While there are exceptions to this rule, chances are such anomalous funding only happens with serial entrepreneurs who have already
returned significant capital to their earlier investors or very experienced founding teams that can hit the ground running in a particular industry very quickly.
Not exact matches
Over the past decade, public stock markets have outperformed the average venture
capital fund and for 15 years, VC funds have failed to
return to investors the
significant amounts of cash invested, despite high - profile successes, including Google, Groupon and LinkedIn.
For instance, for venture
capital, where there is a
significant risk that the technology will be worthless and the company may never develop, the expected
return needs to be higher.
The National Venture
Capital Association estimates that only 20 percent (or less) of venture - backed companies produce a
significant return, 40 percent achieve moderate success and the rest fail.
«During the quarter, we
returned more than $ 3 billion in
capital to common shareholders which helped drive a
significant improvement in earnings per share.»
Analysts excited about the company's exposure to the rapidly growing natural gas sector were pumping up the stock, ignoring its low and declining
return on invested
capital (ROIC),
significant write - downs indicating poor
capital allocation, and the high expectations implied by its stock price.
A couple years back, I wrote a series on the topic of
returns on
capital (ROIC) and how
significant its impact is on the long - term value of a business.
In addition to
significant investment activity, Nehal has successfully exited several investments with impressive
returns on invested
capital.
Not in the manner of Ponzi schemes, but by the even more devilish leaky faucet in which a
significant portion of the
returns of the
capital markets are diverted away from Main Street investors and into the arms of Wall Street and the insurance companies.
Sam, while I agree with your general comment that the
capital returns on larger dividend stocks are likely not as
significant as growth stocks, an investor can easily make a total
return of 10 % plus consistently by buying these stocks steadily overtime with minimal stress.
Venture
capital investors are most interested in a business that offers them an opportunity for a
significant return and they will see past opportunities that smack of the «flavour of the month» or attempts to «green - wash» a business (that is, the practice of trying to quantify and emphasize a plan's minor environmental angle).
Madison's investments provide an attractive
return profile with limited downside risk,
significant upside potential, credit rated cash flow, and medium and long term
capital appreciation.
Additionally, Canadian companies need to be able to attract top - tier venture
capital that generates
significant returns through exits.
Actual results may vary materially from those expressed or implied by forward - looking statements based on a number of factors, including, without limitation: (1) risks related to the consummation of the Merger, including the risks that (a) the Merger may not be consummated within the anticipated time period, or at all, (b) the parties may fail to obtain shareholder approval of the Merger Agreement, (c) the parties may fail to secure the termination or expiration of any waiting period applicable under the HSR Act, (d) other conditions to the consummation of the Merger under the Merger Agreement may not be satisfied, (e) all or part of Arby's financing may not become available, and (f) the
significant limitations on remedies contained in the Merger Agreement may limit or entirely prevent BWW from specifically enforcing Arby's obligations under the Merger Agreement or recovering damages for any breach by Arby's; (2) the effects that any termination of the Merger Agreement may have on BWW or its business, including the risks that (a) BWW's stock price may decline significantly if the Merger is not completed, (b) the Merger Agreement may be terminated in circumstances requiring BWW to pay Arby's a termination fee of $ 74 million, or (c) the circumstances of the termination, including the possible imposition of a 12 - month tail period during which the termination fee could be payable upon certain subsequent transactions, may have a chilling effect on alternatives to the Merger; (3) the effects that the announcement or pendency of the Merger may have on BWW and its business, including the risks that as a result (a) BWW's business, operating results or stock price may suffer, (b) BWW's current plans and operations may be disrupted, (c) BWW's ability to retain or recruit key employees may be adversely affected, (d) BWW's business relationships (including, customers, franchisees and suppliers) may be adversely affected, or (e) BWW's management's or employees» attention may be diverted from other important matters; (4) the effect of limitations that the Merger Agreement places on BWW's ability to operate its business,
return capital to shareholders or engage in alternative transactions; (5) the nature, cost and outcome of pending and future litigation and other legal proceedings, including any such proceedings related to the Merger and instituted against BWW and others; (6) the risk that the Merger and related transactions may involve unexpected costs, liabilities or delays; (7) other economic, business, competitive, legal, regulatory, and / or tax factors; and (8) other factors described under the heading «Risk Factors» in Part I, Item 1A of BWW's Annual Report on Form 10 - K for the fiscal year ended December 25, 2016, as updated or supplemented by subsequent reports that BWW has filed or files with the SEC.
Adding back write - downs increases invested
capital, therefore, companies with
significant accumulated write - downs will have a meaningfully lower
return on invested
capital (ROIC) after we make this adjustment.
