Venture capital and high tech: the affair heats up
Article Abstract:
The troubles that resulted from the overfunding by venture capitalists of certain narrow technology markets in 1982 and 1983 have led to a more cautious, selective, and diversified venture capital industry. Within three or four years, an increasing shift in emphasis toward consumer retailing and medical services will result in venture portfolios representing 70 percent technology, rather than the current 95 to 100 percent. Technology-based companies are now being more thoroughly scrutinized so that those which do reach the initial public offering market are of higher quality. Technology stocks have improved recently, however, and more investments in technology-based and computer-related companies are being made.
Publication Name: FE: the Magazine for Financial Executives
Subject: Business
ISSN: 0883-7481
Year: 1986
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Forfaiting: a new financing tool for CFOs
Article Abstract:
Forfaiting, a form of nonrecourse financing, can benefit export companies that manufacture capital goods, since this financing technique allows these companies to be paid immediately upon product delivery, thus transferring export risks from the company to its bank. The new financing technique is described in depth, and examples of forfaiting are explained. Despite certain disadvantages, such as the potential of an importer's bank refusing to guarantee payment, there are usually more advantages to forfaiting than there are disadvantages. A guideline lists steps to be taken by a firm interested in forfaiting.
Publication Name: FE: the Magazine for Financial Executives
Subject: Business
ISSN: 0883-7481
Year: 1986
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How to finance your marketing strategy
Article Abstract:
The executive in charge of marketing must examine the financing alternatives of the various product lines, new products in development, and product mixes. When a product line represents a big gamble, the source of financing should be stable so that there is a lower overall company risk. So that the monetary return from the product will be enough to finance the debt, the long-range product plans should be financed with long-range financing.
Publication Name: FE: the Magazine for Financial Executives
Subject: Business
ISSN: 0883-7481
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Stress tests of capital requirements. The wealth effects of deregulation of Canadian financial institutions. Dual class firms: capitalization, ownership structure and recapitalization back into single class
- Abstracts: International variations in the connections between tax and financial reporting. The ture and fair view requirement in recent national implementations
- Abstracts: Take another look at gearing. A confusing tale of five types of profits. Which earnings per share?
- Abstracts: Treasurers Secure Venture Capital. Bank of Montreal-Harris Merger Impacts U.S., Canadian Treasurers. Treasurers Discuss Microcomputer Strategy
- Abstracts: Default risk and the duration of zero coupon bonds. Callable bonds: a risk-reducing signalling mechanism. Commodity Bonds and Consumption Risks