Angel and Venture Capital

Angel and venture capital are forms of financing for a company. Angel investors usually provide start-up funds for a company. Venture capital refers to funds offered by an investor for the expansion of an existing business.

1,058 Questions
Angel and Venture Capital
The Difference Between

What is the difference between Crowdfunding and Hyper Funding?

Crowdfunding pertains to donation based fundraising for businesses or creative projects via an online funding portal. Hyper Funding pertains to equity based fundraising, whereas equity ownership in a business is given in exchange for investment capital via an online funding portal as per the Jobs Act of 2012.

Mutual Funds
Startup Finance
Angel and Venture Capital
How To

How to set up a Venture Capital Fund?

I am a CPA whose firm specializes in handling the back office accounting for venture funds so feel comfortable speaking to some of the non-marketing issues related setting up a fund. Structure Generally, the first step in setting up a venture fund is finding a lawyer to prepare your legal documents. Your lawyer will help you decide a number of items. You will generally save some time and money by thinking about these issues before meeting with your lawyer. Structure - Most venture capital funds are structured as limited partnerships. Limited partnerships generally have two types of investors: limited partners and a general partner. Limited partners are generally non-active investors who commit to invest a fixed amount of money to the fund (capital commitment) in exchange for a pro-rata share of the economics of the fund (e.g. proceeds from sales, dividend income, interest income). The liability of each limited partner is limited to his/her/its commitment to the fund. Fund's generally have one general partner. The job of the general partner is to manage the fund's investments. Generally, a general partner will make a capital commitment of one percent of the commitments of all partners. For example, if the limited partners were to commit $99 million to a fund, the general partner would commit $1 million. I have seen funds that are structured as LLC's and Small Business Investment Companies (SBICs) as well as Business Development Companies. You should speak with your lawyer about the pros and cons of each structure. Fees - Generally the general partner gets paid in two ways: Management Fee - The general partner (generally through its affiliate, the management company) receives an annual management fee equal to two to two-and-half percent of committed capital. For example, if the fund had total commitments of $100 million and a two percent managment fee, the fund would pay the management company $2 million per year. The management fee is intended to cover the operating costs of the management company including investment personnel salaries, rent, utilities, etc... Carry - The general partner generally receives 20% of the profits of a fund. The general idea is that if the fund is profitable, the general partner will receive a reward. For example, if a fund was able to pay $200 million in distributions to investors who contributed $100 million, 20% of the $100 million gain ($200 million in distributions - $100 million in contributions) or $20 million would go to the general partner. Some funds will have hurdle rates that require the fund pay back not only the contributions of the limited partners but also provide them with some return on their investment (e.g. 8% per year) before a carry allocation is paid. Other expenses - Some other expenses that are not related to the management company are as follows: Audit and Tax Fees - These are the amounts paid to an outside CPA firm to have the fund audited and tax forms (referred to as schedule k-1's) prepared. (Side note: Limited partnerships are passthrough entities for tax purposes meaning the income and expenses are passed on to the partners. The Schedule k-1's tell each partner how much he or she owes.) Due Diligence Expenses - These are out of pocket expenses for travel and advice that the employees and members of the management company or general partner incur when looking at companies to invest in. Legal Fees - These are the legal fees incurred by the fund. Organizational and Syndication Costs - These are the costs related to structuring a fund including legal costs and the costs of recruiting limited partners to invest in the fund. Legal Documents The lawyers usually prepare three main legal documents for a fund: Partnership Agreement - This agreement spells out all of the operational rules of the partnership. It would include the formulas for calculating the carry and the management fees. It would also detail limitations in the amounts and types of investments that the general partner is allowed to make. Offering Document (Private Placement Memo) - This is the marketing document for the fund. Unlike mutual funds which are heavily regulated, venture funds are generally not registed. In exchange for the lack of regulatory burden, venture funds must avoid marketing in general. Venture Funds are allowed to put together private placement memos which are designed to provide a potential investor with all of the information that such investor may require including explanations of the fund structure, its strategy and management. Subscription Documents - These are the documents an investor must fill out in order to invest in the fund. It includes personal information including contact information and tax identification numbers. It also includes the investors commitment amount. It includes a questionaire designed to determine whether or not the investor is qualified to invest in the fund. It is important that you hire lawyers with fund knowledge and experience to get this document right.

