Venture Capital Bloggers

Venture Capital Bloggers Video

Here is an interesting video from Innovation Economy about how blogging is effecting venture capital. Some of the venture capital bloggers interviewed say that they strongly prefer a VC firm that blogs because it shows that they are confident and accessible. Blogging is proving to be less of a casual trend and more of a way to get recognition for your company; something that venture capitalists should consider.




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Tags: Venture capital video, venture capital blogs, venture capital, venture capital outlook

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Venture Capital Interview Questions

Venture Capital Job Interview Questions

Possible Venture Capital Interview Questions-Part 3

With any interview you want to be prepared, and being prepared means understanding the industry which you are trying to enter and the type of employee that industry recruiters are searching for. Via Vault, here are some possible questions that you may encounter during a venture capital interview. This is the third and final addition to a series that is split into three areas: expertise, venture capital process and personality. If you missed them, here is Part 1 and Part 2.

Personality questions - These questions are more general and apply to most job interviews.

1. Where do you want to be in five years? If you are applying pre-MBA be sure to say that you hope to obtain an MBA by that time and be working in the venture capital industry.
   
2. Would you ever want to be an entrepreneur? If you are pre-MBA it's okay to say yes because it's pretty typical for young professionals to be more open to entrepreneurship, but it's more tricky if you are trying to get a partner-track position. In that case it is usually better to downplay any desire to be an entrepreneur because firms hiring for a partner-track position want someone dedicated exclusively to that position and bringing in a lot of money.
3. What will you do if you don't get a job here or in the venture capital industry? Express your desire to work within the venture capital industry, but if that doesn't work out you would try elsewhere in private equity or a related field.
   
4. What did you like about your old job and why did you leave? I have been asked this question at every interview I have had, so be ready. This is a good opportunity to express your excitement for working in venture capital. Tell how other jobs just weren't satisfying and venture capital seems like the best match for your personality (here's an opportunity to name your strengths). Don't complain too much about your past job, you may come off as a difficult or bitter person.
   
5. What's the thing you are most proud of? Have some great stories that highlight your abilities, it's okay to brag a bit here.

Permanent Link: Possible Venture Capital Interview Questions-Part 3

Venture Capital Career Articles:
Venture Capital Interview Questions 1
Venture Capital Interview Questions 2
Venture Capital Interview

Tags: Venture Capital, Venture Capital Career, Venture Capital Interview, Venture Capital Job Guide, Getting a Job In Venture Capital

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Gresham Private Equity

Gresham Private Equity | Private Equity Tracker

The following is a profile of Gresham Private Equity as part of our daily effort to track private equity firms. Gresham is an independent UK-based mid-market private equity firm. Focusing on management buy-outs up to £100m, Gresham invests across a broad range of businesses throughout the UK. The private equity firm has offices in London, Birmingham and Manchester.

Gresham Private Equity has a broad depth of sector knowledge and place particular emphasis on business & support services, consumer, financial services, healthcare/pharmaceuticals, industrial products and energy & environmental. The portfolio team works alongside management teams, dealing with key commercial and financial aspects of the business to enhance the value of an investment.

Story #1: Gresham Private Equity Conducts Management Buyout of Formation Group

Gresham Private Equity is a U.K.-based mid-market buyout firm and it has recently launched a management buyout of more than half of Formation Group. It was recently announced that Gresham exchanged contracts on a £20.75m management buyout for five of Foundation Group's nine businesses. The purchased businesses will form the James Grant Group.

Read more





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Tags: UK private equity, gresham private equity, MBO, Gresham management buyout, management buyouts gresham private equity, Gresham management, private equity management buyout

Link to This Resource: Gresham Private Equity

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Venture Capital Job Interview Questions- Part 2

Venture Capital Job Interview Questions

Possible Venture Capital Interview Questions-Part 2

With any interview you want to be prepared, and being prepared means understanding the industry which you are trying to enter and the type of employee that industry recruiters are searching for. Via Vault, here are some possible questions that you may encounter during a venture capital interview. This is the second part of a series that is split into three parts: expertise, venture capital process and personality. Click here for part 1.

Process Questions - This section allows you to prove that you are a capable candidate for a position in venture capital.

1. How do you value an investment? Say that you would value the investment low as low as possible while still working out a deal with the entrepreneur. Using several methods you would arrive at a number and begin discussions with the entrepreneur based off that number. Figure out the ideal, realistic return that your firm could get from the investment and what is the lowest money you would need to invest to get that ideal return. Be well versed in measuring an investment's worth because it is a critical aspect of venture capital and you can really stand out if you do your homework.
   
