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In the last year, venture capital has become a buzzword in many different industries as several companies have had an incredibly successful initial public offering (IPO). In fact, venture-backed companies have raised $2.59 billion in 2021/2022 through IPOs and secondary offerings, according to Dealogic. But there is a reason why you haven't heard of most venture capital firms: only a small percentage of them will be involved in funding an IPO.

Venture Capital and Regulatory Oversight

The Securities and Exchange Commission (SEC) oversees most of the rules governing venture capital.

It's important to note that while the SEC is responsible for regulating most companies' offerings and financial disclosures, it's not required to do so with venture capital funds.

Venture capital funds are regulated according to a limited number of laws and regulations. These include:

Accredited Investors Rule: The Accredited Investor is a standard set by the SEC. It determines who qualifies as an accredited investor for private placement transactions. It requires that an investor have a net worth of $1 million or more, excluding the value of their primary residence, or earn an annual income of at least $200,000 per year ($300,000 for married couples).

The Investment Company Act: This act requires investment companies registered with the SEC to disclose information about their portfolio holdings and operations on Form N-Q, which is publicly available through EDGAR.

The reporting requirements differ depending on the type of investment company. For example, Venture Capital Funds must comply with Regulation S-X, which has specific accounting requirements applicable to venture capital funds.

Insider Trading

Insider trading is understood to be the buying or selling of stock by a person who knows a piece of non-public information about the business, which may affect its value. In the United States, insider trading is a federal crime.

There are three elements to this crime:

The person buying or selling must have had access to non-public information. This can include company executives, employees, and advisors who have access to private business information.

The person must have bought or sold securities while in possession of such information.

The person must have done so with the intention of profiting from the non-public information.

An example of possible insider trading is as follows:

Despite being a South African, Elon Musk is an American citizen who was born in 1971. He is the founder and CEO of Tesla Motors, SpaceX, The Boring Company and Neuralink.

Like many other Silicon Valley companies, PayPal was also founded by two people with very different backgrounds. Max Levchin was raised in Kiev, Ukraine and Peter Thiel was born in Frankfurt, Germany. Both immigrated to the United States as children with their families and grew up to be successful entrepreneurs.

Both men were involved in PayPal's initial public offering (IPO) when the company went public on February 15th 2002. However, Elon Musk did not sell any shares during the IPO — instead he used his own money to purchase almost $5 million worth of newly issued shares which he sold after the stock price increased. This allowed him to make more than $180 million dollars (over half a billion dollars today) from this sale alone!

Elon Musk has been accused of insider trading by short sellers who have claimed that Tesla's stock price is overvalued because it has risen so much since its IPO in 2010.*

Do Your Due Diligence

The government has an interest in regulating the venture capital industry to ensure that all participants are treated fairly, and to make sure that investors know what they're getting into when they invest in companies through a venture capital firm.

Investors who want to participate in specific investment deals can do so by buying shares directly from the company issuing them. In many cases, though, individuals who want to invest in startups and other smaller companies will do so through a venture capital firm.

Venture Capital Firms as Broker-Dealers

Although VC firms are not exchanges (like the NYSE), they are required to register with the SEC as broker-dealers because they act as intermediaries between issuers (startups) and investors. As broker-dealers, they are required to provide certain disclosures to investors, including:

Company budget information

Financial statements

Projections of future revenue and income

Information about other investments made by the fund

Investor qualification information

As noted earlier, the venture capital industry has been growing rapidly over recent years. It is continuing to grow and evolve as we speak. More and more, venture firms are sprouting up as we enter into a period of increased interest in entrepreneurship. There are several sets of regulations that may apply to this field. First and foremost, there's the Dodd-Frank Wall Street Reform and Consumer Protection Act, which can be found at http://edocket.access.gpo.gov/2010/pdf/2010-18077.pdf . This act contains numerous provisions designed to protect investors from fraud and abuse in a wide range of areas of finance, including securities claims and corporate governance. The gov also keeps an eye on venture capital through the IPO process at http://www2.edgarfiling.sec.gov/edgar_blog/2012/07/the-role-of-the-sec-in-the-ipo-process_12_6_2012.html . Each time a venture capital firm attempts an IPO, the Securities Exchange Commission will review its offering circular (confirmatory statement) to ensure that their disclosures comply with existing regulations and identify whether or not the market is too thin for an offering.
Go VC is an early seed venture capital firm that invests in a diverse range of young startups in the tech space and beyond. The core mission of Go VC is to build successful investment partnerships that include capital and expert strategy to ensure all investments achieve optimal results.

