Tag : Venture Capital

Who to go to get funding for your startup company- Angel Investments or Crowdfunding?
29 Jul

Who to go to get funding for your startup company- Angel Investments or Crowdfunding?

Having a small startup company in this day and age is more competitive and lucrative than ever. More investors are hooked onto the idea of investing in startups. Their belief is that divulging in some of their wealth can reap them massive long term profit and being closely committed to an industry that is changing day by day. There are other kinds of investment, which have a more communal strategy- pooling money from different, small time investors and ordinary people like you and me. So which kind of funding is best for your startup company?

What is Angel investing?

Angel Investing is when an affluent businessman or businesswoman invests in a business startup in exchange for a stake or equity in the startup. Famous examples include Donald Trump in the USA and Lord Alan Sugar in the UK. Famous startup companies who have thrived from Angel investments include Facebook and LinkedIn (investments from European Founders Fund).

It gives the investors a nice slice of the action when the startup profits without having to treat the investment as a full time job. They also get a deep insight into current developments in the industry of the startup, helping them keep up to date with benefits and limitations. In return the startup company gets practical, business and corporate advice that can’t be obtained publicly. The startup also gets access to a unique clientele and network through the investor. For example a real …

How Venture Capital Works
17 Jun

How Venture Capital Works

Many people are considering making use of venture capital in order to get their business off the ground. There are many people that are considering getting this type of loan, because they don’t have any other way of getting money to start their business. It’s important to make sure that you know as much about venture capital as possible, to ensure that you are making the right decision. Here are some information about how venture capital works:

What exactly are venture capital?

People know about venture capital, but they are really unsure what this really is. There are many different types of loans that one can apply for, that it makes it hard to understand each and every one of them.

Venture capital is a type of loan that you can get from financial institutions like investment banks. But, you can also get a venture capital loan from investors that have the capital to lend to new business owners. This is a great way to get the right amount of capital in order to start your business, but there are also a couple of things that you should consider before you make your final decision.

Benefits of getting venture capital

There are many benefits in getting venture capital, but not all of them are as important and essential to know about.

The most important benefit of venture capital, is that you are going to have enough money to start …

How Do Angel Investors Differ From Venture Capitalists?
25 Feb

How Do Angel Investors Differ From Venture Capitalists?

For millions of potential investors, they really do not understand how venture capital investing differs from angel investing. It’s not hard to see why there is so much confusion as these two are quite similar in many aspects. Both sets of investors invest money but the way in which they invest can differ slightly. It’s quite important to know how they differ from one another, especially if you want to look into these investment options. Read on to find out a little more about how angel investors and venture capitalists differ.

What Is An Angel Investor And What Is A Venture Capitalist?

Usually, someone who wants to look into angel investing will have an extremely high net work of over one million dollars or considerably more. However, individuals do not include the value of their properties in their net worth and those with a high income of over two hundred thousand a year can also become an angel investor. A venture capitalist however is usually partnerships, a business really and the role of the general partner is to source important or good investment opportunities. These types of investors will look for the best possible returns on their investment.

How Much Do You Have To Invest?

The size of the investment for both these groups can vary considerably. Angel investors can choose to invest anything between five thousand and one hundred thousand dollars plus. For a venture capitalist investing money, they …

Importance of crowd funding to those acquiring investment and funding
21 Aug

Importance of crowd funding to those acquiring investment and funding

Do you know that making an investment is not an easy thing because you have to sacrifice thousands of dollars? A serious commitment is required for you to put your investment. Most financial folks have gone far in terms of investment and now they are worthy billions of US dollars. Crowdfunding has become very common today and most people are interested in crowdfunding because it is one of the best and popular choices in the market. It has become more popular even in the unexpected countries like the third world countries that this is a show that it is assisting people to rise financially and improve their standards of living. Most people today become rich through investing because this is what assures you of permanent income. A good example where crowdfunding has helped people is the real estate developers and potential investors.

How crowdfunding benefits real estates

All real estate developers and investors have greatly benefited from crowdfunding in one way or the other. How do you think these investors are benefiting from crowdfunding? It enables them to invest in permanent properties and also encourages them to do so even whenthey don’t have all the necessary resources. In this way they are able to progress financially and also open their new paths and attain financial success. Another importance of crowdfunding in real estate is that it enables them to select the properties that they want to invest in and they …

Venture Capital Return on Investment
07 Mar

Venture Capital Return on Investment

Return of investment is the magic word of investment. The term that is usually shortened to ROI is the key goal of investment. Venture capital return on investment is expected to be higher than normal.

Return on investment is one of the simple to understand terms of the financial world. It refers to what you get back for what you put in. If you invest one dollar, and the dollar earns .25 cents, your return on investment is 25%. Return on investment is also given for a time frame. In the same example above, if you invested a dollar and the dollar earns .25 cents every year for four years, your return on investment at the end of the four years would be 100%. You have doubled your money. The yearly return on investment would still be 25% per year. Venture capital return on investment should range at least 20% annually.learn more details on this website.

