A Quote by Jay Samit
Most startup entrepreneurs unnecessarily spend half their time and give up half their equity in search of funding from angel investors and venture capitalists. Tens of millions of dollars are available to them for free from partners who not only don't want their equity, they don't even want to be paid back.
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State funds, private equity, venture capital, and institutional lending all have their role in the lifecycle of a high tech startup, but angel capital is crucial for first-time entrepreneurs. Angel investors provide more than just cash; they bring years of expertise as both founders of businesses and as seasoned investors.
We [US government] have used our taxpayer dollars not only to subsidize these banks but also to subsidize the creditors of those banks and the equity holders in those banks. We could have talked about forcing those investors to take some serious hits on their risky dealings. The idea that taxpayer dollars go in first rather than last - after the equity has been used up - is shocking.
I've heard that one-half of the students at elite schools want to go into private equity or hedge funds. They want to keep up with their age cohorts at Goldman. This can't possibly end well in terms of meeting these expectations.
Our experience is that most entrepreneurs are able to attract debt, even for risky and early stage investments. There are investors who provide debt, but very few who fund through equity.
The JOBS Act will allow entrepreneurs to utilize 'crowdfunding,' which permits them to raise equity capital from a large pool of small investors.
Founders are usually very stingy with equity to employees and very generous with equity to investors. I think this is totally backwards.
Bond investors want growth much like equity investors, and to the extent that too much austerity leads to recession or stagnation then credit spreads widen out - even if a country can print its own currency and write its own cheques.
It's what the people wanted at the time, but the country could not be half-segregated and half-integrated, just as it could not be half-slave and half-free back in the 1800s.
When Barbara Walters called , she said, "Donald, I want to put you on as one of the top 10 most fascinating people." I could say no. And then, I could advertise a project that I`m doing, like doral or something. And spend half a million dollars on it or a million dollars, or I can do the show and spend nothing, and be on for a lot longer."
If you want to talk further about a relationship with Russia, look no further than the Clintons. As we've said time and time again, Bill Clinton was paid half a million dollars to give a speech to a Russian bank, and was personally thanked by Putin for it. Hillary Clinton allowed one-fifth of America's uranium to - reserve to be sold to a Russian firm whose investors were Clinton Foundation donors. And the Clinton campaign chairman's brother lobbied against sanctions on Russia's largest bank and failed to report it. If you want to talk about having relations, look no further than there.
Many entrepreneurs, and the venture investors who back them, seek to build billion-dollar companies.
We really wake up every day trying to build businesses. That is the goal of private equity. It's a misnomer out there that private equity profits by shrinking companies. In fact, it's just the opposite. Private equity creates value by growing great companies.
Most people tell you they want to get out of kindergarten, but don't believe them. Don't believe them! All they want you to do is to mend their broken toys. "Give me back my wife. Give me back my job. Give me back my money. Give me back my reputation, my success." This is what they want; they want their toys replaced. That's all. Even the best psychologist will tell you that, that people don't really want to be cured. What they want is relief; a cure is painful.
Some investors may grumble about entrepreneurs wanting 'unicorn valuations.' But let's be honest: most investors want them, too, and are supporting the massive capitalization of these companies.
Private equity firms working closely with venture capitalists and technologists may be able to unlock assets that others have not leveraged and build technology cultures to iterate on solutions that make these assets more productive.
I've probably done more venture capital deals and expansion financings than I have done private equity deals. But both are the same. Private equity companies have also built jobs.
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