For Subscribers

Inside Information What makes a venture capitalist tick?

By Cynthia E. Griffin

Opinions expressed by BIZ Experiences contributors are their own.

To separate itself from the growing pack of companies creatingsoftware programs and Web sites that help BIZ Experiencess findventure capital, DataMerge Inc. is honing its investigativereporting skills. The company's VentureTrack 2000 CD-ROM goesbeyond the norm, delving into what motivates more than 500 venturecapitalists to fund companies.

DataMerge uncovered the reasons venture capitalists funded dealsby interviewing the investors, as well as people who had obtainedfinancing from them, says founder Spencer Kluesner. The result?VentureTrack 2000, which is ideal for high-growth companies seeking$1 million to $5 million, according to Kluesner. There are severalversions available; the edition tailored to BIZ Experiencess ($149)includes venture capitalist contact information, investmentcriteria and an overview of their portfolio companies as well asinvestor search software.

Also available are detailed Inside Tracks, lengthy profiles ofselected venture capitalists. Each includes information on theventure capitalists' past investments, why they like or dislikedeals, and what to say when trying to obtain funding. The profiles,which must be purchased separately for $50 each, also reveal howmuch money companies received and at what stage of development, andfeatures articles explaining the venture capital process.

The unabridged edition of VentureTrack 2000 includes anunlimited number of Inside Track profiles and costs $695. Fordetails, call (800) 580-1188.

Buried Treasure

Uncover the hidden value in your company.

BIZ Experiencess who want to grow their businesses often look forinvestors to bring an infusion of cash to the company. But first,entrepreneurs must determine the value of their businesses.

"The financial community looks at financial information [todetermine value]," says Larry Chiagouris of CDB Research &Consulting Inc. in New York City. "But financial informationprovides more of a history of where the company has been; itdoesn't necessarily give you a road map to what the companywill accomplish."

So Chiagouris' marketing, consulting and research firmcreated the Hidden Value Index, which examines eightcharacteristics that help determine worth. These are: 1) relationswith employees; 2) cost reduction; 3) avoidance of regulatoryproblems; 4) the capacity to increase revenue; 5) customersatisfaction and loyalty; 6) brand equity of the company and itsproducts; 7) intellectual capital and research and development; and8) the ability to heighten productivity.

Although most people don't think about company value untilthey want investors or plan to sell, Chiagouris says periodicallydetermining the value of your business can help you know ifit's something in which you'll want to keep investing yourmoney and time.

The Hidden Value Index can be requested by both investors andentrepreneurs; costs range from $9,500 to $20,000.

Channel Surfing

Tune in or miss out.

Investors now have yet another tool to help them keep track ofwhat's happening with their mutual fund portfolios. The MutualFund Channel (MFC) is a free online service that tracks more than17,000 open- and closed-end funds, offshore and Canadian funds, andvariable annuities.

The MFC sends subscribers updates on price changes, capitalgains distributions and other characteristics of the funds theyselect. To access more details about a particular fund, you justclick on a link button and the MFC will take you directly to thatsite.

For more details, visit http://www.mutualfundchannel.com

Contact Source

CDB Research & Consulting Inc., (212) 367-6858, fax:(212) 367-7154

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