Funding Series Definitions
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CEP Discussion Paper No 1498 September 2017 Equity
ISSN 2042-2695 CEP Discussion Paper No 1498 September 2017 Equity Crowdfunding and Early Stage Entrepreneurial Finance: Damaging or Disruptive? Saul Estrin Daniel Gozman Susanna Khavul Abstract Equity crowdfunding (ECF) offers founders of new ventures an online social media marketplace where they can access a large number of investors who, in exchange for an ownership stake, provide finance for business opportunities that they find attractive. In this paper, we first quantify the evolution of the ECF market in the UK, the world leader, as well as the benign regulatory environment. ECF already represents more than 15% of British early stage entrepreneurial finance. We then use qualitative methods to explore three research questions. First, do these large financial flows via ECF platforms supplement or merely divert more traditional forms of funding for entrepreneurs? Second, do investors understand and appropriately evaluate the risks that they are bearing by investing in this new asset class? Finally, does ECF finance bring with it the spillovers, e.g. advice and guidance critical to entrepreneurial success, associated with other sources of funding such as Venture Capital? Our study is based on extensive interviews with investors, entrepreneurs (including some who chose not to use ECF in favour of traditional funding sources) and regulators. We conclude that ECF provides real additionality to the sources of entrepreneurial finance while not bringing major new risks for investors. This suggests other jurisdictions might consider implementing the British “principles based” regulatory framework. Keywords: equity crowdfunding, early stage entrepreneurial finance, financial regulation, investor choices JEL: G3; G21; L26; M21 This paper was produced as part of the Centre’s Growth Programme. -
Venture Capital and Creating Partnerships Between SMB and Larger Traditional Maritime And/Or Tech Corporations
MARITIME BLUE CAPITAL ASSESSMENT CONSOLIDATED FINAL REPORT SEPTEMBER 16, 2019 Supported by: Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 1 WHAT THIS DOCUMENT INCLUDES > This deck is the full consolidated materials from Next Street’s engagement with the Washington State Department of Commerce in support of the Maritime Blue strategy > All materials from our meetings with the project Steering Committee are presented here, with further details included in the Appendix slides > We have also included an Executive Summary that highlights the key findings from our industry analysis, peer cities research, and capital landscape analysis, and the 10 illustrative capital deals we identified Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 2 TABLE OF CONTENTS Executive Summary Project Overview Blue Economy Industry Analysis Blue Economy Peer Cities Analysis Blue Economy Local Capital Landscape Debt Equity Grants Blue Economy Capital Landscape Gaps Illustrative Deals Appendix Full Industry Analysis Peer City Case Studies Illustrative Seattle Investments Next Street Financial LLC © Copyright 2019 – CONFIDENTIAL 3 OUR OBJECTIVES AND PROCESS Context for this work Objectives for the engagement > The Washington Department of Commerce partnered with a > This work focused on research of potential funding structures diverse group of stakeholders to develop and launch the to provide investment capital to support economic Washington Maritime Blue Initiative growth of the maritime sector in Washington State > Maritime Blue seeks to promote -
The Role of Crowdfunding in Reducing the Equity Gap in Poland
RUCH PRAWNICZY, EKONOMICZNY I SOCJOLOGICZNY Rok LXXXI – zeszyt 3 – 2019 MICHAŁ ŁUKOWSKI, PIOTR ZYGMANOWSKI THE ROLE OF CROWDFUNDING IN REDUCING THE EQUITY GAP IN POLAND I. INTRODUCTION Technology changes the way financial intermediaries act. It is notice- able especially in Western European countries, both in the banking sector (for example Revolut or N26) and the capital market sector, where the use of equity crowdfunding platforms (for example Seeders and Crowdcube) by early stage companies for capital raising is becoming increasingly popular. These platforms are connecting entrepreneurs (issuers) and investors, acting as intermediaries in the conclusion of