Asia look like. While Singapore is the portal to rest of Southeast Asia (as one of the associate calls it, “Asia-lite”), it’s really not representative of the rest of the countries here. In general, media has a habit of lumping all the various countries in Southeast Asia together into a homogeneous “region” – one massive consumer landscape that could be tackled in the same way companies go about dominating America from East to West. Read the rest of this entry
Ninety-one years ago, historian Frederick Jackson Turner told Americans to stop looking West, that the frontiers had been conquered, and beyond San Francisco there was nothing but the vastness of the Pacific Ocean. The cities of the Far East will be the vanguard of economic growth in the 21st century, and the West will have to run to meet them. Already, Japan has catapulted past most of the world in becoming the premiere industrial force after World War II. Read the rest of this entry
The U.S. venture capital industry is at a crossroads. Market over-saturation has led to inflated valuations and poor investment outcomes. To tackle this problem, venture capitalists, like Efraim Landa, have increasingly searched for VC markets outside of the U.S. In this respect, China and India loom large. In China though, new VC’s are threatened with regulatory laxity, while unreliable infrastructure plagues Indian investments. Many have overlooked the investment ecosystems of Southeast Asia and a resurgent Japan. Read the rest of this entry
When a business reaches a certain level it is common for it to require more funding to be able to make the necessary expansions. Providing this type of funding is just one of the benefits offered by the venture capital sector. By making this kind of investment into a business the venture capitalist is committing to provide the necessary funding as well as the expertise and experience needed to help make the business successful. As a venture capitalist, Efraim Landa has offered many companies expertise about successfully building a business as well as the funding needed to ensure the business has a fair chance of taking off and becoming profitable. The venture capitalist is an active investor in the business and may end up investing many years into the company before they realize a profit. The VC investor makes their money back plus a sizable profit when the business grows to the point of making a public offering or a sellout. Each region of the world has its own VC market that contributes to the economy of the area.
History of Denmark’s Venture Capital Market
The VC market opened up wide in Denmark in the late 80s and the number of venture capitalists has continued to increase. Denmark’s economy is open, dynamic but small and it is comprised of mostly small and medium sized businesses. Before 2000 Denmark had an entrepreneurship policy which was aimed at priming the economy for entrepreneurship. Over the years, the region has instituted several different programs that were aimed at promoting entrepreneurship. It appears that the overall climate for entrepreneurship is positive and there are many healthy businesses. In recent years the VC market in Denmark has continued to grow steadily. In 2008 the VC market in Denmark had 45 investors but over the last 5 or 6 years there has been substantial growth and maturity. Not only have there been more startups, but businesses have been growing as well so that companies are closing at larger sums than ever before. Over the last decade the VC market in Denmark has become very well established. Read the rest of this entry
Venture capital investments are one of the most flexible forms of funding for many innovative businesses today. Venture capitalists such as Efraim Landa offer funding for startups and emerging businesses as an investment, not a loan. It is a form of risk capital since the venture capitalist is taking a risk by investing in the business in return for equity of the company once it matures. In order for a business to enjoy the benefits of funding by a VC firm, they must demonstrate that they have the potential of high growth. The investor remains active with the business and offers both monetary worth and mentorship since their success lies in the success of the business. The venture capital sector has been well established in developed countries for many years and is just now beginning to be a viable option in other regions of the world. Read the rest of this entry