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.
If you don't already know the difference between angel investors and venture capitalists, you probably aren't going to be of interest to big time investors. Angel investors tend to be friends, family, or others willing to make an investment in a business that is just starting. You might offer them equity in your company. High risk enterprises, like software design and biotech companies, need investors willing to take calculated financial risks when they see the possibility of high returns.
These are not easy business deals to make. Your business has to be growing at a high rate, and you will have to prove why that trend will continue. You will have to do extensive research to find an investor who meets your needs and vice versa. You want an investment firm with ties to your field and that has a history of investing the kind of money you need.
While you are researching you will probably come across companies offering to sell leads and investor databases that will ensure you find the funds you need. They might advertise that they can get the attention of the decision maker, who will read your business summary and be so impressed that you will get a call from him right away. Experts say that's not the way it works.
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 narrowed the field, you have to make a plan to approach them. Finding out as much as possible about them will help. You may know someone who is in the same alumni association for instance. You should contact anyone who worked closely with the investor on a similar project. You could even attend an event where the investor is speaking and try to introduce yourself once the event is concluded.
You may only have a few seconds to catch the attention of a busy investor. They see proposals all the time. You should have an intriguing tag line for your email introduction and a quick video that sums up your vision. If that gets you in the door, you have one last chance to impress with your 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.
If you don't already know the difference between angel investors and venture capitalists, you probably aren't going to be of interest to big time investors. Angel investors tend to be friends, family, or others willing to make an investment in a business that is just starting. You might offer them equity in your company. High risk enterprises, like software design and biotech companies, need investors willing to take calculated financial risks when they see the possibility of high returns.
These are not easy business deals to make. Your business has to be growing at a high rate, and you will have to prove why that trend will continue. You will have to do extensive research to find an investor who meets your needs and vice versa. You want an investment firm with ties to your field and that has a history of investing the kind of money you need.
While you are researching you will probably come across companies offering to sell leads and investor databases that will ensure you find the funds you need. They might advertise that they can get the attention of the decision maker, who will read your business summary and be so impressed that you will get a call from him right away. Experts say that's not the way it works.
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 narrowed the field, you have to make a plan to approach them. Finding out as much as possible about them will help. You may know someone who is in the same alumni association for instance. You should contact anyone who worked closely with the investor on a similar project. You could even attend an event where the investor is speaking and try to introduce yourself once the event is concluded.
You may only have a few seconds to catch the attention of a busy investor. They see proposals all the time. You should have an intriguing tag line for your email introduction and a quick video that sums up your vision. If that gets you in the door, you have one last chance to impress with your 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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