Do private equity LPs have trust issues?

The growing number of large LPs entering the private equity market is proving a double-edged sword for GPs, with more managers now facing institutional levels of scrutiny and calls for greater regulation.

Among LPs surveyed for Private Equity Wire’s latest Insight Research Report, one third said that trust in their GPs has increased over the past five years, with 20% saying it had decreased. READ MORE

Should Startups Ask Investors If They Have Reserves In Today’s Economy?

It is no secret that the funding environment for startups is changing. While money felt very easy and cheap over the last couple of years, 2022 is on a very different trajectory. Given this change in the funding landscape, companies may need to ask themselves, and their investors, questions that they could previously overlook. One of those key questions concerns the availability of reserved capital for their company. READ MORE

Online Content Creators Are Making Millions. VCs Want To Cash In On The Booming ‘Creator Economy’ Too

Tejas Hullur had been posting regularly on TikTok for about eight months before he partnered with a company for his first brand deal.

Venmo reached out to Hullur, who creates videos about ways to make money online and how creators build careers online, in April 2021 and asked for his rate. The payments giant wasn’t the first brand to contact Hullur, but it was the first partnership he wanted to do, and he was unsure of his rate. Venmo offered $1,000, and he negotiated it up to $1,500. READ MORE

SPACs Hunt for Acquisitions Amid Scarce Prey

Even as some analysts warn of “a death spiral for SPACs,” United Gear & Assembly, Inc., a subsidiary of United Stars Holdings, Inc., announced plans to go public via a SPAC acquisition by Aesther Healthcare Acquisition Corp. Upon closing of the $350 million merger, Aesther will change its name to EVGT LTD and its common stock is expected to be listed on Nasdaq, under the symbol EVGT, and its warrants listed under EVGTW. READ MORE

Lawmakers target ‘tech bro culture’ in financial sector with diversity push

House lawmakers are looking to hold venture capital firms accountable for fostering ‘tech bro culture’ in financial technology services, with data showing that the vast majority of companies the firms invest in are owned by white men. 

Lawmakers at a House Financial Services subpanel Thursday blasted private equity firms for leaving minorit-y and women-founded businesses behind, and discussed ways to turn the tide as capital injections into the sector continue to surge. READ MORE

Funding your business without venture capital

Raising money, whether through venture capital, seed funding, or angel investment, is taken by many founders to be the default route for growing their companies, but it is certainly not the only path to scaling your business.

Entering into an agreement with external investors is not something to be taken lightly, especially combined with the pressures of launching and growing a new start-up. While raising money through venture capital may seem like the obvious solution to cash-flow woes in the early stages of your launch, it can often raise problems further down the line. READ MORE

Four Documents That Venture Capitalists Want To See

In a recent article, I explained the basics of venture capital and how you could conceivably fund your organization. In this article, I will explain some key points you should consider before you even attempt to contact a venture capital company.

Too many people representing too many companies go to these powerful, influential groups expecting a big payday, enough funds to expand their business or seed funding for a startup. They don’t realize they’re not prepared and how that lack of preparation will more than likely end the meeting with a “thanks, but no thanks” response from venture capitalists. READ MORE