transactions on financial instruments. The importance of equity crowdfunding can be demonstrated by the value of transactions carried out with the use of such platforms, which in 2017 reached GBP333 million in the UK, and EUR211 million in the countries of continen- tal Europe. The growing importance of equity crowdfunding has made it the subject of many studies, such as those carried out by Agrwal, Catalini and Goldfarb,1 or Ashlers, Cumming, Guenther and Schweizer.2 This technological revolution has also reached the Polish capital market with the recent regu- lation from 21 April 2018, which allows public offerings up to EUR1 million to be carried out without a prospectus or memorandum. This enables public offerings organized by equity crowdfunding platforms. Taking the above into consideration, we decided to analyse the development of equity crowdfunding in Poland due to its growing popularity and the changes to Polish law. The main purpose of the article is to characterize equity crowdfunding in Poland and place it among other sources of equity capital. -
Woodside Capital Partners the $50B Future Opportunity: Cybersecurity at the Edge
Woodside Capital Partners The $50B future opportunity: Cybersecurity at the Edge Nishant Jadhav Managing Director March, 2021 W O O D S I D E C A P I T A L P A R T N E R S Executive Summary • The edge security market is growing with a CAGR of 53% and is expected to grow from $18B in 2021 to $50B in 2026 • The two largest components of the edge security market are Zero-Trust Network Access (ZTNA) & Secure Access Service Edge (SASE), and these sectors represent over 86% of the market and are the focus of this report • Key technology enablers of ZTNA are greater remote access, adoption of cloud services, mixed work/home environments, continuous authentication and application isolation • COVID-19 has accelerated the move towards adoption of these technologies as the consumerization of IT has become more diversified and distributed in a span of 3 quarters • ZTNA empowers SASE which protects Software Defined Wide Area Network (SD-WAN), and together they’re an integral platform for cloud based security and access • This report provides an overview of the technology trends in edge security, key players in this space, and their motivations to excel • This report also provides a sample catalogue of early-stage companies we believe will excel in this space in the next 5 years 2 W O O D S I D E C A P I T A L P A R T N E R S Introduction • This report on cybersecurity at the edge provides an overview of the market, its drivers, its structure, start-ups as well as established players • It is intended to be used by start-ups and growth-stage companies, Venture Capital & Private Equity companies as well as Corporate Development teams and provides key information to assist those developing and implementing cybersecurity strategies • This report covers in some detail: • Software Defined Wide Area Networks (SD-WAN) • Secure Access Service Edge (SASE) • Zero-Trust Network Access (ZTNA) • Over 30 start-ups & growth-stage companies from the above technology sectors are profiled in detail towards the back of this report. -
Valuing Young Startups Is Unavoidably Difficult: Using (And Misusing) Deferred-Equity Instruments for Seed Investing
University of New Hampshire University of New Hampshire Scholars' Repository University of New Hampshire – Franklin Pierce Law Faculty Scholarship School of Law 6-25-2020 Valuing Young Startups is Unavoidably Difficult: Using (and Misusing) Deferred-Equity Instruments for Seed Investing John L. Orcutt University of New Hampshire Franklin Pierce School of Law, Concord, New Hampshire, [email protected] Follow this and additional works at: https://scholars.unh.edu/law_facpub Part of the Banking and Finance Law Commons, and the Commercial Law Commons Recommended Citation John L. Orcutt, Valuing Young Startups is Unavoidably Difficult: Using (and Misusing) Deferred-Equity Instruments for Seed Investing, 55 Tulsa L.Rev. 469 (2020). This Article is brought to you for free and open access by the University of New Hampshire – Franklin Pierce School of Law at University of New Hampshire Scholars' Repository. It has been accepted for inclusion in Law Faculty Scholarship by an authorized administrator of University of New Hampshire Scholars' Repository. For more information, please contact [email protected]. 42208-tul_55-3 Sheet No. 58 Side A 05/15/2020 10:30:18 ORCUTT J - FINAL FOR PUBLISHER (DO NOT DELETE) 5/14/2020 9:49 AM VALUING YOUNG STARTUPS IS UNAVOIDABLY DIFFICULT: USING (AND MISUSING) DEFERRED- EQUITY INSTRUMENTS FOR SEED INVESTING John L. Orcutt* I. ASTARTUP’S LIFE AND FUNDING CYCLES ............................................................... 474 II. VALUING YOUNG STARTUPS ................................................................................. -
