Will Asset Tokenization Revolutionize Fundraising and IPOs?

Thanks to advances in blockchain technologies, raising capital may soon get much easier. When combined with asset tokenization, blockchain technology provides a new way to raise capital that can speed up the dealmaking process, provide private companies with liquidity, and tap into new investor opportunities.

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New Ways to Raise Money in 2018

For startups, entrepreneurs and small business owners, the future looks bright indeed. According to the Kauffman Index of Growth Entrepreneurship, U.S. entrepreneurial activity has continued to increase for the past three years since 2014, rebounding from the slump of the Great Recession. What's more, 2017 broke records for the most venture capital invested in a single year worldwide.

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5 Key Performance Indicators to Master Before Pitching to Investors

Before even considering a pitch to prospective investors, company leaders must have a strong sense of how their company is faring including its anticipated trajectory. The numbers must be crunched and the data meticulously analyzed to ensure that those involved in the pitch presentation can speak intelligently on operational and financial matters. The pitch deck must be prepared well in advance and polished to near perfection, and any potential questions or concerns should be considered and discussed beforehand to avoid mid-pitch flubs. Investors will be interested in understanding a company’s goals and vision, how it intends to use the funds it is seeking, and particularly keen to gather information relating to performance. Here are five key performance indicators to master before making that pitch:

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5 Common Fundraising Questions Answered

Starting a business may not require a ton of money outright, but growing it likely will. For startup founders focused on building a company from the ground up, the idea of fundraising is no doubt a bit overwhelming. It is hard enough to keep things running when there are limited resources, and there simply may not seem like time for the often arduous fundraising process. Given that fledgling entrepreneurs probably have a lot of questions before they can delve into the process and not much time to spend researching, here is a look at some of the common questions answered.

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The Differences Between Angel Investors & Venture Capitalists

Raising the funds needed to fuel a project usually begins before the venture even gets off of the ground. In many cases, startup founders will use their own money to get things going, or they will borrow money from close friends or family. Of course, if they are really lucky, they may manage to nab some seed money from an angel investor or two. Although both angel investors and venture capitalists tend to invest in innovative startups, they are not quite the same type of investor. Here is a quick rundown of the differences:

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What Is a Private Placement Memorandum (PPM)?

A private placement memorandum (PPM), which is also called an offering memorandum, is a lengthy document that legal counsel, accountants, investment bankers, and other pertinent professionals put together for a company to present to prospective investors. A PPM can take quite some time to craft, as it must explain the terms of the investment that the company is offering, including an explanation of the goals and potential risks. Here is a brief rundown of some of the key information that should be included in a well-designed PPM:

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5 Tips to Make a Stellar First Impression When Meeting With Investors

Startup founders know that securing funding early is critical to a company's long term success. As a result, there is a lot of pressure and stress when seeking investors and participating in fundraising rounds. Company leaders must ensure that they are completely prepared before diving in head first, so here are some tips to make a stellar first impression:

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Virtual Data Rooms: Everything You Need to Know

As the name suggests, a virtual data room, or as it is more frequently called, a “VDR,” is an online database in which companies can store and share confidential information, usually used during a financial transaction. It may also be described as a type of electronic repository or document filing system. With the ubiquitous reliance on computers and specialized software to keep a business running smoothly, coupled with the fact that more and more companies are making the transition to a completely paperless office, many of the previously document-heavy operational practices have been shifted to the virtual realm.

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How to Evaluate An Investor Using the Venture Capital Life Cycle

Venture capital (VC) has been and continues to be critical to the growth and success of countless startups. Most VC firms create impressive funds with a plan to invest in innovative business ideas, and have a lofty goal of selling those interests at a high return after about ten years. This may seem like a fairly long time, but it is actually a relatively short timeframe considering the typical length of a lot of other investment vehicles. One of the benefits of the VC life cycle is that it can help those seeking VC funding to assess prospective investors, and it is not overly cumbersome to perform this analysis. Depending on where the VC firm is in the cycle, startup leaders can get a pretty good sense of the firm’s strategy and performance, which will of course influence whether or not to pursue an investment from it. Here is a brief look into how one can evaluate an investor using the VC life cycle:

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The Most Vital Documents for Fundraising Due Diligence

Due diligence is a cumbersome albeit integral step for many business transactions. Although it is a lengthy and detailed ordeal, the process really boils down to sharing a ton of documents for others to scrutinize so that they have a solid understanding of what it is they are gaining from the deal. Some document requests may seem odd, but those in charge of the due diligence investigation have to review just about everything imaginable, as there are a lot of different things that have the potential to jeopardize a company. Here are the most vital documents for fundraising due diligence:

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