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Nasdaq Stock Market, Stock Quotes – Stock Exchange News, the stock market.#The

Stock Market Activity

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Valeant Pharma: Why This Bear Still Growls

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Nvidia: Did You Feel the Ground Shake, Too?

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If You Love Artificial Intelligence, You Should Check Out NVIDIA

AI is getting a lot of attention these days

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Visit Earnings Calendar for the week starting 11/05; 69 reports are scheduled.

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ETF Headlines

  • USAA Launches Intermediate-Term Total Bond Market ETF11/10/2017
  • Active Bond ETFs in a Changing Market Environment11/10/2017
  • A Comprehensive Bond ETF to Access the Total Corporate Debt Market11/10/2017

More News Stories

Commodities

  • Novartis posts eye drug data amid play for Eylea’s turf11/10/2017
  • Brazil’s Cosan 3rd-quarter profit jumps 53 pct11/10/2017
  • CES Energy Solutions (CEU) Shares Cross Below 200 DMA11/10/2017

Wealth Management

  • Don t Let Today Guy Destroy Your Financial Future11/10/2017
  • Merrill’s New Incentive Program Debuted11/10/2017
  • Reasons You Might Go Bankrupt in Retirement11/08/2017

Forex and Currencies

  • Dollar: Senate Tax Bill Provides No Reassurance To The Dollar11/10/2017
  • Continuity In New Fed Chair. The British Pound Bears Watching11/10/2017
  • A Yellow Light of Caution for Dollar Bulls?11/10/2017

Investing Ideas

  • Walker Dunlop Becomes Oversold (WD)11/10/2017
  • Relative Strength Alert For BofI Holding11/10/2017
  • Relative Strength Alert For FibroGen11/10/2017

Retirement

  • Hungary’s buoyant housing market needs continuous monitoring11/10/2017
  • Lenders to embrace a record Broadcom bridge loan11/10/2017
  • Ireland predicts American boost to Dublin financial services11/10/2017

Technology

  • Hasbro makes takeover offer for Mattel11/10/2017
  • U.S. toymaker Hasbro makes takeover approach for Mattel11/10/2017
  • U.S. toymaker Hasbro makes new approach to buy Mattel11/10/2017

Today at NASDAQ

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Announcement: Visit the press releases for the latest information

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NPM Liquidity Program Volume Rises 35% in First Half of 2017. Learn more.

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2017 CNBC Disruptor 50: Who made this year’s list?

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Nasdaq’s blueprint for a new era of trading.

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Nasdaq Private Market offers innovative liquidity solutions

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StockTrak offers a full range of services

A versatile, comprehnesive Trading Room Software with plenty of flexible features.

and portfolio alpha/beta.

company profiles, analyst ratings, etc.

biggest gainers/losers, and many more.

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simulation in their classes.

These top universities use our virtual

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Nasdaq Stock Market, Stock Quotes – Stock Exchange News, what is the

Stock Market Activity

Featured Stories from

What is the stock market

Stocks to Watch

What is the stock market

Valeant Pharma: Why This Bear Still Growls

Income Investing

What is the stock market

CenturyLink: A Dividend Cut Is Logical but Unlikely

Tech Trader

What is the stock market

Nvidia: Did You Feel the Ground Shake, Too?

Stock Market News & Analysis

Editor’s Picks

Latest Market News Headlines

Featured Story

What is the stock market

If You Love Artificial Intelligence, You Should Check Out NVIDIA

AI is getting a lot of attention these days

Featured Video

Stock Activity

Upcoming IPOs

Economic Calendar

Earnings

Earnings Calendar

Visit Earnings Calendar for the week starting 11/05; 69 reports are scheduled.

