INVESTINVENTURE.COM
What is Venture Capital.
Venture Capital is equity invested in new, small companies for the launch, early development of a business. Usually it is capital invested by both parties, the investor(banks, VC Funds) and entrepreneur. We distinguish it into seed or start-up capital. Usually it takes the form of equity. It is characterized by both risk and great expectations for profits, since it refers to new innovative ideas for new products or applications of existed ideas to different markets. Therefore it requires a medium term of investment of capital, usually 5-7 years, colaboration with specialists who know the market, investment and tax laws that allow the new ideas to develop and investors to invest in venture capital.
Seed capital
It is capital invested during the initial stages of the idea, in order to finance the cost of research, study, and generally the developmet of an innovative idea. The seed phase usually is refered as the early stage.
Start-up capital
It is capital invested for product development, since the first idea has been realised into a product,and initial advertisement and promotion to the market. The company is usually at the stage of being established.
Read more for Venture Capital
Raise Venture Capital FAST.
For Beginners who want to find their way into Venture Capital FAST !!
|
|
NEW. A sample form of a Business Plan for Venture (innovation). [ ? ]
(You may complete it all and then print it. Also, if you wish, you may submit your data
or/and information
to be recorded to a file or/and database, in order to be viewed by
visitors who may search for
investment opportunities.)
Tools for Venture Capital.
Calculate FIRR, IRR, MIRR, NPV and Break Even of an innovative idea. (see below)
Calculation of IRR
You can calculate the Internal Rate of Return IRR of your idea. Internal Rate of Return is in simple words the rate (%) of return (profit) that an investor will make on the capital invested in your idea, as long as your forecast for the profits per year are correct.
Your Forecast for the net profits per year
IRR %
Calculation of FIRR.
Financial Internal Rate of Return.
Your Forecast for the operating income (eg income from sales) and operating, financial, other costs per year (see at the bottom of the table for more information).
| Years | Operating income |
Operating, financial, fixed and other costs |
Tax on Net Income |
|---|---|---|---|
FIRR %
Note. (Operating costs are the expenses for raw material, electricity, wages etc.
Financial costs are the costs for the repayment of loans. You may include also
the amount of dividend for the shareholders. Other costs may include the maintenance
- repairing costs,
fixed costs, additional amount that need to be invested. Do NOT
include in the
costs the depreciation,
because this
is only accounting figure for the
calculation of the tax, not real cash outflow.)
(If you wish to include more data and see more details in the calculation of FIRR you
may visit this page)
Calculation of MIRR.
Modified Internal Rate of Return.
It is used when the annual project cash flows have
negative and positive values.In this case MIRR is better than IRR.
Your Forecast for the net profits per year
Financial Rate
%
(It is a rate used for the negative cash flows)
Reinvestment Rate
%
(It is a rate used for the positive cash flows
and it should be at least the rate of the firm's
cost of capital (WACC).
MIRR %
Calculation of NPV
Net Present Value of your idea. Net Present Value is the value of net profits from all the years of the investment today, minus the capital (money) required. You need to write also a rate % in order to find the value of the future profits today (usually its the inflation rate or the rate that an investor would like to gain in order to give you the money).
required and of the cash flows:
Your Forecast for the net profits per year
Rate % usually the inflation rate
NPV
Calculation of Break Even Point.
(Please visit this page for calculating the break even point)
|
Friendly Sites Assistance of National communities and villages World-Direct.net |
Copyright (c) 2010-2015.All rights reserved by investinventure.com