Fuel Economy and Mileage
Angel and Venture Capital

Why might the MPG not be as high as expected?

Just a few notes:

A '92 & it's now 2003 how many miles does it have? My '92 Toyota has over 200,000 so I don't expect it to match listed sources on anything.

Is the air filter clean? Dirty or damaged air filters will hurt your gas mileage.

With all the new stuff listed, that means you got a tune-up right? If not you should.

Those tests to determine gas mileage are PROBABLY 1) with no added weight 2) minimal or no wind resistance 3) level surface.

So, do you normally have four people in your car or total passenger weight over 500 lbs? Got a lot of stuff in the trunk? Live somewhere really windy? Driving on a lot of hills?

Lastly, have you been driving a 5-speed long? I've ridden with people that don't shift well. I mean their timing is not very good so they're driving in a lower gear than they should be, or shifting too soon so the engine isn't working at peak.

And, if you got it used, you might be shifting right, but maybe the person that had it before you for X years wasn't, causing more wear & tear than normal for the miles listed on the odometer.

explain the problem. If you're 130 lbs & drive alone & carry no junk & had a tune up & got a new air filter & have under 100,000 miles, find a few friends with 5-speeds & compare driving styles.

When the EPA does gives out it figures for a vehicle fuel efficiency, they don't actually drive the car and see how much it uses. They measure the output and content of the exhaust gases, and use a mathematical formula they created in the '70s to figure out the vehicles milage. This provides a consist test across all vehicles, unfortunately newer cars will have artificially higher mileage because the EPA can't account for differences in newer technology.

The Honda Civic VX was made with two different types of engines. One was made for most of the US and the other was made for California. Due to CA emissions, they had to use an engine that only got up to 51 mpg on the highway and 44 mpg in the city. Sounds like the driving helped a little, check tire pressure and make sure you have the original alloy tires> they are some of the lightest made for that size on a stock car. May want to drive 55-60 mph on a long trip and check your mileage.

Angel and Venture Capital

What is Hyper Funding?

Hyper Funding (alternately HyperFunding) pertains to equity based fundraising, whereas equity ownership in a business is given in exchange for capital investment via a web-based funding portal, as per the Jobs Act of 2012.

Pop Music
Jonas Brothers
Angel and Venture Capital

Where do the Jonas Brothers live?

1 Toluca Estates Dr
Toluca Lake, CA 91602 Los Angeles, California

This Advicenators question/answer may prove to be very helpful in finding contact information for Disney:

The link lists the email address and mailing addresses of various places you can contact different Disney sections at, including mailing addresses to send fan-mail and receive your star's autographed photo.

History of the United States
Washington, D.C.
Angel and Venture Capital

Is Washington DC a state?

No, Washington DC is a Federal District. DC stands for the District of Columbia.

Auto Insurance Claims
Angel and Venture Capital

Is there a standard compensation from insurance companies when you are rear ended and have damage to your vehicle and injuries to your neck and shoulders such as whiplash?

No, there isn't since damage and injuries can range from minor too major when accidents occur. Always ask for 5 times the amount you really want...

  • In the UK there is guidance from the courts in the past for the pain and suffering different types of personal injuries cause. This will include neck injuries, shoulder injuries and back injuries - but as the earlier response indicated the guidance depends on the nature and severity of your symptoms. Please see the two related links entitled "neck injury claims" and "back injury claims" to see examples of the amounts of compensation you can claim for pain and suffering for each various different neck and back injuries including whiplash.
Business Plans
Angel and Venture Capital
Business Networking
Artificial Intelligence

Why problem formulation must follow goal formulation in artificial intelligence?

In goal formulation, we decide which aspects of the world we are interested in, and which can be ignored or abstracted away. Then in problem formulation we decide how to manipulate the important aspects (and ignore the others). If we did problem formulation first we would not know what to include and what to leave out. That said, it can happen that there is a cycle of iterations between goal formulation, problem formulation, and problem solving until one arrives at a sufficiently useful and efficient solution.


