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Category: FINANCE JOBS


The venture capital market gets a lot of publicity. Despite this, it is also clear that a certain amount of mystery surrounds the industry. In this article, we look at a very simple question – what are venture capital funds looking for in prospective businesses?

The first thing a fund manager looks for is a potential home run. They are willing to invest a lot of money, but only if the potential return on investment is huge. If you aren’t thinking big, don’t bother seeking out this type of funding.

Along this line of thinking, the fund managers are also looking for a product in a growing market. You might have the greatest idea for movie DVD technology in the world, but you are probably going to get little or no VC interest. Why? The market is moving past DVDs to direct streaming solutions, to wit, your idea is antiquated and in a slowing market.

The third element is the ability to quickly recover the capital investment. What does this mean? It simply means the ability to take the company public or sell it in a reasonable time of say no longer than 5 years. Fund managers are in the game to make as much money as possible. Any talk of “growing” a company should only be taken in reference to their desire to get it to the payoff stage as soon as possible.

The fourth characteristic looked for is experienced management. Would you give a couple million dollars to someone who has never done something before? Maybe, but you would feel a lot better giving it to a company with management that has a history of having successfully brought companies to market. If you don’t have strong management, an easy solution is to consider hiring it. It could be the difference between getting funding or not.

Every venture capitalist is different and so are the things the look for in an investment opportunity. That being said, you will be ahead of the game if you nail down the above factors before seeking out your funding.… READ MORE ...


Threat Capital would be the amount of cash that a enterprise or particular person is willing to shed. This is a usually used term in trading and forex markets. These are allocated funds for high threat investments because the maximum quantity that a person would be willing to entirely drop. The clear incentive to “put up” threat capital for yet another individual or entity is monetary get.

Investment specialists and forex brokers advise to only use risk capital for investments that happen to be extremely speculative with a big potential payoff. High danger investments usually involve a potentially catastrophic profit, so a fantastic example of risk capital would be an investor who makes their funds accessible to a startup organization which has powerful development potential. The funding is invested into the business, together with the hopes that the new firm tends to make tremendous profits, realizing there is a threat that it will not.

A small-time instance of threat capital is displayed by means of acquiring a lottery ticket. Although the payoff is potentially substantial, the odds of my investment into the lottery succeeding are subsequent to zero. So the volume of capital that I am personally prepared to place forth into this speculative investment, and potentially lose, is $1. When the odds for winning the lottery higher, I’d likely invest more of my capital in wanting to win.

In some circumstances, Risk Capital is equivalent to Venture Capital (VC).

When a start-up business enterprise is in search of danger capital or venture capital, they may be in search of revenue from an investor to help grow or commence their business enterprise. When the business presents a powerful business strategy and displays wonderful possible for good results, an investor might be willing to lend it begin up cash.

Likewise, if a organization strategy is presented but doesn’t look to possess the potential for exponential development, an investor is prepared to risk tiny or no capital. No investor is going place most or all of their danger capital into a business enterprise that doesn’t have huge development possible. Innovative and sturdy business plans will get probably the most investment, even though although the investor dangers losing all money invested.

Some people wonder why a start-up small business would seek investors instead of taking a standard organization loan out from a bank. The answer is the fact that normal lending institutions such as banks will not be generally prepared to take such big dangers. Banks base future loans off of previous loans, and if one’s start-up business may be the very first of its sort, a bank may perhaps uncover the revolutionary business too risky. This really is exactly where investors with threat capital or investment capital come into play.

If danger capital may be for funding firms with superb development possible, it might also be made use of to buy currencies with great growth prospective. Forex trading might be extremely lucrative, however extremely risky. Investors who have disposable cash … READ MORE ...


You have choices in sources of working capital finance and in business credit solutions.

It is all about understanding the problem and knowing where to go for the solution, so let’s look at those two key issues. Understanding the problem is not something you have to read about, as a business owner and financial manager in Canada you live the capital ‘crunch’ or ‘challenge’ every day.

Working capital is best understood as your operating capital, and you have investments in receivables, inventory, that’s where your investment currently lies, and your goal is to monetize those assets in the best manner possible.

The textbook definition doesn’t really help us out – our accountants and analysts tell us to go to the balance sheet, subtract current liabilities from current assets, and, voila! That’s working capital!

One of the biggest contradictions that you need to understand is the issues of assets, profit, liquidity and turnover. Once you have a handle of those the concept of working capital and, more importantly, the solutions start making more sense.

We hate those textbook definitions we referred to, but we will agree that the calculation we shared needs to be positive – you do need more inventory and receivables combined as measured against payables and other short term liabilities. How you manage those short term assets of A/R and inventory is the challenge.

Many business owners quickly realize that one of their liabilities, i.e. payables, is actually a large asset in measuring capital and managing it. That is because if you can continue to convert inventory into A/R into cash, and slow down payables you are achieving working capital progress.

Is there a perfect way to measure your working capital needs and progress? One of those methods is to check into the ‘cash conversion cycle ‘- It’s a tool you can use to measure how low a dollar takes to flow through your company. It simply takes your inventory and receivable days outstanding, subtracts your payables days outstanding, and there is your final number. It’s a great long tool to understand your progress over long periods of time.