Earnings Report

What is the stock market

Recommendations

Forecasts

Surprises

Decliners

Advancers

ETF Headlines

  • USAA Launches Intermediate-Term Total Bond Market ETF11/10/2017
  • Active Bond ETFs in a Changing Market Environment11/10/2017
  • A Comprehensive Bond ETF to Access the Total Corporate Debt Market11/10/2017

More News Stories

Commodities

  • Novartis posts eye drug data amid play for Eylea’s turf11/10/2017
  • Brazil’s Cosan 3rd-quarter profit jumps 53 pct11/10/2017
  • CES Energy Solutions (CEU) Shares Cross Below 200 DMA11/10/2017

Wealth Management

  • Don t Let Today Guy Destroy Your Financial Future11/10/2017
  • Merrill’s New Incentive Program Debuted11/10/2017
  • Reasons You Might Go Bankrupt in Retirement11/08/2017

Forex and Currencies

  • Dollar: Senate Tax Bill Provides No Reassurance To The Dollar11/10/2017
  • Continuity In New Fed Chair. The British Pound Bears Watching11/10/2017
  • A Yellow Light of Caution for Dollar Bulls?11/10/2017

Investing Ideas

  • Walker Dunlop Becomes Oversold (WD)11/10/2017
  • Relative Strength Alert For BofI Holding11/10/2017
  • Relative Strength Alert For FibroGen11/10/2017

Retirement

  • Hungary’s buoyant housing market needs continuous monitoring11/10/2017
  • Lenders to embrace a record Broadcom bridge loan11/10/2017
  • Ireland predicts American boost to Dublin financial services11/10/2017

Technology

  • Hasbro makes takeover offer for Mattel11/10/2017
  • U.S. toymaker Hasbro makes takeover approach for Mattel11/10/2017
  • U.S. toymaker Hasbro makes new approach to buy Mattel11/10/2017

Today at NASDAQ

What is the stock market

Announcement: Visit the press releases for the latest information

What is the stock market

NPM Liquidity Program Volume Rises 35% in First Half of 2017. Learn more.

What is the stock market

2017 CNBC Disruptor 50: Who made this year’s list?

What is the stock market

Nasdaq’s blueprint for a new era of trading.

What is the stock market

Nasdaq Private Market offers innovative liquidity solutions

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Small Business Administration Business Plan Tips, the small business administration.#The #small #business

Writing a Business Plan: Tips from the SBA

The best way to turn your great business idea into a reality is through the creation and use of a well-thought-out business plan. A strong business plan not only attracts investors or secures financing in the early stages of business development, but can also function as a roadmap for the future.

Great business plans have a structure that allows you to define what your business is, the market it serves, how it will conduct operations and the money it will make and spend. Here are the sections the Small Business Administration recommends including in your business plan.

Executive Summary. The executive summary is considered the most important part of the business plan, and is usually written last. Its purpose is to summarize the rest of the plan, introducing the reader to your business in its most condensed form. It should talk about the highlights of your business, your mission statement, the history of your company and what you see in its future.

Company Description. This section goes into more detail about your products and services, how they meet the demands of the market and the differentiators that set you apart from your competitors. [See Related Story: Business Plan Tools for Startups]

Editor s note: If you re looking for information to help you with writing your business plan, use the questionnaire below to have our sister site provide you with information from a variety of vendors for free.

Market Analysis. This is where you show off what you know about your industry, and in particular, the market your product or service will serve. Discuss your target market, its size, the distinguishing characteristics of your offering, and how much market share you can capitalize on accordingly.

Organization and Management. This details how you are going to run your company and conduct day-to-day operations to meet company goals. Talk about organizational structure, the management team and what makes this team qualified to run the company.

Service or Product Line. In this section, describe your product or service and the consumer needs that it meets. If applicable, talk about patents filed on intellectual property. Describe the product s life cycle, and any research and development activities for new versions or products.

Marketing and Sales. In this section, discuss your overall marketing strategy, including market penetration, growth, channels of distribution and communication. Your sales strategy includes your sales force and sales activities what will get your product or service into the hands of the customers your marketing strategy created.

Financial Projections. Here, you will discuss historical financial data and the prospective financial data developed after you ve analyzed the market and set clear objectives for your business. Projections should explain any assumptions you ve made in developing the data.

Funding Request. If you are planning on using your business plan with financing institutions or investors, your business plan must include a funding request. Discuss your current funding requirement, the requirement over the next five years and how you intend to use the funds.