The goal of every venture capital deal is to equal the first one in the industries infant days. General George Doriot invested $70,000 in Digital Equipment Corporation. This is considered an early example of venture capital for two reasons. The first is that the good general did not invent a digital equipment widget, he merely provided the funding, and secondly digital equipment was a new technology about ready to break on the scene. It was a forerunner of the incredible digital, electronic, …

Successful Crowdfunding: 5 Tips to Make Your Campaign Standout
06 Mar

Successful Crowdfunding: 5 Tips to Make Your Campaign Standout

Unfortunately thousands of crowdfunding campaigns fail. This can often put a number of people off from looking into crowdfunding however it still can work for you. Yes, it is always a bit tricky but when you know a few things to make the crowdfunding campaign standout it can be profitable for you also. The following are five tips you may want to consider when trying to take your campaign to the next level and to make it standout from the crowd.

Network Wisely

One of the very best ways to help make your real estate funding campaign stand out, is to look at established investors. Now, there are thousands of people who run successful campaigns throughout the year and they can often contribute to smaller projects as well as direct others to you. These are influential people and they are great for your campaign. When you get the backing of a well-known investor or an influential figure you can often make your campaign standout.

Talk To Those Who Show Interest

While you may have dozens of investors or potential crowdfunding donators you should still make time to connect with them. Talking to people who like your ideas or who show great interest in your project can be a great idea. You are not only able to open up to them about your ideas and let them know more of your plans but potentially help bring in more people too. If …

Understanding Venture Capital Pools
21 Feb

Understanding Venture Capital Pools

A Venture Capital pool is the total pooled money that the investors bring in to finance various companies or projects of their choice. This money is put to use in various industries and it facilitates development. These pools have plenty of risks with which they operate and that is because they venture into territories with uncertain outcomes in anticipation of a huge profit this explains why they may be interested in getting involved with the decision making and ownership of the company in exchange for the capital.

If you consider yourself a budding entrepreneur and are considering VC as an option for juicing in funds for your business it would be wise enough for you to keep in mind that a large portion of your business will have to be handed over to the VC. It is not only elusive due to the fact that very few business ideas can make it up so high that they can receive funding but it also becomes very clear, to whomsoever concerned that your business plan is very bright and will definitely succeed.see some advice at this website source.

The whole game here is to find the right balance between the extent to which capital is infused in and how big a stake of ownership you are willing to give away in exchange. The VCs at a time expect a humungous return of over 30% to 50%, which explains why they …

An Alternative to Venture Capital Funding – Give Control to the Company
21 Feb

An Alternative to Venture Capital Funding – Give Control to the Company

If you have a business idea and you want make it a reality you are sure to need money to do that. A Venture funding may seem like a favorable option to you and you decide to go for it. Let’s assume that you are super lucky or that your idea just stands out and you get to be among the 0.5% of the people out of 300,000 ideas that a VC firm scrutinizes and they agree to fund your project but, the question you need to ask yourself is this, would you agree to give up the crucial control of your company in exchange for the capital they bring in?continue learning about venture capital at

Here when the pressing issue is about the transfer of control a Reverse Merger could prove to be a wise decision. The way Reverse merger works is pretty straight forward. When a private company is looking for ways to go public it can either go by way of a traditional Initial Public Offering (IPO) or it can go ahead and take over a public company which will save them from a lot of activities rather requiring energy, time and money. A very common way to do this is to take over a Shell Corporation or a Public shell or a Dormant Shell. A dormant Shell is an organization which is often created before the actual startup of a company and it has the …

Raising Money – Venture Capital vs Angel Investment
21 Feb

Raising Money – Venture Capital vs Angel Investment

When I was in my college days studying management education, I used to think that Angel Investors and Venture Capitalists are two different bit of jargon thrown at you at different times to mean the same thing. Now that I am a management graduate, I understand that I was naïve to think that as there are certain fundamental differences which I am about to explain in the passage below.

I am going to break it down to you with the help of the following 2 simple examples:

Angels Investment

Let’s say that your rich friend agrees to loan you an amount to help you get yourself a business up and running and you promise them that you will not only return them the amount back but you will pay them something more as a reward of their trust over you. If it fails then your friend loses money just as you lose your business. That the concept here.

1. Individual high net worth investors with personal net worth more than $ 1 million

2. They will generally put in their money when the idea has been converted to at least prototype or is in a beta phase

3. They generally agree to finance anywhere between $25,000 to $100,000

4. The due diligence done by angel investors can range from a basic background check to thorough research

5. They have higher risk as compared to VCs as there is a higher …