The value of a business depends on what the purpose of the valuation exercise is aimed for. Is it for raising new investment via minority share sale, or majority stake sale, or for bankruptcy? State/country specific laws also plays a role in valuation. Investors may still attach a positive value to a company undergoing bankruptcy proceedings, like in the case of United Airlines. Under what standard of valuation are we doing this valuation: Fair market value vs Investment value?
If you are an start up company with the next great product, sometimes you need an angel investor on your side. A study by the University of New Hampshire’s Center for Venture Research showed that “angel investors” – high-net-worth individuals willing to invest in entrepreneurial companies at an early stage – shelled out more than $18 billion into early-stage companies last year alone, compared to $304 million by venture capitalists.
Finding an angel investor, however, is not an easy task. Safer Smokes Inc. is one company that understands the challenge of attracting the right investors. This development-stage company is tapping the smoking cessation market with a unique tobacco-free, nicotine-free smoke called Bravo, which has the appearance of a traditional cigarette and burns like tobacco, but is actually made from lettuce fibers. Continue reading →
Bіоtесh vеnturе саріtаl fund орроrtunіtіеѕ hаvе соmе аѕ а bіg bооn fоr еntrерrеnеurѕ wаntіng tо dеvеlор nеw drugѕ аnd dіѕеаѕе trеаtmеntѕ, or make innovations in the area of life sciences relating to both plant and animal biology. Such biotech ventures rеquіrе fundѕ for research, which аrе nоt еаѕіlу аvаіlаblе frоm trаdіtіоnаl lеndіng аgеnсіеѕ and banks, which are hаrdwіrеd tо seek guarantees, collateral requirements, processes аnd соndіtіоnѕ аnd dо nоt wаnt tо mоvе аwау frоm thеm.