Venture Capital Guide

The Guide On Venture Capital And Getting Funded

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The Low Calorie HCG Diet

In order to lose weight, you need to burn more calories than you eat. As such, most diet programs out there require that you eat a lower amount of calories and incorporate vigorous exercise in order to ensure that this effect is taking place. Low calorie diets run the gamut from slightly lower than your typical caloric intake to much, much lower. The HCG diet, for example, requires that you eat a maximum of 500 calories a day in order to lose weight. Normally, this would be an extremely low and dangerous diet, however the very short duration of this 500 calorie diet, along with the addition of HCG hormone supplements makes it easier and much more manageable.

HCG, or human chorionic gonadotropin, works on the hypothalamus to release stores of body fat into the bloodstream. These stores of fat are then burned as energy by the body. The 500 calorie diet ensures that the majority of your energy each day comes from the burning of these fat stores, and not the food that you eat. Because of this, people have reported quite significant weight loss results, ranging anywhere from .5lbs to 2lbs a day. It’s pretty much guaranteed that you won’t find any other diet on the market today that offers those kind of results.

The HCG diet is broken down into 3 phases: loading, weight loss and stabilization. Phase 2, the weight loss phase, is the part of the diet where you eat only 500 calories a day. Phase 2 lasts only about 3-4 weeks, and is quite doable. The fact that HCG releases fat into the bloodstream helps ensure that you will not be lacking in the energy department even though you’re eating much less. The calories are still there, to be turned into energy, it’s just that they come from stores of fat as opposed to the food you’re eating during your meals. Typically, this effect comes during long bouts of strenuous exercise, and because it isn’t really possible to exercise that hard for the majority of your day, diet programs that include this rout offer less dramatic results.

Speaking of exercising, none is required on the HCG diet. As a matter of fact, it’s advised against exercising during phase 2 especially. Exercise, like everything else, requires energy. Your body already burns a pretty sizable amount of energy just by existing, let alone when it’s engaged in vigorous exercise.  Exercising at this point  can result in HCG side effects.

You may want to begin exercise during phase 3 to help maintain your body weight, and especially afterward. You don’t want to lose any weight during phase 3, so moderate exercise a few times a week should be all that is required in order to stabilize your weight.

For some people, phase 2 is extremely difficult. If you find yourself in this situation, there is an alternate version of the HCG diet that includes an 800 calorie a day limit as opposed to 500. Since the daily caloric limit is greater, weight loss results may be less, but not by too much. You’ll probably find that completing the 800 calorie HCG diet and experiencing less weight loss is preferable than not completing the 500 calorie version, and losing no weight at all. You can always add in a bit of exercise while you’re on the 800 calorie a day diet if you’re really worried about maximizing your weight loss results.

Using HCG Diet Drops for Weight Loss

Weight loss isn’t easy, just ask anyone who’s tried one of the many fad diets out there. They’re usually sweating day in and day out under some rigorous exercise regime, hoping to lose that mythical 2-3lbs a week that the most successful dieters experience. Usually, weight loss results from these fad diets are a good deal less, due to the fact that they’re either very expensive or require so much exercise that the average person simply doesn’t possess the time or the energy. If you think you don’t have the time or energy to workout several hours a day, and you’d like to lose even more than 2lbs per week, then you might want to give the HCG diet drops a try.

The HCG diet has been around for decades, and it has helped thousands of people to lose weight and keep it off. The duration of the diet is relatively short, the 3 phase protocol can easily take less than 2 months to complete and the weight loss results are nothing short of amazing. People who successfully complete the HCG diet report losing an average of 1lb per day, and the weight loss begins almost  immediately.

In order to use HCG drops to lose weight, you need to make sure you follow the HCG diet protocol as described by Dr. Simeons in his book Pounds & Inches. The book recommends using HCG diet injections as opposed to diet drops, but the form of HCG you choose is less important than actually sticking to the protocol. There are 3 phases total in the HCG diet, and you will be required to follow a 500 calorie a day diet during phase 2. That is, arguably, the hardest part for most people as very few are able to easily shift from eating the way they normally do to eating how they must in order to lose weight. As hard as it may be, keeping your calories low is crucial because the HCG will have a far weaker effect if you eat too much.

