Jul 24, 2018
We’re still talking about money, and where to find it. Today I’m talking in part 3 about raising “venture capital” or finding an “angel investor.”
Venture capital firms make direct investments in companies in exchange for equity stakes in the business. VCs (venture capital firms) tend to be highly selective and usually only invest in businesses that are already established and have shown the ability to generate profit.
Another option you may have is to obtaining money from an “angel investor.” If you can’t get enough money from the bank or your own assets, and you don’t have a rich uncle, you can always look for a wealthy non-relative. Some well-off individuals like to invest in startup ventures often in an ownership stake in your own business. These investors are known as “angel investors.” Typically an “angel investor” has been successful in a particular industry and is looking for new opportunities. Not only can they offer you financing for your business right off the ground, but some are willing to offer guidance based off their own experience.
Here’s the main takeaway of this episode:
You’re probably asking yourself “How do I find these ‘angel investors?’” It can take some research. Many “angel investors” prefer to keep a low profile and can only be found by asking other business owners, financial advisors, and business attorneys. Often you’ll find these people in networking groups like StartupGRIND Carlsbad, where people collaborate and meet new people.
Remember, you only have one shot at getting the attention of an “angel investor” so spend some time honing your pitch down to an art. You’ll need to tell them:
The best way to prepare for all of this and these questions is to sit down and draft your business plan. Go back NOW and listen to Episode 2: The Power of a Business Plan to find out more. If you’re looking for a business template, at Go Legal Yourself you’ll find the perfect business plan for you to use, especially if you’re looking for money.
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