Angel and Venture Capital
Road Distance
Flight Times

What country is Papeete in?

Papeete is in France.

Angel and Venture Capital
Song Meanings

What does it mean when a song goes recurrent?

A song is permanently moved to "recurrent status" if it has spent twenty weeks on the Billboard's Hot 100 and fallen below position number fifty.

Los Angeles Angels
Teen Dating
Angel and Venture Capital

How good is Anaheim's pitching line-up?

really, really good

really good but not the best

Investing and Financial Markets
Angel and Venture Capital

What is trend analysis in tourism?

An aspect of technical analysis that tries to predict the future movement of a stock based on past data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future.

There are three main types of trends: short-, intermediate- and long-term.Trend analysis tries to predict a trend like a bull market run and ride that trend until data suggests a trend reversal (e.g. bull to bear market). Trend analysis is helpful because moving with trends, and not against them, will lead to profit for an investor.

Business Accounting and Bookkeeping
Financial Statements
Angel and Venture Capital

What are the potential problems and limitations of financial ratio analysis?

'''''Limitations of financial ratio analysis'''''

# Many ratios are calculated on the basis of the balance-sheet figures. These figures are as on the balance-sheet date only and may not be indicative of the year-round position. # Comparing the ratios with past trends and with competitors may not give a correct picture as the figures may not be easily comparable due to the difference in accounting policies, accounting period etc. # It gives current and past trends, but not future trends. # Impact of inflation is not properly reflected, as many figures are taken at historical numbers, several years old. # There are differences in approach among financial analysts on how to treat certain items, how to interpret ratios etc. # The ratios are only as good or bad as the underlying information used to calculate them.

Although ratio analysis is very important tool to judge the company's performance , following are the limitations of it.

1. Ratios are tools of quantitativeanalysis, which ignore qualitative points of view.

2. Ratios are generally distorted by inflation.

3. Ratios give false result, if they are calculated from incorrect accounting data.

4. Ratios are calculated on the basis of past data. Therefore, they do not provide complete information for future forecasting.

5. Ratios may be misleading, if they are based on false or window-dressed accounting information

Business and Industry
Angel and Venture Capital

Does the gun company in Virginia called interarms still in business?

According to Wikipedia, the Interarms company of Alexandria, Virginia went out of business in early 1990s

Investing and Financial Markets
Angel and Venture Capital
Investment Banking

What is capital mobility?

the ability of money to cross national borders. the free flow of money in and out of a country.

Small Business and Entrepreneurship
Startup Finance
Angel and Venture Capital

What are the risks of venture capital?

The primary risk of venture capital investing is that the companies into which the capital is invested will fail, and the money will be lost. The risk of investing money as a Limited Partner into a venture capital fund is that the managers of the fund (the General Partners, or 'venture capitalists') will pick more losing companies to invest in than winning companies, and that over time the total return from the fund will be less than might have been received from alternative investments.

Job Training and Career Qualifications
Small Business Loans
Angel and Venture Capital

What kind of training its required to own a restaurant?

Everyone will tell you that owning and running a restaurant is hectic, my main advice is to use productivity tools that give you more of that most valuable commodity...time.

Key areas include:

- Finding new customers and keeping existing business / Marketing

- Food Logistics

- Staff Management

- Table/booking management & billing

- Financial reporting, Accounts payable and Accounting.

If you are like me, being gen Y or X, then you'll be sweet with leveraging internet tools as a way to promote and run your business - I've found working with older restaurant owners that they are less likely to be adopters of technology, but this doesn't help in a competitive and financially challenging environment.

For me the most time consuming area has been food logistics and staff management, you really need a hands on approach for this. For marketing, tables/booking management and the financial area I use web and iPhone applications.

