Expanding a newly established business takes a lot of money. For those entrepreneurs whose business assets are primarily intangible, getting a conventional loan from a traditional financial institution or from an angel investor may not be appropriate. They need venture capital funding instead, and should consider the advice of experts.
First of all, they say entrepreneurs have to understand the difference between venture capital investors and angel investors. Angel investors are individuals or firms that fund new businesses in the form of loans or equity in the company. Friends and family often become angels for entrepreneurs. Rapidly growing businesses in need of additional funds to expand often approach investors willing to on take high risk projects, usually in exchange for a certain percentage of equity in the company.
It is not an easy process to get the attention of high risk investors. You will have to get them interested in the possibilities your company presents. If you can show a fast rate of growth with impressive profits, and explain how the market trend will continue, you could make a deal. You will have to do lots of research to find a good match for your program.
Bogus companies are always looking for easy revenue sources. Once you started your research, you probably noticed any number of companies offering unique databases and solid leads designed to make your search for an investor easy and quick. Experts say you shouldn't be fooled.
Trying to create your own shortcuts won't be successful either. Mass emailing investors is a waste of time. They see these kinds of tactics all the time and aren't fooled by them. You never know when someone you contacted this way might have been interested in your business plan if your approach had been smarter. Instead you need to narrow the field of potential investors and go after them individually.
Once you have this information in hand, you should try and find a way to personally introduce yourself. Networking is invaluable. You might know someone who belongs to the same alumni association or has worked with a decision maker in the investment firm. If a principal in the company is speaking at an event, try to wrangle a seat and introduce yourself after it concludes.
You will have to be smart to get the attention of one of these investors. They are inundated with requests, and only respond to a few. You need a great tag line that describes your company in a few words and a summary video good enough to get you through the door to make a pitch.
Great businesses, that start fast and grow quickly, fall by the wayside every day because the entrepreneur didn't get expansion plans in front of the right investors at the right time. It is not enough to have big ideas, you have to know how to turn them into reality.
First of all, they say entrepreneurs have to understand the difference between venture capital investors and angel investors. Angel investors are individuals or firms that fund new businesses in the form of loans or equity in the company. Friends and family often become angels for entrepreneurs. Rapidly growing businesses in need of additional funds to expand often approach investors willing to on take high risk projects, usually in exchange for a certain percentage of equity in the company.
It is not an easy process to get the attention of high risk investors. You will have to get them interested in the possibilities your company presents. If you can show a fast rate of growth with impressive profits, and explain how the market trend will continue, you could make a deal. You will have to do lots of research to find a good match for your program.
Bogus companies are always looking for easy revenue sources. Once you started your research, you probably noticed any number of companies offering unique databases and solid leads designed to make your search for an investor easy and quick. Experts say you shouldn't be fooled.
Trying to create your own shortcuts won't be successful either. Mass emailing investors is a waste of time. They see these kinds of tactics all the time and aren't fooled by them. You never know when someone you contacted this way might have been interested in your business plan if your approach had been smarter. Instead you need to narrow the field of potential investors and go after them individually.
Once you have this information in hand, you should try and find a way to personally introduce yourself. Networking is invaluable. You might know someone who belongs to the same alumni association or has worked with a decision maker in the investment firm. If a principal in the company is speaking at an event, try to wrangle a seat and introduce yourself after it concludes.
You will have to be smart to get the attention of one of these investors. They are inundated with requests, and only respond to a few. You need a great tag line that describes your company in a few words and a summary video good enough to get you through the door to make a pitch.
Great businesses, that start fast and grow quickly, fall by the wayside every day because the entrepreneur didn't get expansion plans in front of the right investors at the right time. It is not enough to have big ideas, you have to know how to turn them into reality.
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