Investments

A budding company or one facing major financial crisis can find solution to all its financial hurdles with Venture Capital. Unlike banks, Venture Capital firms are an important source of long-term growth capital.

Bank Of America Investment Venture capital firms and individuals are interested in many of the same factors that influence bankers in their analysis of loan applications from smaller companies. Though banks look at the immediate future of a small company, they are most heavily influenced by its past. Venture capitalists look at the long-term future of the company. Banks are creditors while venture firms are owners. They hold stock in the company, adding their invested capital to its equity base. Therefore, they examine existing or planned products or services and the potential markets for them with extreme care. They invest only in firms they believe can rapidly increase sales and generate substantial profits. Venture capitalists look more closely at the features of the product and the size of the market than do commercial banks.

By design, SAP Ventures is a small worldwide team. Our five investment professionals focus an intense level of attention on our investment portfolio, which comprises companies in Europe, the United States and Israel. We invest selectively in emerging technology that combines large market potential with high growth opportunity. With a venture capital partnership model and the autonomy to pursue investment areas not immediately connected with SAP's core business, SAP Ventures has invested in more than 50 direct equity deals, building a track record of success throughout our history.

Investment Opportunity Venture capitalists invest in long-term capital and not for interest income. They look for three to five times their investment in five or seven years. The job of the venture capitalists is to find venture projects with this appreciation potential to make up for investments that aren't successful.

New York, NY (May 9, 2007) Tutor.com, a leader in live, on demand tutoring services, today announced new venture investments of $13.5 million to fund expansion of Tutor.com Direct, the company's on demand tutoring service for students and families. The equity growth funding of $9.5 million was led by Intel Capital and included investments from Ascend Venture Group, Kidron Opportunity Fund and previous investor Dawntreader Ventures. Tutor.com also secured $4 million in venture debt financing from MMV Financial based on the strength of its established institutional business.

Banc Of America Investment It's difficult to forecast the productivity of an early stage company. Hence, these venture capitalists set rigorous policies for venture proposal size, maturity of the seeking company, requirements and evaluation procedures to reduce risks, since their investments are unprotected in the event of failure.

Bridges Community Ventures is a venture capital company with a difference, raising funds to invest for a purpose, not just a profit. These first funds are the first UK example of community development venture capital. They will be invested in businesses in the most deprived 25% of England. Bridges Community Ventures has recently reached its final closing of £ 45 similar investments over the next few years.

Banking Investment Most venture capital firms' investment interest is limited to projects proposed by companies with a sound operating history. Profits made by those companies aren't given much precedence before an investment decision is made. Companies that can expand into a new product line or a new market with additional funds are particularly interesting. The venture capitalists provide funds to enable such companies to grow in a spurt rather than gradually as they would on retained earnings. There're a large number of "start up" companies that get financial help from venture firms. Venture capitalists see that capital investment analyses and capital source studies are planned 5 years ahead. The investment analyses should compare rates of return for product, market, or process investment, while the source alternatives should compare the cost and availability of debt and equity and the expected level of retained earnings, which together will support the selected investments. These analyses and source studies should be prepared quarterly so you may anticipate the financial consequences of changes in the company's strategy.

Visit Greylock Partners Index Ventures Index Ventures class technology companies that can become global players in their market. Based in Geneva, Switzerland, with additional offices in London, Index focuses on initial stage investments in information technology and life sciences companies. Since the early 1990's, class information technology and life sciences companies. As one of the early venture firms in Europe, we are committed to the development of the venture capital industry across the continent and UK.

Investment Solution Strategic But a structured financial planning doesn't guarantee that you'll be able to get capital from a venture firm. Not making them, will virtually assure that you won't receive favorable consideration from venture capitalists.

New Enterprise Associates (NEA) is a leading venture capital firm focused on helping entrepreneurs create and build major new enterprises that use technology to improve the way we live, work, and play. Practicing classic venture capital for over 25 years, NEA focuses on early stage investments, playing an active role in assisting management to build companies of lasting value. With $6 billion under management, NEA's experienced management team has invested in over 500 companies, of which more than 145 have gone public and more than 185 have been acquired. www.nea.com

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