Appendix. This is not in the main body in your business plan but can contain data that would be of interest to financial backers. This can be your personal credit history, r sum s, letters of reference, contracts, list of business consultants and other documents.

In an email interview with Business News Daily, Tameka Montgomery, associate administrator of the SBA s Office of Entrepreneurial Development, shared some additional thoughts on what entrepreneurs should know about writing a business plan.

Business News Daily: What are the most important qualities of a good business plan?

Tameka Montgomery: It s very important your business plan is thorough and well written, but you also want it to be clear on what you have to offer. Ask yourself: Beyond basic products or services, what are you really selling? Identify your niche. You don t want to become a jack-of-all trades and master of none, because this can have a negative impact on business growth. As a smaller business, it s often a better strategy to divide your products or services into manageable market niches. Small operations can then offer specialized goods and services that are attractive to a specific group of prospective buyers.

BND: What are some of the challenges new business owners face in creating their business plans?

Montgomery: One of the big challenges for smaller businesses is actually building a business plan. SBA can help [with its] Build a Business Plan online tool. It provides a step-by-step guide to help new business owners through the process of creating a basic, downloadable business plan. The great thing about this tool is they can build a plan in smaller bites, save their progress and return at their leisure.

BND: Is there anything entrepreneurs often overlook when making a business plan?

Montgomery: Entrepreneurs often overlook concrete, specific plans and sales forecasts. All businesses need to project sales because the plan versus actual impact of sales is the key to ongoing management in changing times. Your costs and expenses pivot on sales.

BND: Do you have any general tips for creating a good business plan?

Montgomery: Business owners should reach out for help. SBA has an extensive network leveraged through our resource partners and available to small businesses nationwide. The resource partners include 950 small business development centers, more than 100 women s business centers, and 350 chapters of SCORE volunteers who provide training and counseling. Counseling is free, and training courses may have a small fee to cover costs through this strong network that provides management and technical assistance. In addition, SBA s online training offers free courses and online tools to assist entrepreneurs with business management resources.

Ready to write your business plan? Here are some more free templates to help you get started.

Editor s note: If you re looking for information to help you with writing your business plan, use the questionnaire below to have our sister site provide you with information from a variety of vendors for free.

With an Associate s Degree in Business Management and nearly twenty years in senior management positions, Marci brings a real life perspective to her articles about business and leadership. She began freelancing in 2012 and became a contributing writer for Business News Daily in 2015.



StockTrak stock game – stock market games – virtual stock exchange –

Global Leader in Educational Trading Simulations

for Academic, Corporate, and Consumer Markets

The stock market

experience the absolute

best in virtual trading and enhance your investing skills

The stock market

Trading, Managing & Tracking Made Simple

The stock market

StockTrak offers a full range of services

A versatile, comprehnesive Trading Room Software with plenty of flexible features.

and portfolio alpha/beta.

company profiles, analyst ratings, etc.

biggest gainers/losers, and many more.

These top universities use our global portfolio

simulation in their classes.

These top universities use our virtual

trading software in their Trading Rooms.

The stock market

These companies use our custom virtual trading platform

for employee training and client acquisitions.

The stock market The stock market The stock market The stock market

The stock market

Used by more than 1,000 professors and their 60,000 college students each year

The Stock-Trak Family

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|

StockTrak stock game – stock market games – virtual stock exchange –

Global Leader in Educational Trading Simulations

for Academic, Corporate, and Consumer Markets

The stock market

experience the absolute

best in virtual trading and enhance your investing skills

The stock market

Trading, Managing & Tracking Made Simple

The stock market

StockTrak offers a full range of services

A versatile, comprehnesive Trading Room Software with plenty of flexible features.

and portfolio alpha/beta.

company profiles, analyst ratings, etc.

biggest gainers/losers, and many more.

These top universities use our global portfolio

simulation in their classes.

These top universities use our virtual

trading software in their Trading Rooms.

The stock market

These companies use our custom virtual trading platform

for employee training and client acquisitions.

