Hunt It Down
Expert advice on tracking down money to start or grow your business
Looking for funds in all the wrong places? That's common among entrepreneurs, says Miles Spencer, who raised venture capital for small businesses for more than 10 years. When seeking financing, Spencer advises, "Focus on the appropriate personality of money for the deal." For example, there are only 1,200 venture deals done each year and 100,000-plus deals looking for funds. "VCs look for an opportunity to realize $50 million to $100 million in enterprise value in five years," he notes. "Most like to employ $1 million to $5 million of capital. If you can't hit those hurdles, don't spend too much time barking up that tree." Similarly, don't waste time applying for bank loans if your business doesn't have the requisite financial history and collateral; banks are not into taking risks.
In Moneyhunt: 27 New Rules for Creating and Growing a Breakaway Business (HarperBusiness, $25, www.moneyhunter.com), Spencer and Cliff Ennico, co-hosts of the PBS series of the same name, include advice on everything from launching to selling a business. By no means a motivational vehicle, Moneyhunt instead takes a look at the rigors faced by every start-up and offers sound advice for dealing with them.
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