Securenet Inc

What seems to be the main issue is actually getting to build the prototype. Without it, lot of potential investors turned it down. For venture capitals and future potential clients to show further interest, Shane needs to show them a working prototype. However the prototype itself requires an investment of $250,000, this has proven to be difficult to raise. Without the prototype no one is willing to invest in the business, and without the investment Shane is unable to build a prototype. He is stuck in a vicious cycle and needs to find a different way to raise capital for his prototype.

Finance. In order to finance our startup year, we issued stocks and borrowed loan to finance our operation and for safety in case the sales did not go well. Financing using stocks means that we are selling common or preferred stocks to individuals. In return for the money, they get some ownership over the company and its interest. This helps to bring public’s awareness about the company. If the sales suffice, we will pay the debt in the second round.

To get a small business to be successful increase must occur. Increase in a company sometimes happens either by funding through debt or equity. IPO's can be quite useful in the strong growth of a company and are extremely complicated involving many crucial role players. We shall additionally insure the dangers involved with creating an IPO and how safety regulations offer with. Additionally an problem which will increased variable to the IPO of a worldwide business is going to function as the problem of foreign currency exchange rates. These rates may also be mentioned and how they could be coped with.

Another important observation to be made from the balance sheet is the company's high dependence on debt to finance the business, with long term debt growing from $ 9,500 in year 1998 to $ 26,993 in year 1999; whereas equity investment has just increased from $ 9,473 to $ 10,473. Hence we can clearly feel the need for outside investors. Therefore, if SDI works towards setting up new objectives and a promising business plan, it surely can succeed in winning the confidence of potential investors.

Hart Venture Capital (HVC) specializes in providing venture capital for software development and Internet applications. Currently HVC has two investment opportunities: (1) Security Systems, a firm that needs additional capital to develop an Internet security software package, and (2) Market Analysis, a market research company that needs additional capital to develop a software package for conducting customer satisfaction surveys. In exchange for the Security Systems stock, the firm has asked HVC to provide $600,000 in year 1, $600,000 in year 2, and $350,000 in year 3. In exchange of their stock, Market Analysis has asked HVC to provide $500,000 in year 1, $350,000 in year 2,

One of the major risks facing Telco is their CEO is 70 years old and his son being the CTO could give rise to a conflict of interest. Bryant Dunetz had agreed to step down and allow Valhalla to search for a new CEO. This could be a risky endeavor because Dunetz may either refuse to step down after negotiations or the new CEO may not be a good fit. The other two major risk factors is they do not have a strong executive management team and their competition in this market space is ramping up and soon they will not be the top solutions provider for large corporate telecom equipment and services. With Valhalla having only 25% of the voting rights in the company after the capital issue, they may not have the ability to force their way with the future management. Meanwhile the average time of determining success of a venture capital investment is 18 months. Replacing the entire management team and vetting that process out would take up a significant chunk of that time. Lastly, Valhalla does have to move quickly to get Telco the capital they need to gain as much market share as quickly as possible. The

Apex Investment Partners was founded in 1987 by James A. Johnson and the First Analysis Corporation. In its eight-year life, the VC had raised three funds. The two first which are already closed had, together, a committed capital of around $70M. There were mainly concentrated in four areas: • • • • Telecommunication, information technology and software. Environmental and industrial productivity-related technologies. Consumer products and specialty retail. Health-care and related technologies.

Negotiations and decisions are act as key counterparts in every business. A clear definition as well as the recognition of core elements surrounding the decision making process is required to reach a suitable decision. These approaches purpose to be achieved clear concerns before a final decision-making. This paper will outline prospect theory and discuss the differences between prospect theory and expected utility theory. Following will be, as explanation of the biases and heuristics of the investment decision-making process.

One of the main ways that our enterprise differs from other tutoring programs now available to students is the online component. To build that technology out into a platform that is accessible, effective and enjoyable to use, we need capital in addition to our current funding. An investment of $500,000-$2,000,000 would allow us to hire the professionals necessary to build proprietary web and mobile-based platforms that would allow our tutors to communicate with our scholars remotely. We would also provide additional modules for evaluation and building on the skills and concepts that

The venture leasing deal that Aberlyn proposed to RhoMed is an innovative way for RhoMed, a start-up firm, to acquire financing without diluting its equity value and raising debt in the market. Management believes that the firm is more valuable than venture capital firms would believe, and debt financing would be extremely costly since RhoMed doesn’t currently have positive cash flow. For Aberlyn, the main benefits of the transaction are the interest payments paid on the lease and potential to sell the patent for a much higher value than the original $1 Million valuation by RhoMed. However, this is a rather risky investment for Aberlyn. If RhoMed defaults on its payments, Aberlyn uses the patent as collateral and

In light of the organization 's affect ability to obligation settled component, I consider it a far-fetched resource of assets to fund the 2005 profit they guaranteed. Despite the fact that a 2005 profit guaranteed, but it doesn 't imply that a stock buyback is not feasible or off the table. However, every alternative requires a new source of assets.

Venture Capital is one of the fastest emerging sources of finance for new entrepreneurs. In spite of its increasing popularity, funding via Venture Capital is faced with a number of difficulties. Thus, it is important to study the various aspects of raising funds through Venture Capital.

Another issue was the finance from the conventional sources which were reluctant to invest. They would need at least £235,000 to add to their own invest of £45,000 to cover the costs and operational losses for 12 months period. But, if it works out, then they would at £1 million profit by year five. Despite their enthusiasm and impressive CVs, the business angels deterred by their lack of experience in this market sector. However, they managed to get an appointment with Maurice Pinto, a private investor, who agreed to invest £235,000 for a 20 percent share in the company.

JavaNet is, currently, a privately held Oregon Limited Liability Corporation, with a founder and majority owner, Cale Bruckner, and 3 private investors including Luke Walsh, Dough Wilson, and John Underwood. Private investors, are considered to have a minority stock position, and are shielded from double taxation. JavaNet is an internet café that is looking for an additional private investor to fund the beginning work on site preparations and modifications, equipment purchases, and additional capital to cover the first years operating expenses. This investment would require a total investment of $24,000, to be added to the additional funding secured from the Oregon Economic Development Fund, the owner, Cale Bruckner’s, initial investment, from the investment of the 3 other private investors, and from the short term loans; totaling $112, 290 for start-up costs, (Business Plan Pro, 2009).

Currently HVC has two investment opportunities: (1) Security Systems, a firm that needs additional capital to develop an Internet security software package, and (2) Market Analysis, a market research company that needs additional capital to develop a software package for conducting customer satisfaction surveys. In exchange for Security Systems stock, the firm has asked HVC to provide $600,000 in year 1, $600,000 in year 2, and $250,000 in year 3 over the coming three-year period. In exchange for their stock, Market Analysis has asked HVC to provide $500,000 in year 1, $350,000 in year 2, and $400,000 in year 3 over the same three-year period. HVC believes that both investment opportunities are worth pursuing. However, because of other investments, they are willing to commit at most