Kwedit is a strange name for a payment company. This is a startup that offers a new form of payment to social and interactive games that allows people to buy virtual goods. The strange thing is that it allows people to “promise” to pay for … Read More →
Tag Archives: Money
Google AdWords – Search Ads Management
There is an amazing article about Google AdWords from the New York Times. It illustrates the management of an online campaign in AdWords for a company called Tiny Prints. This company advertisers on Google and gets a substantial part of its revenue and customers from … Read More →
How is the Canadian venture capital industry going compared to the US?
People in the venture capital industry know that the VC industry is not going well in Canada. That is why it is even more important to know the situation in a quatitative point of view. The SME Financing Data Initiative is a government website that publishes … Read More →
An Unlikely Marriage: Koenigsegg and Saab
I’ve been following many news related to the GM’s sale of Saab to Koenigsegg and I’m very curious about the outcome of this situation. I searched Google to see if there was any news of small companies buying big companies and I couldn’t find any … Read More →
Kauffman Foundation says “U.S. Venture Capital Industry Must Shrink”
A new study by the Ewing Marion Kauffman Foundation, Right-Sizing the U.S. Venture Capital Industry, states that venture capital industry’s return is under performing because of the current size of the industry. It says that by reducing the it, this industry may increase its return. … Read More →
New Valuation for Facebook
Wow, this is increadible. Facebook is receiving $ 200 million for 1.96%! To calculate the post valuation, we just need to do this: X = post-valuation X = 200 million / 0.0196 = 10 204 million = $ 10 billion roughly. Amazing how this company … Read More →
What is Private Equity?
Private Equity in London? Private equity is a medium to long-term finance (10 years). Private equity firms provide money to companies in exchange of equity and control. Venture capital funds are a type of private equity investment. The main specialty of a VC firm is … Read More →
Differences Between Venture Capital and Private Equity
In a academic view, we could define venture capital as those firms that invest in early stage startups and private equity are firms that invest in later stage companies or public companies. However, both have the same investment style. They invest in companies in exchange … Read More →
Venture Capital Funds Return Still High
National Venture Capital Association (NVCA) reported that venture capital performance showed positive returns across all investment horizons 3 years and longer for the period ending December 31, 2008. As you can see in the table, venture returns across all horizons outperformed public market indices, … Read More →
Venture Capital Method: Valuation Considering Multiple Rounds of Investments
In my last post – Venture Capital Method: Valuation Considering Granting Stock Options to Management Team: http://www.chimkan.com/2009/05/05/venture-capital-method-valuation-considering-granting-stock-options-to-management-team/ I showed how to calculate the needed number of share if we give at least 15% of stock options to the management at the end … Read More →
Bad News for Venture Capital industry
I was searching for more news about venture capital industry and I found out this bad news from Boston.com. Venture capital sector makes adjustments Highlights from this news: - Last year, our industry raised about $28 billion in new investment capital, but VC industry will raise … Read More →
A VC firm makes money – Accel and Facebook case – Part 3
In this third post, I’m going to explain why venture capital firms invest in stages and not in a one-time-big-investment and why Facebook is receiving rounds of investments. Venture capitalists want to have some control in their investments. By staggering their investments in rounds, … Read More →
A VC firm makes money – Accel and Facebook case – Part 1
Background information: Accel Partners is a private equity and venture capital firm. It invests in many industries such as Computing, Consumer Internet, Engergy, etc (there are 11 industries). Increadibly, Accel has invested in 197 companies (I did not count one by one but I use … Read More →
Brazil is launching new banknotes soon!
The Central Bank in Brazil is launching a new set of banknotes after 15 years with the launch of Real. They are good looking. I can’t wait to have all of them. You can read more about the launch here.