The imminent demise of the record industry has been predicted since Napster made its appearance in 1999.  And there’s good reason for worry.  Tower Records, the cornerstone of brick and mortar music distribution, closed its doors in 2006.  Sales drop every year.  High profile bands opt out of major label contracts and attempt, with varying degrees of success, to chart their own course. 

Yet music consumption is at an all time high.  Free downloads on the peer-to-peer (P2P) network comprise an incredible 70% of all traffic on the internet, with well over a billion music tracks being downloaded every month.  Sales at iTunes are responsible for turning Apple from a company many thought was doomed to fall before the onslaught of Windows-based computers into a bright star on the tech horizon.  It seems like everybody is listening to music all the time.  That begs some questions: how can the record industry take advantage of the high level of music consumption, and why has it not done so already? Read the rest of this entry »

The new round of funding for Initiate Systems Inc., a leader in master data management (MDM) solutions, ended up with $26 million funds. Two new investors- Dunrath Capital, EMC Corporation and Informatica Corporation also participated along with the existing investors, Sigma Partners, Apex Venture Partners and First Analysis Group. Paladin Capital Group led the round.

Bill Conroy, Initiate’s President and CEO, said, “Investors have been very enthusiastic about participating in this round of funding.” While talking about the benefits that these investors will offer, he added, “The influence of these investors is a strategic advantage, as we capitalize on new opportunities and extend our leadership in MDM. This funding empowers us in our mission: Helping customers unlock the value of their data assets.”  Read the rest of this entry »

An announcement has been made by the Crestwood Midstream Partners, LLC, regarding its new investors- The Blackstone Group (“Blackstone”) and GSO Capital Partners LP (“GSO”), both of which have acquired ownership interests in Crestwood. Earlier there were $150 million in the equity capital commitments, but now Blackstone and GSO, along with Kayne Anderson and Crestwood Management, LLC, will provide Crestwood with $500 million in equity capital commitments. This increase will help the company in  the acquisition and development of North American midstream assets and businesses.

Crestwood Midstream Partners, LLC, is a private midstream company, which was formed in November, 2007,  by a management team led by the renowned industrialist, Bob Phillips. The company’s headquartes are in Houston, Texas. It aims at utilizing management’s extensive industry experience and relationships to enable its growth through the acquisition of strategic assets, the recruitment of experienced midstream personnel and investment in organic infrastructure projects.
Read the rest of this entry »

A group of  current and new investors have signed an agreement with Alter-G, Inc., for providing a combined $2.5 million in Series A1 capital funding. And the company made an official announcement of this agreemant today. The key investors involved in this deal are Frog & Peach Investments of San Francisco, CA, Astrolabe Ventures of Palo Alto, CA, and Funk Ventures of Santa Monica, CA.

Lars Barfod, CEO of Alter-G, while expressing his delightment over this matter said, "We are pleased with the confidence our investors place in our significant opportunity and their trust in management’s ability to execute." Commenting on the technology, products and sales of the company he further added, "Over the past year we have substantially validated our technology, product and target markets. We will use the funds to expand sales and marketing activities, develop new products and intellectual property and conduct clinical trials." Read the rest of this entry »

A community contributed technical services provider, FixYa recently announced that it has received an amount of $6 Million in Series B funding from Mayfield Fund and PitangoVenture Capital. Mayfield Fund has been at the forefront of investing in emerging businesses in the U.S., China and India over the past 38 years and currently has $2.7 billion under its management. Pitango Venture Capital with offices in Israel and Silicon Valley, California, has been investing in technology firms globally since the year 1993. FixYa had also raised $2 million in Series A as an initial seed investment in the year 2007. The company announced that it will use the fresh funds to upgrade and expand its operations in Israel and the United States, to offer new products and services to its rapidly growing user base.

Headquartered in San Mateo, CA, FixYa offers a comprehensive technical support website, which stores manuals and troubleshooting guides for more than 800,000 consumer product spanning several categories, including lawn mowers, strollers and hard drives. FixYa is a community contributed organization and claims a data base of more than 7 million users. They contribute an average of 100,000 queries and solutions each month.