The stock market The stock market The stock market The stock market

The stock market

Used by more than 1,000 professors and their 60,000 college students each year

The Stock-Trak Family

The stock market

The stock market

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|

WSBDC – Washington Small Business Development Center, the small business administration.#The #small

“The bottom line is that I have the utmost respect for the SBDC, I could not have done this without the support and help of my advisor. It changed my life.”

Thea Heinman, Monroe Montessori

The small business administrationThe small business administration

“It’s not easy, and I think people really need to understand that. But the SBDC really is an amazing resource and guiding light in helping to make it more manageable.”

Marley Shain Rall, The Brewmaster’s Bakery and Taproom

The small business administration

Grow Your Business

The small business administration

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Grow Through Exports

The small business administration

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Start Your Business

The small business administration

The small business administration

Washington Small Business Development Center

Small Business Success

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

The small business administration

Client Testimonials

“I love talking to [our advisor]” “He’ll walk in with a fresh set of eyes, but a fresh set of eyes with a lot of experience. He helps guide us where we need to be.”

Luke Hossner DropForge Leather Care, Clarkston January 27, 2017

“The bottom line is that I have the utmost respect for the SBDC.” “I could not have done this without the support and help of my advisor. It changed my life.”

Thea Heineman Monroe Montessori January 27, 2017

“I thank you so much for your guidance and coaching through this process. Your help is the reason I felt so confident and the reason I was so prepared. I have learned a ton by going through the business plan process and now feel like I have a solid foundation for starting my business.”

SBDC Client Okanogan June 26, 2014

“I was so relieved that I finally found someone who could help me-that I could afford.” SBDC business advising is free of charge. “If it weren’t for Jim, we wouldn’t be here.” She calls the SBDC program to help small business owners ‘genius’. “It really does help small business owners in Washington.”

Marion Lodato – Snowcreek Yoga Leavenworth June 26, 2014

“I received a call from (the bank) yesterday late afternoon and they have decided to approve my loan. I also wanted to express how appreciative I am of all the amazing help, follow through and support you have given to me! I am so thankful that I was referred to the SBDC.”

SBDC Client Okanogan June 26, 2014

“Thanks to the SBDC advisor’s . experience [we have] hope when we thought there was none. He put together a cash flow sheet that gave us the ability to ‘see’ how the business was growing.”

SBDC Client Moses Lake June 26, 2014

“With the SBDC’s assistance, we were able to launch the creamery and make a dream come true for our whole family by starting on the road to becoming a sustainable farm.”

SBDC Client Mount Vernon June 26, 2014

“I have really appreciated the good solid business direction [the SBDC has] provided me over the years.”

SBDC Client Peninsula Region June 26, 2014

“There is no doubt that my planning process would have been far more difficult, and I would have missed some essential elements if not for the SBDC.”

SBDC Client Wenatchee June 26, 2014

“The SBDC was a main source of education on the process of purchasing a business. Our success was because of the help received.”

SBDC Client Spokane June 26, 2014

“SBDC provided tools such as spreadsheets to help plan and manage the business.”

SBDC Client Yakima June 26, 2014

“My advisor at the SBDC gave me the knowledge, insight and technical assistance necessary to encourage and empower me.”

SBDC Client Seattle June 26, 2014

“I could not have done this without your help. It’s beyond words how much I appreciate you guiding me through the maze to secure the SBA loan that kept my little company alive.”

SBDC Client Seattle June 26, 2014

“I had no idea that I would have access to such a powerful resource.

SBDC Client Lacey June 26, 2014

“The financial analysis and development of cash flows allowed me to develop the confidence I needed to move forward on my business plans and expansion.”

SBDC Client Lynnwood June 26, 2014

“They are a really good sounding board for me. They have helped me greatly during this expansion.

SBDC Client Bellingham June 26, 2014

“You are so much a part of our success.”

SBDC Client, Longview June 26, 2014

WSBDC Economic Impact

Making a difference for small business in Washington State

The small business administration

Business Blogs

The small business administration

Highline College SBDC

Spokane SBDC

Peninsula SBDC

The Washington Small Business Development Center is a partnership with the U.S. Small Business Administration, Washington State University and other Washington Institutions of higher education and economic development organizations. Funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the view of the SBA.