The 500 calorie a day phase (phase 2) of the diet lasts 3-4 weeks, so it isn’t very long. Eating so few calories for an extended period of time would be exceedingly difficult for anyone, however, most people with determination and a little bit of willpower will find that they can stick pretty close to the limit for this duration without too much trouble. If for whatever reason you do go over the 500 calorie a day limit here and there, it probably won’t hurt you much. It’s better to be safe than sorry, and if you simply have to eat, then do it.

Be sure to only eat things that are on the list of approved foods. Even if you go over your recommended daily caloric intake, there are certain foods that can interact negatively with the effects of the HCG hormone and cause your weight loss results to be diminished. If you find yourself excessively hungry, you might want to analyze how much energy you’re burning through the day. If your day includes a lot of hustle and bustle, you might want to simply increase your daily caloric intake to 800 calories a day to compensate. There is a version of the diet that allows for this, and the HCG diet drops can still be effective with a higher calorie count provided that you’re still eating less and sticking to the list of approved foods.


Get the Quickest HCG Diet Results

The HCG diet has helped thousands of people over the years to achieve their weight loss goals quickly and easily. As with everything, though, results do vary from person to person. This leads to the common question of how to get the quickest, maximum weight loss results from the HCG diet. While it’s important to remember that people are all different, and some lose weight easier than others, there are a few little things you can do in order to help achieve results quicker, and to be sure that the ones you experience are maximized.

If you need to lose weight quickly because of some event that is only a few weeks away, you might want to try the 15 day HCG diet. Typically, the HCG diet protocol has a 3-4 week duration, but there are ways to cut it down to half the time. You will not lose as much weight on the 15 day diet as you would on the 30 day version, but sometimes a person only needs to lose 10-20lbs, and that’s fine. The 15 day HCG diet is pretty much the same as the longer one, with the exception that it’s shorter. If you want information on the shorter duration variety, check out the HCG diet forums online and ask some of the dieters there. They can help you out with a lot of HCG diet information and give you some helpful hints and tips to speed you on your way.

Sometimes, people will try and eat less than the 500 calorie a day recommendation in order to maximize their weight loss. This is not a healthy thing to do at all, and should never be tried. 500 calories a day is already an extremely low amount of calories, and should not be continued for an extended period of time by anyone. Eating any less could put you at serious risk of malnutrition and starvation, and these two nasty afflictions bring with them their own potential health risks, some of them being quite serious.

Exercise is another way to lose more weight on the HCG diet that should be avoided. That is, it should be avoided during phase 2. The HCG diet is designed to give you the calories you need for your body to function throughout the day, but not to function at high or even elevated levels of energy expenditure. Your body probably requires more calories than you realize in order to simply exist from day to day. Breathing, heartbeat, the dividing of cells, etc. all these things require energy and this energy comes from the food you eat (or the fat stores in the case of HCG dieters). When you put your body in a place where it requires even more energy, such as a state of moderate to vigorous exercise, it can cause greatly increased hunger and make following the 500 calorie a day diet all but impossible.

In order to get the quickest and best results on the HCG diet plan, the simple truth is that you must follow the diet to the letter. Do not eat anything that isn’t on your list of approved foods, and remember to take your HCG supplements daily. As mentioned before, you can get some simple hints and tips from others on the HCG diet forums, but these little things should be the extent of your work-arounds. The HCG diet is fast and burns a lot of fat by nature, trying to speed up the process can very quickly spiral out of control and lead to potentially disastrous effects.

How to Follow the Original HCG Diet

The HCG diet has been around for decades, and there are several different variations out there. Losing weight can be tough, and some people have a more difficult time than others. When deciding which version of the HCG diet you want to follow, it’s important to note exactly what kind of weight loss you want to achieve. Some versions are designed to allow you to lose more or less weight, depending on their duration, as well as the size and type of the diet. To get the same results that most people have benefited from, it might be wise to follow the original HCG diet as opposed to one of the alterations.