While most companies tend to ignore providing good technical support services for their products, FixYa provided a platform and network site for customers to help each other. FixYa.com has become one of the most popular site where free advice is available for fixing most problems with gadgets, home appliances and consumer products.

Read the rest of this entry »

A leading growth private equity and buyout firm, TA Associates has announced that it has sold the controlling rights of Preferred Freezer Services, LLC (“Preferred Freezer”) to Fenway Partners, which is a leading middle market private equity firm.

TA Associates invested in Preferred Freezer Services in November 2005. Financial terms of the transaction have not been disclosed. According to Roger Kafker (Managing Director, TA Associates), “TA has been very impressed by Preferred Freezer’s rapid success and geographic expansion under CEO John Galiher and his management team, and we believe the company’s current plans for international expansion will make Preferred Freezer a worldwide player”

Preferred Freezer is the fifth largest and one of the fastest growing companies in the United States in the field of public refrigerated warehousing (PRW). It has more than 23 facilities. Preferred Freezer is the leader in the storage of frozen seafood, and is rapidly expanding into other frozen categories.

In the public refrigerated warehousing (PRW) industry, Preferred Freezer is considered to be one of the most innovative operators, due to its state-of-the-art facilities and superior customer service. In addition to United States, Preferred Freezers has also been able to acquire several strategic port locations in China and Vietnam, as per its international expansion strategy.

Read the rest of this entry »

Getting money isn’t difficult, but getting the right money at the right time on the

right terms is what matters. Here’s how to do it.

by Christine Comaford-Lynch

About Rules For Renegades Summit 2008

RFR 2008 is an intensive two-day live event on June 6-7, 2008 to equip you with the info and connections essential to propel your business into the stratosphere. Learn from mentors who have ACTUALLY done it such as Jack Canfield, Dave Lakhani, Mark Victor Hansen, Alex Mandossian, Brendon Burchard, Seymour Segnit and of course, Christine Comaford-Lynch. OCEC Members get VIP discounts.

For more information see http://www.OCentrepreneurs.com/rfr.

Quick: What does CEO stand for? I say "Cash Extraction Officer." Sure, you can get by for a little while by bootstrapping and running on a shoestring budget. But to achieve rapid and sustained growth, sooner or later you will probably have to attract financiers.

Let’s suppose you’ve got a terrific business plan and you’ve honed your 20-minute financing pitch. You’ve built a great team too. Now all you need is cash. When taking outside funding—or when determining if you even want to—you will first have to develop a capital-acquisition strategy. To do so, ask yourself the following questions.

1. How Much Do You Need?

Rule No. 1: Take more than you think you need. Rule No. 2: Only if it’s cheap. Cash is cheap, equity is not. Once you sell a percentage of your company, recovering it is very, very difficult and very, very expensive. This is why multiple smaller financing rounds are a great idea, especially in the startup phase, when your company’s value is low.

Figure out how much money you have to raise to achieve some specific time-measured milestones, such as: launching your product, expanding your sales force, or implementing new manufacturing methods. Add that number to your overall operational costs. Now add a cushion of six to nine months of operational costs to that. This is roughly how much you need to raise. The point is to have enough money to both keep the company running and achieve specific milestones so you can demonstrate increased value before you’re out fundraising again.

2. When Do You Need It?

Rule No. 1: Raise money before you need it. Rule No. 2: You always need it sooner than you think. The financing process always takes longer than anticipated. For bank loans, expect two to three months. For Small Business Administration (SBA) loans, expect four to six months. For angel investment or venture capital, expect three to 12 months. For grants, expect a year. I’ve seen financings occur in less time, but you must be prepared for the long haul. Start raising money six to nine months before you’re either due to run out of cash or expect to need it for expansion.

Have a strong banking relationship already established in the event that you need a bridge loan to tide you over during an extended financing process. Respectable jumps in your company’s value are expected between financing rounds. In the early stages, an increase in value of at least two to three times is expected.

You will have to be able to demonstrate evidence that you’ve hit some milestones, such as more customers, new products/services (or new versions of them), or increased market share. If you schedule your financing rounds for when you can show demonstrable success, you will garner higher valuations and keep your investors and staff happy.

