If you are an entrepreneur whose business took off like a bullet as soon as you started it, you probably want to grow it as quickly as possible, and that takes capital. It can be difficult to get traditional financing without tangible assets, and an angel investor may not have the kind of money you need. At this point, what you need is venture capital funding.
Experts say that entrepreneurs who don't understand the difference between a venture capitalist and an angel investor, are not going to be of interest to a high stakes investor. Entrepreneurs starting a small business might find angels among their friends and family. These are people willing to invest money with or without some ownership in the company. Businesses, like those in the biotech or software industry, which tend to be high risk with high return potential, need another type of investor.
It is not an easy process to get the attention of high risk investors. You will have to get them interested in the possibilities your company presents. If you can show a fast rate of growth with impressive profits, and explain how the market trend will continue, you could make a deal. You will have to do lots of research to find a good match for your program.
While you are researching you will probably come across companies offering to sell leads and investor databases that will ensure you find the funds you need. They might advertise that they can get the attention of the decision maker, who will read your business summary and be so impressed that you will get a call from him right away. Experts say that's not the way it works.
You can't mass email investors either. They have seen all too many of these kinds of pitches and don't even open them. Not only will you have wasted your time creating an ineffective marketing tool, you might end up losing a potential investor who you could have interested if you had approached him differently. The best idea is to target the best matches for your situation and go after those.
Once you have this information in hand, you should try and find a way to personally introduce yourself. Networking is invaluable. You might know someone who belongs to the same alumni association or has worked with a decision maker in the investment firm. If a principal in the company is speaking at an event, try to wrangle a seat and introduce yourself after it concludes.
You may only have a few seconds to catch the attention of a busy investor. They see proposals all the time. You should have an intriguing tag line for your email introduction and a quick video that sums up your vision. If that gets you in the door, you have one last chance to impress with your pitch.
Successful businesses often start with a little idea and smart marketing. Once it takes off, an entrepreneur needs sufficient capital to keep it on its trajectory. There are professionals willing to invest big money on the calculated risk they will get a big return.
Experts say that entrepreneurs who don't understand the difference between a venture capitalist and an angel investor, are not going to be of interest to a high stakes investor. Entrepreneurs starting a small business might find angels among their friends and family. These are people willing to invest money with or without some ownership in the company. Businesses, like those in the biotech or software industry, which tend to be high risk with high return potential, need another type of investor.
It is not an easy process to get the attention of high risk investors. You will have to get them interested in the possibilities your company presents. If you can show a fast rate of growth with impressive profits, and explain how the market trend will continue, you could make a deal. You will have to do lots of research to find a good match for your program.
While you are researching you will probably come across companies offering to sell leads and investor databases that will ensure you find the funds you need. They might advertise that they can get the attention of the decision maker, who will read your business summary and be so impressed that you will get a call from him right away. Experts say that's not the way it works.
You can't mass email investors either. They have seen all too many of these kinds of pitches and don't even open them. Not only will you have wasted your time creating an ineffective marketing tool, you might end up losing a potential investor who you could have interested if you had approached him differently. The best idea is to target the best matches for your situation and go after those.
Once you have this information in hand, you should try and find a way to personally introduce yourself. Networking is invaluable. You might know someone who belongs to the same alumni association or has worked with a decision maker in the investment firm. If a principal in the company is speaking at an event, try to wrangle a seat and introduce yourself after it concludes.
You may only have a few seconds to catch the attention of a busy investor. They see proposals all the time. You should have an intriguing tag line for your email introduction and a quick video that sums up your vision. If that gets you in the door, you have one last chance to impress with your pitch.
Successful businesses often start with a little idea and smart marketing. Once it takes off, an entrepreneur needs sufficient capital to keep it on its trajectory. There are professionals willing to invest big money on the calculated risk they will get a big return.
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