RAISE FUND FOR YOUR START UP BUSINESS

   

HOW START UP CAN EASILY

 RAISE FUND

FOR THEIR BUSINESSES

Episode 3- Different Types of Private Investors

The last two episodes introduced private investors. In this episode i will give detailed information on different types of private investors. Just spare some few minutes with in depth  attention.

Before you start your hunt for a private investor, you must be aware of the different types of private investors that you may come across. So, without further ado, here are the different types of private investors that may be willing to invest in your startup:

1. Friends and family:

Startups and small businesses often turn to friends and family as their first private investors. They are a great source of investment because friends and family already have the trust and confidence in you that are required to take the risk of investing in a startup. Friends and family can either lend money to your new business or make an equity investment.

When it comes to money, don't take the investors lightly just because they are your family and friends. Remember that your investors will only get paid back if the business makes money. Give them a good pitch, show them your business plan, and make sure they understand the risks of investing their money, even if they trust you completely, in order to avoid ruining your relationships.

2. Angel Investors

These are wealthy individual investors who put their own money into new businesses when they are at the startup phase. Angel investors sometimes put their money by joining forces with other angel investors. This is called an angel group, and it can bring a more significant amount of money to a startup.

Angel investors should be "accredited investors". Accredited investors have a net worth of at least $1 million. In addition, they earn $200,000 a year or $300,000 a year with their spouse. Along with money, they also offer mentoring or advice that makes them more valuable for your business.

\3. Private Equity Investors

Private equity is money that is put in by private individuals and private equity firms. In exchange for their money, private equity investors get a piece of the business or a loan note. The goal of a private equity investor is to make money by selling their share of the business after a few years.
While you can get private equity from individuals, this type of investment usually comes from private equity firms, which are investment companies that take money from individual investors and pool it to invest it in companies that have already shown great promise.

4. Private Investors Versus Venture Capitalists

Venture capitalists are professional investors. Venture capital firms have people who put money into the venture capital firm, and the firm has to give them big returns for their money. Because of this, what they look for in an investment may be different from what other investors look for.

They assess businesses and invest in them the same way people invest in stocks, and they do everything they can to make sure their investment brings a return. VC firms put more money into growing a business in exchange for a share of it than you’d expect from an angel or other individual.

Remember, pitch private investors such as DESNET through desnet920@gmail.com or facebook/desnetsesnet or facebook/desnetfunding for your business funding.

Typically venture capital firms invest more at the later stages of a startup than private individuals. There are some which specialize in early-stage startups. Though they are going to be more demanding of you. Typically, they will come in after you’ve raised a round or two from other individuals or sources. In the next episode, I  shall bring the exposure of How to Find a Private Investor for Your Startup

         

HOW START UP CAN EASILY RAISE FUND FOR THEIR BUSINESSES

 

In the last post, the introduction of  how start up entrepreneurs can quickly raise business fund was made. It opened up on quicker and more profitable funding window. Thus every entrepreneur should know what private investors are. Today I will expose what private investor are. Stay on.

What Are Private Investors?

A private investor is a person or business that gives money to help startups or businesses take off and grow. Private investors have several advantages over other funding methods for startups. Most of the time, private lenders focus on one type of business and industry, so you can find an investor that invests in startups similar to yours. 
They can help you in more ways than just giving you money. Investments can be made through equity or debt. Equity is when you trade money for ownership of your company. The investors will get their money back based on their stake in the company or the number of company shares they own.

Startups are risky businesses that are just getting started or are in their early stages. To grow their business, they need money, and they need it fast. Most of the money that these small companies need can come from private investors. It is usually hard for new small businesses to get money from big banks.
Even if you have a detailed plan when you go to the bank for a loan, it's likely you won't get any money because startups are a big risk for the bank. If a bank turns you down for a loan, don't worry you can still pitch private investors such as DESNET through desnet920@gmail.com or facebook/desnetsesnet for money. Private investors are individuals and companies that are not banks. Most of the time, they give money to new businesses in exchange for ownership of the business. They may also make loans or loans that can convert into equity later. In the next post, I shall bring the exposure of Different Types of Private Investors

RAISE FUND FOR YOUR BUSINESS

 

HOW START UP CAN EASILY

 RAISE FUND

FOR THEIR BUSINESSES

Private Investors

Every entrepreneur should know what private investors are and how to find them. Finding an investment as a startup founder with little to no past experience in securing funding can be scary. Lenders such as banks do provide lives of credit and small business loans, however, they may not be keen to invest in a startup with no track record or proven revenues.

Here,  we help from A to Z with everything related with fundraising, luckily the amount of initial investment a startup needs to get off the ground and launch can come from private investors that aren’t associated with banks or other large institutions. With that said, you aren’t the only startup that will be actively looking for these private investors. Private investors are the preferred type of investors for most startups because private investors are willing to take more risks with new companies. They may be more flexible on their criteria for lending or investing as well.  

If you are trying to get investment from private investors you will have to find them first. Not to mention you need to know what a private investor is and their types to make sure you find the right one for your startup.
In this article, I will explain everything you should know about private investors and how you can find them, so read on.  In the next edition you  shall get the exposure of What Are Private Investors