Growthink Blog

I love Kiva


Categories:

I love Kiva.  For those not familiar, Kiva is a person-to-person micro-lending site – allowing individuals, primarily from developed countries, to lend directly to entrepreneurs in the developing world.  The borrowers are in places like Cambodia, Bolivia, Azerbaijan, Lebanon, Peru, and Tanzania – and primarily borrow to allow their very small businesses to expand and hire.

Let Entrepreneurial America Breathe Again - Please


Categories:

The old adage about the definition of insanity -- "Doing the same thing over and over again and expecting different results" -- has never been more applicable than it is right now with the crisis in our financial markets and our government's response thereto.  The daily, depressing drama of the federal government's frenetic, "bailout flavor of the day" response mechanism would be comical if it wasn't so tragic, frustrating, and anger-inducing.

Sometimes I feel I went to bed one night in the United States of America and woke up in the U.S.S.R. in the midst of a "5-year plan." It is long-overdue time for Main Street America, for Small Business America, for Scientist's and Engineer's America, for Junior Achievement America, for Paper Route America, for Immigrant America, for eBay America, for Mary Kay America, for Franchise America, for Venture Capital America, for Startup America, for Entrepreneurial America to stand up and shout ENOUGH IS ENOUGH.

Because they built this country.  Because they represent and embody its best and most admirable and most idealistic qualities.  And because if the Washington bureaucrats would just let them be and get out of their way they can and will dig this country out of its current hole far quicker, cheaper, and more fairly than via the banana republic cronyism that masquerades as policy in Washington these days.

The funny thing is, Entrepreneurial America has never been more vibrant, more creative, more productivity-building, more value-creating, than it is right now.  With the collapse of the "Blue Chips," the playing field has never been more level, the competitive arena never more wide open, the cost of key business inputs (labor, rents, technology) never less than it is right now for entrepreneurs.

What these firms need to succeed is not government handouts or "stimulus," but simply good old-fashioned growth capital.  And for this capital, these companies -- in such dynamic growth arenas as alternative & green energy, healthcare & biotechnology, digital media, and software -- are priced at  "end-of-the-world" levels.  In other words, as long as the world does not end, they will make themselves and their investors money.

So my suggestion to all of those in Entrepreneurial America: make yourself heard.  Call and write your congressperson and senator.  Email essays like this to your family, friends, and colleagues.  Support your local small business.  If you see a website of a business you like, write the company and tell them to keep on keeping on.   Blog.  Twitter.  Post on YouTube.  Shout out on Facebook.  Because this is a fight for private enterprise and economic freedom and one that Entrepreneurial America, and the world for that matter, cannot afford to lose.

Read Jay's second article in this series - Entrepreneurial America, Part 2.

Webinar: Keys to Successful Private Company Investing

Please join me on a live, interactive web conference where I will share with you my keys to successful private company investing including:

- How to utilize the Internet to source and research opportunities
- How to conduct data-driven risk analysis on private company deals
- How to exploit the "pricing inefficiency gap" endemic to private equity
- The importance of technology bias (and which technologies to bias) when selecting deals
- How to properly apply "black swan," or "randomness" thinking to private company investing strategy

To register, click here: http://www.growthink.com/livedeals


Yellow and the Investor Pysche


Categories:

What does the girl who rejected me at a dance when I was thirteen years old have to do with your ability to raise capital for your business?  Well, it all has to do with psychology, human nature, and how you can leverage the two to attract capital. Watch the 4-minute video below to learn more:


The DogBall - The Good, The Bad, & The Ugly


Categories:

Yesterday, I received an interesting package in the mail. I opened it up and inside was a shoebox. And inside the shoebox was "The Dogball." The Dogball, as I found out, is a new toy for dogs, and the founder, based in France, was trying to get me to distribute it here in the United States.

There are actually several important lessons from The Dogball as it relates to your business plan and raising capital. So, I documented them in a video since I had to make sure each of you could actually see exactly what the Dogball is:


Risk of Inflation is VERY Real


Categories:

Sometimes things are so obvious as to be hard to see.  

That is certainly the case right now with the incredible flood of federal stimulus pouring into the economy - both in terms of fiscal and monetary policy.   But saying it in this way, as it is often done by the chattering media classes, makes the issue unnecessarily opaque and complex.   We agree with Milton Friedman (and not just because of his long Stanford connection) when he describes inflation as "always and everywhere a monetary phenomenon."


Private Placement Memorandum (PPM) Mistakes


Categories:

Far too many businesses fail to raise capital because they lack the proper documentation, or because their marketing and offering materials (business plans, private placement memorandum,  investor presentations) are unprofessional, unpersuasive, inadequate or incomplete.

If you are raising capital from multiple private ("angel") investors, a private placement memorandum (PPM) is a necessary part of your documentation.  Unfortunately, however, the vast majority of entrepreneurs and business owners are not familiar with details of preparing a private placement memorandum and marketing a private placement offering.  In too many instances, this lack of knowledge prevents them from raising necessary capital, or -- even worse -- it can create costly liability problems.

To assist entrepreneurs, we created this report - "The Top 10 Private Placement Memorandum Mistakes" - to help answer some of the most frequently asked questions. We hope the report will help prevent many of the common errors we see businesses make during the process of preparing a private placement memorandum, marketing it to investors, and raising (or failing to raise) capital from private investors.

