Difficulties finding angel investors


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To find angel investors, you need to strategically plan how you are going to go about it, Get quality information on how to develop a plan that is sure to get investors on your side. Discover the entrepreneur in you! Visit http:/www.business-plan.co.za for more.

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Difficulties finding angel investors

  1. 1. Difficulties finding angel investors Difficultiesfinding angel investorsTo raise capital, angel investors are key to yourbusiness. Find out how you can develop a strategicbusiness plan that will help you source funds frominvestors. Read More
  2. 2. Difficulties finding angel investorsIf you are having trouble finding angelinvestors you may want to work with acapital syndication firm. Thesecompanies will source angel investors onyour behalf, but it is an expensiveprocess. If youre going to have aprivate placement memorandumcreated, then youre most likely going toneed to have a business plan includedwithin this document as it will need tobe seen by any type of capitalsyndication firm. Angel investors do notusually provide loans, and this factshould be made aware of right awaywhen you are seeking private funding.For large deals, you may want to seek asyndicated group of investors asdiscussed above. Your CPA can assistyou with calculating the anticipated ROI
  3. 3. Difficulties finding angel investorsfor your business, as this is animportant part of working with privatefunding sources especially if you havehad difficulty in regards to this matter,Group investing lowers the risksassociated with putting money into anew venture. You should showcase,within your business plan, how youlldeal with an economic recession andother issues that may affect yourbusiness. Private equity firms may be agood fit for your business if you havehad difficulties finding angel investors.Dividends should not be provided toyour private investor unless you need toas part of your overall negotiation with aprivate finding source.
  4. 4. Difficulties finding angel investorsDebt capital almost always requires aguarantee, whereas investment capitaldoes not and if you are working with aprivate funding source you may want tooffer dividends in order to sweeten thedeal. Neither small business investmentcompanies nor angel investors expectthat their investments will undergo aninitial public offering. Large investmentsmay be more appropriate for a venturecapital firm that can provide you withlarge sums of capital for your new orexpanding business.Hard money mortgages are becoming avery popular method of generating avery high return on investment forprivate investors if you can secure thistype of financing against your inventory,
  5. 5. Difficulties finding angel investorsreal estate, equipment, or other tangibleassets.When presenting to an angel investor,you can create a table at showcases allof the available assets that can be usedas a security for the investors that youare seeking.If you are looking for angel investorsthen you may need a private placementmemorandum. The current economicclimate has made lending very difficult.Large scale businesses may be better ofworking with a private equity firm. Angelinvestors are the life blood of smallbusiness investment. It is difficult to findprivate investment. You may want totake a look at the SBA definition of a
  6. 6. Difficulties finding angel investorssmall business prior to working with anytype of outside financing your businessespecially when working with an angelinvestor or private investment firm.Preferred shares typically do not allowangel investors to have a say in theongoing management of your business,and they provide a significant return oninvestment for private funding sources.This may be a good alternative whenyou are thinking about selling a portionof your business to a third party. Yourcertified public accountant should beinvolved in any transaction that dealswith the sale of preferred shares to aninvestor.Read more
  7. 7. Difficulties finding angel investorsAbout this AuthorAngel Investor List Download. No registration required! Includes Free Business PlanTemplate. Looking For Angel Investors is a website dedicated to people finding privateinvestment. Matthew Deutsch is a prominent business plan writer. His work has beenincluded in nine books pertaining to this subject. Additionally, Mr. Deutsch has writtenextensively on subjects regarding entrepreneurship, small business lending, angelinvesting, and other related topics.Article Source:http://EzineArticles.com/?expert=Matthew_Deutsch