Why your search for an investor has to be about more than just money

Success in the world of biotechnology and life sciences requires a level of patience that is foreign to most types of businesses and industries.

On average it takes 10 to 12 years and over $1 billion in capital to get a new drug from the laboratory to the market to be sold to consumers, says Rob Lake, senior vice president and head of Life Sciences at Bridge Bank.

VC capital is available to entrepreneurs with a solid plan to take market share

Venture capital (VC) investment is at a 15-year high and offers no hint of slowing down, says Michael David, managing director for Equity Fund Resources at Bridge Bank.

The second quarter of 2015 saw VC investments totaling $17.5 billion, the most since the first quarter of 2000, which was the previous all-time high. Overall, $50 billion in VC funds were invested in 4,400 companies in 2014 and David expects that figure to be surpassed this year.

A look at how FX hedging can help you mitigate foreign currency risk

Global currency markets have been experiencing larger than normal swings of late and with greater frequency, CFOs are citing foreign exchange volatility as a factor when companies miss their earnings targets. Increasingly, business leaders are looking to implement hedging programs to mitigate foreign exchange rate risk and create more certainty and stability within their organizations.

Experience is key when developing your strategy to create an ESOP

The complexity of transitioning to an Employee Stock Ownership Plan (ESOP) can be intimidating, says Elisabeth C. Schutz, senior vice president and director for the ESOP Group at Bridge Bank.

“Many attorneys and CPAs don’t want to spend the time and energy it takes to learn about them,” Schutz says. “That’s one reason why you don’t see more ESOP companies in the U.S. today.”

Why introspection is the first step to enabling the support of your bank

Before a bank can help you identify products and services that can make your business run more efficiently, you need to have an idea of the gaps that are holding you back, says Abigail Avalos, vice president of Treasury Management Services at Bridge Bank.

“What’s important to you?” Avalos asks. “Companies have so many things that they are managing and so many different priorities. Before you meet with your bank, you need to sit down and think about treasury management services and which options would most effectively help your business.”

Many times, the answer is one or the other; but sometimes, it can be both

Business leaders struggling to decide between raising debt vs. equity as the best path to growing their business need to stop and think about what they will do with the money once they get it — and what the actual need is. Is it a true working capital need?

Or something else?

Your hard-earned capital will almost always be spent in one of two buckets — working capital and everything else. Depending on your business model, however, you may find that your needs require a mix of both.

Clear and concise is the way to go when selling investors on your idea

Clarity can go a long way toward convincing an investor to buy a stake in your business. If you believe your company is headed in the right direction and you have evidence that clearly backs up this notion for potential investors, you could be on your way to making a connection that will help you achieve your goals.

If you can’t provide that evidence in a quick, concise manner, you’ve got a problem.

Companies use recurring revenue to finance cost of customer acquisition

Recurring revenue lending is an alternative form of senior debt financing that is particularly useful to growing companies dealing with the steep cost of customer acquisition.

“Companies can leverage a recurring revenue stream with debt which may lessen the amount of venture capital needed,” says Mark Breneman, senior vice president and business line manager at Bridge Bank. “By using this asset, they can lower dilution, gain liquidity and achieve positive cash flow more quickly.”

Why a corporate FX policy is a must to manage foreign exchange volatility

A growing number of businesses have at least some, if not significant, association with overseas markets and, by extension, exposure to foreign exchange risk.

They may have customers internationally who seek to buy their products using local currency, suppliers located overseas invoicing in their own currency, satellite offices situated in foreign markets requiring local currency transactions or, in many cases, all of the above.

An ESOP gives business owners a chance to ease into retirement

An Employee Stock Ownership Plan (ESOP) can be an effective way to create liquidity as well as serve as a means to transition your business to new ownership while providing an ownership benefit to employees.

The issue with other options such as selling to a strategic buyer or private equity firm, or even conducting an initial public offering, is that each option typically forces you to sell 100 percent of your stake in the business.


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Featured Insights

Featured Insight

Success in the world of biotechnology and life sciences requires a level of patience that is foreign to most types...

Featured Insight

Venture capital (VC) investment is at a 15-year high and offers no hint of slowing down, says Michael David,...

Featured Insight

Global currency markets have been experiencing larger than normal swings of late and with greater frequency, CFOs...