2. When you evaluate a business plan, what's the most critical element you look for? A pretty safe answer is management, how well a company is operates under management is a crucial factor to consider for an investor.
   
3. Why do you want to work at a venture capital firm? This may seem obvious: do not mention money or trendiness.
   
4. Would you want to invest in companies geographically near or far from our offices? You want to keep the companies you invest in near your venture capital firm's offices so that monitoring and support is easy and available. But although that is the ideal arrangement, you should be open to distant companies as new opportunities for expanding the firm and to be able to capitalize on companies that are being overlooked by your competitors because of the geographical challenge.
5. What investment areas do you find interesting? Be honest, find out what area really appeals to you then do some research on that area. It's always better to be honest rather than just feeding the venture capitalists what they wants to hear. Many of them are able to see through this, so just be excited and well-versed in your favorite area.
6. Do you have any questions for me? This is a golden opportunity for you to separate yourself from other candidates, use it well. Research the history of the venture capital firm including past investments, management staff and performance. Ask about the firm's past investments, maybe why the firm invested in ''x'' investment or why they didn't. A big theme for this section is just do your homework, understand the venture capital firm well enough that your questions reflect your knowledge.
   

Permanent Link: Possible Venture Capital Interview Questions-Part 2

Tags: Venture Capital, Venture Capital Career, Venture Capital Interview, Venture Capital Job Guide, Getting a Job In Venture Capital

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Venture Capital Job Interview Questions

Possible Venture Capital Interview Questions-Part 1

With any interview you want to be prepared, and being prepared means understanding the industry which you are trying to enter and the type of employee that industry recruiters are searching for. Via Vault, here are some possible questions that you may encounter during a venture capital interview. This is the first of a series that is split into three parts: expertise, venture capital process and personality.

Expertise Questions - Be prepared to answer questions about your past working experiences and things you learned from those experiences.

1. What are the major trends in your industry? - Start by explaining the big picture, highlighting the most apparent causes and effects showing that you can explain trends and understand market forces. Then finish with more detailed and subtle factors effecting the industry that you learned exclusively through your past positions.
2. Can you explain why your former company took the path they did? Give more insight to show that you were actively involved in the company.
3. When you did that project, did you use a certain technology? Be prepared to cover all the past jobs listed on your resume and mention specifics on how each project or company succeeded.
   
4. What companies in your industry might make interesting investments? This is a pretty standard question for venture capital interviews so be ready with detailed ideas.

Permanent Link: Venture Capital Job Interview Questions - Part 1

Tags: Venture Capital, Venture Capital Career, Venture Capital Interview, Venture Capital Job Guide, Getting a Job In Venture Capital

Link to This Resource: Venture Capital Job Interview Questions

http://privateequityblogger.com/2008/07/venture-capital-job-interview-questions.html

Raising Money From Angel Investors

Raising Money From Angel Investors Video

Founder of the New York Angels, David S. Rose, talks about raising capital through angel investors. Rose begins with a history of angel investors and gives advice on how to successfully pitch to angel investors:

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Tags: Raising Capital, Raising Money From Angel Investors, Angel Investors, Sources of Raising Capital, Capital Sources

Link to This Resource: Raising Money From Angel Investors

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Is Your Company Venture Capital Worthy?

The Venture Capital Workbook points out just how little funding actually comes from Institutional Venture Capital Funds compared to how many startups waste their energy only on venture capital. So, how do you know if your company is venture capital worthy?

The VC Workbook offers a ten question test to help you figure out if your company is appealing enough for venture capital funds. Answer the questions on a scale of 0-10, 0 meaning that the question does not cover the question at all, and 10 meaning your company totally applies to the question.

1. Does your company offer a unique service or technology?
2. Can your business carve a considerable market share against existing competitors?
3. How much funding will be put toward research and development and toward reaching the market?
4. What is the ease of the market?
5. What level of customer service with your product need?
6. Who large is the market that your product will serve?
7. Can your product create a gross margin over 50%?
8. Does your management team have the skills and capacity to succeed?
9. Are you and your team committed to your company's success?
10. Can your company achieve $25 million annual revenue within 3 years, and $50 million within 5 years? This question must be answered as a "ten" in order to pass the test, if this is not a "ten" then your company may not be suited for institutional venture capital.
    

