Work-Life Strategies & Solutions

On the Evolution of Work Systems in the Digital Economy

Category Archives: entrepreneurship

Exploring Evergreen Funds with a VC Investor Who Raised One

This post was written by Alex Graham, Finance Expert for Toptal.

Submitted by Michelle Young at Toptal

Edited by Lynn Patra

Executive Summary

What Are Open-ended and Evergreen Funds?
How Are These Funds Different from “Traditional” Funds?
What Is Some Advice from Someone Who Has Raised and Operated an Open-ended VC Fund?

 

Earlier in 2018, through Toptal, I worked with Rodrigo Sanchez Servitje from B37 Ventures on a project related to its open-ended VC fund. Such funds are still a relatively unknown and misunderstood type of funding vehicle, with a dearth of “in the trenches” information out there about how they operate. With this article, I am looking to correct that.

As someone who has raised and operated an open-ended VC fund, throughout the piece, I will refer to Rodrigo for invaluable insight regarding B37 Ventures’ experiences.

What Are Open-ended and Evergreen Funds?

In venture capital fundraising, as the adage goes, “If it ain’t broke, don’t fix it.” For years, funds have toed this line by raising capital through closed-ended vehicles. This refers to a management company raising a set amount from external investors via a limited partnership legal structure for a fixed number of years (typically ten). After this process, the doors close, money is put to work and, at the end date, the fund is wound up and repaid.

Despite investing in disruptive and innovative industries, the landscape of VC fund structures has largely remained unchanged.

The most obvious alternative would be the inverse of a closed-ended fund: an open-ended one. In these such funds, capital is invested directly into an LLC on an ongoing basis with no termination date. It is essentially investing preferred equity into a company. Investors buy units of a fund with a yield attached (the hurdle rate) and they can buy more, or sell, whenever they wish.

This type of fund is also liberally referred to as a permanent capital vehicle or evergreen fund. The ethos between the names is largely the same, in that it’s referring to structures with no end date or fixed capital quotas. A core distinction is that an evergreen fund can recycle returned capital while open-ended funds (like B37 Ventures) distribute to investors. Read more of this post

Advertisements

Family Office Investment Guide: An Alternative to Venture Capital

This post was written by Vidur G. Gupta, Finance Expert for Toptal.

Submitted by Michelle Young at Toptal

Edited by Lynn Patra

Executive Summary

What Is a Family Office?
How Does Family Office Investing Differ from Venture Capital?
A Family Office Investment Could Be Right for You If…
How Can an Expert Prepare Your Company to Receive an Investment?

15th Century Florence…

Family offices began investing in early-stage ventures centuries ago. In 15th century Florence, the Medici family actively supported young artists by investing in their works (venture capital of its day), patronage which provided the start for some of the greatest masters of all time from Leonardo Da Vinci and Michelangelo to Galileo and Botticelli. Amazingly, this was 500 years before the first formal venture capital firm (ARDC) was founded.

…to Present Day

Read more of this post

How to Sell on Amazon [Infographic]

Submitted by Jake Rheude, Director of Marketing at Red Stag Fulfillment

Making extra money online and escaping the nine to five grind often becomes possible when you set up a stream of passive income to supplement your regular income. A great way to do this is to sell products on Amazon.

While it can seem daunting at first, it’s best to remember that the people who sell you products on Amazon are largely normal folks. Anyone can sell on Amazon. All they have to do is choose the right product, set up a profile, and find a fulfillment provider.

Red Stag Fulfillment put together a complete guide to selling on Amazon, but for those who are looking for an overview of the process, this is a good place to start.

Getting Set Up on Amazon – First Steps

Read more of this post

Fintech and Banks: How Can the Banking Industry Respond to the Threat of Disruption?

Submitted by Michelle Young at Toptal

Authored by Alex Graham, Finance Expert for Toptal

Edited by Lynn Patra

Executive Summary

Fintech 1.0 needs fintech 2.0 to arrive.
How have banks reacted to fintech?
There are four areas in which the financial industry can focus to improve their response to fintech.
What will the bank of the future be?

Banks Can Play the Fintech Game Too

Fintech, shortened from financial technology, is assumed to be a modern movement. Yet the use of technology to assist financial services is by no means a new phenomenon. Financial services is an industry that introduced credit cards in the 1950s, internet banking in the 1990s and, since the turn of the millennium, contactless payment technology. Yet, fintech’s place in the public conscience has really taken off in the past three years:

Chart 1: Google Trends "Interest over Time" Results for the Search String "Fintech"

The takeoff of this term has come from startups—actors not within the inner circle of financial services, taking a more prominent role within the ecosystem. Three core trends have led to this movement emerging: Read more of this post

A Quick Status Update & Business Resource Recommendations

Months ago I mentioned that I’d spend this past summer giving a new business venture a go and would report back on how this panned out. It wasn’t meant to be. However, this snag is another chance to learn and problem solve in order to transition to the next opportunity. Despite people telling me that I seem to have everything together, I understand what it’s like to struggle. For now, I’m focused on returning to the workforce, but at least fall season is the ideal time to search I hear.

However, between time spent inside my own head and working on the business, my networking efforts fell to the wayside, and this doesn’t set me up well for finding a job. Personal referrals are the way to go nowadays, what with hiring managers having to sift through piles of resumes. This is, by the way, a familiar problem that some introverts have. Well, I decided to act in accordance to the saying about sometimes having to spend money to make money (and no, I don’t think money is the root of all evil but I’ll return to this thought with my “politics in the workplace, etc.” series next week).

Read more of this post

%d bloggers like this: