venture capitals Archives - Angel Investors

01/21/201306/28/2017

Seven Tips on Raising Venture Capital for Business Startups

Raising Venture Capital for a business startup may be one of the most difficult challenges that an entrepreneur might encounter. After all, with the number of business startups out there, the competition for that precious venture capital may be really tough.

Here are some tips for business startup owners seeking to raise venture capital:

Decide on what you want to do – Having a business idea is different from having a business plan. While it is important to know what you want, you also need to know how you would execute your plans to achieve your objectives. Knowing this will increase your chances of securing venture capital.
Be ready for what happens – If you’re really serious with securing a venture capital, then you have to do whatever it takes to get it. This includes being ready to move to another location or sit in on trainings and other experience-building activities.
Invest on your team – The truth is, businesses are not just about its owners. Usually, the success depends on the entire team that is working behind it. Venture capitalists know this, so do your best to establish a team that would bring your startup to the top.
Find a mentor – Business startup owners usually don’t have much experience on what they are doing. With this, it is necessary to have a mentor who could help you in your operations, as well as in getting recommendations that would help you in seeking investors.
Have fun – Venture capitalists like business startup owners who enjoy what they are doing. The success of the business greatly depends on the passion of the people who runs it, so try to enjoy and have fun with your day to day activities. Keep in mind, though, that too much fun may lead to failure, rather than success.
Be ready to fail – Failing to secure a business investment is a common occurrence in the world of entrepreneurship. In case you get turned down, don’t worry, there are other opportunities out there.
Know what you are doing – Finally, know that venture capitalists prefer business owners who know everything about their craft. Therefore, before seeking financial support from venture capitalists, try to know everything about what you are doing in order to convince them that their money will be in safe hands.

More detailed information and useful advice can be found at Funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.Funded.com

08/17/201206/28/2017

Is It Time To Apply For A Startup Accelerator?

Following the rise of startup accelerators, the number of new entrepreneurs who want to get a position within these incubators has also significantly increased. Wall Street Journal reports that the applications to more than 200 accelerators around the world have almost doubled in the past two years.

According to Marc Nager, Chief Executive Officer of Startup Weekend, an accelerator may be good for those who are new on the field of entrepreneurship. However, in isolated cases, some of the terms may not be as acceptable. Nager provided some information that might help those who have yet to apply for an accelerator.

Understand the Basics

For Nager, would-be entrepreneurs must start with understanding the basic terms of the deal. He said that before applying, they should look at the benefits that they will get once they participate in this venture.

In the world of startup accelerators, a lot of value will come from the network that will be established amongst the students, mentors, and program leaders. Nager added that the applicants should also use to their advantage the possibility of having one-on-one experience with experienced entrepreneurs. He stresses the need for applicants to identify at least three mentors who have had experience on the industry that they are working on. This will ensure that the sessions will be maximized and will result in a highly beneficial experience.

Choose Wisely

Nager advises that when applying for startup accelerators, would-be entrepreneurs should consider signing up in well-known programs. He said that these will ensure better results that will be advantageous for the participants.

Unfortunately, well-known start-up accelerators usually have very low acceptance rates. With this, applicants can also try signing up in local versions of the accelerators provided that they have high quality program, mentors, and leaders.

Nager also noted the rise in the number of accelerators that offer specialized programs. There are those that focus solely on providing programs that help healthcare startups, civic startups, and startups that use a specific technology, among others.

The specialization may be advantageous for some startups. However, it must be noted that there are also things that one may miss if he or she decides not to sign up in one of the traditional accelerators that offer a wider range of coverage. Because of this, would-be applicants should know how to weigh the benefits before deciding to participate in specialized programs.

Work on that Application

As stated, the chances of getting admitted into a well-known accelerator are very slim. Because of this, would-be entrepreneurs should toughen up their applications if they want to get the nod of the evaluators.

