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.
Experts say that entrepreneurs who don't understand the difference between a venture capitalist and an angel investor, are not going to be of interest to a high stakes investor. Entrepreneurs starting a small business might find angels among their friends and family. These are people willing to invest money with or without some ownership in the company. Businesses, like those in the biotech or software industry, which tend to be high risk with high return potential, need another type of investor.
These individuals and firms operate at the highest levels. It won't be easy to convince them that the value you place on your company is realistic or that the company will continue to grow at impressive rates. You will have to do plenty of research to find the firms that invest money in the type of business you run and are willing to offer you the kind of sums you need for expansion.
Not matter where you go on the internet, you will find questionable companies offering quick solutions to difficult problems. You might come across one that offers proven leads with private emails and phone numbers. They may be selling databases guaranteed to get you in the door of a leading investment firm. As always, if it seems too good to be true, it certainly is.
You can't mass email investors either. They have seen all too many of these kinds of pitches and don't even open them. Not only will you have wasted your time creating an ineffective marketing tool, you might end up losing a potential investor who you could have interested if you had approached him differently. The best idea is to target the best matches for your situation and go after those.
There is no substitute for effective networking. You need to scour your resources in an effort to find people who have had some kind of contact with a potential investor. This could be someone mutually involved in an alumni association or a co-worker. If a decision maker, in a firm that interests you, is speaking at an event, you should make sure you are sitting front and center, then introduce yourself once the talk is over.
You may only have a few seconds to interest a high risk investor. You need to be prepared to grab him with an intriguing tag line that summarizes what your company is about. A professionally produced summary video may get you a chance to make your pitch in person.
There is no guarantee your business will be the next big internet sensation. You have to be resourceful and smart to get it off the ground and even more creative to get it to the next level. A risk taking money partner can make all the difference between success and failure.
Experts say that entrepreneurs who don't understand the difference between a venture capitalist and an angel investor, are not going to be of interest to a high stakes investor. Entrepreneurs starting a small business might find angels among their friends and family. These are people willing to invest money with or without some ownership in the company. Businesses, like those in the biotech or software industry, which tend to be high risk with high return potential, need another type of investor.
These individuals and firms operate at the highest levels. It won't be easy to convince them that the value you place on your company is realistic or that the company will continue to grow at impressive rates. You will have to do plenty of research to find the firms that invest money in the type of business you run and are willing to offer you the kind of sums you need for expansion.
Not matter where you go on the internet, you will find questionable companies offering quick solutions to difficult problems. You might come across one that offers proven leads with private emails and phone numbers. They may be selling databases guaranteed to get you in the door of a leading investment firm. As always, if it seems too good to be true, it certainly is.
You can't mass email investors either. They have seen all too many of these kinds of pitches and don't even open them. Not only will you have wasted your time creating an ineffective marketing tool, you might end up losing a potential investor who you could have interested if you had approached him differently. The best idea is to target the best matches for your situation and go after those.
There is no substitute for effective networking. You need to scour your resources in an effort to find people who have had some kind of contact with a potential investor. This could be someone mutually involved in an alumni association or a co-worker. If a decision maker, in a firm that interests you, is speaking at an event, you should make sure you are sitting front and center, then introduce yourself once the talk is over.
You may only have a few seconds to interest a high risk investor. You need to be prepared to grab him with an intriguing tag line that summarizes what your company is about. A professionally produced summary video may get you a chance to make your pitch in person.
There is no guarantee your business will be the next big internet sensation. You have to be resourceful and smart to get it off the ground and even more creative to get it to the next level. A risk taking money partner can make all the difference between success and failure.
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