Total your score, if you have an 80 or above you pass and you may be a candidate for institutional venture capital backing. If you did not pass then it may be your company is either not ready for institutional venture capital or you should consider other means of financing like angel investors or public investors.

Note: The test provided by the Venture Capital Workbook is by no means an exact measurement of your company and is only intended to give an idea of your company's chances of obtaining venture capital.

Link to This Resource: Is Your Company Venture Capital Worthy?

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Chartered Alternative Investment Analyst

A chartered alternative investment analyst (CAIA) is a designation awarded to qualified investment professionals that pass the CAIA program.

How to Become a CAIA?
To become a CAIA you must satisfy three requirements:

1. Complete the CAIA Program which encompasses hedge funds, private equity, real estate commodities and managed futures. The course is divided into Level 1 and Level 2. Level 1 focuses more on the analytical aspect of investing and managing. Level 2 puts the skills gained from the first level into practice with decision-making exercises and risk management techniques. This is all geared toward developing a better understanding of both the technical and practical aspects of alternative investing. The program is administered by the CAIA Association.
   
2. Another requirement for becoming a CAIA is that the candidate has professional experience (full-time employment within the bank regulatory, banking and financial or related fields). This can be either: A.) One year professional experience and a bachelor's degree OR B.) Four years professional experience.
3. Finally, in order to become a CAIA the candidate must complete the online Membership Agreement, provide 2 professional references, and pay membership dues.

Richard Wilson, who is also starting a Chartered Hedge Fund Associate program, shares some tips here on passing the CAIA program and a breakdown of how it's scored.

Link to This Resource: Chartered Alternative Investment Analyst

http://privateequityblogger.com/2008/07/chartered-alternative-investment.html

Pitching Venture Capitalists and Angel Investors

The initial presentation of your startup company to venture capitalists or angel investors is a crucial aspect in successfully expanding. The Instigator Blog offers 5 quick tips on pitching venture capitalists and angel investors:

1. Briefly Tell Your Story: You will quickly lose your audience's attention if you are not entertaining or if you drone on for too long. Share your story in an entertaining way about how your company formed and why you need the investors' money.
2. Change the Pace Throughout: Speed up during the overview and less detailed parts of your presentation but slow down for the more complex and important areas. This allows you to captivate your audience while still delivering the details.
3. Have Stylish Slides: Image isn't everything, but it is something. Having "sexy" visuals will help keep your audience's attention, so adding some style to your slides can go a long way for your presentation.
4. Don't Over Emphasize Your Product: Investors are interested in you and your company primarily, so don't dull your investors by listing all the benefits of your product.
5. Finish Strong: Although many save all those little details and projections for the end, it is better to end with a memorable finish that leaves your audience excited about your and your company.

Link to This Resource: Pitching Venture Capitalists and Angel Investors

http://privateequityblogger.com/2008/07/pitching-venture-capitalists-and-angel.html

Venture Capital Interview

Here are some basic tips for scoring an interview with a venture capital firm.

As some of you may already be aware of, venture capital firms are flooded with eager business school graduates trying to break into this exciting field. Getting an interview at a venture capital firm is difficult, and ultimately other factors will decide whether you get the job (like how well you actually perform in the interview and your academic background). But how can you even get the interview? Here's a few basic tips on getting an interview at a venture capital firm:

Network- The venture capital industry thrives on contacts and referrals, so make a point of building a large list of contacts. Even if you don't get a job working for these people, they may know someone hiring.

Experience- Venture capital job competition is fierce and having some experience in venture capital whether through some related work experience or even a brief internship will boost your chances at being seriously considered. Any relevant experience will work in your favor.

Research- Get out there and involved in the industry, understanding your field is key. Visit trade shows and forums to get a better grasp on venture capital. If possible, use VentureOne and VentureXpert to study the industry and find the most popular and expanding investment sectors.

Vault

Link to This Resource: Venture Capital Interview

http://privateequityblogger.com/2008/07/venture-capital-interview.html

Angel Investor Network

Trying to find an angel investor can be difficult, if you don't know where to start. Angel investor networks help you court angel investors by specific interests or regions, a good starting point for your quest for capital. So here is a comprehensive list of angel investor networks separated by geographical location:

National Angel Investor Networks

• Active Capital: Restricted to only entrepreneurs that can sell securities in their company, also some businesses cannot join based on industry or the company structure. Helpful for companies raising $1 million or less, but has potential for up to $5 million. Fees: vary by state.
  