Most B2B sales teams have a quota to meet. In order to fulfill that quota, they need to find new clients and obtain the necessary budget. They also want to close sales faster and deal with clients who respect their time. To improve B2B sales, here are 3 ways your sales team can do better at meeting quotas, closing deals and serving customers.

Process Improvements: Instill Pipeline Discipline

The pipeline is where sales happens. If you don't have a good pipeline, you won't have good sales.

The quality of your pipeline is dependent on both the number of opportunities and the stage at which they are in the buying process. A quality pipeline should include a certain number of opportunities at each stage that reflect an appropriate percentage of the total. For example, if you're running a $100,000 deal, it's not appropriate to have three prospects at the beginning of the pipeline and 30% of your quota in one account at the end.

What is appropriate depends on your sales cycle and the size of your average order value (AOV). It's important to consider both when setting up your pipeline.

Doing so allows you to set expectations for yourself, your team and management about what needs to be done to close deals and hit targets.

Sales Incentives: Quota Credit Multipliers or Added Commission

A quota credit multiplier is a sales compensation plan feature that allows salespeople to count more than 100% of the revenue they generate. If you are an SVP of Sales and your plan has a quota credit multiplier of 120%, if your rep sells $100k, they get paid on $120k. This is a very powerful tool in the sales compensation tool kit because it can be used to both motivate and retain top performers.

Added commission is another way to incentivize your team to close business sooner rather than later. If you are an SVP of Sales and you add 5% commission for deals closed by the end of quarter, then the seller is motivated to close their pipeline before then, or at least before their competitors do.

Because added commission is only available for a limited time, sellers can use this as an excuse to make more outbound calls and emails to prospects who have been sitting on the fence (and oftentimes these prospects will buy when they know there is an incentive).

Client Incentives: Early Renewals with New End Dates

One of the most common B2B sales tactics we've seen for improving sales at a company is to offer client incentives for renewing their contract early. If, for example, a customer's contract is set to expire in six months, you may want to reach out and offer an early renewal with a new end date (such as one year from the early renewal date). Early renewal incentives can include anything from a discount off the monthly rate to a free add-on service or product.

The gist of this strategy is that you're getting them locked into another year of service without having to go through the sometimes tedious process of waiting until their contract expires. The benefit for your customer is that they'll get whatever incentive you choose to offer them. For example, if you charge $200 per month for your software service and choose to offer an early renewal incentive of 20% off the monthly rate, they'll receive the service for $160 per month instead.

Thinking long term here, if you have 100 existing customers who are on annual contracts and are six months away from renewal, you're losing out on $48,000 in revenue over that six-month period. But by offering your customers discounts or add-ons as an incentive, you may be able to pull ahead of your initial profit projection.

The single biggest challenge for B2B salespeople is the nature of B2B buying. These transactions are often complex, and feature a number of stakeholders. The buyer's journey is this long and winding road you have to guide them down. And then there's the whole issue of enterprise sales itself (as opposed to small business sales), which is a separate issue that can't be overlooked. That said, each channel above has its pros and cons. But they're all powerful tools in an enterprise salesperson's arsenal, and using them together can increase your chances of making a sale.

Starting a new business is a hard task. There are plenty of raw beginners who want to employ some top financial hacks of successful entrepreneurs so that they can kick-start their business successfully. On the other hand, there are established entrepreneurs who have their feet on the ground and need some financial guidance that will make them earn more profit without taking any stress. Therefore, the below list of top 5 financial hacks for new entrepreneurs is what you should read if you want to start your own business.