Accelerating Energy Access
ACUMEN 2018 ACCELERATING ENERGY ACCESS: THE ROLE OF PATIENT CAPITAL ACUMEN WOULD LIKE TO ACKNOWLEDGE OUR PARTNERS THAT GENEROUSLY SUPPORT THE PIONEER ENERGY INVESTMENT INITIATIVE STEVE ROSS & THE BERNARD & ANNE SPITZER SHELLEY SCHERER CHARITABLE TRUST GLOBAL OFFICES SPECIAL THANKS ACCRA, GHANA Special thanks to our peer reviewers Saad Ahmad, David Aitken, Magdalena Banasiak, Morgan DeFoort, Fabio De Pascale, BOGOTÁ, COLOMBIA Christine Eibs-Singer, Peter George, Steven Hunt, Neha Juneja, KARACHI, PAKISTAN Jill Macari, Damian Miller, Jesse Moore, Willem Nolens, Steve Ross, LONDON, ENGLAND Peter Scott, Ajaita Shah, Manoj Sinha, Ned Tozun, Nico Tyabji, MUMBAI, INDIA Hugh Whalan, and David Woolnough NAIROBI, KENYA Special thanks to Carlyle Singer for her strategic guidance and NEW YORK, U.S.A. Harsha Mishra for his analytical research. Additional thanks SAN FRANCISCO, U.S.A. to the Acumen team: Sasha Dichter, Kat Harrison, Kate Montgomery, Jacqueline Novogratz, Sachindra Rudra, and Yasmina Zaidman Lead Authors: Leslie Labruto and Esha Mufti Table of Contents FOREWORD 02 EXECUTIVE SUMMARY 04 INTRODUCTION 06 1. ENERGY SNAPSHOT: 08 ACUMEN’S TRACK RECORD FOR INVESTING IN ENERGY ACCESS 2. THE PIONEER GAP: 12 HOW HAS THE INFLUX OF CAPITAL AFFECTED ENTREPRENEURS? 3. NEED FOR CAPITAL: 16 FILLING GAPS IN OFF-GRID ENERGY MARKETS TODAY 4. THE BIG PICTURE: 26 WHAT IS THE OPTIMAL MIX FOR SCALING ENERGY ACCESS COMPANIES? 5. REACHING THE POOR: 38 USING PATIENT CAPITAL TO ACCELERATE IMPACT 6. BEYOND CAPITAL: 46 WHAT DO ENERGY ACCESS STARTUPS NEED? 7. FACILITATING EXITS: 48 SENDING THE RIGHT MARKET SIGNALS 8. CONCLUSION: 56 WORKING TOGETHER TO CATALYZE ENERGY ACCESS APPENDIX 58 CASEFOREWORD STUDY Jacqueline Novogratz FOUNDER & CEO Dear Reader, I am pleased to share Acumen’s Accelerating Energy Access: The Role of Patient Capital report with you. -
Israel's Ourcrowd Takes Lead in Equity Crowdfunding
Embargo until 6AM PST May 22, 2013 Israel’s OurCrowd takes lead in equity crowdfunding Has raised more funds than any other platform worldwide Latest round for Jeff Pulver's Zula breaks $12M in funding for companies Jerusalem, Israel May 22, 2013: Israel's hybrid VCcrowdfunding platform OurCrowd announced today that it closed financing for Jeff Pulver's latest startup, Zula, pushing its total raised for early stage companies above $12 million. This $12 million is in addition to the $5.5 million in funding OurCrowd raised for its own platform in February this year. Zula is OurCrowd's 18th completed funding round. OurCrowd CEO Jon Medved says "Passing this funding milestone makes OurCrowd this year’s fastestgrowing vehicle for angels and accredited investors to find and back early stage companies online. From our roots in Israel we have actually taken the global lead in funds raised." Zula cofounder Jeff Pulver said, "I am excited about the value that OurCrowd brings to early stage investors who invest in startup companies. Not only did we raise our seed round online in less than a week, but we had people from all over the world invest in Zula thanks to this platform." Zula provides an innovative cloudbased mobile collaboration platform for teams. It is lead by Jacob NerDavid, who cofounded DeltaThree, and Pulver, who is a wellknown early investor in Twitter and FourSquare. "While initially focusing on the Israeli early stage ecosystem, OurCrowd has now brought together investors and companies from around the world," explained Medved. -
The Handbook of Financing Growth
