Capital Funding & Investors
Angel investors, Funding & Investors, and Private Funding Sources all go hand in hand when you are looking for your first investment. Most investors do not like to make a commitment of this type. They feel more comfortable dealing in more traditional capital markets, such as stocks, bonds, mutual funds, and real estate property. If you have any experience with raising capital, then you probably know that it is very difficult to raise capital by private means. If you want to get private funding, then you really need to find the right sources.
Angel investors, capital & investors, and private funding sources can be tough to find. Typically, you will only discover these sources if you have already completed your research and are ready to present your case to an investor. Typically, the only way to attract private investors is through a referral from a trusted friend or advisor. However, if you are just starting out on your business, then you may not have anyone to refer to.
When searching for private funding, you will also want to make sure that you contact a variety of investors. In order to find and recruit new investors, you will want to establish a good relationship with a number of angel investors. As you progress through your business, you will want to build relationships with other investors. Through word of mouth, you can even attract new angel investors as you progress through your business.
In general, it is best to focus your search for private funding on people who are willing to put in some money as you progress. This does not mean that you will only look for venture capital. We highly recommend that you also use other sources of funding, such as angel networks and friends and family. It is possible to attract a large number of angel investors by focusing on groups that you have some form of relationship with. Generally speaking, most investors are looking for the type of risk/reward ratio that we discuss in our reviews of different venture capital firms.
The first step in attracting potential funding & investors is developing a compelling, or at least effective business plan. Your business plan should be written in layman’s terms, so that it is easily explained to an investor. Writing a business plan is a critical step for raising capital. Having a detailed, well-organized business plan will help you to impress potential investors.
Once you have a well developed business plan, you should begin to develop relationships with a number of private finance organizations. As your business grows, you will likely need to raise additional funds to meet growing needs. We strongly recommend that you work closely with a financial consultant as you progress through your business growth. A financial consultant can provide you with a number of capital raising options, depending upon your experience and the capital structure that you have in place. Most financial firms will happily work with you to provide you with the capital that you need to achieve your goals.