Before you begin, you will probably want some HCG diet information. A good place to start is the book Pounds & Inches by Dr. A.T.W. Simeons, the British researcher who first discovered the link between HCG and weight loss. Pounds & Inches details Dr. Simeons HCG diet in detail, and gives you a step by step process to follow in order to lose weight. There are other HCG diet books out there, and many of them are quite good, but the one written by Dr. Simeons is the original HCG diet and credited by many to be extremely effective.

The protocol is dived into 3 phases, and calls for HCG injections to be taken each day during phases 1 and 2. Phase 1 lasts for two days and dieters should try and eat as many high-fat foods as possible. During phase 2, a 500 calorie a day diet must be strictly adhered to, eating only foods that are clearly allowed on Dr. Simeons’ list of approved foods. Phase 2 lasts about 3 – 4 weeks. Phase 3 is 3 weeks long and is a period in which HCG injections are not taken and caloric intake is increased. This is the stabilization phase and is designed to get your diet back to normal, while getting your body used to the rapid weight loss experienced during phase 2. Phase 3 might seem easy, and for many people it is, however it is the most important phase of the diet in that it is the period of time in which you train your body to keep the weight off. Failing to remain faithful do the diet protocol during phase 3 can very easily lead to regaining the weight that was lost.

After phase 3, it is recommended that you continue to eat a healthy, nutritious diet and participate in an exercise program in order to maintain a healthy body weight. The results of the HCG diet are quite significant, with people reporting losses of anywhere from .5-2lbs a day. Should you decide to try the diet for yourself, talk to your doctor first. It’s always best to speak with your doctor before beginning any diet and exercise program. He or she can prescribe the HCG hormone shots necessary for the weight loss, as well as provide you with helpful hints and tips to assist you along the way. If you want even more information on the HCG diet, jump online and speak directly to other dieters via HCG diet forums. They, too can help guide you down the road to rapid weight loss through their experiences on the diet.

HCG injections Diet Tips

The HCG injections diet is designed to coincide with Dr. Simeons’ HCG protocol in order to elicit rapid, lasting weight loss in dieters. The diet is a very strict list of approved foods, and only 500 calories a day are to be consumed. The reason for such a low calorie limit is to make sure that the maximum amount of weight is lost over the duration of the diet. Deviating from the list of approved foods can have negative reactions, as far as weight loss goes, and going above the 500 calorie a day limit can have similar results.

The injections consist of 125 IU (international units) of the HCG hormone and are taken once daily during phases 1 and 2 of the diet. The HCG level isn’t very much, and the shot is relatively small and can even be painless if you do it right. Here are a few tips to avoid any unnecessary pain while self-injecting your HCG hormone:

  • Use very fine needles. Hypodermic needles come in many varieties, as the liquids in which they are used to inject come in varying levels of viscosity. HCG is quite thin, and dieters are able to use fine needles for the injections. The smaller the puncture, the less pain that will result.
  • Ice the area beforehand. Ice will numb the nerves, and it’s a great way to help deaden pain in an area that you’re going to be using for injections. First ice it, then sterilize it. You don’t want to get any potential contamination from the ice on the area.
  • Lastly, vary your injection sites! Using the same area over and over again can lead to tenderness. It’s best to alternate legs and areas every few days in order to avoid this happening to you. This is probably the easiest thing to do, but it’s one that people often overlook. Putting your HCG in a different leg, or an area a few inches away from your last injection site isn’t going to have any adverse effects on your weight loss.

While the pain associated with the HCG injection diet is generally minimal, everyone has a different level of tolerance. Some folks can stand quite a bit of pain, while others get skittish at even the thought of self-injecting. Following the tips listed above can greatly reduce any pain that might come from giving yourself HCG injections, and help ease any potential anxiety about the injections themselves.

If it’s not the pain that bothers you, but the needles themselves, then there are other options available. Sublingual HCG diet drops can be bought online and require no breaking of the skin at all. A few drops are taken several times a day, under the tongue, and that’s it. The results associated with the HCG diet drops are reported to be the same as those as the HCG injections, so don’t worry about using less weight by working around the original HCG diet protocol in this respect.

