Sep
04
2008
admin
More and more students, both in undergraduate and graduate institutions, are deciding to launch their own ventures upon graduation rather than taking the traditional route of working for another firm. Likewise, more and more individuals are leaving their jobs to fulfill their entrepreneurial dreams. While these ventures may ultimately be very successful (e.g., Google and Microsoft were both launched by students), they face certain challenges in their business plans and capital raising processes. The foremost challenge is overcoming the lack of experience of the management team.
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Tags: ability, Advisors, Business, Capital, challenge, company, confidence, credibility, development, experience, firm, graduate, graduation, knowledge, management, market, opportunity, plan, team, undergraduate, venture, vision
Jul
11
2008
admin
When raising capital for a company, warrants are a form of equity which is given to investors. A warrant is an option like - it gives its holder the right to buy a security at a fixed or formula price, which is known as “exercise” or “strike” price. The warrants are often confused with options. Options, as used in space venture capital, are generally long-term (up to 10 years). They are also generally issued to employees by investors. On the other hand, act as warrants for short-term options and, unlike the options, may be traded as an independent security. In general, neither the issuance of warrants or their exercise (at least by non-employees) is a taxable event.
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Tags: Capital, company, debt, emission, equity, equivalent, favor, formula, funding, independent, IRS, issuance, issuer, market, mechanism, reduction, SEC, security, share, stock, strike, treasury, venture, warrant
