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
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