Ambitious American technology entrepreneurs have recently started to target the investment market in India.1 Historically, India had a reputation for being a notoriously tough market for start-ups, even for the most promising young businesses.2 The inability to succeed as a start-up in India, however, is not due to lack of proposed innovations. Compared to America’s…
Tag: Entrepreneurship
The Line for Food Is Getting Longer for Venture Capitalists
Recently, there has been a surge of interest in food among Americans. More people obsess about particular superfoods, check which farms certain ingredients come from, and become fans of certain celebrity chefs.1 Packaged gourmet foods, as well as foreign foods, are being sold at an unprecedented rate, and food co-op membership is at an all-time…
The South Korean Government and Venture Capital: The Costs of Planned Growth
Unlike the U.S. government, the Korean government plays an active and major role in its nation’s venture capital market. Under the “Special Law to Promote Venture Capital Companies (SLPVCC)” passed in 1997, the Korean government is permitted to provide subsidies to select venture capital-backed companies (e.g., companies involved in energy, IT, and electronics), grant tax…
Getting a Good Deal: Strategies for Entrepreneurs in VC Negotiations
Venture capital is an invaluable resource for the nascent business. Providing much-needed capital, VCs enable a business to fund the future growth that every entrepreneur hopes for. Negotiations between entrepreneurs and VCs frequently allow a company not only to raise funds but also to create long-term value through lasting business relationships. However, these negotiations also…
Detroit’s Burgeoning Entrepreneurial Ecosystem
When most Americans think of Detroit today, they think of the largest municipal bankruptcy in U.S. history, pictures of derelict buildings and houses, and ultimately, a city on the decline. However, ask a true entrepreneur what they think of Detroit today, and you will most likely be given an answer that can be summed up…
Title II of JOBS Act Goes Into Effect, Creating Exciting New Opportunities for Start-ups
On Monday, September 23, 2013, Title II of the Jumpstart Our Business Startups Act (JOBS Act) went into effect allowing start-up companies to seek equity investments publicly without having to register ownership shares for public trading. Title II is a significant aspect of the JOBS Act, a post-recession initiative to stimulate the American economy, in…
From Startup to IPO: The Long Haul
The Startup Let’s say you and two friends decide to pursue a company in Internet technology, Gray Matter. You three will be co-founders and hope to one day take the company public. Initially, the company will be incorporated as a C Corporation, typical for most public companies or those hoping to go public.1 Seed Money:…
Zombies of the Private Equity Industry Pt. II
A previous blog post discussed the existence of zombie funds in the private equity industry as well as their effect on the investor market. Approximately $116 billion is sitting in almost 1,200 zombie funds and their presence is an impediment to the growth of investor wealth while continuing to accrue management fees for ineffective managers.1…
Legal Necessity or Founder Faux Pas? Why VCs Don’t Like Non-Disclosure Agreements (And Why Startups Shouldn’t Ask for Them)
Every entrepreneur wants to protect their idea. Confidentiality is key to safeguarding intellectual property, and it’s only natural to want to protect your product or service so that you can get it to market before a competitor can. At first glance, when meeting with potential investors, asking them to sign a non-disclosure agreement (NDA) may…
Entrepreneurs – Have No Fear, The AIA Is Here
As is often discussed, the Jumpstart Our Business Startups Act (JOBS Act) has created a lot of positive buzz with innovators and creators looking to equity crowdfund their ideas to avoid traditional forms of funding. There is no question that the government mandated crowdfunding process will save entrepreneurs the hassle of dealing with complex SEC…