Gulf South Capital Forum | Magnolia Business Alliance

On September 14, the Magnolia Business Alliance is presenting the Gulf South Capital Forum.

This event will take place in the Hancock Bank board room inGulfport,MSwhere companies will present investment opportunities to angel and venture capital organizations. 

This is a rare opportunity on theGulfCoast.  If your company is seeking investment, Angel or VC, and would like to participate please contact info@magnolia-ba.biz or visit website.

There is no cost to participate.

Stages of Venture Capital Investing

I came across this article and almost skipped over it based on the title. But, while the title leaves a bit to be desired – this is a very good outline of the venture capital space.

Although this is focused on the investor’s side – it can really show an emerging firm where they might fall and begin looking to raise capital for their companies – as well as understand what motive these investors (may come in handy when negotiating on your valuation).

The article outlines your non-traditional investors (those that invest because they know you) to your growth fund investors (those who write very big checks and what nothing other than very big returns) – and everything in between.

It is quit interesting – having sat on both sides.

See the Article: VC nomenclature and the investor spiral – “Venture capitalists” still exist, but it’s become a bit more complicated than it used to be.

VC and Private Equity Funding is on the Rise

Came across a great article detailing the amount of venture capital that was raised (invested) in 2010.  Titled, “VCs poured $26B into business last year, up 11% from 2009” by VentureBeat – outlined that VC investment rose significantly in 2010.

All good news for both small businesses and our economy at large.  It also shows that there is still money in the market waiting to be invested in the right small businesses.

2011 should show an increase as well. 

There has been money sitting on the sidelines for a couple of years now – all needing to be invested (these VCs still have to provide returns for their limited partners) and with the markets slowly creeping up to healthier heights, the IPO window is posed to make a return in 2011 (hopefully).

Further, the high level of M&A activity over the last few years showed many private equity companies that regardless of the market, there will always remain some exit strategy for them.  Over the last two plus years, M&A activity really picked up – mostly out of need – from both the investors in the companies being acquired and those companies acquiring their competing little brothers to ensure that their own product offerings stay in the fore front of their industries.

So, while businesses in this country have been sitting on over $2 trillion in cash reserves, it did allow many larger firms to acquire new products and services.

Again, bolstering the private equity markets – which healthy markets here are part of the foundation that small businesses need (and our country needs) to stay solvent, profitable and a job creator.

Read the article from VentureBeat – Here -

Time Constraints of Raising Capital

For the last year or so, I have been a volunteer counselor at the SCORE office in Ft. Worth, Texas.  And, as my background is in business financing, I tend to counsel a lot of small or new business owners seeking capital.

After reviewing their business or business plan and seeing what capital raising avenue would be best for each business, I sometime recommend that business owners seeking private investment.  And, more times then not, I get the same push back. Most of this push back comes in the form of the following:

“That will take too much time.” or “If I did all of that, it would be like having another full time job.”  As a business may have to approach numerous investors (many times hear nothing but “NOs”) and go through rounds and rounds of pitches, interviews and business plans revisions.

While these feelings are justified – as no capital raising process is quick or easy – you have to keep a few things in mind:

1) If you are not willing to spend the time to play the game in raising capital – to ensure your investors or lenders that your business is sound – then why would an investor or lender feel that you would be willing to do all that you can to make your business a success.  It is essentially showing a potential partner – a partner who is willing to risk their hard earned capital – that you are committed to growing your business.

2) Raising business capital is only a temporary task.  While it might take some time – even a year or more – it is never a permanent task as once the capital is received, you and your business can then move on to achieve that next level and realize your business success dream.

There are much harder issues that all business owners face then raising money for growth.  Plus, going through and succeeding in this process can not only teach you many things about your business but about yourself as well.

I tell these business owners and future private equity raiser to make this process a learning experience and try to have fun with it.  Even if you don’t get the capital you need, by making this a process of substances, you should be able to create many lasting relationships that will serve you well in the future.

The bottom line – regardless of how long it takes and how much effort you have to put into it – if you want to succeed in business and this is your only option for raising capital, then by all means get to it and put those other thoughts out of your head.

If you don’t, then your only other option is failure.

Want to learn more about priavte equtiy?  Visit our Venture Capital page.