The Next Generation of Small Business Funding September 1, 2009
Posted by Jeff Nabers in Money, Personal Enjoyment, Personal Productivity.Tags: angel, angel investor, capital, debt, entrepreneur, entrepreneurship, equity, financing, funding, investment, investor, loan, raising money, small business, startup, VC, venture capital, venture capitalist
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Each year entrepreneurs pitch Venture Capital firms in hopes that their startup company or business expansion will get funded by them. The vast majority do not get funded. Furthermore, “getting funding” almost always means the entrepreneur must sell a sizable piece of his company to the VC.
Getting funded by a VC is a dream, but it can easily turn into a nightmare for both the entrepreneur and the VC. Because the VC owns a piece of the company, if further rounds of funding are needed in the future it could mean diluting only the founder’s ownership, depending on how the contracts were setup. It’s not too uncommon for founders to eventually wind up with a minority stake in their own company and to lose control of it. For the VC, there’s a big chance of failure. They usually need an exit strategy, such as taking the company public to sell its shares to the marketplace or to sell the company to a private party. But before they sell it, they need to try to juice up the revenue of the company to max out the sales price. When maxing out revenue becomes the primary unconditional focus, it’s easy for the business to go in a very different direction than the founder had intended.
The above horrors can happen when an entrepreneur does get funding. Let’s not forget that most entrepreneurs seeking capital just don’t get funded.
These are problems. And yet the world has a way about finding solutions to problems and getting them to those who can benefit. Sometimes the solution can be so incredibly simple that it’s hard to believe. In the case of funding a small business, the solution I see is a matter of (more…)
Could Obama’s Stimulus Really Work? February 20, 2009
Posted by Jeff Nabers in Health, Money, Personal Enjoyment, Personal Productivity.Tags: bail out, bailout, balance sheet, consumer, debt, deficit, economics, economy, financial, financial freedom, financial statement, future, government, income statement, invest, investing, investment, literacy, Money, obama, prosper, spending, stimulus, thrive, unemployment, wealth
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Our economy is 70% consumerism. That means it is mostly based on individuals buying stuff. So the current setup of our economy holds two basic facts:
- Individuals buying more stuff than they can afford to buy (based on their income) has a net effect that is good for the economy.
- When individuals lower their spending and save and invest money, the net effect is bad for the U.S. economy.
That said, should we even care about “the economy” in its current setup? If individuals were really doing what is good for themselves (saving and investing), it would be terrible for the economy.
So could Obama’s stimulus really work? Absolutely not. Not if you consider “it really working” to mean more than just temporarily. We don’t need a stimulus. We don’t need a boosted economy. We need a changed economy. There are only three ways out of (more…)
I.O.U.S.A viewing this weekend on CNN January 9, 2009
Posted by Jeff Nabers in Health, Money, Personal Enjoyment, Personal Productivity, real estate, Self Directed IRA/401k.Tags: austrian, bailout, bank, banking, banks, bernanke, buffett, chairman, cnn, corporate, currency, david walker, debt, dollar, economics, economist, economy, fed, federal reserve, fiat, fiscal, franctional reserve, government, greenspan, i.o.u.s.a., mises, Money, nation, national, obama, responsibility, school, social security, sovereign, sovereignty, stimulus, tax, wall street
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CNN to Broadcast I.O.U.S.A. | Obama Foresees Trillion-Dollar
Deficits |
A Bipartisan Plea for Fiscal Responsibility | The Government We
Deserve
CNN to Broadcast I.O.U.S.A.
The public has spoken, and we’ve listened. In response to demand
for information about our country’s financial challenges, CNN/U.S.
will air the broadcast premiere of the acclaimed documentary
I.O.U.S.A. on on Saturday, January 10 at 2:00 p.m. EST and on
Sunday, January 11 at 3:00 p.m. EST. Accompanying the documentary
will be an unscripted panel discussion with policy leaders about
various economic solutions currently under consideration.
This exclusive televised event will air only on CNN, and will be
hosted by Ali Velshi and Christine Romans, co-anchors of CNN’s
Your $$$$$, the network’s weekend business roundtable program.
Throughout I.O.U.S.A.’s broadcast premiere, Velshi and Romans will
engage a distinguished group of panelists, including Pete
Peterson, Chairman of the Peter G. Peterson Foundation and former
U.S. Commerce Secretary; Dave Walker, President and CEO of the
Peter G. Peterson Foundation and former U.S. Comptroller General;
Alice Rivlin, noted economist and former Director of the Office of
Management and Budget; and Bill Bradley, a Managing Director of
Allen & Company and former U.S. Senator and Democratic
presidential candidate, in discussions about issues raised in the
film and their ties to current economic events.
Learn more about the film at www.IOUSAtheMovie.com. And be sure to
spread the word about the U.S. broadcast premiere!
Obama Foresees Trillion-Dollar Deficits
CNNMoney.com reported on Tuesday that when President-elect Barack
Obama takes office on January 20, he’ll inherit an economy deeper
in debt than ever.
Obama commented on the unprecedented deficit, saying, (more…)
When the economy attacks: Fed fights back with toy gun December 16, 2008
Posted by Jeff Nabers in Money.Tags: debt, economy, expenense, fed, federal reserve, government, income, interest rate, invest, investments, key rate, overnight lending rate, stock market, unemployment
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Today the Federal Reserve lowered their key rate to 0%. Huh? How does our economy work when money is lent for no interest? Well, they technically lowered the key rate to a range of 0% to 0.25%. This is the first time the Fed’s key rate has been this low ever. Without getting into a long, complex examination of this let’s take a very simple look at our economic problems:
- Consumers spent more money than they had by borrowing and going into debt
- Lenders lent money to consumers who did not have the capacity to repay the loans
- The government spent more money than it had by borrowing and increasing debt
- Lenders lent money to the government who does not have the capacity to repay the loans
If we had a free market, (more…)
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