Common Questions about Venture Capital

Getting a business started is no easy matter and it takes a lot of money, effort and time to succeed. There are many ways to secure funding depending on the type of business and its stage of growth. Venture capital funding is only one way a business can get funding, but it has some unique characteristics. Many people are unclear on what venture capital funding is and how it works. Here are some of the most common questions people ask about VC funding.

The VC Market in Silicon Valley in 2015

Silicon Valley has long been the seat for venture capital funding and technological advancements. Over the last year funding appears to have dropped in some aspects and some VC firms have looked elsewhere for investment opportunities. But Silicon Valley is not out of the game by any means, it’s just changing the way it is played. Venture capitalists have plenty of opportunities for investing in startups in the region and trends indicate it is likely to get better rather than worse.

The Venture Capital Market in the United States

The U.S. has a thriving venture capital market. The market is envied by other counties who seek to model their own systems after it. This is due in part by the way funding is received. American corporations only rely on banks for about 40 percent of their loans for investing in promising start-ups. The other 60 percent comes from private equity loans, which offer less rigid standards and lower rates. This encourages corporations to seek out and support young technology companies, all of which contributes to a growing economy.

The State of the World Economy

World Economy

The global economy is essentially dependent on the growth of the U.S. It is a force in the world economy because for the first time in 10 years, the country. is experiencing a higher level of economic growth. America has basically been struggling since 2005, with high gas prices, high unemployment rates and consumer who were scared to part with their money. What may play out well for the U.S. is the fact that the country relies very little on exports, when compared to other countries. Yet many countries depend on the success of economic growth in the U.S.

Tips for the Venture Capitalist

A venture capitalist is defined as one who invests long-term and relies on a hands-on approach with each of their investments and works actively with entrepreneurial teams that specialize in management so that they can create awesome companies.

Understanding How Venture Capital Works

Anytime someone starts a new business, it takes money to get it up and running. It takes money to rent or purchase office space, equipment, furniture, and supplies. While avenues such as tapping into your personal savings, getting a bank loan or bootstrapping are ways to get money for the startup costs, venture capital is another choice. You will often hear about a private equity firm when it comes to venture capital. There are a few different choices when it comes to choosing a private equity firm. Some are known as passive investors while other is active investors.

What is a Crypto Currency?

When it comes to the intricacies of crypto currency, the realm of finance can be a difficult land to navigate without the assistance of a qualified and experienced venture capitalist like Efraim Landa. Though the topic of a crypto currency may be quite complex, all becomes rather simple with the advice of a professional private equity firm. Let’s take a comprehensive look at the basics of crypto currency.

How Does Venture Capital Work?

Every new business endeavor requires money to get started. Whether it is the initial costs of renting an office location or purchasing a space for general business purposes, there are always start-up costs necessary to make any entrepreneur’s dream a reality. With numerous expenses involved in the building of a new business, there are a variety of ways that entrepreneurs may choose to fund their idea.

What kind of return can I expect on a VC investment?

There are many schools of thought about the venture capitalist today. Some call them vultures, others use the term opportunists. No matter what your sentiment, you have to admit that it is certainly a riskier investment than some of the other options. The intent when a VC firm like Effi Enterprises helps fund a business is that it will help ensure that the business has what it needs to become successful and profitable for all parties concerned. There is not a predetermined formula that can help a VC firm know exactly how much they will make in the end. But there are a few clues as to what can be expected in return for the investment.

VC Trends in the Far East

Japanese Flag

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. 

VC Trends in the Middle East

Over the last decade, the state of venture capital in the Middle East has gone from virtually nonexistent to an industry facing a shakeout. The sector’s breakneck evolution has made it difficult for investors and venture capitalists like Efraim Landa, to obtain a clear picture of the industry’s underlying VC fundamentals in the Middle East. This being the case, they have been understandably cautious about directing their funds to regional venture capital firms. To meet these expectations, the richest countries are investing billions in large-scale projects that will need to be supplemented by private funding and that will directly and indirectly stimulate economic activity.