One thing that they can do, Nager says, is to understand how the applications were evaluated by the accelerators. He also said that having a good team that will shine above the rest will boost the chances of getting selected.

Finally, he said that the applicants must do all their best to impress those who will decide on the applications. He suggests the use of human element, among others, to get the approval of the decision makers.

More detailed information and useful advice can be found at www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.

12/22/201101/26/2012

BANK LOAN VS VENTURE CAPITAL

Bank Loan VS Venture Capital

Before you choose whether to go get a bank loan or seek for a VCs, let’s make a quick comparison on both bank loan and venture capital. Bank loan require an APR which stands for Annual percentage rate. This is an interest rate quoted by bank in their loan document. On the other hand VCs doesn’t have one, which is equity while bank is debt. The APR for small business will depend on the length of time the company has been operating, the revenue, operating profit, net profit. Consistency makes the numbers more predictable and the bankers more confident they’ll be repaid. That, of course, assumes that the market and industry are relatively stable. So bankers seek a guaranteed return on their investment (loan) in a business. Venture Capital however it’s a win or lose proposition. The either make a return because the business is successful and is later sold or it will go to the public, or they don’t because the business goes bankrupt or it shut down. VCs measure their returns as a function of the company’s future performance. Unlike in bank loan either the term or the repayment amount is known in advance.

The benefit on bank loan is that as you pay down your loan you build creditworthiness. This makes you more attractive to lenders and increases your chances of negotiating favorable loan terms in the future. While VCs can be passive or active, passive investor are willing to give you capital but will play little or no part in running the company, while active investors expect to be heavily involved in the company’s operations. Carefully consider whether or not you are compatible, as this person will own a portion of your business.

One of the most important tools when deciding on what type of business loan your company needs is research. Researching the different types of loans available to you and your company can save you money. Business loans are hard to get, but with the right combination of perseverance, passion, dedication, and conviction in your business plan, they are not impossible after all.

More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.

12/21/201106/28/2017

Right Investor for the Right Business

We often asked ourselves how and where to find the right investors for our new business. Choosing the right investors is like looking for your perfect mate, finding the right financial adviser can be tricky, especially if you lack experience. It helps if you know what you’re looking for: Finding an adviser you trust and respect is critical, experts say, so don’t just sign on with the first person you meet. But how do you really know the right investor for your business. The first investor that you will consider is your family member; however at some point it’s not always a good idea. Money matters are a very serious subject, and that is one you want to avoid if you want to have a good relationship with your family. Put your relationships first and look elsewhere for business investments. So, who do you look for? Here are some people or group of people you may want to consider.

Lending Clubs, this is the easiest way of getting financial support. Lending clubs are made up of a bunch of investors that loan out money to people and businesses with good credit. They are a great resource and should be the first place you look.

Commercial Banks, if you are putting up a new business you may want to consider asking for a bank loan. Before doing so you will need to have put together a solid business plan before you ever hope to get financing.

Partnership, if you are having a hard time looking for a private investor to finance you, you may want to consider looking for a partner. You may encounter a silent type partner whom they let you run your business or an active partner, who is very much involved in running your business. The best place to look for a partner is at chamber of commerce or you may want to join an organization or group of business minded individuals.

Angel Investors, One of the most common people that you will encounter if you are starting up a business. Angel investors are wiling to invest on small businesses. Angel investors will provide you with funding however; they will be in close contact with you to make sure that their investment is going in the right direction.

Venture Capital, most venture capitalist usually invests on established businesses but if you are able to convince them to invest then you should consider yourself lucky. However, if they say no, these people will able to refer with other private investors that are willing to invest on small start up business.

Remember that in order to find the right investor, you should have a very detailed business plan to present. Investors will provide funds and expertise, but they will not advise you on how to write a good business plan. The key is, don’t be timid or afraid to ask. People will help you if you just ask and if you ask enough people you won’t have any problems finding a private investor for your startup small business.