Wednesday, July 27, 2005

Now i'm free

Finally i can rebegin to write on my little blog.
After a long of time of pilgrimage through VC in Italy, i and my member have decided to start up without support of VC.
We thought that in start up phase without a money boosting/support were impossible to start, instead...we can START.
Great support from worldwide opensource developers come to our Company to help us in development of cool apps and services web based.
I think that VC will continue to invest in hitech world but with opensource spreading more company can start without VC support; meanwhile VC begin to flow opensource company.

"Companies building their business models on top of open-source software continue to attract the attention of venture capitalists on the lookout for the next big thing.The latest success story is JasperSoft Corp., a provider of support and services around the open-source JasperReports business-intelligence project. The company Wednesday closed an $ 8 million series-C round of funding led by Partech International, an early investor in Business Objects SA."

see detail on: http://news.yahoo.com/news?tmpl=story&u=/cmp/20050721/tc_cmp/166401218

Thanks a lot to my friends of http://www.macosxguru.com for their support and friendship; a special thanks to my friend Pagux for your interesting and support to our project.

I'm sorry with my readers for terrible delay to support my blog, i hope now to continue regular to post my article and my ideas on a world very amazing like VC and opensource.

Next post i'll talk about a book that i'm reading, titled "The mobile revolution" of Dan Steinbock

Saturday, March 12, 2005

“breakthroughs that seem crazy today”

To explain better my previous post I have found this article post on December 8,2004 on Red Herring web site.
In this article Tim Draper predicts “breakthroughs that seem crazy today”
Cool reading to everyone!!

Mind the curve
Legendary investor Tim Draper talks about the return of VC and the second wave of consumer Internet.
December 8, 2004

Tim Draper used to find deals by walking around Silicon Valley real estate developments and just browsing signs on the buildings. “Anything that said software, I’d knock on their door, go in, and see if they needed any money. Most of them did,” he said.

The venture capital world has matured by a few decades since then, and his firm, Draper Fisher Jurvetson, has grown up with its industry.

“It used to be that a couple of million people knew the venture capital game – now about two billion know it,” said Mr. Draper.

In a keynote address at the Red Herring 100 conference in Monterey, California, Wednesday, Mr. Draper spoke about the key areas of technology investment and the state of a VC industry finally recovering from the most recent high-tech boom-bust cycle.

Mr. Draper explained high-tech’s return from hibernation with his iS curve (a.k.a. “The Draper Curve”) – rapid boom-busts like the dot.com gold rush are followed by slower, more sustainable recoveries, which eventually surpass the revenue and revolution of the boom itself.

Consumer Internet was the flavor of the month in the late 1990s, then the market was depressed, but the new infrastructure and software developed paved the way for video-on-demand and communications companies like Mr. Draper’s favorite investment, Internet telephony company Skype.

While the return of venture capital to the high-tech sector will increase competition for investment, Mr. Draper believes it also will accelerate the growth of new technologies. Even the adoption speed of new consumer products, like Skype and Apple’s iPod, has increased. Within a few decades, he predicts “breakthroughs that seem crazy today” may arrive, such as man on Mars, fusion, and cures for health and social ills like AIDS and poverty.

Yet such innovations may not come from the United States. For example, in the last two decades, China has matured from a country with trivial technological activity and is now competing in several sectors with the U.S. Of more concern to Mr. Draper are the recent changes to accounting compliance laws, which may scare companies – particularly foreign ones – from going public on Nasdaq.

“Throughout the world there will be IPOs everywhere. But our country may not be competitive in the IPO market, because Sarbanes-Oxley was such a disaster,” said Mr. Draper.

Of course, if and when the EU and Asia adopt the same rigorous standards, the companies will have to go public somewhere.

