Funding & Investors by Joseph C.Capra and Douglas K. Smith
Funding & Investors clearly outlines the process of finding investors to fund your business. The book is easy to read and contains detailed descriptions of the various investment scenarios. Most investors do not know where to look for capital or how to go about finding it. This book is a good primer and provides investors with all the information they will need to know to find funding for their business.
Funding & Investors also provides a number of case studies highlighting common investment situations. These cases include start-ups, S & D growth, distressed businesses, and large cap growth companies. Each case study provides specific advice on what to look for when sourcing capital. Investors will discover how to evaluate a funding request and what to consider when choosing an investor. The case studies provide a great deal of practical advice on what to look for when seeking private funding.
A key feature of this book is that it includes a number of case studies from around the world. It is impossible to invest in the global economy without knowing how local markets are doing. By studying the financial statements of businesses in different regions around the world investors can begin to identify the opportunities for investment. This knowledge is invaluable to investors looking for potential growth areas.
The authors repeatedly emphasis that private funding should be approached with caution. As with any investment it is important to be realistic about projections and the likelihood of obtaining a loan. Investors will discover that there are often unexpected hurdles to be overcome along the way. Investors should therefore be prepared to take a number of steps including strong market and credit history documentation.
The authors spend a great deal of time discussing the application of risk management techniques for private funding. Investors will learn how to limit outside influences, how to select the best business fit and how to minimize the perceived risk of an investment by focusing on the key components of the business. There is no substitute for solid business research. However, having the right business information available can help guide the decision making process.
The book has many very useful insights that can be applied to individual investor decisions. These include issues such as choosing the right business or individual, identifying promising companies and identifying good companies. As they point out, the most successful investors are not those who have the greatest number of sophisticated strategies but rather those who have a solid foundation of sound principles and business research.