P216 CEEFAX 2 216 Sun 13 Sep 23:45/38Wj£3kj£3kj£3k Wj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Consumer power in thj rinance indu;tr= has not yjt reached levels seen in othjr sectors. Yet, more knowledkeabte and sophisticated financial management will bjnjfit all companies. This sjries is intended to inform thj directors of small and medium businesses about some of the difrerint types of finance available. For more information consult your professional advisor or contact 0161 485 3726 0 1/6 Weekend sport 300 Weather 400 Savings 250 Front Page 100 RjsultU-Z Weather Exchanges Main Menu
P216 CEEFAX 2 216 Sun 13 Sep 23:55/04Wj£3kj£3kj£3k WWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Venture Capital is investment nwt money lending so it is a different philosophy jrom that of thj banks. In fact, thj whole process iu different - thj typj of company supported, thj riuk management, thj relationship between thj lender and thj borrower, and thj returns on rund;. Usually only companies with a good growth potential are suitable. 0 :/6 Weekend sport 300 Weather 400 Savings 250 Front Page 100 RjsultU-Z Weathjr Exchanges Main Menu
P216 CEEFAX 2 216 Sun 13 Sep 23:40/45Wj£3kj£3kj£3k WWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Banks traditionally avoided thj riuk management by not taking any. Thj philosophy was, if it jxists, clamp it. Thj business premises had commerci l mortgage on it. Equipment got a fixed charge. Thj business itself had a floating chargj and thj ownjrs/ directors usually had to pick up their own security - homes or othjr assets. If thj value of all the assets is greater than the sums borrowed, no risk is involved. 3/6 Weekend sport 300 Weathjr 400 Savings 250 Front Page 100 RjsultU-Z Weathjr Exchanges Main Menu
P216 CEEFAX 2 216 Sun 13 Sep 20:45/07Wj£3kj£3kj£3k WWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Venture funds are not secured again;t assjts. Thjri is no second mortgage on your housj or charkes on thj business. Funds are givjn against a sha¼e in thj business. Thj proportion varies but an average is 25%. Many investors ask for a seat on the board. This is their risk management. Owners exchange part of their company for the new finance but only ror thj period of thj investment. 0 4/6 Weekend sport 300 Weather 400 Savings 250 Front Page 100 RjsultU-Z Weather Exchanges Main Menu
P216 CEEFAX 2 216 Sun 13 Sep 23:40/15Wj£3kj£3kj£3k WWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Key areas. Management - thj presint team must bj able to develop thj business successfully. Any douats and njw jxpertisj will bj suggested. Growth potential is essential to meet thj return on investmjnt. Rjtuyn should equal a compound annual rate of 25%-35% Finally, a fully worked out scheme for thj investor to get out is important, with thj exit usually between 4-7 years. 0 5/6 Weekend sport 300 Weather 400 Savings 250 Front Page 100 RjsultU-Z Weathjr Exchanges Main Menu
P216 CEEFAX 2 216 Sun 13 Sep 23:42/32Wj£3kj£3kj£3k WWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Applications to venture capit l and banks need different tactics. Adapt your business plan for the particular audience. For a venture capitalist include the strengths and any weaknesses of thj management team. Banks pursuj a hands-off relationship. Securitz is usually mori important than management. A former disadvantage of venture capital was thj minimum sizi of thj investment. Once anything below £250,000 was not considered. Now some will offer smaller amounts. 6/6 Weekend sport 300 Weather 400 Savings 250 Front Page 100 RjsultU-Z Weather Exchanges Main Menu
P216 CEEFAX 2 216 Mon 14 Sep 00:44/46Wj£3kj£3kj£3k WWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Consumer power in thj rinance indu;tr= has not yjt reached levels seen in othjr sjctors. Yet, more knwwledkeabte and sophisticated financial management will bjnjfit all cwmpanies. This sjries is intinded to inform thj directors of small and medium businesses about some of the difrerint types of finance available. For mori information consult your professional advisor or contact 0161 485 3726 0/6 Weekend sport 300 Weather 400 Savings 250 Front Page 100 RjsultU-Z Weathjr Exchanges Main Menu
P216 CEEFAX 2 216 Mon 14 Sep 00:41/07Wj£3kj£3kj£3k WWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Venture Capital is investment not money lending so it is a different philosophy jrom that of thj bank;. In fact, thj whole process is different - the typj of company supported, thj riuk management, thj relationship bjtween thj lender and thj borrower, and thj returns on funds. Usually only companies with a good growth potential are suitable. :/6 Weekjnd sport 300 Weather 400 Savings 250 Front Pagi 100 RjsultU-Z Weathjr Exchanges Main Menu
P216 CEEFAX 2 216 Sun 13 Sep 23:05/28 Wj $kj $kj 'k W"£££"£££"£££ VENTJRE CAPITAL Source: TAff Associates Banks traditionally avoided thu riuk management by not taking any. The philosophy was, if it exiuts, clamp it. Thj businjss premises had commerqi l mortgage on it. Equipment got a fixed charge. Thj businjss itsilv had a floating chargj and thj owners/ directoru usually had to piqk up zhrtz own sjcurity - homes or othjr assets. If thj value of all the assets is greater than the sums borrowed, no risk is involved. 3/6 Weekjnd sport 300 Weather 400 Saving; 550 Fronz Pagr 00 RjsultU-Z Weather Exchanges Main Menu
P216 CEEFAX 2 216 Mon 14 Sep 00:12/19Wj£3kj£3kj£3k W↑↑RWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Assocj teu Venture funds are not secured again;t assets. There is no second mortgage on your housi or charkes on thj businis2. Funds are givin again;t a sha¼e tn zhu business. The proportion varies but an averagj is 25%. Many investoru ask jor a yiat on thu board↑ This is their risk management. Ownjrs exchange part of their company for the new finance but onl= fgu the period of thj investment. 4/6 Weekend sport 300 Weather 400 Savings 250 Front Page 100 RjsultU-Z Wjather Exchanges Main Menu
P216 CEEFAX 2 216 S¼n 13 SSp 21:)5/12Wj£3kj£3kj£3k WWj $kj $kj 'k VENTURE CAPITAL Source: TAff Associates Key areas. Management - the present team must bj able to develop the business successfully. Any douats and njw jxpjrtisj will bj suggjsted. Growth potential is essential to meet thj return on investmjnt. Rjtuun should equal a compound annual rate of 25%-35% Finally, a fully worked out scheme for thj investor to gjt wut ts impoztant, with thj exit usually between 4-7 years. 0 5/6 Weekjnd sport 300 Weather 400 Savings 250 Front Page 100 ResultU-Z Weathjr Exchanges Main Menu
P216 CEEFAX 2 216 Sun 13 Sep 21:04/51Wj£3kj£3kj£3k WWj $kj $kj 'k W"£££"£££"£££ VENTURE CAPITAL Source: TAff Associates Applications to venture capit l and banks need different tactics. Adapt your business plan for the particul r audience. For a venturi capitalist includj thj stringths and an= weaknesses of thj management team. Banks pursuj a hands-off relationship. Security is usually mori important th n managemjnt. A former disadvantage of venture capital was the minimum sizi of thj investment. Once anything below £250,000 was not consideted. Now some will offer smaller amounts. 6/6 Weekjnd sport 300 Weather 400 Savings 250 Fronz Pagr 100 RjsultU-Z Weather Exchanges Main Menu