You can buy HCG diet drops online and have them delivered directly to your door. If it’s the injections that you’re after, you can have them prescribed by your doctor. In truth, it’s a good idea to consult your doctor before beginning any kind of diet, as they can help provide you with the information you need in order to be successful.

Using Angel Investors to Fund a Business

As heavenly as the name sounds, angel investors are usually affluent people who give a start-up business the capital they need to begin operations.

In exchange for this funding, an angel investor will get either ownership equity or convertible debt. Often, a group or network of angel investors pools in their funding after organizing themselves a cohesive unit.

How Do Angel Investors Operate?

Unlike venture capitalists, angel investors use their own funds for investing usually through a trust, business, investment fund or limited liability company. A report had stated that companies funded by angel investors are not as likely to fail, compared with other companies who use other sources of financing.

Between seed funding and venture capital funding, angel investors provide the capital needed between these two forms of investing. And because most venture capitalists will only invest in companies that need more than one or two million dollars, angel investments fill the void between these two means of funding they received to start the business. There is also no minimum or maximum amount that angel investors rely on before deciding on making their investment.

Origin of Angel Investors

A while back, wealthy individuals would offer money to productions that were planned for Broadway. Then in 1978, William Wetzel, a professor at the University of New Hampshire and the founder of the Center for Venture Research conducted a study regarding how entrepreneurs were able to raise seed capital in the United States.

During his research, he started using the term “angel” referring to the investors that supported these entrepreneurs.

Who are Angel Investors?

For the most part, angel investors are executives or retired entrepreneurs. Their reasons for investing are varied, including wanting to stay on top of developments in a specific industry, mentoring other entrepreneurs or using their network and experience on a part-time basis. Not only do angel investors provide monetary help, but also management advice and even contact information if needed.

Angel investing is considered a high-risk strategy for investing which is why most angel investors require an extremely high return on their investment. Most angel investors will only invest in companies that may have the possibility of a return that is ten or more times higher than their investment amount. They also would like to see this return within a five-year period and with a definitive exit strategy, which usually involves either an initial public offering or an acquisition.

Angel Investors and Statistics

In 2007, the average amount raised by angel investors and put into U.S. companies was $450,000. Just a few years later, the healthcare/medical filed received the highest share of angel investor funding (30%). After that, software had 16%, biotech had 15%, industrial/energy had 8% and retail and information technology services received 5%.

While angel investors may demand a high return on their investment, the fact is, many companies in the early stages of operations will not qualify for traditional loans, making it difficult to get their businesses up and running in order to begin turning a profit. The fact is, if the founders of a company have enough faith and expertise in the product they are developing, they will have no problem using funds from angel investors, including the conditions that go along with it, as they will no doubt produce something that proves to be highly successful.

The History of the Venture Capitalist Industry

A venture capitalist provides funding for start-up companies that are not able to get money through traditional bank loans in order to get their businesses off the ground. In return for this generosity of funds, the venture capitalist has a major stake in the company and makes decisions as they see fit so that the company can turn a considerable profit and make them, and the company, money.

Most venture capital funding is given to what can be considered high-risk businesses, but with the potential of making a huge amount of profit. Many of these companies deal with technological advances that are sure to be in high demand, once production and operation begins.

The History

Back in medieval Islamic society, partnership arrangements were made that highly resemble that of the current form of venture capital funding. But venture capital really took off right after World War II. In 1946, the American Research and Development Corporation (AR&DC) was formed and founded by General Georges Doriot, a U.S. Army General and businessman who was born in France, but educated at Harvard.

In 1957, Doriot’s AR&DC invested $70,000 in venture capital to Digital Equipment Corporation. From his investment, the company was able to begin operation of their business, which grew to a value of $355 million. The company went public in 1968 and gave AR&DC a 101% annual rate of return. This extraordinary outcome represented everything that should result in venture capitalist funding.

Congress passed the Small Business Investment Act of 1958 bringing the Small Business Administration into the picture. The Act gave licensing to Small Business Investment Companies (SBICs). Congress recognized that before World War II, only the very wealthy or families of a company’s founders gave any venture capital for businesses that were trying to bring about new technology.