In order to achieve solid cash flow you need to increase turnover – that can be done by accelerating cash flow by borrowing against receivables, or selling receivables via a factoring process.

Your working capital solutions in Canada are limited, but they are very focused and real. Your can increase cash flow today with no ones assistance simply by accelerating turnover of your assets such as receivables and inventory. If you feel your challenge is more of a long term nature a term loan (if larger these loans are called subordinated debt) is the solution.

You can also generate unlimited capital by entering into an asset based lending or facility with a non bank finance firm. Don’t forget that term loans for working capital add debt and obligations to your balance sheet, so we often suggest to clients that the best solution is in fact monetizing your … READ MORE ...


High Pay Still Found in Finance

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Though the stock market remains wildly prone to fluctuations and the United States barely saved itself from veering off a fiscal cliff at the new year, the high pay of finance jobs has remained a steadfast thing. And the number of people seeking such jobs has, if anything, been on the rise-even as the amount of spots available moves the other direction on the number line.

“I’m looking to go into finance” is a common phrase among soon-to-graduate and recently graduated college students. But what exactly does “going into finance” look like? Finance is an industry, and the term blankets a lot of different positions. Finance jobs include everything from being an analyst to being a trader, from being a researcher to being a consultant. When most people think “finance,” investment banking, also called iBanking, is what first comes to mind. Specifically, bulge bracket banks like Goldman Sachs, J.P. Morgan Chase, and Morgan Stanley come to mind. But these firms only comprise a small (if highly profitable and reputable) piece of the finance pie. Job-seekers can also break into the finance career bubble through sales and trading divisions, corporate finance, hedge funds (a harder point of entry for fresh BAs), consulting firms, (McKinsey & Co., Boston Consulting Group’s HOLT associates division), private wealth (Charles Schwab, PNC Wealth Management) management firms, and even ratings agencies (Moody’s, Standard & Poor’s). And within iBanking alone, there is further job breakdown into three types of groups: capital market, product, and industry groups. Basically, “finance” is deceptively simple-there are dozens of ways to wriggle into the finance sector.

The pay, of course, differs from position to position and from company to company. At a big investment bank, first-year analysts will typically make around $70k base salary plus a $10k signing bonus and $50k to $60k year-end bonus. At a hedge fund, the hiring salary can go up to $90-$100k base plus an even more significant year-end bonus-but generally only analysts with an MBA or prior iBanking experience will make this kind of money right off the bat.Entry-level private wealth management salaries can also be over $80,000. First-year traders bring in similar base salaries to analysts but usually expect less of a bonus-around $20K to $30K. Ratings or credit analysts tend to make slightly less than these other positions, around $55K base salary, but compared to the larger scope of American and international pay grades, that is still a more-than-respectable entry-level salary. And once someone is inside the finance worlds, his/her chances for mobility into different sectors and positions greatly increase.

Of course, no money comes free, and no one getting into the finance world can expect to get his/her salary without doing a lot of work-sometimes 100 hours a week of it. Analysts joke that analysts don’t have a life, and at times that joke rings all too true. But the applications for finance jobs keep coming and will keep coming. The bonuses may not be as extravagant as they once were, nor … READ MORE ...


Finance Jobs - How to Succeed in Finance

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Finance jobs are very appealing to a lot of people because of the flexible work hours, the chance to work from anywhere you are as well as the chance to have a long harem of clients. But if you are a tiny fish in a big pond then succeeding can be a difficult thing. Because of this, you will have to know the tricks of the trade. Where will you find those, you ask? Well, you’re in luck; here we let you in on a few secrets to succeeding in the world of finance.

Conduct a Thorough Research

Start with figuring out who it is that you want to work for. You can start your career in finance either from a brokerage firm or you can start with a bank or a financial advising firm or you can even start as in independent person. You can go ahead and interview with a lot of places before you actually find out which is going to suite you the best.

Think in Sense of Long Term Prospects

If you think about the future then this is going to be the only way you will be able to get ahead. But you also have to keep one thing is mind, you are not going to start off as a millionaire, you will slowly have to work your way up to the top and it is going to take some time before you start earning in big digits. You also have to keep in mind the type of firm you want to go for according to what you want to earn in the end.

Let us take the example of the traditional firm; you will get a salary along with a performance bonus as well as a commission. Then again if you go for an approach which is independent then you are going to have commission payout which are a lot higher but then you won’t really have a salary.

Find a Good Mentor or Any Mentor

If you can find a mentor then you will have the opportunity to learn from a person who’s have a good finance career for a long time and who will be able to help you every step of the way. You will find that some firms will give you mentors and they will put you through vast training processes, there are also firms available who have mentor programs which aren’t very structured. If this is your case then you can simply call a financial planning association which usually has mentor programs of which you can be a part.

Build Yourself a Work Model

You need to ask yourself about the things which you need to do everyday in order to get a good client base and also to get your business on its feet. You may have to make phone calls or contact people, then you have follow up processes with your clients. So in order to get everything done routinely you need to make … READ MORE ...