Wednesday, June 29, 2011

Startup capital with Angel Investors

If you are a business owner who is looking for ways to fund your business that is moving into high growth or seeking for a start–up capital, then I think you should consider getting help from an angel investor. Now what does these angel investors do? Angel investor provide capital for business, in exchange they get stocks or bonds from the company they helped fund which is fair enough considering that they give a fairly big amount to fund a business!

Now there are a couple of good reasons why I think this is good for your business, aside from providing you the fund, they can also participate in developing it! Based on what I know, angel investors are former business owners themselves so they can give advice and be a mentor, introduce you to a large network of contacts, and even expand your clients by promoting your business using their connections in the business world! I think this is a wiser choice compared to a venture capitalist as these investors take a lot of time in evaluation of funding and is more complex compare to angels. A venture capitalist would also require a company to form a board of directors, this way it could alter or totally change your company’s whole set up! Like I said this is more complex and more selective when it comes to investing towards a company so there is a high risk that your fund request may be turn down by a venture capitalist.

If somehow you decide to get an angel investor to fund your business you can easily hook up with them on websites that matches entrepreneurs and angel investors. Otherwise you can also check more Angel investor information online or ask friends and families with regards to getting business funds from angel investors. Remember, it is your decision and your business future to look up to, so choose wisely!

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