ffirs.qxd 2/15/05 12:30 PM Page iii The Handbook of Financing Growth Strategies and Capital Structure KENNETH H. MARKS LARRY E. ROBBINS GONZALO FERNÁNDEZ JOHN P. FUNKHOUSER John Wiley & Sons, Inc. ffirs.qxd 2/15/05 12:30 PM Page b ffirs.qxd 2/15/05 12:30 PM Page a Additional Praise For The Handbook of Financing Growth “The authors have compiled a practical guide addressing capital formation of emerging growth and middle-market companies. This handbook is a valuable resource for bankers, accountants, lawyers, and other advisers serving entrepreneurs.” Alfred R. Berkeley Former President, Nasdaq Stock Market “Not sleeping nights worrying about where the capital needed to finance your ambitious growth opportunities is going to come from? Well, here is your answer. This is an outstanding guide to the essential planning, analy- sis, and execution to get the job done successfully. Marks et al. have cre- ated a valuable addition to the literature by laying out the process and providing practical real-world examples. This book is destined to find its way onto the shelves of many businesspeople and should be a valuable ad- dition for students and faculty within the curricula of MBA programs. Read it! It just might save your company’s life.” Dr. William K. Harper President, Arthur D. Little School of Management (Retired) Director, Harper Brush Works and TxF Products “Full of good, realistic, practical advice on the art of raising money and on the unusual people who inhabit the American financial landscape. It is also full of information, gives appropriate warnings, and arises from a strong ethical sense. -
Equity Crowdfunding: a Market for Lemons? Darian M
College of William & Mary Law School William & Mary Law School Scholarship Repository Faculty Publications Faculty and Deans 2015 Equity Crowdfunding: A Market for Lemons? Darian M. Ibrahim William & Mary Law School, [email protected] Repository Citation Ibrahim, Darian M., "Equity Crowdfunding: A Market for Lemons?" (2015). Faculty Publications. 1792. https://scholarship.law.wm.edu/facpubs/1792 Copyright c 2015 by the authors. This article is brought to you by the William & Mary Law School Scholarship Repository. https://scholarship.law.wm.edu/facpubs IBRAHIM_4fmt 1/3/2016 1:00 PM Article Equity Crowdfunding: A Market for Lemons? Darian M. Ibrahim† INTRODUCTION Everything is online now—the way we connect with others, the way we shop, even some forms of education. We keep up with friends on Facebook we cannot see in person, buy light bulbs from Amazon rather than making a trip to the hardware store,1 and obtain an MBA at night on our computers from the comfort of our own home after the kids have gone to bed.2 One area that has initially resisted the move to cyberspace, howev- er—eschewing the virtual world for the real one—is entrepre- neurial finance. Venture capitalists (VCs) and angel investors have long valued close networks and personal relationships when select- ing which entrepreneurs to fund, and they closely monitor their investments in person after they fund.3 These practices lead to intense locality in funding—i.e., investors funding entrepre- † Professor of Law, William & Mary Law School. My thanks to Brian Broughman, Joan Heminway, Don Langevoort, Alan Meese, Nate Oman, Ja- son Parsont, Gordon Smith, participants in a faculty workshop at Washington & Lee for helpful feedback on this Article. -
Ten Things You Need to Know Before Engaging in Accredited Crowdfunding
BOSTON CONNECTICUT NEW JERSEY NEW YORK WASHINGTON, DC www.daypitney.com Ten Things You Need to Know Before Engaging in Accredited Crowdfunding By Eliza Sporn Fromberg and Norbert Mehl It has been over a year since the Securities and Exchange Commission (SEC) permitted securities issuers to market their capital raises using general solicitation and general advertising while still qualifying for an exemption from public registration. During this time, hundreds of online crowdfunding platforms have launched – seemingly overnight – offering investment opportunities in private companies. For a company seeking to raise capital, these “accredited crowdfunding”1 platforms offer the tantalizing possibility of raising funds with the click of a button. As this new industry grows and develops, it’s conceivable certain accredited crowdfunding platforms may become as ubiquitous as traditional broker-dealers. But in this nascent industry, how should a company seeking to raise capital for a new or existing venture go about selecting the most suitable crowdfunding solution? The following are 10 things you should know before engaging in accredited crowdfunding. 1. Who is eligible to raise funds through accredited crowdfunding? In the United States, securities offerings made pursuant to Rule 506 of Regulation D under the Securities Act of 1933 are not deemed “public” offerings under the securities laws and are therefore exempt from public registration with the SEC. With one exception, any company can make this type of “private” offering of its securities – and raise an unlimited amount of money from accredited investors – using general solicitation and general advertising, either on its own or using an intermediary such as an accredited crowdfunding platform. -