3. From Whom Do You Want It?

Rule No. 1: Only take money from someone you like and respect. Rule No. 2: I’m serious. You will be with your investor for two to seven years. You will go through heaven and hell together. Make sure he will be good company in both situations. In addition, you need a partner who understands the industry sector your company serves.

Make a list of 10 financiers who understand your market or product and have worked with companies at the same stage as yours. If they have a stable of clients that could use your product or service, that’s a bonus. To find financiers, search the Internet for "venture capital," "micro loans," "business loans" or "angel investors (in your geographical area)"—I’m assuming you already know your local banks. Approach the top five on your list.

If you’ve done your homework and you get lucky, you will stop there. If not, approach the other five. Never tell prospective financiers about one another. If one decides they don’t want to invest, they may call the others and tank your deal.

If your company isn’t winning interest, make sure you locate the problem and are prepared to state your solution to it in a concise, compelling, and complete way. If it’s gaining interest, then pursue more investors.

Do you want "active" or "passive" money? Active money is from financiers who will work with you closely. They’ll add value by introducing you to sales prospects, influential people, and more. Passive money is just money—no connections, no additional value. If your company is seed or early stage, or if the financier has key contacts you should tap, take active money. If you already have enough active connections and just need cash, take passive. Investor relations can be time-consuming. Plan for this.

4. What Compromises Will You Accept?

Rule No. 1: Don’t be greedy. Rule No. 2: But don’t be taken advantage of, either. If you’re seeking equity financing, you will be selling pieces of your company repeatedly. As the pie gets bigger, the increased number of pieces get smaller. This is called dilution. If you start out by owning 50% of a company, pre-financing, don’t be surprised if you own 10% or less at the exit. In the beginning you will sell off big pieces, often 20% to 40% per financing. I personally don’t like selling more than 33%. I figure if you’re going to sell a big piece, sell it for a high price.

Loss of equity is one compromise, loss of control is another. Investors should comprise 20% to 40% of the board. More is trouble. I’ve seen way too many cases where the investors ran the company because they controlled the board. This rarely works out. I’ve also seen too many cases where the entrepreneur wanted a far higher valuation than he deserved, and either lost valuable time to market or lost the financing altogether by greedily stretching the deal.

And last, it’s worth taking a lower valuation to get a stronger group of investors. Strong, active investors can make all the difference—not only in helping build the company but in participating in future financing rounds and helping raise cash when the chips are down.

The higher your company’s valuation, the more favorable the financing terms. Always remember that a company’s valuation is emotional: It’s based on perception. Present your company with great passion, showcase your executive team, explain the realistic plan to make your vision a reality, and the results just might rock your world (see BusinessWeek.com, 3/2/06, "You: The Brand").

Christine is CEO of Mighty Ventures, an innovation accelerator which helps businesses to massively increase sales, product offerings, and company value. She has built and sold 5 of her own businesses with an average 700% return on investment, served as a board director or in-the-trenches advisor to 36 startups, and has invested in over 200 startups as a venture capitalist or angel investor. Christine has consulted to the White House (Clinton and Bush), 700 of the Fortune 1000, and hundreds of small businesses. She has repeatedly identified and championed key trends and technologies years before market acceptance. Christine is currently hosting the Rules For Renegades Summit in Irvine, California this June. It is a must attend event for all aspiring entrepreneurs.

About Rules For Renegades Summit 2008

RFR 2008 is an intensive two-day live event on June 6-7, 2008 to equip you with the info and connections essential to propel your business into the stratosphere. Learn from mentors who have ACTUALLY done it such as Jack Canfield, Dave Lakhani, Mark Victor Hansen, Alex Mandossian, Brendon Burchard, Seymour Segnit and of course, Christine Comaford-Lynch. OCEC Members get VIP discounts.

For more information see http://www.OCentrepreneurs.com/rfr.

Copyright 2007 Mighty Ventures, LLC. All Rights Reserved. Please print and reproduce at will. Content may not be altered in any way. Content may be quoted or referred to with reference to Mighty Ventures, LLC, Christine Comaford-Lynch, Rules for Renegades and all websites listed in above text.

