Need Financing?
If you have a small company, you may want to consider exploring this option.
I just went through the process of finding a venture investor for my company.
This experience was time consuming and emotional roller coaster but it is much better than approaching a bank these days.
My case was a classical Angel venture capital.
They were investors looking to finance a business that will be worth 5 times or more the capital invested in five or 10 years.
These Angel investors look for medium-long term capital gain on their portfolios and typically invest their financial and managerial experience as well as their capital.
Your investor will be aware on these following characteristics when considering to invest in your company.
Request to have 2- 3 alternatives.
You may be presented by a venture capital, showing strong interested to participate in taking action on the proposal but never, never loose sight to look for second or third option while negotiating with the first one.
You must have a burning desire to keep working and taking you company to a level of growth and profitability.
Your vision and your business plan need to support the investor's expectations.
Start planning to consider this option with one year ahead.
Specially if you are seeing a negative trend of cash flow in your company.
The size of investments for a Angel Investors, usually ranges from $100,000 to less than $500,000.
Make sure to define your financial needs.
It will be disastrous to request more funding while you are about to close the deal.
Believe me.
These are good time to search! The interests rate are low as ever in banks and bonds! Due your diligence in preparing your stage and don't loose hope!
I just went through the process of finding a venture investor for my company.
This experience was time consuming and emotional roller coaster but it is much better than approaching a bank these days.
My case was a classical Angel venture capital.
They were investors looking to finance a business that will be worth 5 times or more the capital invested in five or 10 years.
These Angel investors look for medium-long term capital gain on their portfolios and typically invest their financial and managerial experience as well as their capital.
Your investor will be aware on these following characteristics when considering to invest in your company.
- It involves high risk
- There is a lack of liquidity in your company
- The investment returns will be primarily from capital gains
- Investors expects 20- 25% return on their money
- Will require extensive information on your company
- Prefer entrepreneurs who have put their savings into the company.
- You must be trustworthy
- The expertise from the entrepreneur.
- The enthusiasm from your part.
- Sales potential from your product.
Request to have 2- 3 alternatives.
You may be presented by a venture capital, showing strong interested to participate in taking action on the proposal but never, never loose sight to look for second or third option while negotiating with the first one.
You must have a burning desire to keep working and taking you company to a level of growth and profitability.
Your vision and your business plan need to support the investor's expectations.
Start planning to consider this option with one year ahead.
Specially if you are seeing a negative trend of cash flow in your company.
The size of investments for a Angel Investors, usually ranges from $100,000 to less than $500,000.
Make sure to define your financial needs.
It will be disastrous to request more funding while you are about to close the deal.
Believe me.
These are good time to search! The interests rate are low as ever in banks and bonds! Due your diligence in preparing your stage and don't loose hope!
Source...