They knew that in order for the economy to grow and for the country to be competitive in the global technological world, they had to do something to encourage venture capitalist activity.

The Present Days

By the end of the last century, venture capitalist investing took off as more and more businesses were entering the information technology industry. As Silicon Valley became the hub for all things high-tech, it also became the core of venture capitalist investing. Unfortunately, due to the sensitive nature of the stock market’s effect on venture capital investing, the 1974 stock market decline hit the venture capital firms hard. A similar result came from the rise and fall of the industry in the 1990’s and the NASDAQ’s poor showing in the early 2000’s.

Today, things seem to be a bit clearer for the venture capital movement as more venture capitalists are willing to invest in these high-risk companies once again. They are also branching out beyond just the technology sector. With alternative fuel and energy sources getting a lot of press and becoming an increasingly popular way of life for many people and organizations, a venture capitalist no longer has to stick with those businesses that only deal in advance technology. And while the jury may still be out for a while on whether alternative fuel and energy becomes the same success story as Digital Equipment Corporation was, there will always be a venture capitalist willing to take the risk.

Venture Capital: Investing in the Future

If you are unfamiliar with venture capital, it is money that is invested in companies that are just starting up and are in their early stages of development. Because they do not yet have a proven track record of success, they are considered high risk, but also high-potential earners.

How Does a Venture Capitalist Make Money?

The venture capital fund owns equity in the company for which it provides the investment. The interesting part about it is that the venture capital fund is usually invested only in companies that are involved in cutting edge technology like software, information technology or biotechnology.

When initial public offerings or trade sales can bring a bit of a return, venture capital becomes a part of private equity. But not all private equity is considered a venture capital.

In return for the investment venture capitalists make in a company, they get substantial control when it comes to making decisions for the company, plus they own a large portion of the company itself.

Why Do Companies Rely on Venture Capital?

When companies are just starting to get off the ground, venture capital allows them the funding they need to grow their business. At this point, bank loans or completing a debt offering are not realistic options for a company that has no history in terms of producing income.

Another reason why venture capital is popular with companies is because it creates job growth. Each year, approximately two million businesses are created just in the United States alone, but only a very small percentage (600-800 companies) receives venture capital funding. The National Venture Capital Association reports that eleven percent of jobs in the private sector come from companies who get venture capital funding.

How Do Companies Get Venture Capital?

Unlike regular lenders where a loan is made and then paid back, venture capital is made with an understanding that the venture capitalist will own stake in the company.

Of course, the venture capitalist will only make money if the company proves to be profitable. If it does succeed, venture capitalists usually end their relationship with the company when they sell their shares to another owner (usually in a three to seven-year period).

What Does a Venture Capitalist Look for in a Company?

Venture capitalists do not just invest in any start-up company. More often than not, they are looking for businesses that are unique and are offering something new, innovative and in high demand.

They also want to invest in a company that has a good business model and an effective team of managers. As long as there is the potential for high growth, the venture capitalist will make the investment.

Among the other factors that can influence a venture capitalist are:

  • A real passion for the business from the company’s founders
  • A real possibility to get out of the investment before the funding cycle ends
  • A return of no less than forty percent a year

These all play an important part in whether or not venture capital will be provided to a company.

Keep in mind that if you are a business just starting out, you should not assume that venture capital will be coming your way. Venture capitalists are very picky about whom they choose to invest in, but if you have the qualities they are looking for including a product or service that is unlike any other and has the potential to make millions, you just might be the recipient of venture capital.

Venture Capital Funding Around the Globe

If you think venture capital funding is just something that United States businesses rely on, you would be mistaken. It may have originated in the U.S., but many countries all over the world are quickly gravitating towards this means of business funding.

In 2008, there was a five percent increase in venture capital funding made in non-U.S. companies. Most of these were in China and Europe. However, each country has slightly different ways of conducting venture capital funding.


Because of the great tax incentives offered through an investment tax credit program known as Scientific Research and Experimental Development (SR&ED), technology, companies in Canada have been reaping the benefits of venture capital funding from all around the world.

