The magic venture investing formula is simple: Invest in young, good, innovative, and growing companies while they are cheap.
But what is "good", and what is "cheap"?
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Do not follow the crowd. Ignore the market, the crowd, and its fashions... More
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Identifying an Outstanding Company: Buffett's Criteria2 |
Buffett's Three Non-financial Investment Criteria It is simple and understandable. It has a consistent operating history. It has favorable long-term prospects.
Buffett's Four Financial Investment Criteria Return of equity (not earning per share) "Owner earning" (the share of profits that belongs to investors). Profit margins (which must be high) Return on reinvested profits (which must create at least $1 of market value for every dollar invested)
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Six Questions for Measuring the Potential Investment |
How long will it take for profits to pay back the investment? When will the cash stop flowing out and start returning? Do we really have to make this investment? What is the return on investment? Is that return comfortably above the true cost of the capital invested? Looking ahead, and allowing for interest rates, what is the future pay-off worth in today's values?
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A to Z of Venture Investing |
A-F: Opportunity Introduction Do most inventors approaching you lack business skills? If you don't want to miss a great investment opportunity but have no time to teach them the A,B,C, etc. of venture financing, just advise them to go thoroughly the steps of the Ten3 e-Coach on "Venture Financing". This will make your communication with first-time entrepreneurs much more enjoyable and effective.
Please send us e-mail if you wish to become an associate of the Ten3 e-Coach on Venture Financing and receive well prepared investment proposals from our graduates who will match with your investment selection criteria.
G-M: Initial Screening N-T: Due Diligence Investigate and evaluate the investment opportunity by conducting due diligence research: qualify risks, analyze and verify factors presented in the investment proposal
U-Z: Negotiating and Closing the Deal |
http://www.1000ventures.com/venture_financing/venture%20investing_main.html
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