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					Convincing Angel Investors Your Business is Worth the Risk
  You have a great idea for a business but venture capital firms are unwilling to lend
you startup funding for any of a number of reasons. Venture capitalists are more likely
to fund large startups that may need as much as $5 million and up. It only seems
appropriate that one of the alternative sources of funding is named the angel investor.
An angel investor is a private investor who invests personal money in an
entrepreneurial company.
  Many Angel Forms
  Angel investors come in many forms. An angel investor might be a professional like
a doctor or an attorney. Some angel investors are retired people who have
discretionary money. Much to people 鈥檚 surprise, the typical angel investor is not a
millionaire.
  Many private investors are business associates. Business associates are any persons
or businesses that might be willing to invest in your company because they are
familiar with your business idea and find it to be workable. They may be people who
will be working for you and want to invest in the company or potential suppliers who
have a vested interest in you starting a business that will use their products.
  There are even angel investors who are fellow entrepreneurs and simply want to help
other entrepreneurs like themselves get started.
  Angels are Everywhere
  If you get the idea that angel investors are just about anywhere you look, you would
be right. Many times the small business entrepreneur only thinks in terms of
traditional funders and doesn 鈥檛 consider the fact that plenty of people including
business associates are willing to lend money. In fact micro-lending is actually a
network of angel investors who want to help small entrepreneurs pursue their goals.
  How do you find angel investors? The simplest way is to take advantage of services
that cater to entrepreneurs seeking startup money. Though you can search for funding
through friends or business associates, the matchmaking service will bring together
budding entrepreneurs and angel investors quickly and efficiently.
  The angel investor actually functions in a manner similar to a venture capitalist. One
of the main differences is that angel funders are as interested in things like leveraging
their abilities and promoting entrepreneurship as they are in making a profit. Some
angel investors will want to play an active role in your business while others will be
silent investors. If an angel investor wants to participate, it gives you excellent access
to knowledge and experience that can increase your chances for success.
  Preparation is Important
  When you decide that angel investing presents the best start up funding opportunity,
it 鈥檚 important to be well prepared. Your business idea must be well thought out
and your business plan needs to be thorough. Don 鈥檛 be deceived by the fact these
investors are called 鈥渁 ngels 鈥? They are solid, experienced, knowledgeable
investors who will ask tough questions and expect well prepared answers. You will
need to be prepared to discuss your idea, marketing strategies, location, website
development, customers, staff and expenses.
For more details please visit: http://www.funded.com

				
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