President of Panama-based iPoint Capital Partners, Hilt Tatum IV is responsible for the firm’s investments in Europe, Asia, South America, and the Caribbean. A venture capitalist, Hilt Tatum IV also heads the company’s venture capital operations.
Not all venture capitalists are the same. If you are fortunate enough to secure venture capital, you will have to work with the VCs for a very long time. Therefore, it's important to know who you are giving an ownership stake in your company, and to perform your due diligence.
Many VCs today narrow their focus within a single market, geography, or industry. This is where they feel they have deep knowledge and expertise. Research VCs within your product or service niche. Find out which ones have an impressive track record in your particular market. Afterward, talk to executives in companies they have invested in to find out how involved they were in the businesses. How much value did they add to these firms? Did they take part in growing the company and providing solutions for some of its problems, or did they just hand out capital and become unavailable afterward? What about their business philosophy and preferred growth and execution strategies - do they match your own? What about any potential conflicts of interest - are they shareholders in one of your competitors?
Looking for a VC is like looking for a spouse - you have to court each other first before you sign on the dotted line. And when you do decide to pair up, be open and set clear expectations. Do not be vague about vital elements of the contract such as exit clauses. You want a VC who won’t exit at the first sign of a challenge.
Hilt Tatum IV is the founder, CEO, and president of iPoint Capital Partners, a Panama-based investment firm active in markets throughout Europe, Asia, South and Central America, and the Caribbean. Hilt Tatum IV directs the firm’s investments in the group private equity and venture capital spheres, focusing on a wide range of sectors including global real estate.
According to a report compiled by commercial real estate firm CBRE, the global real estate market is poised to receive a huge influx of investments in 2016. The 2016 edition of the company’s annual Global Investor Intentions Survey reveals that investors around the world plan to deploy approximately $1.16 trillion in real estate investments over the coming year. This would reflect a year-over-year capital flow increase ranging between 3 and 6 percent. Survey responses suggest that 30 percent of these property investments will occur in the office sector. Commercial retail comprises the second-most favored asset type, and industrial and logistics tied with multifamily properties for third place.
CBRE surveyed 1,250 of the world’s leading property investors to compile their 2016 projections. Of these respondents, 82 percent indicated that their real estate investment activity would either increase or stay the same compared to 2015. This is down slightly from 2015, when 86 percent of respondents planned to increase or stabilize their real estate investments, and from 2014, when 93 percent showed the same optimism. Rather than implying a change in the performance of the real estate market, this small decline likely reflects growing investor caution regarding pricing, interest rates, and equity volatility.
Hilt Tatum IV founded iPoint Capital Partners in 2006. Guiding the firm as partner and president, Hilt Tatum IV oversees the firm’s diverse array of interests, which include investment portfolios, private equity, and venture capital services.
Entrepreneurs overflow with ideas but often come up short on the capital needed to get their ideas off the ground. Venture capital is a form of financing that covers some or all of the funding needed by entrepreneurs. Typically, start-up businesses turn to venture capitalists when they cannot secure funding through traditional channels, which tend to service established individuals and companies.
Indeed, venture capital differs from traditional funding channels in virtually every way. Rather than covering debt, safe bets, and established companies, venture capitalists help new companies with the potential for growth by providing equity capital and taking greater risks in exchange for greater potential. Venture capital is an active rather than passive source of funding because capitalists grant capital in an effort to add to or create value in a new company.
New entrepreneurs interested in venture capital should expect to go through more or less the same process each time they meet with an investor. Submit a business plan that addresses critical areas such as the target industry and the demographics of the potential customer base. Next, prepare for the capitalist to perform due diligence, which entails researching the company’s management team and business plan in greater detail.
An entrepreneur, Hilt Tatum IV earned a postgraduate degree from the University of Oxford’s Said Business School. Hilt Tatum IV is the president of and a partner in iPoint Capital Partners, a firm focused on providing services ranging from venture capital to alternative investment portfolios.
Like the weather, the market can fluctuate without warning, adding large degrees of risk and uncertainty to most traditional investments. Alternative investments attempt to mitigate risk in the traditional market. Markets have a tendency to fluctuate without warning, causing investors to panic and sell off stock, which only causes the market to decline even further.
However, alternative investments such as private equity do not necessarily correlate to market fluctuations. Furthermore, many alternative investments come with long lock-up periods during which investors cannot jettison them. This forces investors to ride out storms.
Certain tax benefits derive from some long-term alternative investments. One of the most attractive is that long-term capital gains taxes are lower than taxes earned on short-term investments, again speaking to the advantage of waiting rather than turning over several short-term opportunities in rapid succession and incurring larger transaction costs.
Hilt Tatum is CEO of Oxford Consulting Group - International business consulting