Stay on top of cash flow and spending

New entrepreneurs spend a lot of time thinking about their product or service. They run market research, put together a business plan and build a great team. But the hard truth is that most businesses fail because they run out of money.

If you're starting your own company, make sure to stay on top of your cash flow — the money going in and out of your business. Keep an eye on your budget and know how much money you need to survive each month.

"Cash is king," says Eric Holtzclaw, author of Laddering: Unlocking the Potential of Consumer Behavior. "You have to have it to survive."

Here are some strategies for ensuring that your business has enough cash in the bank:

Keep track of spending. One way to do this is by using accounting software such as FreshBooks or QuickBooks. These programs let you monitor expenses and send invoices to clients so you can get paid quickly.

Find ways to save money. Minimize costs wherever possible, whether it's buying furniture from a used office supply store or getting free marketing materials from Vistaprint if you're just starting out. You can also try negotiating with vendors for discounts on supplies or services.

Get preapproved for a small business loan before you immediately begin spending your current cash flow. This will give you a cushion in the beginning which will prompt success down the road.

Separate your money

A lot of entrepreneurs are so consumed by their business that they lose sight of what's going on with their personal finances. This can be a very dangerous thing.

Here are some basic money management tips for new entrepreneurs:

Separate your money. Your business is a different entity from you, and the money it makes is not your money (at least not until it's distributed to you as income). To make sure you have a clear understanding of what's going on with your business, set up a separate checking account for your company. Use this account only for business expenses and don't commingle personal and business funds. If you're doing business as an LLC or corporation, this is important to protect yourself from potential lawsuits.

Set aside reserves. New businesses often have irregular cash flow, but you need to set aside enough money to cover your living expenses until the next paycheck comes in. Ideally, build up a reserve large enough that you can live off that income for at least six months without having to touch the capital in your business account.

Be SMART. Set goals

Simple, Measurable, Achievable, Realistic and Timely. No matter what your financial goal is — whether it's saving up enough money to start a company or getting out of debt — break it down into smaller steps so it's easier to manage. For example, if you're trying to get out of debt, set milestones for paying off different credit cards or loans. If you're trying to save up for something specific like a new laptop or marketing campaign, figure out how much you need to save every week or month to reach that goal by a certain time.

Time is money

As an entrepreneur, you're probably used to following a budget. It's no different when it comes to your time.

Paying attention to how you spend your time is crucial if you want to succeed in business.

Your new customers are also your new boss. You don't want to take on too many clients at once, and then find yourself unable to do justice to the work you've taken on.

At the same time, you may need to take on more customers than you'd like in order to grow your business – but those extra customers should be paying off eventually, and not just taking up all of your time.

Not only is this a good way of working out what makes money, and what doesn't, it'll help inform the decisions you make about whether or not to spend extra money on promotional activities.

Continue learning and consult financial professionals

Read up on finance. One of the most valuable things you can do is educate yourself on how to manage your finances. There's no shortage of books and websites devoted to personal finance, but if you want information that’s specifically relevant to entrepreneurs, I recommend reading Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist by Brad Feld and Jason Mendelson. The book is written by two prominent venture capitalists, and it provides a wealth of information about what investors are looking for in entrepreneurs.

Consult with financial services professionals. As an entrepreneur, you're probably going to need some legal advice while setting up your business, especially if you're securing investments. While there are plenty of free resources online, it's important to consult with a lawyer or other professional who can walk you through the process step-by-step, advise you on the best structure for your company and ensure that you're following the rules to best support your financial endeavors.

So even if you don't have an MBA, a web developer, or access to venture capital, money is still something that you should think about as a budding entrepreneur. And fortunately, there are numerous ways to make the most of your financial resources. What's more, you don't need to be an accountant or savvy businessperson to understand financial "hacks." Simply put, if you ask yourself the right questions before making a decision, you can save yourself money and trouble in the future.