Wednesday, March 09, 2005

Venture capital reopens his doors

After the dark period of 2000 where VC lost a lot of money financing companies with business plans that weren't believeable finally in late 2004 VC are rebeginning to invest in start up company, above all in Usa.
What is changed in political investment if VC ?
Today, VC are always focused on start up company with high grow rate but...it is more difficult to obtain money,because now only business idea isn't sufficient.
I can resume some key factors that i'm feeling on my skin presenting my business idea to investors:

1) Great idea that can produce money, a lot of money
2) A structured executive summary (max 3/5 pages) that include:a brief history of your company - description of the product - plus, any competitive information you know about, biographical information for the major players within your company add a brief explanation of your market and what differentiates you from your competition. if you using an Apple computer iWork suite can help you to produce an executive summary with amazing layout and pro graph - http://www.apple.com/iwork/
3) A good team that can deploy your idea.
4) Choose the adapt VC
5) Fortune!! this is necessary

My personal opinion about 3rd point is focused on which type of team do you have.
Have a team is important, but it's better have the right persons with a great vision than have a great Ceo or Vice president to manage your company.
For example, if you read "zero gravity" written by Steve Harmon,
John Doerr - http://kpcb.com/team/bio_detail.php?frm_id=15 - of KPCB.com a great VC, talked about their investment on Mark Andressen of Netscape.
He had a great idea, a graphic browser, and KPCB VC helped Mark to find a Ceo and 5 VP.
Step by step any time that I'll meet a VC to explain my idea, I'll inform my readers about Q&A that VC'll ask me trying to build a real tutorial based on real experiences.
Waiting your reply...vey soon.
:D

Tuesday, March 08, 2005

An introduction to Venture Capital

VC...2 words that can help any entrepreneur to achive his objectives...but...how to contact this VC and who and what are this VC?
Let's start to introduce who are VC.
To explain better the concept of VC, wikipedia is the natural resource for a definition:

Venture capital : is a general term to describe financing for startup and early stage businesses as well as businesses in "turn around" situations. Venture capital investments generally are relatively high risk investments, but may offer the potential for above average returns. A venture capitalist (VC) is a person who makes such investments.

The roles performed by a venture capitalist are:
• directly providing funds for high risk, high return ventures
• arranging additional financing from other sources
• assessing and revising the proposed business model
• reformulating the overall strategy
• finding and hiring key managers
• finding supportive service companies and other business contacts
• firing existing managers where they think this is necessary
• buying-out existing partners (owners) where they think this is necessary
• providing operational and technical guidance to enhance overall business efficiency
• prepare the company for a potential exit (e.g. acquistion or initial public offering)
A great deal of specific expertise is usually involved, including negotiation and management and legal procedures required at different stages of a venture.

Now take a look at what type of Venture Capital there are and what operations they do.

A new venture may need several infusions of cash from venture capitalists as the business progresses.
• The first round, referred to as seed capital, is obtained prior to company launch. It is for marketing research, concept testing, and alpha and beta testing.
• The second round, referred to as start-up capital, is for hiring staff, renting office space, purchasing servers and other IT infrastructure, purchasing inventories, equipping the production system, and other activities involved in starting the business.
• As sales (and production) levels increase, additional rounds could be needed to modify the site, re-equip the production system, expand plant capacity, or purchase new facilities. These additional rounds are sometimes called second-stage financing or development capital.
• Mezzanine financing is the final round of financing before going public. Once a company's stock is publicly traded on a stock exchange, capital is raised by issuing and selling shares.
The terminology varies somewhat in different countries. In particular, in some countries where there is rarely or never any early financing, mezzanine finance is often referred to as venture capital.
Venture capitalists are very selective in deciding what to invest in. A common figure is that they invest only in about one in four hundred ventures presented to them.
They are only interested in ventures with high growth potential. Only ventures with high growth potential are capable of providing the return that venture capitalists expect, and structure their businesses to expect. Because many businesses cannot create the growth required to have an exit event within the required timeframe, venture capital is not suitable for everyone.
Venture capitalists usually expect to be able to assign personnel to key management positions and also to obtain one or more seats on the company's board of directors.