Evan Vitale

Accounting Professional

Evan Vitale – Family Cash For Your Business

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By Evan Vitale

Over the past few months, this blog has looked at many funding opportunities for startup businesses, including venture capital, equity financing, bank and Small Business Administration loans and crowdfunding.

However, based on your current credit and cash situation needs, you may not be a candidate for VC money or an ideal customer for a traditional loan for a bank. If you are low on self-funding options, you might give some consideration to seeking a loan or an investment from one or more friends or family members.

Family members know you and your personal character (that can be good and bad). They can consider some options that banks won’t consider. However, approaching a family member or a good friend for a loan adds an extra level of “pressure” to all parties involved.

You, for example, might find it difficult to call your parents; siblings or an aunt or uncle and ask for a loan. On the other hand, they are going to have to make a difficult decision whether they answer “yes” or “no” to your request. 

It can be extremely uncomfortable. If they say “no” will it cause harm to your family relationship? If they say “yes” and there is a repayment problem, then there are other concerns to consider. 

However, if you approach a friend or a family member – just like you would a bank or a private investor – everyone will appreciate your business-like approach to the matter. Here, you should share your business plan, how much financing you are seeking, what interest rate you are willing to pay and a full payback plan (including a monthly payment plan).

Taking the professional approach to a loan from a friend or family member allows them to ask questions and feel more comfortable about loaning you the money you need for your startup. In either case, never take advantage of a family member or friend. Always remain professional, upfront and honest with them about your plan and how you are going to repay the loan.

If you are asking for a large sum of money, perhaps you can ask for smaller loans from multiple family members or friends. If trust and payback plans are a concern, you might start out with a small loan request to show you’re capable of paying back loans to family members.

Evan Vitale – Venture Capital Headlines

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By Evan Vitale

Here are the latest headlines in venture capital news!

The Wall Street Journal’s Venture Capital Dispatch is reporting that GreatHorn Inc. wants to stop phishing attacks, a social-engineered form of cyberattack, before they even reach an employee’s inbox.

The company has raised $2.25 million in seed funding, led by ff Venture Capital and SoftTech Ventures. Techstars Ventures, RRE Ventures and Walter Winshall also participated, alongside Zelkova Ventures and V1.VC.

The funding comes after fraudsters have been using phishing attacks to file tax returns. There have been several incidents this year in which human-resources employees received fake emails from scammers impersonating company executives. The emails request W2 forms or personal information about other employees, such as Social Security Numbers. If the employee thinks they are actually coming from the top brass and responds with the information, it can leave other employees vulnerable to identity theft and tax fraud.

Read the full story here: http://blogs.wsj.com/venturecapital/2016/03/21/greathorn-seeded-for-preventing-phishing-attacks/

The St. Louis Dispatch reports Two St. Louis venture capital firms and a German technology giant are funding an expansion by Adarza Biosystems in O’Fallon, Mo.

Adarza announced Monday that it had completed a $5 million funding round led by Cultivation Capital Life Science Fund, Lewis and Clark Ventures and Siemens, the German engineering and medical-products company. Adarza will expand production capacity at its O’Fallon plant, launch a commercial line of diagnostic immunoassay kits and accelerate development of new products.

Learn more here: http://www.stltoday.com/business/columns/david-nicklaus/adarza-adds-million-in-venture-capital/article_12374e0d-c2cf-5e4b-b921-d614ccf306a4.html

A year ago, business software vendor Domo Inc. was expecting to go public by the end of 2015, Chief Executive Josh James told VentureWire.

Domo, according to the Wall Street Journal, has now raised $131 million as it waits for the markets to become more receptive to information technology companies. The company extended its last funding round, a $200 million Series D round raised in April 2015, at the same valuation and same terms, adding money from insider BlackRock Inc. Credit Suisse and unnamed family offices, some in Asia and Russia, and taking total funding to $590 million, according to Mr. James.

You can read more here: http://blogs.wsj.com/venturecapital/2016/03/22/domo-raises-130-million-holds-its-2-billion-valuation/

 

Evan Vitale – Crowdfunding Lists, Resources

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By Evan Vitale

Rather than try to list ALL the crowdfunding opportunities, I thought it might be easier (and better) to share some crowdfunding “lists” that I have found. Here we go:

Top 10 Crowdfunding websites based on Traffic Rank (by gofundme)

https://www.crowdfunding.com

Top 10 Crowdfunding websites for Fundraising (by Forbes)

http://www.forbes.com/forbes/welcome/

Top 10 Crowdfunding websites for Entrepreneurs (by Entrepreneur)

http://www.entrepreneur.com/article/228534

Top 10 Crowdfunding websites to Fuel your Dream Project (by Honkiat)

http://www.hongkiat.com/blog/crowdfunding-sites/

22 Crowdfunding websites and How To Choose Yours! (by Inc.com)

http://www.inc.com/magazine/201306/eric-markowitz/how-to-choose-a-crowdfunder.html