Levothyroxine
Blindness cialis
Xanax tablets
Xanax for dogs
Phentermine hci
Phentermine rx
Phentermine blue 30 mg
Extra cheap phentermine c.o.d. Payment
Cialis
Donepezil
Phentermine effects
Zidovudine
Half price viagra
Phentermine accepts cod
Opipramol
Triamterene
Discount phentermine free shipping
Buy vicodin
Clomiphene
Phentermine overnight
Maxzide
Anafranil
Cheapest xanax
Viagra levivia alternatives
On line prescription viagra
Phentermine 37 5
Phentermine on line
Side effects of drug xanax
Vicodin withdrawal
Uk viagra body building from sports supplement
Gemfibrozil
Is phentermine safe
Xanax sale
Phentermine florida
Meridia diet pill
Phentermine no prescription needed
Phentermine a159
Fiorinal
Viagra
Cheep phentermine
Filing income tax phentermine
Dextromethorphan
Natural alternative viagra
Taking xanax while pregnant
Phentermine with no prescription
Filing income tax tramadol
Lamisil
Low dose of viagra
Buy generic phentermine
Dextrothyroxine
Online phentermine order
Chlorotrianisene
Soma cube
Asparaginase
Phentermine low prices
Viagra online shop
Tramadol hcl
Viagra side affects
Zolpidem
Viagra lawsuits texas
Cheap phentermine
Lethal dose xanax
Meridia online
Nasonex
Canadian online pharmacy xanax
Pulmonary hypertension viagra
Diflucan
Cheapest cialis generic
100 phentermine
Levivia vs viagra
Trimethaphan
Soma gallery
Viagra uk
Nabumetone
Primaquine
Clofazimine
Cialis sales uk
Drug interactions with cocaine and viagra
Lynestrenol
Coumadin
Bar gold xanax
Carisoprodol
Cialis levitra vs
Buy online pharmacy viagra
Meridia
Isotretinoin
Generic cialis soft tabs
Soma
Haloperidol
Otc viagra
Cheap generic viagra online
Cheap prescription viagra
Digoxin
Sucralfate
Viagra dangers
Cialis versus viagra
Phentermine overnight no perscription
Order cialis
Mazindol
Cidofovir
Diazepam
Buy tramadol online without a prescription
Viagra anxiety
Ionamin phentermine yellow
Phentermine uses
Ativan xanax
Epivir
Phentermine weight loss medication
Xanax liver damage
Xanax no rx
Phentermine without prescription
Cialis co drug eli impotence lilly
Alternatives to viagra
Kaopectate
Phentermine risks
Enoxacin
Rofecoxib
Order phentermine online and cod shipping
Hydrochlorothiazide
Viagra commercial
Aspartame
Minocin
Phentermine and blood in stool
Buy viagra online without prescription
Soma financial
Xanax and valium
Miconazole
Mexican pharmacy phentermine
Impotence picture pill viagra
Alprazolam
Buy tramadol cheap
Amphetamine
Sofia viagra
M357 vicodin
Pharmacy online phentermine
Hydrocodone bitartrate
Cialis review
Buy vicodin online
Discount phentermine
Buy phentermine no prescription
Zocor
Phentermine tolerance
Viagra sample
Gemfibrozil
Foradil
Phentermine eprescriptions
Cheapest price viagra
On line vicodin
Keyword tramadol
Cialis story

According to CVCA (Canada’s Venture Capital & Private Equity Association) statistical report, Canada’s venture capital market has shown a decline on both annual and quarterly parameters. The research was conducted in partnership with Thomson Reuters.

The report states that the factors responsible for the decline were comparatively smaller deal sizes and reduced cross-border activity. For the first quarter period of 2007, the total investment was $610 million. However, for the first quarter of 2008 the total amount invested across the country has come down to $323 million. This indicates a drop of 47% against the 2007 first quarter investment figures. Still, the companies receiving venture funding almost remained the same, with 128 companies receiving such funding in the first quarter of 2008. In 2007, this figure was of 131 companies received venture capital funding.

