Archive for category Business

How to Become an Angel Investor

To become an angel investor you need to have enough money to invest in business ventures and have experience that could add value to the venture you invest in.

Money

A typical angel investor in the USA invests between USD 5000 to 500,000 in growing businesses. In the UK the investment range is from UK Pounds 10,000 to 250,000.

Investment advisors generally recommend that angel investors put no more than five to ten percent of their total portfolio into these private equity investments. The most of their portfolio should remain in the investments of stocks, bonds and cash.

Skills & Experience

You should have business and management experience and contacts in your area of expertise. With your business experience you are more likely to be able to make a sensible judgement about whether the company seeking money is likely to succeed. You will also be able to contribute more to the management of the company. If your business experience is limited, the most sensible option would be to seek to invest alongside people who are experienced, in a syndicate.

Research suggests that on average an investor spends about 10 hours a week on the company’s affairs. It would obviously be helpful if your skills and experience are complementary to the existing skills set in the business. If your skills fill a gap in the venture’s skills set, you are less likely to be accused of “interfering” in the affairs of the company.

Precautions You Should Take Before Investing

If you have not made a business angel investment before, there are a few things to consider before investing in a company:

  • Obtain experienced legal advice for assessing documentation, structuring the deal and drawing up agreements.
  • Obtain experienced accountancy assistance for assessing the business plans, other due diligence and tax advice.
  • Plan how you expect to achieve a return from your investment provided the investment is successful, i.e. dividends, fees, capital gain.
  • Find out about the entrepreneur and management team’s background and track record. Establish whether the entrepreneur, fellow directors or any of the management team have been bankrupt or been a director of an insolvent company and the facts behind this.
  • Consider investing together with an experienced business angel. Business angel networks may be able to put you in contact with an experienced angel who may be interested in investing in the same company you are considering.
  • Be patient. It often much longer than many business angels anticipate to find the right company in which to invest.

By Venture Ahead

http://www.angelscorner.com/

Google and Skype, more than a rumor.

Google Skype

Rumors about “more than contacts” between Google and Skype are more and more. Somebody talks about an alliance, somebody about an acquisition. I don’t think that an acquisition, by Google will be good for users, so honestly I hope only that they are working about opening skype protocol with jabber Gtalk one. Tha facts are that Skype is seen by eBay like something that is unable to generate money, and Google wants expand itself on the voice market. Time will talk about it.

VC 2007 deals

Interesting graphs from a Testcrunch article:

VC 2007 Deal

2007 VC Deal list

Una donna alla guida di Confindustria

Emma Mercegaglia è stata eletta presidente di confindustria. La prima donna nella storia del nostro paese. Che qualcosa stia cambiando in Italia? Il plebescito (95% dei voti) mi fa pensare di no.

3-questions for an entrepreneur

These was the three basic questions that I had to learn at my strategy class at Solvay, Bruxelles. As I found it today on Harvard Business Review, I’m posting a part of the article.

Of the hundreds of thousands of business ventures launched each year, many never get off the ground. Others fizzle after spectacular rocket starts.

Why such dismal odds? Entrepreneurs—with their bias for action—often ignore ingredients essential to business success. These include a clear strategy, the right workforce talent, and organizational controls that spur performance without stifling employees’ initiative.

Moreover, no two ventures take the same path. Thus entrepreneurs can’t look to formulas to navigate the myriad choices arising as their enterprise evolves. A decision that’s right for one venture may prove disastrous for another.

How to chart a successful course for your venture? Bhide recommends asking yourself these questions:

Where do I want to go? Consider your goals for the business: Do you want the rush that rapid growth delivers? A chance to experiment with new technology? Capital gains from selling a successful company?

How will I get there? Is your strategy sound? Does it clarify what your company will and won’t do? Will it generate sufficient profits and growth?

Can I do it? Do you have the right talent? Reliable sources of capital?

Improvisation takes a venture only so far. Successful entrepreneurs keep asking tough questions about where they want to go—and whether the track they’re on will take them there.

Spirit of the Entrepreneur

You hear it all the time from famous entrepreneurs: Long before they were running multimillion-dollar companies, they were flexing their entrepreneurial skills by selling lemonade on the corner, building gadgets in their garage or hosting weekly college beer pong tournaments. It seems that behind every successful mogul is a kid who grew up knowing they were born for business.

But what exactly is it that sets entrepreneurs apart from the rest? What is it that makes certain people believe in themselves enough to take the prospect of failure head-on and have the determination to come out on top? It takes a special kind of person to set an idea in motion, riding the highs and lows from humble beginnings to ultimate success.

