Financial Tips

The Perfect Package – Submissions to Venture Capital Funds

Recently I was asked to speak in a community of about 70 business owners to give them an introductory explanation about the Venture Capital world and I called it “Venture Capital 101 in Simple Terms.

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In order to make it easy and entertaining for them, I put together a Powerpoint Slide show with lots of images and little text. Images always work best when you want to communicate in a powerful way and when you want your target audience to remember you.

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Here in this blog post I show five images out of the slide show, so you can imagine how the talk went.

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As I also wanted the audience to take something valuable from the talk, I added in a slide that would lay out in detail the ingredients of a “Perfect Package”.

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It is what the Investors want to see, it’s the miraculous sauce, it’s what makes the difference between being rejected or receiving cash. As an inventor or entrepreneur looking towards Venture Capital investors you want to make sure that you accumulate as many advantages as you can on your side.

You can also click on the link above and download it to your computer.
Slide 17 with the 9 ingredients of the Perfect Package might be of value to you when submitting to a Venture Capital Fund.
If you have known me for a while, then you know what to expect at the end. Yes, it’s “Overwhelming Joy”
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Solutions Leading To WIN-WIN

motivation-721827_1280Let us define first what is considered a “WIN-WIN”:

Dictionary.com: advantageous to both sides

British Dictionary: guaranteeing a favourable outcome for everyone involved

When you are doing business, it is always good to create a WIN-WIN situation.

Both parties will benefit from it and it is a favourable outcome for the contracting parties.

When dealing with Venture Capital or Private Equity, it is planned that the party bringing the capital brings the WIN to the owner/corporation that wants to expand their business and the owner/corporation is giving up a percentage of their company (equity) which is planned to become a WIN for the investors, as the company becomes profitable and becomes more valuable as time proceeds.

Personally I am looking to always look for a WIN-WIN solution in any business transaction that I am involved in. For your next VC or PE business deal, expansion plan for your corporation or roll out of your latest invention: Ask Wolfgang.

 

Looking Out For The Fruit

apple-694022_1280Mat 3:23 “Make a tree good and its fruit will be good, or make a tree bad and its fruit will be bad, for a tree is recognized by its fruit.

So if you consider that we ourselves are like trees, who are recognized by our fruit – what does your fruit look like, what does my fruit look like? Some self introspection is always helpful, as we can get a deeper insight and revelation regarding what we are to do and what not to do.

John 15:16 “You did not choose me, but I chose you and appointed you so that you might go and bear fruit–fruit that will last–and so that whatever you ask in my name the Father will give you.

John 15:16 reveals another key to us on our path to being successful in the Lord’s eyes.  This scripture tells us that the fruit that He is interested in, is fruit that will last (eternal fruit). The end of the verse contains an awesome promise that is based upon the condition that we bear fruit that will last.

So what is fruit that will last?

Olive Branch Ministries expressed it very well in their article about fruit when they said:

“I want to have lasting fruit in my life, lasting fruit is not fruit that will perish with this world but fruit that will go on for eternity. The fruit that perishes is the fruit of the flesh but the fruit that lasts is the fruit of love. Paul said to the Corinthians…

1 Corinthians 13:3 And though I bestow all my goods to feed the poor, and though I give my body to be burned, but have not love, it profits me nothing.

What ever we do if it is not sown in love there will be no profit. Sow in love and reap.

Paul said to the Philippians… I seek the fruit that abounds to your account. The Philippians were disciples of Paul and he earnestly wanted for them to bear much fruit. We can see that it was Paul’s desire to see them grow, mature, and produce the fruit that God wanted them to produce, he said this because he had the same desires as his Heavenly Father. Our Father wants us all to bear lasting fruit. That is His desire, and should be ours as well.

My hearts desire is to sow life into others even as I have received, not only to sow into others but sow into others who will in turn sow into others themselves. As you have received, I encourage you to guard your heart, let the seed grow and flourish and produce fruit, and in your turn sow that seed into someone else’s life.

This truly is the fruit that lasts.”