Large venture capital deals were not seen in the first quarter, as the only biggest funding amounted to just $28.8 million. This led to a decline in the average financing size, which as of now stands at $2.5 million as against the figure of Q1 2007, which was $4.7 million.

As Rick Nathan (President, CVCA) said, “These quarterly investment numbers point to the pressing need to strengthen the Canadian venture capital industry. New sources of risk capital are required if we are to develop a stable supply of venture capital funding for the entrepreneurs and high growth companies that are critical to Canada’s future economic prosperity."

North American Context:

In the United States, only a marginal decline was noted in the venture capital funding. Same as last year, about US $7.1 billion were invested in 922 companies. However, the sharp decline in Canada, led to a drop in the rankings of major Canadian provinces relative to U.S. states. After the Q1 2008 results, the provincial rankings among 60 Canadian and American states are as follows:

1. Ontario ranked at 10^th.

2. Quebec ranked at 15^th

3. Alberta ranked at 20^th

Canadian Venture Capital Trends by Investor Type:

The limited presence of American and other international venture capital funds led to the decline that showed in the Q1 2008 results. In all, only $76 million were invested by American firms into Canadian companies, as against the massive investment of $303 million in 2007. For Q1 2008, only 23% foreign investment was recorded in Canada. However, the domestic private-independent funds kept the wagon moving. In all, Canadian domestic investments accounted to $82 million. However, it was still 15% less than what was last year. For 2007, domestic venture funding amounted to $97 million.

Canadian Venture Capital Trends by Region :

On an annual basis, Ontario leads the way in the least venture capital activity for Q1 2008. There was just $130 million invested in 41 companies for the first quarter as compared to an investment of $310 million for Q1 2007. It showed a 60% decline in the venture capital funding for the region.

Quebec received a funding of just $86 million in 41 companies for the first quarter as compared to $171 million for the same period in 2007. It managed to get only 27% of all disbursements.

For Q1 2008, British Columbia, recorded a venture capital investment of just $39 million invested in 15 companies. On the other hand for Q1 2007, it had received $63 million.

Alberta on the other hand faired better for Q1 2008, with an investment of $46 million compared to $18 million for Q1 2007.

Canadian Venture Capital Trends by Sector :

Among all sector categories, clean tech activity was the one that experienced annual growth in terms of venture investment. For Q1 2008, a total of $56 million were invested in 9 companies, which is an increase of 45% as compared to the 2007 Q1 investment of $39 million. IT sector also witnessed an increase in venture investment with $164 million invested in 62 companies.

Trends in Canadian Venture Capital Fund-Raising :

For Q1 2008, new commitments towards Canadian venture capital funds continued to show a decline. In 2007, $467 million were raised as venture capital for the first quarter. However, this year it slumped to $334 million, which depicts a decrease of 28%.

Quebec based businesses saw the bulk of venture capital investment. For 2008 Q1, it raised a total of $196 million, which accounted to 59% of commitments all throughout Canada.

Chicago based private equity firm Ascent Equity Capital has declared that with increased commitment from investors; it has raised its first fund to $5 million. This private equity firm was launched in November 2003 with only $500,000 as its capital. Over time, Ascent Equity Capital I, L.P has generated over a 50% gross internal rate of return till date on the companies and a 2.9x multiple of invested capital.

Through Ascent’s CEO in Residence program, Ascent Equity Capital I, L.P always focuses on investment. Its modus operandi has always been to first associate itself with a worthy CEO (Chief Executive Officer) and then initiates investment in an effort towards a buyout of the company. Then the CEO assumes the top-position in the company. Typically, Ascent also ropes in larger private equity groups to finance the majority of equity in any transaction. In recent years, Ascent has also co-invested with private equity firms such as Frontenac Company in Chicago and Great Hill Partners in Boston in buyouts worth $100 million.

Ascent’s current investments include Central Security Group, a provider of alarm monitoring services, TrialGraphix, a provider of trial litigation services, Encore Legal Solutions, information management services provider to legal firms and legal departments of Fortune 1000 companies and Main Street National Bank, that is a small business equipment leasing and banking company.

