Innovation America Innovation America Accelerating the growth of the GLOBAL entrepreneurial innovation economy
Founded by Rich Bendis

innovation DAILY

Here we highlight selected innovation related articles from around the world on a daily basis.  These articles related to innovation and funding for innovative companies, and best practices for innovation based economic development.

Posts about venture capital as of August 22, 2009 | Geekfluence

How entrepreneurs finance their company is one of the most critical decisions that they will make during the course of their startup. The structure of their financing will be one of the key drivers of the financial return from their venture.There are financing structures for companies that have small potential and structures for companies that have big potential. There is not a one-size fits all strategy for capitalizing a company.Read the entire post

Barrons Article on Tech IPOs Misses the Importance...

On Monday, August 10, Barron’s ran a story “Does the IPO Market Shun Smaller Companies?”, written by Mark Veverka, asserting that “venture capitalists want to widen the playing field for the underwriters.” The story includes quotes from former National Venture Capital Association (NVCA) chairman Dixon Doll of DCM and investment banker Paul Deninger, who is the vice-chairman of Jefferies & Co. It accurately points out that, when it comes to IPOs, many venture capitalists have mistakenly defaulted to choosing the large investment banks (such as Goldman Sachs, Morgan Stanley, and Credit Suisse) as lead underwriters for their portfolio companies. This practice has created “a near oligopolistic hold on tech IPOs” by these large investment banks. Such market power allows bankers to shapes the profile of those companies worthy of going public to favor the natural demand from their largest clients: short-term trading focused hedge funds and large institutional investors that demand highly liquid public securities.

16th Annual NASVF Conference

Join your colleagues in Oklahoma City and exchange the best strategies and tools for building and managing strategic investment programs and institutions. Newly formed organizations receive the benefit of different viewpoints, while established organizations track new approaches and resources. Participants meet with professionals from outside their local networks, making one-on-one contact with specialized practitioners and discussing new methods of facilitating capital formation. Together we will put early stage investing at the forefront of our economic recovery.

Innovation Yin and Yang by Bret Swanson

There are two key mistakes in the public policy arena that we don’t talk enough about. They are two apparently opposite sides of the same fallacious coin.

Call the first fallacy “innovation blindness.” In this case, policy makers can’t see the way new technologies or ideas might affect, say, the future cost of health care, or the environment. The result is a narrow focus on today’s problems rather than tomorrow’s opportunities. The orientation toward the problem often exacerbates it by closing off innovations that could transcend the issue altogether.

Entrepreneurship: Government funding and innovation still key by Duane Roth

Many of us remember the glory days of the late 1990’s when entrepreneurs could jot down an idea on a napkin, write some code and head to a VC for a couple of million in start up financing.

That may be an urban legend, but it is true that access to capital for an early stage company was a lot easier to acquire10 years ago than it is today.

DOE Announces $37 Million for Small Business Research and Technology by US Department of Energy

U.S. Energy Secretary Steven Chu announced today that $37 million in funding from the Recovery Act will be made available to qualified small businesses through the Department's Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Today's funding announcement emphasizes the Department's commitment to developing near-term, clean energy technologies while allowing small businesses take part in the new industrial revolution that the sustainable energy economy will bring.

Summary of Finnish High-Tech Company Capital Raising Activity - H109

The following are the findings of the Quarterly Survey, conducted by Technopolis Online, which is at the forefront of high-tech venture capital research in Finland. This survey reviews capital raised by private Finnish high-tech companies from venture capital funds and from angel investors, both Finnish and foreign. The Survey is based on both publicly-reported and proprietary information regarding 140 Finnish and foreign investors, and 1,500 Finnish high-tech firms.

Seed fund group, Temple to study venture trends from Philadelphia Business Journal

The National Association of Seed and Venture Funds said Wednesday that it has entered into a research partnership with Temple University’s Fox School of Business that will focus on early-stage investing trends.

The partnership’s initial venture will be a survey of senior executives of early-stage funds to gather information on capital raising, investment, regional investment and technology development, and other things.