Stock Valuation

Office to manage funds features of stock priority in

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Unformatted text preview: ough Good potential growth, good management Valued themselves at 2.2 million dollars but only were able to raise a million dollars. Angel investor backed capital Stock Buyers: Angels Individual accredited investors (high net worth above 1 million dollars or have made over 200,000 $ in each fo the past two years) Jobs act has now allowed nonaccredited investors to join angel investing. 25,000 – 1 million dollars per investment. Lowest level for startups to turn to. Venture capitalists Investment firms Typically LLC’s Raise outside money as well and then the entire fund is invested in a company Private equity “growth” investors: mid- sized funds (100 million to 1 billion dolalrs) typically invest in a company that is profitable and will put capital to help grow company faster Private equity buyout investors KKR, Blackstone, Carlisle Invest in companies with idea to take over control of company (51- 100% of company) Take company private if public Used to be called LBO’s “crossover” investors popular in 1990’s fund that will invest in last round of company that is private just before it turns public IPO investors – flippers vs. buy and hold On public side Flippers: buy stock on IPO but then throw it away a bit later Buy and hold: buy and hold Investing in IPO’s is usually a losers’ game if you buy and hold Pension funds, retirement funds, trusts; other “institutional investors” Include mutual funds: Open end Close end “Retail” investors Individual investors High net worth/accredited investors; family offices Hybrid category as more and more families are becoming wealthy: Not pension funds or classical investor but families set up family office to manage funds Featu...
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