How to find investors who want to provide venture capital
Before you start looking for ways to find investors who are willing to provide venture capital, you must be sure that your expectations to get it are realistic.
You should not consider looking for people who want to provide capital for your business less seriously. You need to make a presentation, need a unique business proposition, and you must have a vision for your company. Investors need to see the trajectory of business growth and how they get their money back.
Next, investors will need time to review and test your business. This process is not instant and you must be patient.
What Do Investors See in Your Business?
Investors see many things when deciding whether to invest their money or their company’s money in other businesses. Then, what do investors count on? Here are things that investors see in your business:
Idea or product (is this unique? If not, are its features unique? If not, why is this product sold?)
Business Plan (including market analysis and product execution)
Management team (does senior management have the education and experience to achieve company goals?)
Financial data includes profits, expenses (for what income is spent), and financial projections
Investors also want to know how they can benefit from your business.
Source of venture capital from investors
You are now wondering, where can you get venture capital from investors? How to? The following are sources of venture capital from investors that you can get.
One of the most popular methods to fund small businesses, especially beginners, is venture capital. Investors known as venture capitalists will invest in new businesses that they believe will succeed in the near future. They are usually part of a large network of board members, business developers and other funders. The job of a venture capitalist is to invest in a business that will benefit; thus, getting a substantial return for their members.
Venture capital funding is a form of equity capital, meaning you usually have to lose a portion of your company’s ownership (equity) in return for these funds. On the plus side, there are no loans to repay with conventional venture capital funds.
Another common form of business financing is angel investors. Investors known as “angels” finance the business while also providing guidance and assistance. These investors will take a proactive approach because the success of a business that they fund is important to them.
Angel investors are similar to venture capital, but with a few exceptions. First, angels are usually individuals, while venture capitalists are part of a larger company. Second, angel is more active in business than his venture capital counterparts.
Like venture capitalists, angel investors usually focus on companies with high growth in the early stages of development. They will not provide funding for established, stable and low-growth businesses.