Apr 8, 2010
Subscribe To The Looney Executive Emerging Growth Series!
Follow The Looney Executive on Twitter!
Back To The Looney Executive Web SIte!
So What's Your Exit Strategy?
Uh, I mean, how we will make money and when?
According to Jim Butz, that's what investors really mean when they ask about your exit strategy. Jim is the co-founder of Resonnect, a consulting company based in Carslbad, CA. He's also an investor with California Capital Partners, a venture debt firm near Los Angeles.
In Part I of our discussion, I started off thinking we'd discuss angel financing. But Jim initially focused on his bread and butter ... venture debt funding. It's an alternative and less expensive form of financing that's a hybrid between equity and debt (it's mostly debt by the way, with a little equity kicker added!). But it's definitely not for early stage firms with no profits to repay the debt.
Jim also gives an overview of how VCs make their money. But maybe the most intriguing item is his story about an investment in a pet pharma company. And the specialist vets treating the sick pets take only cash money homey!
Oh by the way, Jim runs a web site called Startup Coast. It has all sorts of great stuff for tech entrepreneurs.
So click the Direct Download link below to hear Jim's financing wisdom!