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Maggie Jacobberger
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A Message From Randy Williams, Keiretsu Forum Founder & CEO

We hope you enjoy this "Best of" edition that features the most popular and relevant articles from our past newsletters.

Inaugurated in January, 2004, KeiretsuNews is by and for our members. We thank the authors of these "Best of" articles for their valuable contributions about best practices in investing, due diligence, and market trends. We hope their words will both inform and inspire you.

One of the greatest benefits Keiretsu Forum members enjoy is "mind share." We welcome and invite all of our members to submit future articles about their various areas of expertise and interest. This is your community. Let's build it together.

Randy Williams, Keiretsu Forum Founder & CEO.



Company Value Drives the Value of Founders’ Stock
By Thomas Bondi, Richard Bullen and Jennifer Vessels
Keiretsu News January 2006


This white paper is intended as a primer on the value of a start-up company, how value is reflected in the share price and how to resolve the dilemma of dilution as funding and staffing are increased. It illustrates some of the important issues of stock valuation...
[FULL STORY]


Early Stage Investing In Health Care and Life Sciences
By Michael Eckstut and Matt Weisman, Keiretsu Forum Healthcare/Life Sciences Committee Co-chairs
Keiretsu News January 2004


As an early stage investment group with an interest in Healthcare and Life Sciences, we have developed a set of criteria for investing in this field recognizing the time line and investment requirements for both pharmaceutical products and medical devices.
[FULL STORY]


How Software Entrepreneurs can be Successful Presenters to Investors
By Ed Harley, Keiretsu Forum Member
Keiretsu News April 2004


I write this open letter because sometime in the near future, we will meet for the first time when you present to Angel Investors. I will be one of many pairs of eyes looking at you. I know what you want from me - to be an investor in your company. Often times, however, it is evident that you do not know what I need from you. Thus, I want to help you be a successful presenter.
[FULL STORY]

How Software Entrepreneurs can be Successful Presenters to Investors (Part 2 of 3)
By Ed Harley, Keiretsu Forum Member
Keiretsu News July 2004


In this issue Ed continues with minutes 5 to 8 of your presentation to investors (market, competitive differentiation, marketing strategy, sales strategy, product strategy, management and Board of Directors)
[FULL STORY]

How Software Entrepreneurs can be Successful Presenters to Investors (Part 3 of 3)
By Ed Harley, Keiretsu Forum Member
Keiretsu News October 2004


In this issue Ed covers presenting the financials and the needed resources of money, management and introductions.
[FULL STORY]


A Better Technique for Disciplined Venture Investment Decisions
By Steven Kam, ASA, Managing Director of Cogent Valuation, and Jason Ruiz
Keiretsu News May 2005


Section One of this article explores the application of net present value and internal rate of return analysis to assist in choosing between alternative early-stage investments. Section Two develops the principle of value based on rates of return by exploring the difference in reasonable expectations between the venture and mature stages of companies.
[FULL STORY]


The Role of Valuation in the Investment Decision
By Steven Kam, ASA, Managing Director of Cogent Valuation
Keiretsu News January 2005

So many times I have participated in presentations and listened to the entrepreneur summarize his expectations for growth and projections of cash flows and assign a multiple to one or both of these metrics and conclude with an exit price that is five, or ten or more times the value he has placed on the company today. Often the logic and progression of assumptions hold together throughout the short presentation, and are supported by the multicolored power point slide show.
[FULL STORY]


Venture Capital: Strategies For Emerging Growth Companies
By Don Reinke, Keiretsu Forum Member/Sponsor
Keiretsu News January 2004


At some point in the growth of almost every entrepreneurial business, and particularly with emerging growth companies, the entrepreneur is faced with the need to obtain financing from outside sources. It is no secret that venture capital is a significant source of financing for emerging growth companies in the Bay Area.
[FULL STORY]



Keiretsu Forum Due Diligence - Advice from a Keiretsu Forum Member and Fellow Entrepreneur
By Ralph Shaffer, Keiretsu Forum Northern California Member
Keiretsu News April 2004


The Keiretsu Forum is more than a fund raising venue. Members generously provide sage advice to each other and entrepreneurs alike. The collective knowledge base and advantage of "swarm intelligence", is a prime motivator for experienced angel investors to band together.
[FULL STORY]