TIPS for STARTUPS – UNDERSTANDING the STAGES of EQUITY FINANCING Posted on July 11, 2016
TIPS FOR STARTUPS – UNDERSTANDING THE STAGES OF EQUITY FINANCING Posted on July 11, 2016 Categories: Insights, Publications In the earliest stages of a new venture, founders will often seek to bootstrap (i.e., self-finance) operations in order to build value through their own sweat equity. Once bootstrapping is no longer enough to sustain their pre-revenue startup, or the need for financing to grow the business outstrips modest initial revenues or friends and family contributions, it becomes essential for these founders to begin looking for external sources of financing. If conventional bank loans and lines of credit are not desirable or sufficient, then they may consider seeking private investment. For founders unfamiliar with fundraising, it can be very daunting when terms like "angel investing", "venture capital", "series B financing", and "seed round" are being thrown around. Understanding the terminology surrounding the financing process is essential for startup leaders hoping to secure financing, or for individuals in the business world hoping to understand the startup landscape. What is equity financing? Who participates? When many people hear terms like "venture capital", they think of television programs like Dragons' Den, in which business founders pitch their ideas to a group of wealthy and successful business personalities. Much like in Dragons' Den, the process of early-stage financing involves investors providing funds to startup companies that have potential for long-term growth. Early-stage equity financing is a great option for startups that are not in a position to seek funding through public capital markets, and wish to avoid being loaded with debt. -
Monthly European
December 2013 Technology / Media / Telecoms / Internet / Healthcare / Cleantech / Materials Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bulletin December 2013 Published by Go4Venture Advisers Research, the Equity Research unit of Go4Venture Advisers LLP. About Go4Venture Advisers Providing innovative, fast-growing companies and their investors with independent corporate finance advice to help them evaluate, develop and execute growth strategies Equity Capital Markets (ECM) Equity private placements Growth equity financings and secondaries Pre-IPO advisory Mergers & Acquisitions (M&A) Sellside Buyside / Buy and build Valuation services Go4Venture Advisers LLP is authorised and regulated by the Financial Conduct Authority (FCA). © Go4Venture Advisers 2013 December 2013 Contents This Month in Brief 2 Investments 1.1 - Headline Transactions Index (HTI) 5 1.2 - Large Transactions Summary 6 1.3 - Large Transactions Profiles 7 M&A Transactions 2.1 - M&A Activity Index 17 2.2 - Top 5 Global TMT M&A Transactions Summary 18 Headline European VC & PE-Backed M&A Transactions: 2.3 - Summary 21 2.4 - Profiles 22 List of Acronyms 25 About this Bulletin The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bulletin provides a summary of corporate finance activity among emerging European TMT companies: Investments, i.e. Venture Capital (VC) and Private Equity (PE) financings, including growth equity, financing rounds with single secondaries components (recapitalisations); and M&A Transactions where the sellers are VC and PE-backed European companies, including all majority transactions with no new investment going into the business (e.g. acquisitions, Management Buyouts (MBOs) and other buyouts). Investment activity is measured using Go4Venture’s European Tech Headline Transactions Index (HTI), which is based on the number and value of transactions reported in professional publications.