For Subscribers

Inside Information What makes a venture capitalist tick?

By Cynthia E. Griffin

Opinions expressed by Entrepreneur contributors are their own.

To separate itself from the growing pack of companies creatingsoftware programs and Web sites that help entrepreneurs 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 entrepreneurs ($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.

Entrepreneurs 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

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

You Can Get Paid $18,000 More a Year By Adding AI Skills to Your Resume, According to a New Study

Employers are emphasizing AI skills — and are willing to pay a lot more if you have them.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

The Difference Between Entrepreneurs Who Survive Crises and Those Who Don't

In a business world accelerated by AI, visibility alone is fragile. Here's how strategic silence and consistency can turn reputation into your most powerful asset.

Leadership

7 Steps to De-Risking Big Business Decisions Before They Backfire

When the stakes are high, these seven steps can help you avoid costly mistakes, eliminate bias and make smarter decisions that actually scale.

Business News

United Airlines Says It Is Adding Extra Flights in Case Spirit 'Suddenly Goes Out of Business'

Rival airlines, including United and Frontier, are adding new routes as Spirit cuts 12 cities from its schedule.

Employee Experience & Recruiting

Here's the Real Reason Your Employees Are Checked Out — And the Missing Link That Could Fix It

Most disengaged employees aren't exhausted — they're disconnected, and storytelling may be the key to rebuilding that connection.