Money is Chasing Technology Deals

money technology capital growth

What value can the new partner contribute to the venture besides capital?


Foreign investor capital is reaching out to early stage technology companies. This can be helpful or harmful to an early stage technology  company.

It is always comforting to have a reserve of funds when a company is in the growth mode, but there is a danger of taking investor capital when a company is in a very early stage.  There is not enough history to support  the future value. 

The founder is seeking security more than anticipating future value. When an outside party expresses interest in investing in a start -up company the entrepreneur  often makes the mistake of not fully evaluating the pros and cons of bringing in a new equity owner

What value can the new partner contribute to the venture besides capital?

Consideration should be giving to the “other” contributions the investor can make to the business,

These invester contributions includie: 

  • Needed technology skills
  • Operational experience
  • The ability to expand the customer base 
  • Market and access to additional capital that may be required in the future

Remember, promises are not enough. The agreement must be in writing. It should  include  the performance requirements for each party as well as dissolution terms, commonly known as a buy-out provision. So often the terms for dissolving the partnership are ignored and then the company can be faced with unnecessary legal expenses.

Here Are Ten Ideas for Growing Your Business from the SBA

For those of you who have already successfully started a business and are ready to take the next step, you may be wondering what you can do to help your business grow. There are many ways to do this, 10 of which are outlined below.

Choosing the proper one (or ones) for your business will depend on the type of business you own, your available resources, and how much money, time and resources you’re willing to invest all over again.

If you’re ready to grow, take a look at these ten tips:

1.  Open another location.

This is often the first way business owners approach growth. If you feel confident that your current business location is under control, consider expanding by opening a new location.

2.  Offer your business as a franchise or business opportunity.

Franchising your business will allow for growth without requiring you to manage the new location. This will help to maximize the time you spend improving your business in other ways, too.

3.  License your product.

This can be an effective, low-cost growth medium, particularly if you have a service product or branded product. Licensing also minimizes your risk and is low cost in comparison to the price of starting your own company to produce and sell your brand or product. To find a licensing partner, start by researching companies that provide products or services similar to yours.

Next- Six Ideas for Growing Business


4 Definitive Examples to Understand and Serve Your Customers

4 Definitive Examples to Understand and Serve Your Customers

These four company case studies have yielded success across industries Running on Innovation, A New Solution for City Dwellers, Focus on Customers. Learn from these companies that are doing it right. Recently, I attended a public forum called Healthcare in the 21st...

4 Components of Small Business Agility in a Diverse Market

4 Components of Small Business Agility in a Diverse Market

Small business leaders need to understand diversity in order to be connected and create opportunities for success   The model of how to effectively navigate business leadership is changing. For decades stability and homogeneity were hallmarks of business across...

Top 7 Ways to Show Your Customers You Care

Top 7 Ways to Show Your Customers You Care

Even a small gesture can go a long way with a client and will be appreciated.   Nowadays, having a good product or service isn’t enough. Relationships are the differentiator. Today many companies are making investments in customer advocacy and loyalty programs...

Video Gallery

Modern version of Stoic philosopher Epictetus
A professional leads a cybersecurity training session for employees, emphasizing best practices. The photography captures the engagement of participants, showcasing the educational aspect of safeguard
Hispanic bearded male businessman trainer teaching coaching new recruitment African American female businesswoman employee in formal suit sitting studying learning company graph chart strategy
The presence of a robot using a computer. Office keyboard being typed on by machine. future IT group,.
Latino Streetwear Entrepreneur Latin Biz Today
Chef Lorena Garcia cooking with a wok
Latina Chef Loren Garcia
Latin Biz Today partner Johanna at the San Sebastián Festival


Which item currently represents the greatest hurdle in the growth of your business?(Required)

Sign Up for the Latin Biz Today Newsletter

PR Newswire

Featured Authors

Innovation & Strategy


Four Basic Principles for Raising Capital

Four Basic Principles for Raising Capital

Outside investors want to understand a business' strategy as well as its financial statements.   The need to raise capital from outside investors requires a great deal of preparation across multiple dimensions. Among many things, investors look to understand...









Work & Life


Health & Fitness

Travel & Destinations

Personal Blogs

Pin It on Pinterest