Saturday, May 26, 2012

How to Invest Like a VC

With strong bipartisan support, the Jumpstart Our Business Startups (JOBS) Act has recently (circa March 2012) passed both the House and Senate to support crowd funding, an on-ramp for Initial Public Offerings (IPOs), and other measures to strengthen America's economic competiveness over the long term. It is currently awaiting signature by the President of the U.S.A.
Americans have seen the economy turn around under both Democratic John Kennedy and Republican Ronald Regan and they are demanding the same type of policies today. With the JOBS Act and coming elections, a transfer of resources from the political to the private sector is looming.
This will fuel investment and foster economic growth.
So, now is the best time to get into the Venture Capital (VC) business and this post will provide several investment areas that are worthy of serious consideration.
The attractions of the VC business are obvious. One of the best attractions is the ability to go where equity investors are unable to go. The other reason is the rate of return enjoyed by VCs is typically so much higher than the rate of return of the equity markets, also known as the stock market.
One way to invest like a VC is to buy stock in a tiny company that acts like a VC mutual fund.
This company allows you to participate in some of the most exciting and promising nanotech startups in existence on better than VC terms.
By participating in this company, your participation in the VC market remains liquid because you can sell the fund at any time. That is a privilege that normal VCs do not have.
This company has broad knowledge in the nanotech industry and helps their portfolio companies with general strategic and operational problems as well as business and intellectual property strategy. It also helps with executive recruiting, fundraising, compliance with Sarbanes-Oxley, and is building a collaboration platform with strategic partners.
Its team members have extensive VC experience, as well as experience in solid-state physics, biochemistry, and other technologies that are converging with nanotechnology.
Using its collaboration platform, it is constantly monitoring the world of nanotech and maintains contact with nanotech scientists in academia where cutting-edge research is taking place. This allows this company to identify important spinoffs as they occur with early stage opportunities for investors.
We all know the long-term promise of nanotech is world changing. The immediate challenge for nanotech investors is finding companies that are moving into the commercialization stage. Investors want to know that their portfolios will maintain and increase in value waiting for those eventual huge returns.
I trust this post has provided some background and evidence that now is a good time to get into the VC business. Investing in a company with a VC mutual fund is a way to invest in a diversified group of diversified technologies like nanotech, healthcare, electronics, and cleantech so you can benefit from huge transformational gains from breakthrough technology.
I Hope You Enjoyed the Article and I Trust You Found It Insightful! Let me Know What You Think.
Source:  http://www.articlesbase.com/wealth-building-articles/how-to-invest-like-a-vc-5899230.html

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