Evan Vitale

Accounting Professional

Evan Vitale – VC Pace Slower in 2016

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By Evan Vitale

Here are some of the top stories making headlines in the world of venture capital, January 16, 2017:

The San Diego Union-Tribune is reporting that San Diego start-ups raised venture capital at a slower pace than a year ago.  This follows a national trend of a pullback from higher levels of VC investments in 2015.

Local firms corralled $1.07 billion in venture capital funding last year, according to The Dow Jones VentureSource. That’s down from $1.5 billion the prior year.

Eighty-seven San Diego area companies received funding last year based on the VentureSource data, down from 93 companies in 2015.

Details: http://bit.ly/2jLY00L

A decrease is also being felt in Minnesota, as the Minnesota StarTribune is reporting that the state had its fewest venture capital deals over the last 12 years.

For the year in the state, there were 23 venture capital deals, raising $339.4 million, according to data from the PricewaterhouseCoopers/CB Insights MoneyTree report. It was the lowest number of such deals since 2005, which saw only 20 deals, and the lowest amount raised since the $267.9 million from 39 deals in 2013.

Details: http://strib.mn/2jJCLfS

However, things were better in Florida. According to the Orlando Business Journal, venture capital investment across the state yielded the best year for Florida since 2001 despite a nationwide drop in VC funding, according to the MoneyTree Report, released this week by PricewaterhouseCoopers and CB Insights.

VCs invested $1.12 billion in Florida-based startups through 71 deals in 2016, though much of that capital was funneled to Magic Leap. The South Florida startup, now working on its highly anticipated mixed-reality technology across two offices in Dania Beach and Plantation, scored $793.5 million in the first quarter. The fundraising round was led by Chinese e-commerce giant Alibaba Group.

Details: http://bit.ly/2jf90mb

Have a great week!

Evan Vitale – 2016 Business Predictions

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By Evan Vitale

Everyone, it seems, has a business prediction for 2016.

Here a few of my favorites.

From http://nerdwallet.com:

  • More online small-business loans.
  • More women-owned businesses.
  • More loan dollars guaranteed by the United States Small Business Administration.
  • Entrepreneurs will use more business credit cards to make purchases for their companies.

From http://forbes.com:

  • Expect gradually increasing interest rates and tougher credit for business.
  • Lower oil prices into mid-year followed by gradual increases.
  • This will be a big year in terms of mega-mergers.
  • It will be a challenging growth year for middle-market companies.
  • Politics as usual.

From http://businessnewsdaily.com (who has 50 small business trends and predictions for 2016):

  • Small business growth will continue.
  • Same-day delivery and cross-border selling will expand.
  • More businesses will come up for sale as Baby Boomers look to retire.
  • Small businesses can expect more scrutiny from customers
  • Despite increasing internet connections, human connections remain the most important.

Here are some other notable predictions for the new year:

  • Security experts are expecting there to be new cyberattacks and hacks. This will include attacks through apps. Source: http://www.inc.com.
  • For businesses who utilize Google Adwords and other Pay-Per-Click (also known as “PPC”), ad targeting will be awesome in 2016. Social media ads are quickly becoming a favorite for many businesses. Bing Ads are expected to make a strong comeback. Source: http://wordstream.com.
  • Store front businesses that did well in 2015 (small grocers, hair salons, coffee shops, restaurants, fitness centers, home improvement contracts, retail boutiques and other “strong fronts”), should continue to have a good year in 2016 with, perhaps, some modest growth. Source: http://pymnts.com.
  • The impact of climate change and new technologies (such as the ability to check pricing on smartphones) means 2016 could be a good year for the wine industry, although craft beer and craft cider continue to earn a lot of attention. Source: http://bloomberg.com.

Do you have a business or industry prediction for 2016?

Evan Vitale – 2016 Might Be Good For Small Business Lending

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By Evan Vitale

How are things looking in terms of small business lending in 2016?

Well, believe-it-or-not, jumps in the interest rates might also mean good news for businesses who want to seek out bank loans in the upcoming year.

You see, banks only make money when they lend money and with higher rates, banks might be more interested in ramping up their small business lending portfolio.

According to the Biz2Credit Small Business Lending Index, the percent of loans applications approved by big banks reach 22.8%, which is the highest since the recession. The recent interest rate hike makes lending to small businesses more attractive for larger banks. The Biz2Credit Small Business Lending Index believes the loan approval percentage next year could go above 25%. Remember, higher rates means more profit for lenders.

But what about other types of lending opportunities?

Institutional investors look good. During November 2015, institutional investors approved 62.4% of all loan requests.

However, alternative lenders, smaller banks and credit unions are granting loans at decreasing rates. In fact, small banks, which usually generate a large number of Small Business Association (SBA) loans, are now approving less than half of the loan applications received. In 2014, they approved more than 50% of loan applications received.

According to Forbes, community banks are struggling to compete, so many business borrowers continue to look to other sources for funding. In addition, big banks on institutional investors, which are making loans possible via an online marketplace lending platform, are able to make quicker decisions at more attractive rates and terms for business borrowers.

Some other interesting notes from Biz2Credit:

  • Almost half of all loan applications are made via mobile units.
  • Smaller banks and credit unions haven’t kept up with technological innovations and, thus, miss out on loan deals since their application process takes longer.
  • Many times, credit unions want a borrower to come to the branch office and become a member.

Evan Vitale – Setting Business Resolutions for 2016

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By Evan Vitale

Every New Year’s Eve, people set personal resolutions for the upcoming year. They resolve to go on a diet; drink less; stop smoking; get a new job, etc.

But what about your business? Can you establish some New Year resolutions for your company?

Here are some business resolutions you can implement in 2016:

  • Appreciate your customers. When is the last time you “thanked” your customers for their business? Get into a better habit of sending thank you notes; call your customers and tell them how much you appreciate them. Let them know how awesome they are!
  • Invest more in your staff. This doesn’t necessarily mean a salary raise or additional bonuses, but there are other things you can do to help your employees grow which, in turn, will help your business. Consider additional training; allow them to attend local and regional conferences; give them additional responsibilities and roles (with less micro-managing).
  • Re-evaluate your company and its core competencies. Why do you have a loyal customer base and a great talent workforce? Identify what’s important and secure your company’s foundation for the upcoming year.
  • Growth. What is your ideal business growth for the upcoming year? Set some goals and break them down into smaller, achievable chunks.

Prepare and plan now for 2016. Stick to your resolutions and invest in your customers/clients and your employees. Reinforce your company’s core values. Approach the new year with a “look out, here we come!” attitude.

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You can read another blog by Evan Vitale at http://evanvitale.com