Some common questions answered in the report include:
- When do you need a private placement memorandum to raise capital?
- What types of disclosures must be made in a PPM?
- How can you market a private offering, while retaining a Regulation D exemption?
- What types of intermediaries and "finders" can promote a private offering?
- What types of investors can participate in a private placement?
- What are your options for preparing a private placement memorandum?
- How often should you edit or update a PPM?

Click here to download the report: Private Placement Memorandum Mistakes

 

 

If you are seeking professional assistance with your PPM, Growthink offers professional private placement memorandum writing and consulting services.  

 

Or, if you're writing your PPM yourself, you can use our Sample Private Placement Memorandum Template to finish your PPM quickly and easily, so that you spend less time "preparing," and more time speaking with investors.


Growthink Services in a Down Economy


Categories:

Recently, we at Growthink have received a flood of inquiries from entrepreneurs and business owners, asking for advice on how to proceed in these turbulent times.

The fact of the matter is that it is hard to reassure anyone, in light of recent economic circumstances, that there is an upside for business owners who are revising short/intermediate goals or looking for capital. Small, medium, and large companies alike are hesitant to put themselves out there in an unstable, cash-constrained environment.

Yet amidst the seeming cynicism, we at Growthink are still seeing extremely positive movement amongst funds – especially around our headquarters here in California – that have not only the moneys to invest, but also the eagerness for new, niche deals.

Historical patterns indicate that downturns, such as the one in which we presently find ourselves, result in some of the highest levels of new company formation.

What this proves is that entrepreneurs – no matter the ebb or flow of Wall Street and Main Street – are consistently creative people, who seize upon circumstances and leverage them to start and/or grow their businesses. They reflect the American Dream so often referred to in the latest Presidential campaign.

Growthink's mission and vision, as founded by such entrepreneurs, is to help aspiring peers build and set forth strategic plans to gain momentum in their marketplace; and to hopefully attract investment dollars from the right people at the right time.

With all of that said, it comes down to a few key characteristics of good deal-making: confidence, relationships, and perseverance. Just because the opportunities are out there, doesn't mean they are easy to find, qualify, negotiate, or transact.

Our expertise, in working with investors on a daily basis, renders us the ability to quickly identify an outreach strategy, to get to a "yes" or a "no"; and to conduct diligence with interested parties, speeding the time to a closed deal. What this enables our clients to do, rather than expending 100% of their efforts on raising capital, is to focus on the day-to-day operations of their businesses. Ultimately, this is where potential investors want to see busy executives utilizing their skills and capabilities.

At Growthink, we welcome the opportunity to speak with you about our investment banking and consulting services. Should you be interested in scheduling a call, please contact us with the best day, time, and way to reach you, and we will happily accommodate.

Growthink Announces Launch of Growthink University


Categories:

As a supplement to our consulting practice, we're pleased to announce the launch of Growthink University, our new membership club dedicated to teaching entrepreneurs and business owners how to raise capital for their businesses.

The club assembles 10 years of capital raising expertise and methodologies developed and refined by Growthink, and gives entrepreneurs an additional "Do-It-Yourself" option to perfect their business plans.

Growthink University covers topics including, but not limited to:

  • The biggest mistakes that entrepreneurs make when trying to raise capital and how to avoid them.
  • How to overcome the capital-raising challenges faced by first-time entrepreneurs.
  • The difference between pre-and post-money valuations and making sure you don't get taken by investors.
  • The ten biggest mistakes that companies make in their business plans.
  • The winning ways to get meetings with investors -- and the most important things to know before sitting down at the table.
  • What financial projections need to prove about your business

 

Go to Growthink University (http://www.growthinkuniversity.com) to learn more.


Windfalls and Pitfalls: Private Equity and the Individual Investor


Categories:

How many times have you heard someone say, "Don't put all your eggs in one basket"?

When it comes to any kind of investing, this is very good advice.

But, if this is the case, why don’t private equity investors diversify?

Unfortunately, most individual investors in private equity significantly under-diversify their portfolios -- investing in one or only a handful of companies.  By so doing, they both greatly increase their risk profile and greatly decrease their probabilities of seeing investment return.


Investment Fundamentals: 3 Illusions and What To Do Now


Categories:

As the investing month of October mercifully draws to a close, there is now a palpable sense of calm in the financial markets.  While the horrific damage – in both value and psychological terms – is very, very real, and may take years from which to recover, there has been a healthy mindset transition to a “what is to be done” thinking, feeling and acting.


Syndicate content

Most Popular
New Videos

"Business Plan
SHORT-CUT"

If you want to raise capital, then you need a professional business plan. This video shows you how to finish your business plan in 1 day.

CLICK HERE
to watch the video.

"The TRUTH About
Venture Capital"

Most entrepreneurs fail to raise venture capital because they make a really BIG mistake when approaching investors. And on the other hand, the entrepreneurs who get funding all have one thing in common. What makes the difference?

CLICK HERE
to watch the video.

"Brand NEW
Money Source?"

The Internet has created great opportunities for entrepreneurs. Most recently, a new online funding phenomenon allows you to quickly raise money to start your business.

CLICK HERE
to watch the video.

"Old-School Leadership
is DEAD"

"Barking orders" and other forms of intimidating followers to get things done just doesn't work any more. So how do you lead your company to success in the 21st century?

CLICK HERE
to watch the video.

Blog Authors

Jay Turo

Dave Lavinsky