Helping You Define Your Lifestyle

The Differences between Debt, Equity, and Venture Capital

You may have heard of financial terms like “private equity”, “debt capital”, and “venture capital”. Those are all terms that managers like Sun Capital Partner’s Marc Leder deal with on a daily basis. All of those terms refer to investments, and there are some key differences between them. It is important to understand those differences if you are an entrepreneur, so that you know which one will be most applicable to you.

Debt Capital

Debt capital is very closely related to a bank loan, which is one that is repaid with interest. Debt financing is common with new entrepreneurs who need startup capital. This is why most will go to a regular bank, although investment banks exist for those who require very large sums of money. The investor who provides debt capital does so because this is a low risk type of financing, particularly when compared to private equity. This is because the money is borrowed to you, in the same way as a mortgage or car finance. The interest rates vary, although an investor will usually want to see at least a 10% return on the money they received. There are usually stringent time limits attached to this as well.

Private Equity

Private equity is very different because you don’t have to pay it back to an investor. Rather, it looks at the money that is in a business, collected through growth. Usually, it comes from an equity fund owned by high net worth individuals who look at ways to grow not just their own capital, but the economy as a whole as well.

Venture Capital and Private Equity

Private equity comes from private individuals or institutions owned by private individuals. Usually, these individuals are people who have a great deal of financial experience, including institutional investors. Venture capital is very similar to this, but it is generally only provided to companies that they can prove they have high growth potential. Venture capital, in a way, is less risky than private equity, in other words.

Anyone who approaches people like Marc Leder, or firms like Sun Capital Partners, must do so with a well-thought through plan. While debt capital is usually the easiest to obtain, it is also the most expensive and generally in the lowest amounts. Venture capital and private equity will give you far more chances of really experiencing growth because, firstly, the money involved can easily reach millions of dollars and, secondly, because you will have the financial expertise of people like Marc Leder behind you. However, because these financial investments are more high risk than debt capital, they are also more difficult to obtain and competition is fierce.

In order to be considered for venture or private equity capital, you have to be able to demonstrate that you are better than anyone else. You must be able to show that you have an excellent management team and a clear strategic direction. Essentially, you have to be a profitable, established company that is looking at a way to grow even bigger.

How to Use Poker as a Mindfulness Practice

Most common mindfulness practices are fundamentally simple. Things like deep breathing, counted breaths, and short breaks and walks can help to calm us, clear our minds, and generate simultaneous states of relaxation and awareness. As much purpose as these small, simple practices have though, there are also some more involved activities that can assist with the development of greater mindfulness. And it may surprise some to learn that the game of poker is among them.

Gaming and Meditation

It is first important to understand that a link has been established between gaming and meditation in general. For a long time there were a lot of misconceptions about gaming as an active, almost violent practice meant solely for young people. But perceptions have changed over time. We now understand that people in all age groups play games of all kinds, and we further accept that a lot of these games have meditative qualities. Gamer testaments and a few scientific studies alike have indicated that the right game can have a soothing effect on one’s mental state.

This is the case with poker as well. A passion for many around the world, it’s a unique game that doesn’t necessarily fall under the umbrella of traditional “gaming” as we tend to think of the term. It is nonetheless similar with regard to mindfulness, however. Approached with intention, it can be a calming, almost meditative hobby for players.

Mental and Emotional Calm

When considering the game of poker specifically, one tends to think first of strategy, luck, and mathematics. In some sense, these are the building blocks of any given game of poker, and it will of course be important for any aspiring player to learn how they all factor in. However, what really helps successful players to win at poker is a sound mindset. The manifestation of a sound overall poker game requires that players learn to accept defeat and to avoid getting too high from a win. It demands reasonable approaches to betting and competition, clear-eyed social interaction, and the ability to operate without ego.

Add those factors up, and what success in poker really demands is mental and emotional calm. Players need skill and strategy to be sure, but above all else they need to be able to clear their minds of various pressures and shut out hasty impulses. This in and of itself is nearly a form of meditation, and certainly serves as a sort of training for mindfulness practice.

Focused Meditation

Beyond helping players to establish a general sense of mental and emotional calm, poker also leads to an ability to focus that, in its own way, is meditative. Generally, a focused meditation is described as the practice of focusing on something intently as a way of staying in the present moment and slowing down inner dialogue. It more or less means zeroing in on one subject to the exclusion of all else for the purpose of clearing one’s head — which is pretty much exactly what one has to do in poker! Even the slightest distraction can be a problem, and while the game demands a lot of attention it still makes for such narrow focus that one can clear one’s mind in a useful and soothing way.

Even given all of these benefits, poker does not comprise an entire mindfulness or meditation routine. For those interested in working on these aspects of personal wellness though, it’s always good to have one more option! Some will find this simple, popular card game to be legitimately beneficial.

If you enjoyed this article, you might also like our piece on how to boost your energy, especially useful as we enter a new year and search for fresh motivations!

Earfree Nitebuds: For Better Sleep

Earfree Nitebuds, the two-in-one speaker and pillow that plays calming music, improving the quality of your sleep, is launching on Indiegogo.

The idea for the Nitebuds sleep pillow came from people who used to sleep with earphones in. Many of us who have trouble sleeping at night use earphones to listen to calming sleep music, but sleeping with earphones in is just too uncomfortable. Using earphones while you sleep can cause pain and inflammation in the ear; plus, earphones tend to fall out in the middle of the night. But the adverse effects of earphones on ear health is undoubtedly the most critical of these issues.

Nitebuds puts music IN the pillow to solve the problems caused by conventional earbuds. All you have to do is lay your head down on the pillow to be serenated with lovely music. There’s no earbuds involved – so you can roll around in bed all you like without having to worry about damage to your ears or earbuds falling out.

Nitebuds are simple to use. Just place the speakers in the special sleep-aid pillow, then use Bluetooth to pair your smartphone and begin your music therapy. Once your music is playing, Nitebuds’ crater-shaped design enhances the acoustics, making you feel like you’re listening in on a concert hall performance. This design also prevents the sound from leaking out, giving you the same quality of sound at a 30% lower volume, so as not to bother whoever’s sleeping next to you.

The Nitebuds app also provides free ASMR music and ambience, soothing the brain and easing any anxiety. This white noise works has great benefits on mental health and attentiveness, making the sleep music from the Nitebuds app particularly effective at inducing a natural sleep.

Nitebuds uses 3D mesh material for full, fluffy comfort. The mesh also helps the music play through the pillow without getting muffled, plus high-quality microfiber cotton is also used to give the perfect amount of depth and coziness. The microfiber cotton is also a renewable, biodegradable material, which means Nitebuds is eco-friendly, too.

Even though Nitebuds is electronic, the speaker and pillow are fully separable, meaning the pillow can be washed without issue. If you want, you can even use the pillow by itself without the speakers, or even place other items inside the pillow to help you sleep.

For instance, if you find yourself sweating a lot in those hot summer nights, you can place ice-packs in the pillow to help cool off. Or, when you’re stressed out and in the mood for aromatherapy, the CYPRESS insert can be used for some phytoncide healing.

Also, if you have a preference for a specific pillow height, just use the COTTON insert to adjust the pillow’s height to your preference.

You can back Earfree Nitebuds – the high-tech pillow that serenades you to sleep – by finding their campaign on Indiegogo.