To: ztect who wrote (22 ) 1/25/1999 8:56:00 AM From: ztect Read Replies (2) | Respond to of 193
RE: How Some Venture Cap firms work & MM violationsHow the Venture Capital office I consulted for operated. Every month this office got about 40 to 60 proposals. Out of about 500 proposals received during the year, this firm chooses one or two to work on and then tries to lines up investors to invest. In evaluating a proposal, you have to access the idea first and ask a lot of questions like how does this idea distinguish itself from similar ideas, what is the need for this idea, how can this idea be realized, how much capital is required to get up and running, and then most importantly what is the rate of return? Now you don't have 10sb or 10q or any reported information. How can you? For you don't even have a company yet. You review various scenarios and risks, and then determine whether or not to proceed. Then, you take this great idea with all the numbers you've generated and determine how best to finance it. Financing means lining up investors Preferably when lining up an investor, the firm tries to get one large investor. If this fails, then the firm tries to get 3 or 4 to put in lessor amounts. One project I worked on took the idea and made a presentation to a potential investor, this investor liked the idea so much Wayne, as in Huezega (sp?), decided to do it himself. And there's the rub, the person who generated the idea got squat. Thus many companies have decided to get up and running avoiding venture capitalists altogether. Going public quickly via pink sheets generates necessary capital without giving up directing authority or financial interests to blood sucking lecherous vc's like myself. Getting up and running quickly with internet companies, that may not necessarily require a lot of start-up capital, has fostered a lot of interesting investment opportunities in what too many to quickly scorn as a scam investment arena. Now regarding mm's, don't even start to believe that Nasdaq listed issues are immune from the same games that occur on bb boards. Now the SEC has purportedly cracked down on Nasdaq manipulation but it still occurs frequently. Below are some mm's and their infractions on Nasdaq listed listed companies. ========================================== Click the link, read the violation: FRAN: linpo.on.ca GVRC: linpo.on.ca HILL: linpo.on.ca HRZG: linpo.on.ca MHMY: linpo.on.ca NAIB: linpo.on.ca SHRP: linpo.on.ca SPIN: linpo.on.ca