Financially Loved

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Down to Basics: Venture Capital

 

Venture capital can be referred to as “seed funding.” Very small enterprises generally use venture capital to help jumpstart their business. With venture capital, financial lenders gain a certain amount of equity from the company. Generally, lenders look to gain control over a business and jumpstart their profits. Venture capital is really just investment money.

The funding stages of venture capital go as follows:
1. Seed funding – Capital used to fuel an emerging company
2. Establishment – Marketing and product research capital
3. A round – Starting capital
4. B round – Capital provided to companies that are selling, but not yet making a profit
5. Mezzanine financing – Finance augmentation
6. Bridge financing – Capital used to fund the companies IPO

Examples of Venture Capital Firms:
– FF Venture Capital
– Andreessen Horowitz Venture Capital
– Northern Lights Venture Capital
– Walden Venture Capital
– Pitango Venture Capital
– Mobius Venture Capital
– Bessemer Venture Partners
– Innocal Venture Capital
– Accel Venture Capital
– Polaris Venture Capital
– Sequoia Venture Capital
– Cardinal Venture Capital
– Oak Venture Capital
– NEA Venture Capital
– BDC Venture Capital

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Written by financiallyloved

April 9, 2013 at 9:51 pm

How to Apply for a ff Venture Capital Investment

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FF Ventures, which stands for “founder friendly,” is a venture capital firm that focuses in providing seed-stage funding for technology companies.  John Frankel, David Teten, and Alex Katz manage the firm.

Since its inception in 1999, it has created nearly 1,000 new jobs and has brought hundreds of reputable companies into existence.  Among these companies are Indiegogo, Klout, and LiveFyre.

While the investment is oftentimes preferred, FF Ventures offers other invaluable assets similar to what would be found at an accelerator.  This includes a healthy and productive workspace, a dynamic entrepreneurship community, and a mentor network.

  FF Venture Capital looks for companies with capable management teams and compelling business models.  A potential portfolio company should be an early-stage web-based services company with a disruptive model. The company must have the potential to generate ten million dollars EBIT within 5-7 years.  FF Venture Capital also focuses on companies with low capital expenditures  and high operating leverages.

   The only way to contact FF is through a referral from someone familiar with FF Venture Capital.  To do so, the list of portfolio companies allows a means to research the contact information for the CEOs/Founders.  When emailing FF Venture Capital, a 7-10 page presentation deck should be sent with a 1-page introductory email.  The email title should be in this formatting:[Company Name] Pitch [yyyymmdd], e.g., “Klout Pitch 20121127″.

The key points to the pitch are as follows:

  • Overview.

  • Team.

  • Demo.

  • Market.

  • Solution.

  • Business Model.

  • Customer/User.

  • Competition.

  • Financial Overview.

  • Funding.

  • Milestones

  ff Ventures will be there with you are your startup matures, both financially and as a group of people who care about you.   Even if an entrepreneur is receiving a “no” from the firm, there will be guidance on how to better their chances with other investors.  There is no lose-win here with a picture of VCs hungry for profits- these are people helping other people.  FF Venture Capital proves that funding can be done on a human level to maximize the potential for success.

Top 5 Life Insurance Myths

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Myth #1: No one is dependent on me, therefore I do not need to by it until I create a family.

Even single persons need at least enough life insurance to cover the costs of personal debts, medical and funeral bills. If you are uninsured, you may leave a legacy of unpaid expenses for your family or executor to deal with. Plus, this can be a good way for low-income singles to leave a legacy to a favorite charity or other cause.

 

Myth #2: The costs of my premiums will be deductible. 

Unfortunately, this is not always the case. The cost of personal life insurance is never deductible unless the policyholder is self-employed and the coverage is used as asset protection for the business owner. Then the premiums are deductible on the Schedule C of the Form 1040.  

 

Myth #3: The life insurance that I am receiving from work is all I need.

This can be true in some cases. For a single person without any dependents, you can get by this way. But if you have a spouse or other dependents, or know that you will need coverage upon your death to pay estate taxes, then additional coverage may be necessary if the term policy does not meet the needs of the policyholder. 

 

Myth #4: My life insurance only needs to be twice my annual salary. 

Afraid not.  It is estimated that with both medical and funeral bills, most people need three times to four times their annual salary.  This is especially true if there are any dependents or a spouse, which would need to cover funeral costs, medical expenses, and possibly living expenses.

 

Myth #5: Only the working spouse in the family needs life insurance.

This is not true at all.  A homemaker creates value within the household that would cost quite a pretty penny to replace.  This includes babysitting, cleaning, and possibly cooking.  Do not let the homemaker go unprotected by any means; he or she should be insured as soon as the working spouse is able.

 

To learn more about life insurance, visit our main website at toplifeinsurers.com.  

 

Written by financiallyloved

April 9, 2013 at 9:35 pm