• Investors' Circle: A nonprofit angel investor network that focuses on socially responsible businesses. The target industries for entrepreneurs are: energy and environment, food and organics, education and media, health and wellness, community and international development. This angel investor network does not permit companies raising more than $10 million. Sign your company up before August 1st to be considered for the Fall Venture Fair.
  
• Tribe of Angels: Jewish angel investor and business network, focuses on smaller investments ranging from $50,000 to $1 million.
• The Gathering of Angels: An opportunity for startup companies to show their business proposal to accredited angel investors. Six companies present for 20 minutes followed by 2-5 minute Q&A with the investors. Also included is three hours of virtual coaching to prepare for the proposal. Fee: $2,500.

Pacific Northwest Angel Investor Networks

• Portland Angel Network: This network favors early-stage investing and you must be based in Oregon or Clark County, Washington.
• Alliance of Angels: Companies must be headquartered in the Pacific Northwest. This is a members-only site where you can view business proposals, and there is no cost for submission or screening of business plans.
• Vancouver Angel Technology Network: Introduces early stage technology companies to investors, all located primarily in British Columbia. The angel investor network consists of seasoned technology veterans and 30 to 40 usually attend the meetings where companies meet angel investors.

Southwest Angel Investor Networks

• Arizona Angels: Invests exclusively in Arizona-based companies, with over 100 angel investors.
• Desert Angels: Similarly focused only in Arizona companies, but with only about 50 angel investors.

Northeast Angel Investor Networks

• Common Angels: Limited to Boston area companies, this large angel network favors early-stage software companies.
• Maine Angels: This angel network is ideal for companies hoping to raise from $50,000 to $250,000. Although the Maine Angels tend to invest in local companies they are open to other locations.
• Silicon Garden Angel Investors Network: Invests in East Coast companies with a somewhat smaller than most networks' average investment ranging from $20,000 to $250,000.
• Tech Valley Angel Network: This angel investor group invests in early-stage businesses in northeastern New York and New England.
  

California Angel Investor Network

• Fast Angels: Tech focused group that invests primarily in Silicon Valley companies. Motto-"Act Faster, act smarter."
  
• The Angel's Forum: Invests in seed and early-stage business ventures. The Angel's Forum invests primarily in consumer products, enterprise software, industrial products, Internet and e-commerce, medical devices and service, as well as clean-tech.
  
• Band of Angels: Large and established angel network invests in a variety of high-tech companies with over 100 angel investors.
• Sierra Angels: 50 member strong angel group that focuses on companies in the Northern Sierra region including Nevada, California and other close locations. The average investment ranges from $250,000 to $2,000,000.

South Angel Investor Network

• The Network of Business Angels and Investors: Invests in traditional and technology companies. Georgia-based.
  
• Houston Angel Network: Nonprofit organization that links startup companies with accredited angel investors. This angel investor network invests in companies based in Texas or willing to relocate to Texas.
  

If you have any additions please e-mail me at Theo@peblogger.com, also angel investor networks that would like to provide their own brief summary can contact me.

Link to This Resource: Angel Investor Network

http://privateequityblogger.com/2008/07/angel-investor-network.html

Private Equity in China

China has become the new frontier for private equity investors or private equity funds hoping to attract Chinese investors, also venture capitalists are staking their claim there. With a thriving economy and a booming financial expansion--thanks to a reformation of laws governing private investment--Americans in private equity hurrying to China is akin to miners in the Gold Rush. Today, I will look at some of the differences between China's private equity and U.S. private equity.

Difference of Private Equity in China
Whereas American funds tend to invest in middle-market or big businesses, China's private equity funds are more like late-stage venture capital investors. Chinese funds look for proven businesses with established positions in the market, eliminating as much risk as possible before investing. Also, while American funds typically avoid the technology sector, China's private equity funds strongly invest in tech areas like pharmaceuticals, agriculture and energy.

Instead of the big takeovers that America's private equity is known for, most funds in China purchase only a minority stake in companies. This is because China's entrepreneurs especially distrust investors and are unwilling to give up a majority share to outside investors. The size of investments tend to be smaller in China because the cost for expanding and operating a business is significantly less.

Tax and regulation reform have led China's financial growth, and more changes for China's private equity sector are in the works, making China a crucial area for American private equity investors.