The most useful tool for me which has been a godsend is - a last minute restaurant booking service, essentially allows you to post tables and deals online where you have quiet time periods, eg Mon/Tuesday evenings or for last minute cancellations. But because you can tailor your own offers at any time period for any number of tables, I've also used it for specials as well, eg I got a good deal on snapper and offered 5 tables a night for a special sitting at 5pm with a movie ticket with a snapper main. It's great fun and new and old customers have used it - Offers are also automatically posted to your facebook and twitter accounts 2 hours before they expire - which leverages the social network of my cafe. I also get bookings from text messages so it's very efficient and with no equipment costs and it's free to use for the first 20 bookings to see if it works. has also been handy but I find that most of my customers have bookmarked my phone number to call for a booking rather than bothering online.

For accounting I'm using, it's an amazing tool that literally takes your purchases from your bank feeds and after you teach it, will remember what transaction should go to what account - this is truly a huuuuge time saver. Being online, at any point i can log in and see the status of my business and it's health - without minimal need for a bookkeeper. Costs around $50 a month but worth it for you not having to think about your accounts, whenever i log in it's all there without the need to spend early hours of the morning entering in receipts, etc.

The last tool I've found useful is - this nifty online business is awesome for businesses that get lots of bills from lots of sources - you can simply grab any bill including hand written ones and fax/email or take a pic with your camera phone and email it - and this service will handle data entry and queue up the bill for payment by the due date - you can view at any one time your liabilities due over coming months. I get stacks of supplier bills as well as your standard electricity/gas bills so all my bills are in one place - and i can sync it with my xero account to have a real time picture of where my business is at - again this saves on the need for a bookkeeper.

The only thing i'd like to be easier is payroll management, but I'm looking into solutions at the moment for that.

Investing and Financial Markets
Business Accounting and Bookkeeping
Angel and Venture Capital

Why is trend analysis helpful in analyzing ratios?

Answer to analysis questionTrend analysis gives the owner an up, down, or flat trend, and tells the owner whether he is doing better, worse or remaining the same. Lets take for example a Liquidity ratio over a four year Calendar Year period as displayed below:

CY 2000 = 3:1

CY 2001 = 2:1

CY 2002 = 1:1

CY 2003 = .65:1

This trend analysis is telling the owner that he/she has $3.00 in CA to pay CL. Over the course of the last four years the owners don't have enough money in CA to pay CL.

Investing and Financial Markets
Mathematical Finance
Angel and Venture Capital

How do you calculate optimal capital structure?

very carefully

Distances and Travel Times
Angel and Venture Capital

What is the best day of the week to fly?


Investing and Financial Markets
Synonyms and Antonyms
Angel and Venture Capital

What is Maair Ventures?

Maair Ventures is a BPO firm offering outsourcing/offshoring services using its South Asian facility as an operations hub while also having a US office in NY.

Angel and Venture Capital

What was the name of the Aztec capital?

Answer: TenochtitlanTenochtitlan, and it was built on a lake
Business & Finance
Startup Finance
Angel and Venture Capital

Is venture capital defined as earnings in the EBITA formula?

Absolutely not. Venture capital is an investment in the enterprise and may be achieved through either sale of treasury stock or providing a loan (generally a sale of a bond). Both are recorded on the balance sheet or equity section, they are never a revenue. The I in EBITA is interest, so if the venture capital is actually a loan, then the interest used to pay that debt is not considered. If it is secured by a stock purchase, dividends (if any) are always after earnings anyway (unless actually determined to be a dividend on something like a preferred stock, which again is sometimes reclassed as interest).

Home & Garden
Small Business Loans
Pest Control
Startup Finance
Angel and Venture Capital

What is needed to start a pest control company?

I am sure there are different regulations depending on where you are, but some basics would be:

Pest Control License (to allow you to apply the chemicals)

Business License (to allow you to operate as a legitimate business)

Insurance (to cover things like accidents with vehicles or even structures)

Vehicle(s) (to deliver and provide the services)

Supplies (to perform the services)

And of course some kind of software to keep track of all your customers, billing, payments, etc.

Personal and Payday Loans
Angel and Venture Capital

If your truck was repossessed without contacting the cosigner first to give them the option to pay did they do anything wrong?

First, READ your CONTRACT. See any violations? then read the top of the page where you posted and put your state in your message. Then you can get state specific info. sorri, I can't read minds.PS, how do you KNOW they didnt contact the co-signor? Maybe the co-signor told them where you were??

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