All services are extended to the public on a non-discriminatory basis. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Language assistance services are available for limited English proficient individuals. Email or phone the WSBDC.

Because we are federally funded, we cannot provide services for enterprises selling federally illegal products such as marijuana.

The small business administration

The small business administration

The small business administration


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Free Online Education Courses From The Small Business Administration, the small business

Free Online Education Courses From The Small Business Administration

For small businesses entrepreneurs, continuous learning and finding new resources to help further business goals can be essential to growth and success. However, business courses can be costly and the sheer amount of information and resources available online can be overwhelming.

But now, the U.S. Small Business Administration (SBA) has announced a new online Small Business Learning Center aimed at simplifying the process of finding and procuring small business resources online.

The small business administration

The redesigned portal features a searchable catalog of educational resources including videos, web chat sessions, and self-paced courses all aimed at small businesses and entrepreneurs.

The free courses can cover anything from disaster recovery to market research. Basic topics covered include starting a business, managing a business, financing, marketing, and government contracting. Users can browse items by selecting the course topic and/or the type of media.

Once users select a course that looks interesting, they can view details about it including a brief overview, length of the course, system requirements, and a few more details.

The photo above shows what the overview page looks like for a course regarding the 8(a) Business Development Program. Users can view the course s workbook (PDF) or a text-based version (PDF) in addition to the course itself.

Once you begin the course, all of the course s topics are indexed on the left, so that you can see an outline of what is to be covered. At any time, you can stop the course, go back to a previous slide, or advance to other content within the course. Many of the slides also include links that direct you to supplementary content elsewhere.

For videos and chat sessions, you can simply view the media or transcripts directly on the overview page.

The site also gives businesses access to analysis tools and information about local resources, such as connection to SBA district offices, SCORE chapters, Small Business Development Centers and more.

The SBA already offers many resources for small business entrepreneurs, both educational and otherwise. But this new portal is a way to easily find and access the resources that can be most relevant to your business needs.



Nasdaq Stock Market, Stock Quotes – Stock Exchange News, the stock market.#The

Stock Market Activity

Featured Stories from

The stock market

Stocks to Watch

The stock market

Valeant Pharma: Why This Bear Still Growls

Income Investing

The stock market

CenturyLink: A Dividend Cut Is Logical but Unlikely

Tech Trader

The stock market

Nvidia: Did You Feel the Ground Shake, Too?

Stock Market News & Analysis

Editor’s Picks

Latest Market News Headlines

Featured Story

The stock market

If You Love Artificial Intelligence, You Should Check Out NVIDIA

AI is getting a lot of attention these days

Featured Video

Stock Activity

Upcoming IPOs

Economic Calendar

Earnings

Earnings Calendar

Visit Earnings Calendar for the week starting 11/05; 69 reports are scheduled.

Earnings Report

The stock market

Recommendations

Forecasts

Surprises

Decliners

Advancers

ETF Headlines

  • USAA Launches Intermediate-Term Total Bond Market ETF11/10/2017
  • Active Bond ETFs in a Changing Market Environment11/10/2017
  • A Comprehensive Bond ETF to Access the Total Corporate Debt Market11/10/2017

More News Stories

Commodities

  • Novartis posts eye drug data amid play for Eylea’s turf11/10/2017
  • Brazil’s Cosan 3rd-quarter profit jumps 53 pct11/10/2017
  • CES Energy Solutions (CEU) Shares Cross Below 200 DMA11/10/2017

Wealth Management

  • Don t Let Today Guy Destroy Your Financial Future11/10/2017
  • Merrill’s New Incentive Program Debuted11/10/2017
  • Reasons You Might Go Bankrupt in Retirement11/08/2017

Forex and Currencies

  • Dollar: Senate Tax Bill Provides No Reassurance To The Dollar11/10/2017
  • Continuity In New Fed Chair. The British Pound Bears Watching11/10/2017
  • A Yellow Light of Caution for Dollar Bulls?11/10/2017

Investing Ideas

  • Walker Dunlop Becomes Oversold (WD)11/10/2017
  • Relative Strength Alert For BofI Holding11/10/2017
  • Relative Strength Alert For FibroGen11/10/2017