Process Improvements: Instill Pipeline Discipline

The pipeline is where sales happens. If you don't have a good pipeline, you won't have good sales.

What is appropriate depends on your sales cycle and the size of your average order value (AOV). It's important to consider both when setting up your pipeline.

Doing so allows you to set expectations for yourself, your team and management about what needs to be done to close deals and hit targets.

Sales Incentives: Quota Credit Multipliers or Added Commission

Client Incentives: Early Renewals with New End Dates

Most of us “know” certain strategies for wealth building. Save X amount of dollars each month. Invest 70% of your income in stocks, 30% in bonds, and 10% in real estate. Pay yourself first. Avoid debt. Have full coverage car insurance. Diversify your assets via the stock market. But do we implement such strategies?

The average American household has a net worth of $97,300, according to the latest U.S. Census Bureau data. But that number is heavily skewed by the nation's wealthiest households.

The median household net worth is only $64,700. If you're familiar with statistics, you probably know that the median is a better measurement of "the average" than the mean (average) because it's not skewed by a few extremely large values (i.e., wealthy households).

If you have $64,700 or less in net worth, you're in the majority and your financial life is fairly typical. But if your finances are fairly typical, it's likely that you're not on track to achieve your financial goals.

You Don’t Try to Gamble Your Way to Wealth

Don’t try to gamble your way to wealth. It’s not going to happen. You can go to Vegas and try to win the big one, but in reality, the odds are stacked against you. The casino makes money and most everyone else loses money.

There are some people who have beaten the system. One such lucky individual was able to make a claim for their gambling fame: “After 10 times of losing $1,000 each time, I figured it out and won $10,000.” Does that sound like a fun way to spend your time? He is good at what he does, but that doesn’t mean it is an easy way to get rich quickly.

Your best bet is to put your money into something that will grow over time. Investing in the stock market will help you build your wealth over time if you have patience. Every American millionaire became one by investing their money in the stock market through mutual funds or portfolios of stocks and bonds.

You Don’t Buy Items You Can’t Afford

You Don't Buy Items You Can't Afford. Further, you don't charge things you can't afford to pay off each month. If you can't pay cash for it, you can't afford it. Period. (And if you don't understand why that is, check out The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness).

You Don't Spend More Than You Earn. This is the foundation of The Total Money Makeover by Dave Ramsey and we would argue that this is the most important rule in all of personal finance. If you spend more than you earn and depend on credit cards to balance your budget each month, then your finances are a ticking time bomb waiting to go off.

You Don't Gamble with Money You Can't Afford to Lose. Gambling is not investing, nor should it be viewed as such. Gambling with money you can't afford to lose will only lead to regret—no matter what happens with the stock market or whatever bet you place at the blackjack table .

You Don't Fall Victim to Lifestyle Inflation . If your lifestyle increases when your income increases, then how will your lifestyle ever be able to catch up?

Windfalls are for Buying Freedom, Not luxuries

When you get a windfall, whether a tax refund, an inheritance, or a big bonus at work, it's tempting to start thinking about all the ways you can spend it.

There are times when spending money is important, of course. For example, paying off debt is usually the right move (though there are exceptions), and if you have an emergency fund shortfall, that's the best use of your money. But after that?

Pay yourself first: Investing in index funds should be your first move with any windfall.

It's tempting to think that once you've paid off debt and funded your retirement accounts for the year, you should start thinking about buying that big thing you want. But in reality, if you're buying things with money from your windfalls instead of using that money to invest for the long term, you're doing it wrong.

If you want to buy something nice with your windfalls instead of investing them in index funds, go ahead. But realize that this means trading "freedom" down the line for short-term pleasure. And while there's nothing wrong with some short-term pleasure now and then, it shouldn't come at the expense of future freedom!

