Venture Capital

Development of Islamic venture capital: Key considerations for investors

The need for growth–oriented entrepreneurial ventures in every society is a must, and it is especially needed in the Muslim world. Venture capital forms a great influence in any economy because it creates innovations, new jobs, income and wealth.

Venture capital is not a new phenomenon; examples of entrepreneurs raising capital from private investors were found in the Babylonian era, in the early age of Islam and early medieval Europe. These and contemporary examples show that venture capital is not unique to the United States, where it thrives today.

The idea of venture capital originated from muḍārabah contract and made its way to Europe with the spread of Islam (Cizacka, 1996: 10). Nevertheless, venture capital and private equity industry was, in its initial decades, a predominantly American phenomenon. The phenomenon has been pivotal in transforming innovative ideas from universities and research and development laboratories in the US into high growth companies such as the Intel Corporation, Cisco System, Microsoft, Oracle, Amazon.com, Yahoo! and others. (more…)

Learning more about Angel Investing

Buddy Bounce

By Natasha Crank, Thomson Reuters

Back in October, I was lucky enough to attend a very inspiring event hosted by Angel Academe. Thomson Reuters supplied the use of our London Mark Square location for the event, so it couldn’t have been easier to attend if you’re based in this office. It was great to see such a high number of external guests in attendance.

Angel Academe is a community of professional women with extensive business experience who want to support tech entrepreneurs – as mentors, non-execs and angel investors.  I didn’t quite know what to expect from the evening, but I came away with a much better understanding of what is meant by angel investing, and a curiosity to learn more about tech start ups. The event was opened by Jeanine Long Head of MIS Operations – Corporate Systems, who provided an overview of Thomson Reuters, and welcomed Angel Academe. Sarah Turner, founder of Angel Academe then discussed the importance of Tech London Advocates as a voice for the community and how & why we need to bring more women into London’s tech ecosystem, particularly as angel investors. (more…)

Hot coffee chains lure cool investors

Small chains such as Stumptown Coffee Roasters and Blue Bottle Coffee are pulling in more than customers searching for high-end beans. They’re also drawing in investors such as Jack Dorsey and Tony Hawk. Reuters correspondent Lisa Baertlein explains why.

A startup ditches Silicon Valley for Detroit

Two Harvard-educated venture capitalists abandon Silicon Valley and head home to downtrodden Detroit, finding opportunity and money to grow a business in a city that many left for dead.

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The problem with VC

Richard Beales and Breakingviews columnists discuss new data showing weak U.S. venture capital performance and why only a few funds do very well.

Watch more Breakingviews episodes.

Is Marc Andreessen’s Success Overblown?

As co-founder of Netscape, Marc Andreessen to many is a symbol of Silicon Valley success. But Reuters’ Felix Salmon says Andreessen’s projects and investments don’t always work. Salmon and Reuters West Coast Bureau Chief Jonathan Weber discuss the tech figure’s legacy.

Follow the conversation on Twitter at #AspenIdeas.

Startups Still Want To Be Facebook

The days of landing financing for a startup after drawing up a business plan on a napkin are done thanks to Facebook’s IPO debacle. But entrepreneurs and venture capitalists say a carefully crafted proposal will still reel in money and the goal remains an IPO. Just don’t expect a fat valuation.

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Is The Venture Capital Model Broken?

Investors in venture capital fair poorly while the firms make out like bandits, according to a major study by the Kauffman Foundation. Felix Salmon has a frank conversation with Diane Mulcahy, Director of Private Equity for the Kauffman Foundation.

Watch more episodes of Felix TV.

Venture-Backed IPOs Have Strongest Opening Quarter In Five Years

A venture-backed IPO is when shares in a company that has previously been funded by private investors are sold to the public. In recent years, the market has been slow; but an Exit Poll report by Thomson Reuters and the National Venture Capital Association (NVCA) shows that the first quarter of 2012 marked the strongest opening quarter for venture-backed IPOs since 2007.

“As we close the first quarter of 2012, venture-backed companies are extremely well positioned to consider an initial public offering on a U.S. exchange,” said Mark Heesen, president of the NVCA. “The recently passed JOBS Act will grant emerging growth companies temporary but significant regulatory relief during the IPO process, allowing them to focus on accessing capital to grow their businesses.”

If you want to learn more and see the numbers, please read the full press release. Or check out this story on Reuters.com which provides additional analysis.

When the Entrepreneur Met the Venture Capitalist…a love story

”When Harry Met Sally” step aside. We have the real love story here. Venture capitalists and the entrepreneurs they decide to commission share how they met and how important their close relations are to succeeding.

Watch more episodes of Tech Tonic.