Category: Alternative Investments

Alternative Investments

The Problem With Investing In Super Deep High Tech

Gregory Pearl

Technology continues to move forward and what was once leading edge often becomes ordinary. For instance, technology advancements such as high-resolution portable screens and even websites were once leading-edge and risky.  Many made boatloads of money from investing in these technologies at the earliest stage, most of these investors did not. That is why it is sometimes called ‘the bleeding edge” of investing. Now, so-called “deep tech” involves reusable space rockets, cryptocurrency, next-gen solar cells, many biotech applications, artificial intelligence  (AI), and so on. Some of the efforts in these areas could be phenomenally successful, most will not. But the…

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Alternative Investments, Culture and Ethics, Decision Making

Venture Capital and Avoiding Human Bias

Gregory Pearl

Here are some thoughts on Venture Capital or early-stage investing. As readers of my blogs know, Alteris LLC has had professional Venture Capital firms as clients. We have acted as business valuators, but also in the role of “operating partners” to some of these firms. This situation has allowed us to observe best-practices in these early-stage investment firms. Venture Capital and other types of investing is a competitive and often brutal activity. In a typical VC fund, a small number of investments typically account for a large portion of returns. The simple fact is that the majority of investments do…

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Alternative Investments, Culture and Ethics, Decision Making

Three Deadly Sins of Startups

Gregory Pearl

If you have been around the venture capital industry for a while, you will know the “three deadly sins” VCs look to avoid in a potential new early-stage investment. Standard questions VCs ask entrepreneurs often focus on these. You hear this over and over from investment partners at these firms. I’ve worked extensively with an international venture network, and sure enough – it is a focus. Here are the three: 1) The founder (me!) must be the boss, always and forever 2) Too many products, no focus 3) Not enough capital Smart founders know these are hot issues for VC…

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Alternative Investments, Culture and Ethics, Decision Making

Why the Rich Keep Getting Richer

Gregory Pearl

Have you ever noticed how an ordinary person or company has one “lucky” random opportunity and then becomes increasingly successful over time, starting with that one opportunity? The success continues for the lucky one as their former peers continue to plod along without much to show. No one could have forecasted the lucky success at the beginning. The recipient of that lucky break is often mediocre. That mediocrity may never disappear but the success continues. As things compound to the extreme, great wealth and prestige may accumulate as a result. What is happening is that the first random success compounds…

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Alternative Investments, Decision Making

Where Have All The Startups Gone?

Gregory Pearl

Small businesses and startups are traditionally the backbone and driver of the American economy. They are the primary creator of new jobs.  They are the primary source of innovation.  They are important. But the number of startups being created in the USA seems to be declining.  In 1985, 13% of all companies in the USA were less than two years old.  In 2014, they were only about 8%.  The number of people working in companies less than two years old declined from 9% of the workforce to below 5%. This is happening in every industry, not just technology.  It is…

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Alternative Investments, Decision Making

How To Design A New Market Entry Program

Gregory Pearl

Any new market entry program should be designed to increase your chances for success in the North American marketplace. To succeed, develop individualized strategies based on proven strategy techniques and policies.  Then it is necessary to support those entry strategies to successfully implement. Due to the sheer size and diversity of the USA (and North America), a company attempting a market entry cannot simply and without local market knowledge choose a strategy, operational business platform and location. Many factors must be considered, including real estate, the labor market, the regulatory environment, local taxation, operational logistics, manufacturing and sourcing potential, proximity…

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Alternative Investments, Buying & Selling a Company, Exit Planning

SBA Loans Help Finance Small Business, #2

Gregory Pearl

This is a continuation of the last post, which primarily focused on the SBA 7(a) program.  Here I’ll discuss other SBA lending programs. Because SBA loan guaranty requirements and practices can be change by the government at any time, it is important for applicants to obtain current and accurate information. This article is merely intended to help a business owner ( potential borrower) start thinking about these programs.  You must do your own investigation and research. The information here is not to considered legal or financial advice.  Just a prompt to start thinking about the topic. CDC/504 Loan Program The…

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