Retirement

  • Hungary’s buoyant housing market needs continuous monitoring11/10/2017
  • Lenders to embrace a record Broadcom bridge loan11/10/2017
  • Ireland predicts American boost to Dublin financial services11/10/2017

Technology

  • Hasbro makes takeover offer for Mattel11/10/2017
  • U.S. toymaker Hasbro makes takeover approach for Mattel11/10/2017
  • U.S. toymaker Hasbro makes new approach to buy Mattel11/10/2017

Today at NASDAQ

The stock market

Announcement: Visit the press releases for the latest information

The stock market

NPM Liquidity Program Volume Rises 35% in First Half of 2017. Learn more.

The stock market

2017 CNBC Disruptor 50: Who made this year’s list?

The stock market

Nasdaq’s blueprint for a new era of trading.

The stock market

Nasdaq Private Market offers innovative liquidity solutions

The stock market


Why The SBIC Doesn – t Work For Venture Capital Anymore –

#small business investment company

#

Why The SBIC Doesn t Work For Venture Capital Anymore

There are so many things wrong in the article I felt compelled to write about it. This isn t a knock on the writer (Alicia Wallace) I like Alicia and think she does a good job. Rather, it s an example of the difference between signal and noise in any kind of reporting around the VC industry.

I’m an investor in over 40 VC funds around the world (mostly in the US) and three of them are SBIC funds. Each of the SBIC funds were raised in the 2000 2002 time period. On paper, only one is in positive return territory as a fund, but the SBIC leverage is a substantial negative factor for the LP investors in that particular fund. And, in the other two, I don’t expect to ever see any of my capital back because of the SBIC leverage. Furthermore, I don t believe any of the GPs in any SBIC-backed fund would ever take money from the SBIC again.

So I’m speaking from at least a little experience albeit indirectly with the SBIC, as I ve never been a GP in a fund that had SBIC leverage.

The article starts off saying that “Matthew Varilek has traveled across the state, proselytizing the potential benefits of the Small Business Investment Company Program.” As a partner in one of the most visible VC firms in Colorado and an LP in many of the Colorado VC firms, I’ve never heard from Matthew or anyone from the SBIC. Matthew, if you really want to have a deep discussion about why the SBIC program isn’t effective for VC funds anymore, feel free to give me a shout. I’d be happy to meet with you.

Next, there is the wonderful PR quote about the SBIC that says “Since the program s inception, SBIC success stories include the funding of companies such as Apple, Costco and FedEx when they were burgeoning small businesses.” The SBIC was instrumental in the creation of the venture capital business. The Small Business Investment Act of 1958 helped catalyze many of the VC firms created in the early 1960s. When I first heard about VC firms in the late 1980s, and my first company (Feld Technologies) started writing portfolio management software for some Boston-based VC firms, many of them had funds with SBIC leverage, although even by the late 1980s this was changing and many of them had shifted away from the SBIC. If you want to see a fun quote on it, read A History of Silicon Valley which quotes:

“ …many venture capital pioneers think the SBIC program did little to advance the art and practice of venture investing. The booming IPO market proved the model of investing in new companies, as some SBICs cash out at attractive levels. SBICs did give a boost to early venture firms, and some like Franklin “Pitch” Johnson, profiled below, thought the new law made the US “see that there was a problem and that [venture investing] was a way to do something… it formed the seed of the idea and a cadre of people like us.” Bill Draper, the first West Coast venture capitalist, has been more blunt: “[Without it] I never would have gotten into venture capital. it made the difference between not being able to do it, not having the money.” Many believe SBICs filled a void from 1958 to the early 1970s, by which point the partnership-based venture firms took off. The US government, however, lost most of the $2 billion it put into SBIC firms.

So, while Apple, Costco, and FedEx benefited, the PR would be more credible if the SBIC was trumpeting iconic companies created after 1990 or even 2000, especially where the lead investors (rather than follow on investors) had SBIC capital.