Basically, any Canadian company that is conducting research and development will get a refundable tax credit equivalent to twenty percent of expenditures like labor, material and equipment. There is a thirty-five percent refundable tax credit for some smaller private corporations, but the rule is that they must have a fifty percent minimum ownership by Canadians. This is not the most attractive deal for non-Canadian investors since they would be required to take a much smaller percentage in the company. However, the SR&ED does not have this type of restriction.

There is also the (LSVCC) which is sponsored by the labor unions. They also offer tax breaks for investors who purchase the funds.


In 2006, the United Kingdom, France and Germany were the biggest receivers of venture capital funding. The numbers in Europe continue to grow as the second quarter of 2007 brought a five percent growth (€1.14 billion) in venture capital funding.


In 2006, private equity and venture capital in India was equivalent to $7.5 billion from nearly three hundred deals that were made. When it comes to venture capital investing in India, the investment can be in equity, partial equity and/or a loan that is conditional so it can promote a high-risk or high-tech company.

Venture capital in India follows the mantra of high risk, high return. Many venture capitalists in India thrive on investing in these high risk businesses in order to encourage and support technological innovation.

Other Parts of the World

The Middle East, North Africa and Southern Africa are all in the early stages of venture capital funding. In Southern Africa, in particular, funding is very difficult to get even if a company seems well on its way to being highly successful. But as of now, venture capital investing in Southern Africa is getting off to a very slow start.

What may be somewhat surprising is that Israel is setting out to be a leader in venture capital. In 2010, they actually were the world leader in venture capital in terms of money invested per capita ($170 per person vs. $75 per person in the United States). Two-thirds of invested funds came from other countries and the rest from Israeli venture capitalists.

Venture capital may have started in the west, but it is quickly making its migration to parts far and wide. While countries strive to be leaders in technological advancement, acquiring venture capital will become even more competitive, as start-up companies all around the world aggressively go after valuable venture capital funding that can skyrocket their businesses to the top.

What is Private Equity?

In the world of finance, private equity is a class of assets with equity securities in companies that are not on the stock exchange or publicly traded. Private equity firms, angel investors or venture capitalists usually make a private equity investment in order to provide a business with the money they need to expand, develop a new product or restructure their operations, management team or ownership.

However, the investment strategy differs among these investors and each one has a certain goal they are trying to accomplish. There are five popular strategies utilized by private equity investors:

Leveraged Buyouts

In a leveraged buyout, or LBO, equity investments are made as part of an agreement where a company or business assets are acquired from the company’s shareholders, by way of financial leverage.

Leveraged buyouts have a financial sponsor who agrees to the arrangement, but does not provide all the money needed for the acquisition. This is made possible by having the financial sponsor raise the acquisition debt and it is the responsibility of the acquisition target to make the principal and interest payments.

Leveraged buyouts are structured in such a way that the investor only has to put up a small portion of the money needed for the acquisition and the investor’s returns will be greater as long as the return on assets is more than the actual debt.

Venture Capital

This type of private equity targets businesses that are still in the start-up phase. Many cannot secure a regular bank loan so a venture capitalist will provide them the funding they need to get their business up and running.

Most of these companies are involved in creating new technologies or new products that have no history of success so venture capitalists take a great risk by investing in them. However, most venture capitalists play a huge role in the company and many times have a majority stake in the business.

Growth Capital

As the name implies, this type of private equity investment involves providing capital for companies that are already in operation and are mature, but they either want to expand, restructure, tap into a new market or finance a big acquisition. They want to do this without changing who controls the business.

Distressed Investments

This type of private equity strategy usually refers to investing in equity or debt securities of companies that are struggling financially. There are two categories of distressed investments—distressed-to-control and special situations.

Mezzanine Capital

This means of private equity investing reduces the equity capital that is required to finance either a leveraged buyout or a major expansion of the business.

Mezzanine capital lets these smaller companies borrow more capital than what most lenders will give them through traditional bank loans. Because there is a high amount of risk, mezzanine debt holders demand a much higher return on their investment.

Other private equity strategies include secondary investments, infrastructure, real estate and fund of funds. Each one has its own unique set of rules and procedures. Private equity is a very important part of keeping companies funded during difficult times or in times of transition.