True Venture Capital
Posted by admin on 30 Mar 2009 9:49 am. Filed under Registration Of A Company.
John Lux
We in corporate finance and venture finance often lose site of the goals and purposes of what we do.
We can easily see that it does not matter how the money is raised; there must be a fair exchange for the team, for the technology, and for the money.
The real goal of corporate finance is to see that the company has more than enough money to achieve its goals.
Now that we say it, we know it could not be anything else. What else could it be?
In seeing this, we know immediately what venture capital is not.
Venture capital is not giving the company too little money to succeed so that you can buy it up cheap later, stealing all of the good work of the entrepreneurial team.
Venture capital is not loading the entrepreneurial team down with straightjacket agreements.
Venture capital is not setting a cheap value on the company so you can make a huge gain out of a share of the company that should belong to the people that daily contribute their sweat.
True capital would not keep control of the company to wrest control from those executives who know best how to manage. The real purpose of the capitalist is not to second guess management. Management, not capital, is on the firing line and best knows how to achieve the goals of the company.
True corporate finance is seeing that the company has more money than it needs. True venture capital motivates and encourages the team. True venture capital values the team and acts accordingly. True venture capital is part of the team.
True corporate finance is more than capital. It is a partnership of equals; it is support that is more than financial; It is on the tam that shoulders the burdens and fights the fights.
Only true venture capital is entitled to share in the rewards of the team.
When a company is adequately financed, the entrepreneurs and their team are not deprived of enough pay to support themselves and their families. They are well rewarded for their work by industry standards. They are not deprived of pay or working for a pittance so that the venture capitalists can have a larger return on their money.
A company only has enough money when it has enough money to meet the unknown.
A company with good finance can afford those things it needs to win in the combat of business.
Real finance gives these things to the company.
The real goal of any venture capital is to see that the company has more than enough money to achieve its goals.
We in corporate finance and venture finance often lose site of the goals and purposes of what we do.
We can easily see that it does not matter how the money is raised; there must be a fair exchange for the team, for the technology, and for the money.
The real goal of corporate finance is to see that the company has more than enough money to achieve its goals.
Now that we say it, we know it could not be anything else. What else could it be?
In seeing this, we know immediately what venture capital is not.
Venture capital is not giving the company too little money to succeed so that you can buy it up cheap later, stealing all of the good work of the entrepreneurial team.
Venture capital is not loading the entrepreneurial team down with straightjacket agreements.
Venture capital is not setting a cheap value on the company so you can make a huge gain out of a share of the company that should belong to the people that daily contribute their sweat.
True capital would not keep control of the company to wrest control from those executives who know best how to manage. The real purpose of the capitalist is not to second guess management. Management, not capital, is on the firing line and best knows how to achieve the goals of the company.
True corporate finance is seeing that the company has more money than it needs. True venture capital motivates and encourages the team. True venture capital values the team and acts accordingly. True venture capital is part of the team.
True corporate finance is more than capital. It is a partnership of equals; it is support that is more than financial; It is on the tam that shoulders the burdens and fights the fights.
Only true venture capital is entitled to share in the rewards of the team.
When a company is adequately financed, the entrepreneurs and their team are not deprived of enough pay to support themselves and their families. They are well rewarded for their work by industry standards. They are not deprived of pay or working for a pittance so that the venture capitalists can have a larger return on their money.
A company only has enough money when it has enough money to meet the unknown.
A company with good finance can afford those things it needs to win in the combat of business.
Real finance gives these things to the company.
The real goal of any venture capital is to see that the company has more than enough money to achieve its goals.