The entrepreneurial spirit is a gift that inspires others to become the best they can be. From passion and positivity to leadership and ambition, here are the entrepreneurs that best define the entrepreneurial spirit.

Passion
No one embodies the word “passion” quite like Richard Branson, founder of the Virgin mega-brand. Part of Branson’s passion lies in his insatiable appetite for starting companies. Founded in 1970, the Virgin Group has expanded to more than 200 companies, ranging from music, publishing, mobile phones and even space travel. “Businesses are like buses,” he once said. “There’s always another one coming.”

Part of Branson’s appeal is that he not only has passion for business, but an incredible passion for life. Branson is famous for his adventurous streak and zest for life, making him one of the most admired entrepreneurs for his ability to have a successful work/life balance.

Positivity
Jeff Bezos knows the power of positive thinking. Living by the motto that “every challenge is an opportunity,” Bezos set out to create the biggest bookstore in the world with a little internet startup called Amazon.

Amazon.com launched in July 1995, and with no press, managed to sell $20,000 a week within two months. By the end of the ’90s, though, the dot-com bust had brought Amazon’s shares from $100 to $6. To add insult to injury, critics predicted that the launch of Barnes & Nobles’ rival website would wipe out Amazon. Instead of hiding in the corner, Bezos came out fighting with optimism and confidence, pointing out to critics all the positive things his company had accomplished and would continue to do.

Bezos continued to expand Amazon, which now sells everything from books to clothes to toys and more. Bezos claims his wife loves to say, “If Jeff is unhappy, wait three minutes.” Thanks to Bezos’ positive thinking, Amazon.com has grown into a $5.7 billion company.

Adaptability
Having the ability to adapt is one of the greatest strengths an entrepreneur can have. Every successful business owner must be willing to improve, refine and customize their services to continually give customers what they want.

Google founders Sergey Brin and Larry Page take this concept a step further by not just reacting to change, but leading the way. Google continually leads the internet with innovative ideas that allow people to see and do things in ways they couldn’t before (think Google Earth). With their ability to continually be one step ahead, its no wonder Google is one of the most powerful companies on the web.

Leadership
A good leader is someone with charisma, a sense of ethics and a desire to build integrity within an organization–someone who’s enthusiastic, team oriented and a great teacher. All of these attributes were embodied by the late Mary Kay Ash, founder of Mary Kay Cosmetics, a company that has helped more than half a million women fulfill their dreams of owning a business.

Ash’s story began as a single mother, working in sales for a home products company. Despite being one of the top sales directors for 25 years, Ash was repeatedly refused the promotions and pay raises her male co-workers were receiving. Fed up with the way she was being treated, Ash started Mary Kay Inc. in 1963 with $5,000.

Ash was best known for being a powerful motivator and inspirational leader, creating a company with a “You can do it!” attitude. Her sometimes over-the-top incentives included the famous pink Cadillacs she would give top sales directors. Thanks to her powerful leadership skills, Ash has been named one of the 25 most influential business leaders in the last 35 years, and her company has been recognized as one of the best companies to work for in America.

Ambition
At age 20, Debbi Fields didn’t have much. She was a young housewife with no business experience, but what she did have was a great chocolate chip cookie recipe and a dream to share it with the world.

Fields opened her first Mrs. Field’s store1977, despite being told she was crazy to believe a business could survive solely on selling cookies. Fields’ headstrong determination and ambition helped her grow her little cookie store into a $450 million company with more than 600 locations in the U.S. and 10 foreign nations.

Article by entrepreneur.com. link

Microsoft and Yahoo.. the real M&A challenge…

Yahoo logoMaybe the biggest challenge Microsoft will face is cultural. Yahoo’s 14,300 employees come largely from the Silicon Valley world that loves to hate Microsoft. “Yahoo has always considered itself a bit of an upstart,” says a former Yahoo employee who asked to remain anonymous. “Most Yahoo employees will feel that, A., we lost, and B., there is no way in hell that I am going to work for Microsoft.”
From a BusinessWeek article

Google e il mestiere più antico del mondo

Roma – Ma Google è davvero l’azienda più moderna e innovativa del mondo? È davvero un modello da imitare a tutti i costi, un esempio mirabile della nuova generazione di imprese IT? Se lo è chiesto Nicholas G. Carr, noto esperto delle cose di rete, fornendo una risposta per certi versi inaspettata: Google non ha sviluppato alcun modello di business particolarmente innovativo, piuttosto fa cose nuove alla vecchia maniera.