Chad Mollman (Ascent General Partner) stated that in the future even if there is an increase in the size of a later second fund, that might amount to $10 million or more, still Ascent will focus on the same size of deals as it has now. This would prevent the increase in problems that other private equity firms have faced, when these firms have intended to increase their size and funds but could not achieve much success in cases of larger transactions.

Last year, Ascent announced that it planned on changing its name from Pinnacle Equity Capital to Ascent Equity Capital. This move had been aimed towards the creation of a separate identity from the CEO search firm Pinnacle CEO Recruiters.

About Ascent Equity Capital:

Ascent is a Chicago-based private equity fund focused on partnering with outstanding CEOs and acquiring and building leading companies. Ascent makes all of its investments through its CEO in Residence program, which involves Ascent partnering with a proven CEO first, and then working with a CEO to acquire an attractive company. Ascent looks to invest in companies with recurring revenue, high margin business models that can be built into leaders in their industries.

Ascent Equity Capital’s investment strategy is to invest in transactions where:

1. A private company is under-managed or “under the radar”.

2. A new management is able to improve the operational performance and implement a successful growth plan.

3. After a company has achieved critical mass and demonstrated strong growth and margins it is attractive to a number of large corporate buyers and larger private equity groups.

Ascent Equity Capital makes equity investments of up to $2 million, and brings in larger private equity firms to partner with acquisitions of companies up to $1 billion in enterprise value. In the past Ascent has partnered with private equity groups such as Great Hill Partners in Boston, and Frontenac Company in Chicago on management buyouts of companies with enterprise values as high as $100 million.

Ascent is actively seeking investments in companies in the business-to-business services, consumer services and products, financial services, and media and publishing sectors.

According to an announcement made at Menlo Park California,. Facebook Inc. that is a leading social utility has acquired a $100 million in debt finance from TriplePoint Capital. Last fall, Microsoft and other investors had provided $300 million dollars in equity funding to Facebook. TriplePoint Capital is a leading technology and life sciences specialty finance company. The announcement was made at Menlo Park California.

According to Jim Labe (CEO, TriplePoint Capital), “TriplePoint Capital is pleased to continue our role as a major financing partner and supporter of Facebook – a role that began during the Facebook’s pioneering stages. We’ve enjoyed watching Facebook’s success over the years, and look forward to deepening our partnership with them as they continue to mature and their needs continue to evolve."

Previously, TriplePoint had already pumped in $30 million of debt finance into Facebook before this new $100 million investment. TriplePoint Capital has provided debt finances to numerous companies in the fields of technology, life sciences, and clean technology ("cleantech" categories) that has enabled these companies to grow and succeed. These companies are YouTube, Adify, Slide, Coskata, Ilypsa Pharmaceuticals, and numerous others. Due to TriplePoint Capital’s permanent balance sheet, creativity, and dedicated customer service, it has always managed to forge long term partnerships with its customers. The new high-developing companies are provided with a wide-range of financial services and expertise by TriplePoint Capital to help them in every stage of their development.

About Facebook:

Facebook was founded by Mark Zuckerberg in February 2004 and its headquarters are located in Palo Alto, California. It is one of the leading social networking websites that aims at the spread of information through the means of social networks. The website has a user base of 70 million and covers over 47, 000 geographic locations. It covers just about every geographic, work-related, collegiate and high school networks. According to ComScore’s MediaMetrix report, Facebook ranks sixth, among the top ten most trafficked websites in the United States.

About TriplePoint Capital:

TriplePoint Capital is a leading global specialty finance company, headquartered on Sand Hill Road in Menlo Park, California. Its main profile is to work with high-growth private equity and venture capital backed companies with debt financing, equity capital and complementary services. TriplePoint Capital’s unique creativity, flexibility and customer service has been able to get it customers such as YouTube, Adify, Slide, Coskata, Ilypsa, and numerous other high profile technology and life sciences companies. TriplePoint Capital has been rated as a qualified company capable of meeting the needs of high-growth companies at every stage of their development.