Posted by – August 31, 2011
If you’re trying to find angel investors, it’s unlikely that they will fall in your lap. They don’t have name tags and they won’t slip a calling card in your pocket when you’re not looking. You have to go after them, and do it in a ruthless fashion. But when you know how, you’ll be able to find them no matter what city you’re in.
Some people are better than others when it comes to networking, but we all have friends, right? When you need to find angel investors ask every last friend you have if they know someone. The message will soon spread and before you know it someone somewhere will get your message. Read the rest of this article
Posted by – June 13, 2011
As an angel investor you will need to learn from experience. And though this experience comes from making mistakes, there are still three bases you can use to asses an entrepreneur. If you don’t complete these bases then surprises may arise in the future when you least expect them.
The first base is their knowledge. Do the owners of the company, you want to invest in, really know what they are getting in to? The best method is to speak with them directly and ask them questions on their field of expertise. There’s no real format on how to see if they are knowledgeable, other than the answers they give and your instincts.
The second base is their capabilities. Do they have what it takes to make the company successful? Looking at their track record is the best way to find this out and a good background in the industry will help with creating a winning company. There will always be an exception to the rule but these are rare and should be looked upon with caution.
The last of the bases is the entrepreneur’s goals. It’s what makes them want to be where they are and drives them on to improve. Do you share the same goals? This doesn’t always mean that the entrepreneur is ambitious as some will strive for too much, not recognizing their limitations.
Posted by – June 13, 2011
Many new business owners ask whether they should choose an angel investor or venture capital financing. There are a few factors that need to be taken into account, but fortunately there’s usually a clear answer to what a new business needs.
- It’s important to have a business plan that highlights the capital required to start your business. With this you can work out the investor you need. Angel investors will only finance sums of money under $3 to 5 million, whereas venture capital funding will offer over $5 million.
- Your business plan will also need to display the number of years before an option of exiting the deal. If it’s a small term plan then your best option will be angel investor who will allow an exit after 2 to 5 years. Venture capital will lock you in for over 10 years.
- There is also a company value that needs to be met at the time of a contract exit. Venture capital funding will far exceed the angel investors and depending on the contract, there may be a $50 million difference.
- The larger sums of money invested will mean more control of your business. If you don’t plan to relinquish control of decisions then the angel investors will be a better option. They may make adjustments, but with venture capital funding investing more they will almost always require full control.
For more information on starting a new business contact Winflow Financial Group.