The Ultimate List of Crowdfunding and Fundraising Websites (by Crowd 101)

http://www.crowd101.com/list-crowdfunding-and-fundraising-websites/

Crowdfunding Websites (by CrowdsUnite)

http://crowdsunite.com/crowdfunding-sites/

Top 10 Crowdfunding websites of 2016 (by Top Ten Reviews)

http://crowdfunding-sites-review.toptenreviews.com

Big List of Crowdfunding websites (by Marketing Moxie)

http://marketingmoxie.biz/the-big-list-of-crowdfunding-sites/

Other crowdfunding resources:

“Crowdfunding Secrets: 7 Tips For Kickstarter Success” (by Forbes)

http://www.forbes.com/sites/amadoudiallo/2014/01/24/crowdfunding-secrets-7-tips-for-kickstarter-success/#6a44b57d627f

“Kickstarter’s Biggest Hits – Why Crowdfunding Now Sets the Trends” (by The Guardian)

http://www.theguardian.com/technology/2014/apr/17/kickstarter-crowdfunding-technology-film-games

Search Google News for the latest in crowdfunding news.

Search Google for Crowdfunding presentation templates.

Create a Google Alert on the keyword “crowdfunding” (free Google account required).

Connect with and Follow Crowdfunding accounts on Twitter, Facebook, LinkedIn and Google+.

Read and follow Crowdfunding blogs.

Search, find and watch Crowdfunding webinars.

Evan Vitale – Finding A Business Angel

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By Evan Vitale

Can a business angel help your start-up or expanding business with the financing you need?

Probably.

However, this are many things to learn about a business angel; how they work and, most importantly, how do you find a business angel?

Simply put, a business angel is an individual who offers the financial backing you need to fund your startup or take your business to the next level. Angels are everywhere. They are professionals, retirees, doctors, lawyers, business owners. They are successful and they are interested in finding business investment opportunities.

The most difficult part about connecting with a business angel is finding them. It’s not like they are listed in the phonebook or have a website saying “I’m a business angel, please send me your proposals.”

Instead, you have to find them. How?

  • Start by talking to family; friends and close business associates.
  • Attend networking events and meet new people. Don’t rush in with your financial needs. You need to develop a relationship and build trust. This takes time.
  • Increase your marketing and social media efforts. Make you and your business more visible. Angels will be watching your progress.
  • Earn more local public relations. Write press releases; submit story ideas to local newspapers, television and radio stations. Again, all of this will not going get the attention of a potential angel, but it might also help you earn new clients and increase your revenues.

A friend of mine would eat lunch two-three times a year with a potential angel. The angel would invite him to lunch so he could be kept up-to-date on how his business was progressing. However, my friend had no idea his lunch pal was an angel that could someday be potentially interested in investing in his startup company.

The biggest key in finding an angel is to build strong, lasting relationships. Your connections might introduce you to an angel someday or, perhaps, an unknown angel will knock on your door when you least expect it.

Evan Vitale – What’s New in VC News!

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By Evan Vitale

Here are some of the latest headlines and stories making news in the world of venture capital.

According to WSJ’s Venture Capital Dispatch, Bot Home Automation Inc., which does business as Ring, raised $61.2 million in Series C funding led by Kleiner Perkins Caufield & Byers.

The Santa Monica, Calif., company produces Wi-Fi-connected video doorbells, which allow users to remotely see who is standing at their door from their phones. The product gives users a notification when someone rings the bell or if its motion sensors detect someone in front of the house.

The company declined to disclose its valuation. PitchBook Data Inc. reported the company’s valuation jumped from $63.6 million to $202 million.

Chief Executive Jamie Siminoff said his goal is to use technology to make neighborhoods safer.

The full story is here:

http://blogs.wsj.com/venturecapital/2016/03/16/connected-doorbell-company-ring-buzzes-in-61-2m/

The International Business Times is reporting Intel is planning to sell some assets of Intel Capital as a part of the ongoing restructuring of its investments division. It has mandated UBS Group AG to look for potential buyers.

According to Bloomberg, the California-based chip-maker is looking for a buyer who would purchase its assets housed within Intel Capital, worth almost $1bn (£709m).