Peter Adams, head of Rockies Venture Club, is quoted a few times. I like and respect Peter, so this isn t aimed at him, but rather at the clear lack of understanding of the capital dynamics around VC funds.

It looks really great on the surface, said Peter Adams, executive director of the Rockies Venture Club, a nonprofit aimed at connecting investors and entrepreneurs. Then when you dig into it, there were some problems. Adams, who has been involved in many of the meetings with the SBA and members of the investment community, said the greatest concerns voiced by investors and venture capitalists involved management team qualifications, investment track records and the addition of debt to the equation. No. 1 for us is they want a management team with multiple people that have track records in venture capital and have worked together as a team before, he said. I can see where they re going with it, but the VC industry in Colorado has been fairly decimated through the economic downturn.

Peter is right about the context, but has two fundamental things wrong here. First, the VC industry in Colorado wasn t decimated through the economic downtown. It was decimated because of lack of performance between 2001 and 2009, just like much of the rest of the VC industry around the US. There s nothing special about Colorado in this mix, and it has nothing to do with the economic downtown. This dynamic has been reported thousands of times so I don t need to go through it again, but we don t have to look back very far to hear the drum beat from the media, LPs, and everyone else about how VC is dead. And if you re curious, it wasn t too long ago that Silicon Valley was also dying .

The other problem here is the need of the SBIC to invest in a management team with multiple people that have track records in venture capital and have worked together as a team before. Any VC firm that fits this qualification is unlikely to have difficulty raising money in today s environment, and subsequently has no need for the SBIC leverage. And, more importantly, the only firms that will look for SBIC leverage are one s that don t have this, which is a classic adverse selection problem.

Then there s this:

The recession also then plays into requirements that the management team members have been involved in a meaningful number of successful exits during a four- to six-year period. From 2008 to 2013, that was not a good time for exits, Adams said.

Huh, what? At Foundry Group, our significant exits (at least 10x capital returned) since we raised our first fund in 2007 include AdMeld, Zynga, MakerBot, and Gnip. We ve had plenty of other exits, but these are the big ones. One of those companies, Gnip, is Boulder-based and another from our older funds (Rally Software) also generated a greater than 10x return for us. Techstars (which we helped start) have also had a steady stream of significant exits, including local Boulder companies like Filtrbox, GoodApril, and SocialThing. And then you ve got plenty of Boulder / Denver monsters on paper some in our portfolio (like SendGrid and Sympoz) and others like Zayo, Ping, Logrhythm, and Datalogix. Finally, if you look across the country, the exits have been awesome the past three years.

It keeps going. There s talk about the angel cliff (e.g. we need funds to invest between angels and VCs nope, been there remember gap capital not so effective) and the SBA rules and regulations (which I believe are toxic and inhibiting to a successful VC fund.)

One of the other problem is SBA and SBIC s behavior in governance of the fund. The paperwork is silly and the overhead is non-trivial. The control over distributions and negative incentives to hold or distribute capital often generates bad decisions when companies go public. And at least one close friend who is a partner in an SBIC fund has now found a new LP to buy out the SBIC so they could actually invest capital in their winners, rather than be limited by the SBIC s constraints on the amount of capital you can invest in any particular company.

The SBIC could be a powerful force for good in the venture capital industry. But it has to approach things very different and based on my experience with the SBA over the past decade, I don t see it happening unless there is real leadership somewhere in coordination with leaders in the VC industry. I m certainly willing to help, if only someone bothered to reach out to me.

UPDATE: It turns out my partner Seth Levine had met with Matthew a while ago. Seth said Your blog was right on and much of the type of thing I related to Matt and some senior guys he brought in. The gist of my conversation with them was pushing them to consider a different model that the current one basically led to lowest common denominator GPs and sub-optimal returns. Plus the SBIC leverage could be crushing. I don t think they have a ton of flexibility around this but they at least listened to the feedback. I m going to see a bunch of them in a few weeks I agreed to help judge a business plan competition they were hosting. Like you I m not a huge fan of the program as it has existed but I give the new guys some credit for both reaching out and trying to be proactive about thinking through this.

UPDATE 2: Matthew Varilek reached out to me and we are setting up a time to talk.



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