Business plan consulting and financial model preparation for high-tech entrepreneurs seeking venture capital

Dear Friend,

Akira Hirai photoHello again - this is the next installment of Cayenne's newsletter for entrepreneurs, investors, and the rest of the startup community. In case you missed our previous issues, you can read them on our website. (Note: to see why you are receiving this, or if you wish to opt out, please refer to the bottom of this message.)

Here's what's in the current edition:

We hope you'll enjoy receiving our newsletter, and that you'll spread the word to other entrepreneurs in your network.

If you ever have any questions, comments, or suggestions, please feel free to contact me directly at akira@caycon.com. We look forward to having you in our community of entrepreneurs!

Best regards,

Akira Hirai, Managing Director
Cayenne Consulting, LLC
714.TOP.PLAN direct
888.965.8880 fax

What Kills Startups?

April 1, 2009 by Akira Hirai

Entrepreneurs are, by definition, risk takers. Thus, strong risk management is an important source of competitive advantage. Although over half of all startups fail within their first five years, you can beat the odds and build a thriving and rewarding venture by learning to recognize and manage risks.

"What Kills Startups" provides a framework for identifying, thinking about, and mitigating the biggest risks ahead of you. So roll up your sleeves and dig in!

Read the Complete Article >>

The Angel Investor Market

April 1, 2009 by Akira Hirai

The Center for Venture Research has published their 2008 report of angel investor activity in the U.S. The report contains both good news and bad news.

  • The Good News: The number of active angel investors in 2008 and the number of deals they invested in remained comparable to 2007. In 2008, a total of 55,480 ventures received angel investment, down only 2.9% from the previous year. The number of active individual angel investors remained steady at 260,500.
  • The Bad News: The total dollars invested in 2008 fell 26.2% to $19.2 billion. This indicates a contraction in average deal size, presumably due to lower valuations.

The six sectors receiving the most angel investment are as follows:

  • Healthcare: 16%
  • Software: 13%
  • Retail: 12%
  • Biotech: 11%
  • Industrial / Energy: 8%
  • Media: 7%

In 2008, 45% of angel investments occurred at the seed or start-up stage. Only 10% of the deals brought to the attention of angel investors succeeded in obtaining an investment.

Note that the study only includes accredited or “sophisticated” angel investors who invest through angel investing groups; the study excludes investment activity by informal “friends and family” investors.

Permalink >>

Business Plan Reviews

In case you missed it last month, we have added some business plan review services:

  • Express Review: Thirty minutes to quickly read through your materials, followed by thirty minutes of feedback by telephone for $99.
  • Standard Review: Two hours reviewing your materials and preparing a written evaluation, followed by thirty minutes of telephone consulting to answer your questions and offer additional guidance for $299.
  • Detailed Review: Seven hours reviewing your materials, preparing a detailed written evaluation, and making as many improvements to your materials as time allows, followed by sixty minutes of telephone consulting to answer your questions and offer additional guidance for $999.

Please note that these fees are heavily discounted from our normal hourly rates, and are an introductory offer available to new clients only. Visit Business Plan Review Services to learn more.

New Service: Turnaround Consulting

We are pleased to announce our new Turnaround Consulting service.

The practice is led by Van Lanier, a turnaround specialist who has been helping business owners revive their businesses since 1977. Van is the former National Director of Turrnaround Consulting for KPMG BayMark, and is a Certified Management Consultant.

In addition to his consulting practice, Van has earned his stripes as a entrepreneur. In 1974, he asked the city of Fernandina Beach, Florida to award him its cable television franchise. It did. Thirty years later, a technology company he founded was named Innovation of the Year by Frost & Sullivan. Van has owned seven other small companies, five of which he started from scratch.

Please visit Turnaround Consulting Services to learn more.

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