Resources
Co-Capital Partners has provided resources
for entrepreneurs, general partners and investors
that can be useful sources of information
links to information that can inform or improve
operating methods with the goal of sharing
information that can improve the investing
value chain for each participant.
Co-Capital Resources
Venture Capital
and Private Equity Resources
Entrepreneur Resources
Diagnostic Resources
Private
Companies and the Sarbanes-Oxly Act
of 2002
Co-Capital Resources
Co-Capital Partners provides various investing and governance guidelines
and information on specific topics. They are not listed in any specific
order nor meant to take the place of specific venture advisors.
- How
Much is Enough? - Whenever an investment is made, the investor
asks "How much of the company do I own?" and the entrepreneur
asks "How much of my company do I need to give up?". Both parties
look at this issue from a different perspective and they usually
leave this topic to the end of the investing process. The ownership
conundrum is really simple math. This summary is meant to bring
objectivity to a process that can get bogged down by emotion
or unrealistic expectations. If you assume that every Venture
Capitalist needs to achieve a 30% IRR on its investments, then
how much of any company do they need to own when they liquidate
the investment to achieve that rate of return?
- Fair Market
Valuation Standards - General Partners are generally required
to carry out periodic valuations of investments as part of
the reporting process to investors in the Funds they manage.
Partnership Agreements usually specify reporting periods and
precise valuation requirements for investments that are or
become publicly traded. Accounting standards concern issues
of consistency, presentation and broad issues that can be applicable
across all types of private equity vehicles. The Valuation
Standards attached were based, in part, upon standards proposed
by the NVCA in 1997.
- Capitalization
Table - Entrepreneurs and investors alike need to know
the capitalization of the company they own, manage or invest
in. This is a generic chart that is meant to show at a glance
the classes of stock, the major owners of each class and the
valuation of company pre and post the most recent round of
equity.
- Small Business
Investment Company (SBIC) Program - The SBIC Program is
a way for small funds to invest larger dollars than just the
amount they can raise from private investors. However, the
capital from this government-run program does come with more
bureaucracy. The attached article by the Small Business Administration
(SBA) is meant to give you enough information to decide if
the program will be a fit for a general partner.
- SBIC
Approval Timeline - One of the drawbacks to engaging the
SBA as a partner to your fund is the time it takes for the
SBA to approve the license and allow a fund to draw capital
from the SBA. The timeline shown in the attached link comes
from SBA guidelines, coupled with actual fund experience in
late 2002.
Venture Capital and Private Equity Resources
Entrepreneur Resources
Diagnostic Resources
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