Is the Venture Capital Bubble About to Burst

Over the past decade, the venture-capital industry has seen tremendous growth. Last year alone, over $160 billion was spent on investments in startup companies worldwide. The interest from investors in early-stage companies has nearly tripled over the years and deal counts have continued to climb. But is it possible for this momentum to last?

Below we'll review the current state of affairs in the venture-capital sector, what has led to its rapid growth in recent years, and how the industry's financial bubble may soon be ready to burst.

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An Exploration of Mid-Tier Consolidation in US Banking Market

The banking sector has contracted significantly over the last twenty years. In 1988 there were approximately 13,400 commercial banks in the US; by the end of 2018 that had dropped to about 4,800. That's a 65% drop.

Most of these banks didn't fail - they merged. The rate of mergers today for banks with less than $10bn in assets is almost double what it was during the financial crisis.

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Top 3 Books for the Inside Scoop on the Investment Banking Industry

Investment banking is a specific sector of the financial industry designed to help organizations raise capital for their businesses. The industry also supports companies by providing various financial services including proprietary trading, mergers, and acquisitions.

Today, governments, companies, and businesses all actively use investment banking and the bankers that service it to assist in offering strategic advice on how to utilize their funds. To get a better understanding of the investment banking industry, here are three great reads that can give you a more in-depth look at the industry and how it's developed over the last several years.

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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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