Healthy, Responsible, Profitable

How do these three relate to what it is that I am doing?

I am interested in healthy stuff – healthy for the body, healthy for mind, healthy for the emotions, healthy for the spirit, healthy for the earth, healthy for others.

The Definition for responsibility is the state or fact of being responsible, answerable, or accountable for something within one’s power, control, or management.

That definition reminds us of the parable of the talents (bags of Gold), having responsibility over something, which also connects us to the last item which is very important to God: profitable.

We are called by God to be Profitable.

Mat 25 describes it:

The Parable of the Bags of Gold

14“Again, it will be like a man going on a journey, who called his servants and entrusted his wealth to them. 15To one he gave five bags of gold, to another two bags, and to another one bag,a each according to his ability. Then he went on his journey. 16The man who had received five bags of gold went at once and put his money to work and gained five bags more.17So also, the one with two bags of gold gained two more. 18But the man who had received one bag went off, dug a hole in the ground and hid his master’s money.

19“After a long time the master of those servants returned and settled accounts with them. 20The man who had received five bags of gold brought the other five. ‘Master,’ he said, ‘you entrusted me with five bags of gold. See, I have gained five more.’

21“His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’

22“The man with two bags of gold also came. ‘Master,’ he said, ‘you entrusted me with two bags of gold; see, I have gained two more.’

23“His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’

24“Then the man who had received one bag of gold came. ‘Master,’ he said, ‘I knew that you are a hard man, harvesting where you have not sown and gathering where you have not scattered seed. 25So I was afraid and went out and hid your gold in the ground. See, here is what belongs to you.’

26“His master replied, ‘You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? 27Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.

28“ ‘So take the bag of gold from him and give it to the one who has ten bags. 29For whoever has will be given more, and they will have an abundance. Whoever does not have, even what they have will be taken from them. 30And throw that worthless servant outside, into the darkness, where there will be weeping and gnashing of teeth.’

 

Touching the World – A Heart for it’s People

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Theodore Seuss Geisel AKA Dr. Seuss

“Why fit in when you were born to stand out?”
― Dr. Seuss

Yes it is important to go through your own strategic planning process. We can spend a lot of time articulating the outcomes we seek to deliver to clients and the products and services we offer that deliver those outcomes. We also can discuss our strengths and weaknesses as well as our key priorities for the next year.

But, having said that, I am also aware that there is another set of questions that I think are every bit as important if not more so. These include:

  • Why am I interested in in facilitating finances for worthwhile projects around the world?
  • Why do I put so much of my time, energy, heart and soul into building a business which helps others succeed?
  • And, perhaps the most challenging question – what is the core purpose of WHY am I doing what I am doing?

Each of us must seek their own answers to these WHY questions. And the answers will continue to evolve over time. My personal satisfaction is derived from different things today than it was 29 years ago.

I also believe there is a core purpose that connects all of us. I suspect that it is not something that we can make up. It is something that we have to discover through conversation and dialog. So let me dialogue with you and answer the above questions as you are reading the discourse about my WHY’s.

  • Why am I interested in in facilitating finances for worthwhile projects around the world?

Many inventors and many people, who have a good heart for humanity in general are often stuck because finances is the only thing that is preventing them from moving forward. Many times, preparations and plans have been established for many years, sometimes even 1 to 2 decades. An unstoppable enthusiasm kept them going, overcoming one obstacle after another and never giving up, always believing in their dream. I am of the opinion, that if you find such a person and their WHY is rooted in helping humanity, assisting economy, aiding communities and bringing something worthwhile to the table, then I will do whatever I can do to support and help to find these finances, so that the project can be manifested in reality.

  • Why do I put so much of my time, energy, heart and soul into building a business which helps others succeed?

I believe in others people’s dreams. It is my greatest joy to see the inner core dream of a man or woman manifested. The realization and manifestation of an often lifelong dream is something extremely rewarding. This quote also helps understand that knowing your WHY is very helpful:“If we have our own ‘why’ of life, we can bear almost any ‘how.'” 19th Century German Philosopher, Friedrich Nietzsche

  • And, perhaps the most challenging question – what is the core purpose of WHY am I doing what I am doing?

