26 Billion Dollars of Angel Investments in 2007

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Despite the weakening U.S. economy, angels invested $26 billion into 57,120 ventures last year, according to the University of New Hampshire’s Center for Venture Research. The dollar amount invested represented a 1.8 percent increase over 2006, while the number of entrepreneurial ventures receiving angel funding represented a 12 percent increase. Studies show that entrepreneurs with good ideas who start their businesses in down economies will do better, as they will benefit from the lower cost of land, labor, and purchased goods and services.

26 Billion Dollars of Angel Investments in 2007

/in /by

Despite the weakening U.S. economy, angels invested $26 billion into 57,120 ventures last year, according to the University of New Hampshire’s Center for Venture Research. The dollar amount invested represented a 1.8 percent increase over 2006, while the number of entrepreneurial ventures receiving angel funding represented a 12 percent increase. Studies show that entrepreneurs with good ideas who start their businesses in down economies will do better, as they will benefit from the lower cost of land, labor, and purchased goods and services.

Rare Glimpse at Linens ‘n Things Financials

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Linens ‘n Things provided an unexpected public posting of its financial results under private equity firm Apollo Management when it recently posted its 10-k report for 2007 in conjunction with the desire of some of its private shareholders to sell shares on the NYSE. Linens ‘n Things posted a $242 million net loss in 2007 on revenue of $2.8 billion. The company had a $36 million net profit in 2005 on revenue of $2.7 billion in 2005, the last full year of public ownership (Apollo Management took the company private in February, 2006.) Linens ‘n Things gross profit margin slipped from 40.8% to 37.5% over the two year period; Selling, General & Administrative Expense increased from 38.5% to 43.7% of revenue; and interest expense increased from 0.2% to 3.9% of revenue. By comparison, publicly-owned segment leader Bed, Bath & Beyond has 2007 gross profit margin of 41.6%; Selling, General & Administrative Expense at 30.4% of revenue; and no interest expense. The Linens ‘n Things 3/20/2008 10-k report lists numerous risks, including the following: “despite current indebtedness levels the Company and its subsidiaries may still be able to incur substantially more indebtedness. This could further exacerbate the risks associated with its substantial leverage.” On April 15th, Linens ‘n Things announced that it had decided to defer $16 million quarterly interest payments due to the holders of its senior secured floating rate notes.

10 Things Your Credit Card Processor Doesn’t Want You To Know

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Kevin Scott Rizer, founder of Trade Days Processing, provides insights into the world of credit card processing fees in this informative podcast. According to Rizer, there are ten things that credit card processors don’t want merchants to know. Here are eight of them:

1. Credit card processors don’t care about the “ins and outs” of your business, and are not in a good position to recommend products that will best fit your needs.

2. Credit card processors are not telling merchants all of the fees that they will be charged. For example, some merchants are quoted the rate for “qualified” transactions, and fail to mention the higher rate for “non-qualified” transactions (those where the cards are not present)

3. Credit card processors can hold or take back a merchant’s money if there is a “charge-back.”

4. Merchants can often save a lot of money by purchasing the (inexpensive) credit card equipment they wind up leasing.

5. Credit card processors neglect to inform merchants about programs such as “pen-based debit” and “electronic check acceptance” that can save merchants money, and simplify their business processes.

6. Credit card processors have power to unilaterally raise or lower rates.

7. Merchants need to understand if the person who is signing them up for a credit card processing agreement will be reachable a few months later, to provide support.

8. If you cancel the contract with a credit card processors, there will be a cancellation fee; these can range from $150 to several thousand dollars.

10 Things Your Credit Card Processor Doesn’t Want You To Know

/in , /by

Kevin Scott Rizer, founder of Trade Days Processing, provides insights into the world of credit card processing fees in this informative podcast. According to Rizer, there are ten things that credit card processors don’t want merchants to know. Here are eight of them:

1. Credit card processors don’t care about the “ins and outs” of your business, and are not in a good position to recommend products that will best fit your needs.

2. Credit card processors are not telling merchants all of the fees that they will be charged. For example, some merchants are quoted the rate for “qualified” transactions, and fail to mention the higher rate for “non-qualified” transactions (those where the cards are not present)

3. Credit card processors can hold or take back a merchant’s money if there is a “charge-back.”

4. Merchants can often save a lot of money by purchasing the (inexpensive) credit card equipment they wind up leasing.

5. Credit card processors neglect to inform merchants about programs such as “pen-based debit” and “electronic check acceptance” that can save merchants money, and simplify their business processes.

6. Credit card processors have power to unilaterally raise or lower rates.

7. Merchants need to understand if the person who is signing them up for a credit card processing agreement will be reachable a few months later, to provide support.

8. If you cancel the contract with a credit card processors, there will be a cancellation fee; these can range from $150 to several thousand dollars.