“Discussions over the structure of the sale are at an early stage, with Intel open to selling the assets as a whole or divided by geography or sector focus…. The portfolio, which is made up of companies across the world, is housed within Intel’s corporate venture unit, Intel Capital,” sources told the news agency. Intel is expecting to sell the assets to private equity firm.

Intel Capital is the venture capital, merger and acquisition arm of the business, which was started in 1991. Since then it has invested more than $11.64bn in 1,440 companies across 57 countries. In 2015, it invested more than $514m in 143 companies.

The full story is here:

http://www.ibtimes.co.uk/intel-planning-sell-assets-venture-capital-arm-1bn-1549544

Reston, Va.-based StreetShares has closed on $4.5 million in new equity in the first tranche of its Series A round, Mr. Rockefeller told VentureWire. Financial-technology venture firm Fenway Summer, founded by Raj Date, former deputy director of the U.S. Consumer Financial Protection Bureau, is leading the round. Endeavor Equity Holdings and Pivot Investments also participated in the deal. The round is still open.

The story can be found here:

http://blogs.wsj.com/venturecapital/2016/03/14/streetshares-nabs-series-a-for-small-business-loans/

 

Evan Vitale – Thinking About A Career Change?

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By Evan Vitale

Are you thinking about a career change? Don’t worry, you’re in the same boat with a lot of people who are considering changing careers.

A friend of mine told me his brother has changed careers many times – mainly due to shifts in the economy and workplace. He started with a marketing degree; switched to real estate and then to working in a mortgage office. When the real estate market went belly-up, he went to sales and then opted to go back to school to become a nurse!

Some people may not like their current job situation and are looking for a fresh start. Regardless, you need to figure out what it is you enjoy doing. Try not to look solely at the financial improvements. Yes, we all would like to make more money, but we need to be happy when we get up in the morning and head to work.

Here are a few questions you can ask yourself when thinking of a career change:

– Why am I not happy/satisfied with my current career situation?

– What am I looking for in a possible new career?

– Are you looking to accomplish something?

– Is your current job situation causing you too much stress and worry?

Aside from your salary, the ideal career for most individuals is one that offers job satisfaction. People want to go home at the end of their work shift feeling like they have accomplished something. In addition, you need to have a good work-life balance with your career. Work hard, play hard.

If you are considering a change, one good step is to take some additional training or classes to see how you feel about a career shift. It might not be what you expected or, perhaps, taking a course or two might energize and excite you about the possibilities.

Stick with your current career situation while you are taking classes and training. Don’t turn in your resignation notice until you have a new career and employment in place.

Evan Vitale – Does Continuing Education Make A Difference?

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By Evan Vitale

Let’s say you have a great career, good job with a decent salary and benefits. So, should you think about continuing education courses or are they solely for individuals who are seeking job advancements or a career change?

Continuing education is not like a traditional educational situation. In many cases continuing education is required by some professionals in order to earn or maintain licensing (such as those in the medical field). Some general continuing education opportunities offer adult learning, basic courses, occupational training or GED training.

Here are some reasons why continuing education might make sense:

– Continuing education can help you in advancing your current job or in starting a new career. In some cases, earning advanced degrees through continuing education can help you move up the pay scale and increase your income. In addition, your employer may have programs in place to help pay for or off-set the costs of taking continuing education courses.

– Continuing education can also help you keep your skills current and up to date with new technology; ideas; trends and other factors. Keeping your skills up-to-date makes you more valuable to your current employer. It’s very similar to attending a business conference where you will learn what’s new in your industry and gain new ideas and information.

– Of course, by taking additional courses, continuing education can also be a start in possibly finding a new job or switching to a new career altogether.

– In addition, there are other “fun” opportunities available in taking continuing education courses. Many colleges and universities offer courses in photography, welding, wine tasting, cooking, etc. While these classes probably won’t help you advance your career, they will make sure that you’re constantly learning and growing.

So, you see, there are many advantages to continuing education. Check with your employer to see if they cover any of the fees and check with local schools to see what courses they have to offer.

Evan Vitale – The Latest In VC News!

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By Evan Vitale

What new in venture capital news?

According to the Wall Street Journal, Justworks – a benefits and payroll company – has secured $33 million in Series C funding, which brings the total amount the company has raised to $53 million. Redpoint Ventures led the round and had participation from existing investors Bain Capital Ventures, Thrive Capital and Index Ventures.

You can read the full story here: on.wsj.com/1TOM8Xu

Who is the biggest venture capital firm in the world? China.

Fortune is reporting that China has funneled $338 billion into startup investment funds.

In bid to ease the slowing Chinese economy into a consumer-based rather than heavy industry-focused one, the country reportedly raised about 1.5 trillion yuan, or $231 billion, in state-backed venture funds through 2015, according to Zero2IPO.