Nella sua analisi, Carr individua tre pilastri del successo di Google. Primo: aver sviluppato un algoritmo efficace per la classificazione del web, in grado di descrivere in modo appropriato la rilevanza e l’autorevolezza di un sito e tradurre questi valori in una ricerca affidabile. Secondo, aver trovato un modo di far fruttare economicamente questa capacità: AdSense è un prodotto molto profittevole (garantisce il 99 per cento degli introiti di BigG), e non pare risentire in alcun modo del trascorrere del tempo.

Terzo, ma non meno importante, l’approccio di Searchzilla alla infrastruttura hardware. Google ha realizzato, o sta realizzando, data center poderosi sparsi per tutto il globo: la sua tecnologia di parallelizzazione dei task è tra le migliori al mondo, la velocità di risposta dei tool è quasi istantanea. In questo senso, sostiene Carr, Google è molto più avanti della concorrenza – vale a dire di Yahoo e Microsoft.

A parte queste tre conquiste, Garr non vede particolari successi made in Mountain View: fatta eccezione per Google Maps, nessuno degli strumenti offerti dall’azienda ha mai cambiato drasticamente la prospettiva della rete. La strategia di BigG, piuttosto, è di realizzare un gran numero di strumenti gratuiti per aumentare il traffico dei navigatori sui propri server: il costo di sviluppo e implementazione del tool è pressoché ininfluente rispetto al potenziale guadagno legato agli spazi pubblicitari, a prescindere dal successo che otterrà presso il pubblico.

Ma si tratta di una pratica che funziona solo per Google, spiega Carr: qualunque altra azienda si dovrebbe guardare bene dal lanciare decine di servizi senza futuro, tutti destinati a finire nel dimenticatoio oppure ad essere soppiantati da soluzioni più efficienti. BigG può farlo perché guadagna alla grande con la pubblicità, perché è quella la sua fonte principale di introiti. Altre startup IT finirebbero presto in bancarotta.

Quelli di Searchzilla, invece, fanno le cose con criterio: evitano di far lievitare le spese oltre il ragionevole, un errore comune nelle aziende più sprovvedute, reclutano i migliori cervelli sulla piazza e gli offrono le migliori condizioni di lavoro possibili, ivi compresa la libertà di fare quello che gli pare (entro certi limiti) anche durante l’orario di ufficio.

Insomma, Google segue e sta seguendo un iter noto e consolidato: una idea intelligente, un modo intelligente di guadagnarci, un po’ di sana competizione interna e buoni investimenti nella ricerca. Le altre aziende possono pure guardare a BigG per ispirarsi, ma le regole per ottenere successo – conclude Garr – non sono cambiate: permettere al talento di esprimersi, crescere senza fretta e pronti a correggere in corsa, evitare spese folli e ingiustificate. Se il mondo è cambiato, non significa che sia cambiato anche il mondo degli affari.

Luca Annunziata

Entrepreneurs Say No to MBAs

Though MBAs are crucial to certain career paths, many entrepreneurs say they’re not worth it. A recent survey of small-business owners conducted by SurePayroll discovered that 70 percent of entrepreneurs don’t think an MBA is essential to entrepreneurial success. Of those surveyed, 44 percent said that formal education is very important in preparing entrepreneurs for future success, while 51 percent said education is only somewhat important, and 5 percent said it’s not important. However, 57 percent of respondents agreed that having an undergraduate degree is more important than having an MBA. A whopping 91 percent of small-biz owners surveyed said entrepreneurs who receive MBAs from Ivy League schools have no advantage over those who receive them from any other schools.

SurePayroll president, Michael Alter, said the results weren’t surprising. “That’s the beauty of entrepreneurship,” he said. “Anybody can go into business regardless of their education. A person’s level of education isn’t a big determinant of success. The things that matter are having a good business plan, finding a niche, being passionate about what you do and working hard and smart to achieve your business goals.”

When asked what factors were important to achieving entrepreneurial success, participants agreed upon a person’s drive and ambition (27.2 percent); a person’s passion for a specific business venture (14.9 percent); and hands-on experience in the industry (13.5 percent).

By Entrepreneur Daily, author Kristin Edelhauser

Stay hungry, stay foolish!

Here the two main paragraphs from the Steve Jobs text of the Commencement address by Steve Jobs, CEO of Apple Computer and of Pixar Animation Studios, delivered on June 12, 2005.

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don’t settle.

Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma — which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

Stay Hungry. Stay Foolish.

Here the full audio in mp3.