Link to This Resource: Private Equity in China

http://privateequityblogger.com/2008/07/private-equity-in-china.html

MBK Partners

MBK Partners | Private Equity Tracker Profile

The following piece on MBK Partners is being published as part of our Private Equity Tracker Tool, our daily effort to track private equity firms in the industry. MBK Partners is a large private equity firm in the Asia-Pacific region, managing over $3.7 billion in capital. The firm prefers to acquire companies through management-led buyouts.

Story #1: MBK Partners Raises $1.6 billion Private Equity Fund

Private-equity firm MBK Partners LP has raised $1.6 billion for its second fund, matching the size of its first fund, people familiar with the situation said.

MBK's fund is the largest Asian fund raised so far this year. Carlyle Group LP this month said it raised $1.04 billion for its second Asia growth fund. The credit crunch and global economic slowdown has made fund raising difficult as investors shy away from committing more capital. MBK, like many other private-equity firms, has had to pare back its target fund size.

MBK had originally targeted $2.5 billion to $3 billion. Its first fund totaled $1.5 billion. Globally, private-equity fund raising picked up in the second quarter ended June 30. Research and consultancy company Preqin said funds raised in the second quarter totaled $76 billion, up from $60 billion in the first quarter. Source

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Tags: MBK Partners, MBK Partners investments, MBK Partners Asia, MBK Partners Private Equity, MBK Partners Investors, MBK Partners Wealth Management, MBK Partners LP

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CCMP Capital Advisors

CCMP Capital Advisors | Private Equity Firm Profile

The following piece is part of our effort to provide profiles of as many private equity firms as possible. We update the private equity profiles regularly, to see more private equity tracker profiles follow this link.

Overview from CCMP Capital Advisors:

As a premier private equity firm, CCMP Capital Advisors, LLC has invested approximately $12 billion in buyout and growth equity transactions since 1984. The foundation of CCMP Capital’s investment approach is to leverage the combined strengths of its deep industry expertise and proprietary global network of relationships by focusing on five targeted industries: Consumer, Retail and Services, Industrial, Energy, Healthcare Infrastructure, Media and Telecom.

Story #1: Dow Jones's Former CEO Joins CCMP Capital Advisors

Richard Zannino, the former chief executive of Dow Jones, landed a job in private equity. Mr. Zannino is joining CCMP Capital Advisors, a New York buyout firm with $10 billion under management. Formerly known as J.P. Morgan Partners before J.P. Morgan Chase & Co. spun it out in 2006, CCMP's holdings include sandwich shop Quiznos Subs, AMC Entertainment and Spanish cable operator Grupo Corporativo Ono.

The 50-year-old Mr. Zannino resigned as CEO of Dow Jones & Co., publisher of The Wall Street Journal, in January 2008 after News Corp. acquired the company for $5 billion. He joined Dow Jones in 2001 as chief financial officer after holding senior finance, strategy and operating positions at several companies, including Saks and Liz Claiborne. (Source)

Popular private equity articles:

1. Private Equity Tracker Tool
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4. Service Provider Directory

Tags: private equity tracker, private equity CCMP Capital Advisors, CCMP private equity firm, CCMP Capital Advisors investment, CCMP Capital Advisors wealth management, CCMP Capital Fund

Link to This Resource: CCMP Capital Advisors

http://privateequityblogger.com/2008/07/ccmp-capital-advisors.html

Huntsman Gay Global Capital

Steve Young Joins Huntsman Gay Global Capital

One of my favorite quarterbacks is Steve Young, who played for the San Francisco 49ers for most of the previous decade. He is one of a few athletes who have left the stadium and moved into the private equity arena (last month, we reported David Robinson's Admiral Capital). The Hall of Fame QB is now the managing director at Huntsman Gay Global Capital.

Although quarterbacks are typically the smartest players on the field, Steve Young has gone above and beyond to prove his intelligence. For one thing, the man holds a law degree from BYU but he has made his professional mark in Silicon Valley by funding a number of tech start-ups. He co-founded Northgate Capital with some of his old teammates, a fund-of-funds that invests in young technology companies and now he is moving into the private equity world as managing director for Huntsman Gay.

He is straying away from purely the tech industry with the freshly closed $1.1 billion fund. But it makes sense that a player for San Franscisco can't stay away from technology. Young said he'd still like to compete with major tech private equity firms, Silver Lake Partners and Francisco Partners. Here is a interview with Steve Young with Bloomberg:







Tags: Private Equity tracker profile, huntsman gay global capital, huntsman gay global capital steve young, steve young finance, steve young investment, steve young private equity, steve young huntsman

Link to This Resource: Huntsman Gay Global Capital

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