In fact, the business probably would be growing even without that additional
capital, and the nature of Facebook, Microsoft, and Google's main businesses are that they produce huge
returns on
capital,
significant cash flow, and require little to no capex.
The types of high - risk high -
return investments that the traditional Venture
Capital funds have to make also result in significant early capital
Capital funds have to make also result in
significant early
capital capital losses.
Amjad Ahmad, Senior Managing Director and Head of Alternative Investments at NBK
Capital commented, «We will continue to focus on middle market private equity investments where we believe there are
significant opportunities to drive value and
returns.
This will tend to understate the performance of the taxable account in circumstances where long - term
capital gains and qualified dividends, which are currently taxed at lower rates than ordinary income, are a component of investment
returns, as is the case for investments with
significant equity holdings.
Since the industry consolidated and management incentives changed to being based on
returns on
capital rather than growth, capacity (supply) growth has tracked GDP (demand) growth closely, free cash flow generation has been
significant and consistent, and the companies have consistently paid down debt, bought back stock and paid dividends.
Venture
capital involves investment in companies in order to provide a
significant return to investors.
Capital that the company has no use for does not make a
significant positive
return on investment, as you pointed out, yes the company could accrue interest, but that is not going to make the company large sums of cash.
Depending on which method you choose, options trading can be used to hedge a portfolio, create yield or gain
significant market exposure and
returns with little
capital risk.
If you've held these funds in your account for a full three years, they would show a
significant capital loss — and yet their total
return over that period was actually quite good:
In 2010, both CRQ and CLU also distributed
significant capital gains that would have lowered
returns for investors holding these funds in a taxable account.
We are disappointed that Avigen did not offer downside protection sooner so that the
significant capital consumed during this proxy contest could have been
returned to stockholders months ago.
This has a
significant negative effect on both
capital base for Superannuation and Superannuation
returns.
But I am very pleased with the income potential — a 2.2 %
return compares favorably to current 10 year treasury yields of about 2.7 %, considering that treasuries have no real
capital gain potential, which could be
significant over a 10 year period in the index stock funds.
As the above example demonstrates, tax - deferred exchanges allow investors to defer
capital gain taxes as well as facilitate
significant portfolio growth and increased
return on investment.
This asset mix may be appropriate for investors with a
significant tolerance for fluctuations in market value, and who seek to emphasize dividend and interest income (in addition to
capital appreciation) as a component of total
return.
Therefore, for companies with a
significant retail shareholder base, forming B shares may be the best way to
return excess
capital to stockholders.
If we hope to see the present value gap eliminated, and Argo's intrinsic value increased, we need to see: i) a
significant level of (new) fund - raising, ii) a
return of surplus
capital to shareholders (via a value - enhancing share tender / buyback), or iii)(ideally) both!
We may have an answer sooner than expected — look at this snippet from the recent interims: `... if as expected shareholders approve the proposed
return of
capital this will result in further
significant change.
That balance sheet also gives
significant support to continued
capital returns... assuming their products continue to appeal to customers.
In a recent post (See Vanguard Canada initial ETF offering falling short), PWL
Capital's Justin Bender took a look at the risk and
return characteristics of two balanced portfolios with
significant foreign stock holdings.
We think that the view that broad equity
returns are limited to around 3 % going forward based on an expected low GDP growth plus dividend yield misses the importance of retained earnings and its
significant capital compounding benefit.
While some notable nonprofits have added considerable value to their total portfolio
returns by building out a private equity program, ² many institutions underestimate the
significant human -
capital effort required to do so.
The law of diminishing
returns plays a part; a certain amount of invested
capital will drive
significant growth, while further
capital will not be as effective.
Jason Chong, chief executive, Cornerstone Partners Group, added: «Taiwan reflects the holistic integration of cultural diversity, with continuous growth in recent years that has attracted
significant foreign
capital to
return to the Taiwanese market.
For a set rate of
return, an outside investor injects
significant capital to fund the larger construction costs.
In the event of a
significant deterioration in the security environment, you may have to temporarily move employees from a particularly volatile region into a
capital city or neighbouring region,
returning only when the situation stabilises.
Irving was driven by a clear understanding that investing early in human
capital development would result in
significant returns on public and private investments and, therefore, result in the greatest benefit to our society.
Commercial real estate has posted three - and - a-half years of robust total
returns, attracting
significant inflows of investment
capital.
Making use of these
Capital Allowances can result in
significant tax savings, and therefore increased
return on investment.
Since 2013, Realogy has generated
significant free cash flow, allowing the company to successfully deleverage its balance sheet and to
return more than $ 1 billion of
capital to its shareholders.