That tripled its assets under management to $338 billion. The money, which is almost five times the amount raised by any other venture firm in the world in 2015, comes mostly from tax revenues or state backed loans, and is funneled into some 780 funds across the country.

The full report is here: for.tn/1p9jFht

Bustle, a New York City-based news site aimed at millennial women, has raised $11.5 million in new funding led by Saban Capital, with participation from GGV Capital and existing investors General Catalyst Partners, Time Warner Investments, and Social Capital. Richard Yen of Saban Capital will join the company’s board.

The media company, founded in 2013, has amassed an audience of 32 million, most of which are young women between the ages of 18 and 34, according to comScore. The site’s advertisers, including Campbells and Adidas, purchase packages that include a mix of native advertising, traditional display ads, and video. Last year, Bustle hit its revenue goal of $10 million. The company expects to “substantially outperform” its goal of $20 million for 2016, according to CEO and founder Bryan Goldberg.

The story is here: for.tn/1UlvBsp

Evan Vitale – What’s Next If Your Crowdfunding Plan Fails?

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By Evan Vitale

You’ve researched, planned and prepared an awesome presentation for your crowdfunding campaign and then it bombs. Now what?

Get up. Brush the dirt off your pants and try again. Right?

Before you take the same plan and presentation and create a new campaign at a different crowdfunding site (which might also cause yet another failure), you should first step back a little and review the following:

  • Is your idea a great one? Everyone “thinks” they have an awesome idea, but is it really that great? If so, then why didn’t you reach your campaign goal? Was it something in the presentation or did others feel like perhaps your idea isn’t as hot as you think it is?
  • Review your plan. What’s missing in your project or idea plan? Did you offer enough details to your investors? Check and see if there were any unanswered questions during your campaign. Remember, as you create your plan and presentation think of all the questions someone might ask if you were making the presentation face-to-face. Then, make sure all of those questions are answered in your campaign presentation.
  • Review your financial goals. Are you dead-on with your requests or are you asking for too much money?
  • Review your presentation. Did it fail to wow your crowd? What’s missing? What can you do to make it better; keep people’s interest and make them become part of your financial crowd?
  • It could be that perhaps you presented your plan on the wrong crowdfunding website. They are all different and, perhaps, a change might be the key to reaching your campaign goal.

Once you have answered those questions and made the necessary edits, changes and updates, then it’s time to start your crowdfunding campaign again. A first-time failure doesn’t mean you’re finished. It means you’re gaining experience!

 

Evan Vitale – Crowdfunding Your Startup

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By Evan Vitale

In our previous blog posts, we introduced crowdfunding and how it works for businesses, charities, individuals and more. Now, let’s take a look at how you might consider using crowdfunding for your startup business.

Capital, financing, money, etc. (whatever you want to call it) remains the No. 1 challenge for any startup in order to launch your dream; get things off the ground and have remaining fundings to maintain growth.

Simple, right?

If you don’t have cash on hand, you might first turn to a bank for financing. However, a financial institution will need collateral such as a home in order to secure the business loan.

Your next chance might be with family or friends. Maybe you’ll look for an angel or a venture capital firm, etc.

Or, perhaps, you’ll skip all the aforementioned red tape and go directly into seeking funds from crowdfunding opportunities (i.e., Kickstarter, Indiegogo, etc.). Will it work?

It all depends on you. For example:

  • You might have a great idea, but you’ll need to package and present it in a way to attract potential crowdfunding investors. The first challenge to any crowdfunding project is to get donors interested in helping you. Your presentation will be like a sales pitch in that you need to get people excited.
  • Let’s say you want to raise $25,000 for your startup idea. Here, instead of giving every donor a percentage piece of ownership, they will receive a gift for their donation. This might be the product you hope to create and sale or something simple like a coffee mug.
  • Ask for exactly what you need. If your startup requires $25,000 then create a crowdfunding plan and presentation seeking $25,000. Don’t ask for more or less. Some plans have hit their target very quickly and some fall dreadfully short.

The best way to begin your crowdfunding plan is by doing research. This includes:

  • Talking to your accountant, your banker and your attorney.
  • Consult with your business coach, if you have one.
  • Visit and do deep research on crowdfunding sites. Know them inside and out. Investigate plans that succeeded and those that failed. What did they do right, or wrong?

If your first crowdfunding attempt fails, find out why. Did your potential investors not like your plan, idea or product? Or, did your presentation fail to “wow” them? Every idea isn’t going to be an instant winner and, yes, some great ideas never get off the ground because startup owners didn’t prepare a selling presentation to attract investors.