1 Sam 15:20 “But I did obey the LORD,” Saul said. “I went on the mission the LORD assigned me.
Jos 22:3 For a long time now–to this very day–you have not deserted your fellow Israelites but have carried out the mission the LORD your God gave you.
Acts 20:24 But I don’t place any value on my own life. I want to finish the race I’m running. I want to carry out the mission I received from the Lord Jesus-the mission of testifying to the Good News of God’s kindness.

Private Equity vs. Venture Capital

Technically, venture capital is just a subset of private equity.

They both invest in companies, they both recruit former bankers, and they both make money from investments rather than advisory fees.

But if you take a look beneath the surface, you’ll see that they’re significantly different.

Definitions

Technically, the term “private equity” refers to money invested in private companies, or companies that become private through the investment.

Most people in finance, though, use “private equity” to mean firms that buy companies through leveraged buyouts (LBOs) – so that’s how we’ll use it here.

There are a couple other categories of PE, so we’ll look at those at the end of this article.

What They Do

While both PE firms and VCs invest in companies and make money by exiting – selling their investments – they do it in different ways:

  • Company Types: PE firms buy companies across all industries, whereas VCs are focused on technology, bio-tech, and clean-tech.
  • % Acquired: PE firms almost always buy 100% of a company in an LBO, whereasVCs only acquire a minority stake – less than 50%.
  • Size: PE firms make large investments – at least $100 million up into the tens of billions for large companies. VC investments are much smaller – often below $10 million for early-stage companies.
  • Structure: VC firms use only equity whereas PE firms use a combination of equity and debt.
  • Stage: PE firms buy mature, public companies whereas VCs invest mostly in early-stage – sometimes pre-revenue – companies.

The MERGERS & INQUISITIONS article is by Brian DeChesare.

Wolfgang Kovacek – Speaker at Wagner Leadership Institute – WLI Marketplace-The Kingdom Business Advantage

Wolfgang Kovacek speaking at Wagner Leadership Institute

This is how it was advertised by the Wagner Leadership Institute:

WLI Marketplace-The Kingdom Business Advantage
with Wolfgang Kovacek

FREE FOR EVERYONE

Join us for our monthly fellowship and speaker series to help your business grow in a Kingdom way. Our guest speaker, Wolfgang Kovacek is a profit recovery specialist who will be sharing on “The Importance of Cash Flow in Your Business.” Attend this complimentary event.
Business Speaker Series: “The Importance of Cash Flow in Your Business”

Date: Saturday April 19th 2014

Time: 9-11 am

Location: 1610 E. Elizabeth Street, Pasadena 91104
Judson Building Upstairs in Room U-1

Additional Information Links:

 Email announcements that went out were: http://wagnerleadership.org/newsletters/email051614.php

 The Kingdom Business Advantage: http://us4.campaign-archive2.com/?u=737b1f046ecdfd88f6e9033c6&id=c6943e07ef&e=52ba6ad608

 If you are interested to attend future Kingdom Business Owners meetings, find information here in this Meetup Group: http://www.meetup.com/Kingdom-Business-Owners/

Wolfgang Kovacek speaking at Wagner Leadership Institute

 

If you are able to invite Wolfgang for any other speaking engagements or know of opportunities to be a panelist, please contact him.

America’s Leading Small Business Optimizer interviews Wolfgang, The CEO’s New Best Friend

Definitely Educational.

Wolfgang Kovacek and Melanie Benson Strick, America’s Leading Small Business Optimizer, Click Video Below

If you’d like to optimize your business check out the free resources at http://www.melaniebensonstrick.com. Nothing is more frustrating than having a client not pay their bill. This week Wolfgang Kovacek of AskWolfgang.com shares how he learned the hard way to have a profit recovery system. Melanie Benson Strick interviews Wolfgang Kovacek. Business owners – Enjoy and Learn!

To ask a question click here: http://askwolfgang.com/ask-wolfgang/