Unfortunately, the single biggest obstacle when it comes to becoming wealthy is not the difficulty of making a lot of money; it's the mental barrier that keeps you from doing so. A large part of overcoming this barrier is to dispel the myths about wealth and personal finance that society has instilled in us from our earliest days. The simple truth is, there's nothing inherently difficult or complicated about being wealthy. It just takes a little bit of time, practice, education and fortitude to gain the knowledge needed to do so.

The majority of people don't invest in any sort of stocks, bonds, or other financial vehicles. Why is that? It is believed to have something to do with our education system. Our teachers do a fantastic job teaching us basics such as Algebra and English Lit. However, they are unable to help us learn how to invest our money in a practical way in order to gain wealth. In fact, many people think you need a Masters degree in Finance in order to become wealthy through investing. Thankfully though, this is not the case (due to the fact that college tuition fees are astronomical nowadays). In this article, we will steer you away from some common misconceptions about investments so you can finally start building your own riches.

We are NOT all going to retire at 30 years and a portfolio full of money

More than ever before, there are so many misconceptions about what retirement really is. For example, there are two completely conflicting viewpoints regarding the average portfolio size people should expect in retirement. If you ask most people, they will tell you that we all will be retiring with a 30-year portfolio full of money. If you ask the financial professionals and economic experts (and even some politicians at times), you'll hear that Social Security is going bankrupt and many Americans will be working for most or all of their retired life.

Crypto Investing

Crypto Investing is an alternative form of funding. Much like crowdfunding, it allows investors to contribute to a project in return for certain benefits. The main difference is that with crowdfunding, the focus is on creating and sharing something new, whereas investing is about making money. Cryptocurrency is a type of currency that’s completely virtual. It’s made possible by a technology called blockchain, which is used to create permanent and transparent records of transactions.

You may be familiar with Bitcoin, the first decentralized cryptocurrency that was released in early 2009. Similar digital currencies have crept into the worldwide market since then, including an altcoin called Litecoin. As of September 2017, there were over 1,100 cryptocurrencies available over the internet, and the total market value of all digital currencies exceeded $160 billion. The main difference between Bitcoin and Altcoin is that Bitcoin is relatively similar to a sprinter whereas Altcoin are like long distance runners. Altcoins have much more scope for experimentation but when it comes to practical use cases, Bitcoin is way ahead of the pack.

The online exchange CoinBase supports all of these cryptocurrencies, along with many others. You can store your coins on CoinBase or transfer them to a private wallet

Investing in cryptocurrencies can be lucrative and risky at the same time. While there are opportunities for huge gains, there's also potential for financial loss due to volatility in prices and regulatory uncertainty surrounding their legality.

Asymmetric Investment (Tail Risk)

In the financial world, tail risk is a type of risk that arises from events or outcomes that occur at the extremes of a probability distribution. An asset that has a high tail risk will be much more volatile than one would expect based on its average return. The term has evolved to include any investment with an unusually low probability of occurring, regardless of whether it occurs at the end of a bell curve.

The term "tail" refers to the ends of a bell-shaped curve showing results for an investment's probability distribution. In other words, it describes outcomes on either side of the median value. For example, if an investor is expecting a 5% return on an investment, and instead loses 50%, then he or she has experienced a negative tail event.

An investor may seek out investments with positive tail risk if they want to increase their overall portfolio's return without increasing its volatility significantly. If an investor believes they have found such an investment, they may take highly leveraged long positions in order to benefit from the potential gains.

It should be no surprise that the younger generation is booming in the crypto space and the understanding of Asymmetric Investments. Not only will they be its primary drivers, but they'll continue to boom as the younger generations continue to set their course in the realm of finance. We recommend a long-term view as opposed to trying to "catch" every pump and dump (which is often not a sustainable strategy). A more pragmatic investment strategy would utilize some degree of market timing alongside a well diversified portfolio. The market will trend upward over time, but past negative events can have an influence on future performance. Careful risk analysis is key when it comes to making investment decisions.

Popping champagne too early is always a recipe for disaster. Be patient and have your evaluation criteria set up beforehand so that you won't chase momentum. The best time to start investing is today…