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.
First of all, they say entrepreneurs have to understand the difference between venture capital investors and angel investors. Angel investors are individuals or firms that fund new businesses in the form of loans or equity in the company. Friends and family often become angels for entrepreneurs. Rapidly growing businesses in need of additional funds to expand often approach investors willing to on take high risk projects, usually in exchange for a certain percentage of equity in the company.
These are not easy business deals to make. Your business has to be growing at a high rate, and you will have to prove why that trend will continue. You will have to do extensive research to find an investor who meets your needs and vice versa. You want an investment firm with ties to your field and that has a history of investing the kind of money you need.
Not matter where you go on the internet, you will find questionable companies offering quick solutions to difficult problems. You might come across one that offers proven leads with private emails and phone numbers. They may be selling databases guaranteed to get you in the door of a leading investment firm. As always, if it seems too good to be true, it certainly is.
Trying to create your own shortcuts won't be successful either. Mass emailing investors is a waste of time. They see these kinds of tactics all the time and aren't fooled by them. You never know when someone you contacted this way might have been interested in your business plan if your approach had been smarter. Instead you need to narrow the field of potential investors and go after them individually.
Once you have narrowed the field, you have to make a plan to approach them. Finding out as much as possible about them will help. You may know someone who is in the same alumni association for instance. You should contact anyone who worked closely with the investor on a similar project. You could even attend an event where the investor is speaking and try to introduce yourself once the event is concluded.
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.
Great businesses, that start fast and grow quickly, fall by the wayside every day because the entrepreneur didn't get expansion plans in front of the right investors at the right time. It is not enough to have big ideas, you have to know how to turn them into reality.
First of all, they say entrepreneurs have to understand the difference between venture capital investors and angel investors. Angel investors are individuals or firms that fund new businesses in the form of loans or equity in the company. Friends and family often become angels for entrepreneurs. Rapidly growing businesses in need of additional funds to expand often approach investors willing to on take high risk projects, usually in exchange for a certain percentage of equity in the company.
These are not easy business deals to make. Your business has to be growing at a high rate, and you will have to prove why that trend will continue. You will have to do extensive research to find an investor who meets your needs and vice versa. You want an investment firm with ties to your field and that has a history of investing the kind of money you need.
Not matter where you go on the internet, you will find questionable companies offering quick solutions to difficult problems. You might come across one that offers proven leads with private emails and phone numbers. They may be selling databases guaranteed to get you in the door of a leading investment firm. As always, if it seems too good to be true, it certainly is.
Trying to create your own shortcuts won't be successful either. Mass emailing investors is a waste of time. They see these kinds of tactics all the time and aren't fooled by them. You never know when someone you contacted this way might have been interested in your business plan if your approach had been smarter. Instead you need to narrow the field of potential investors and go after them individually.
Once you have narrowed the field, you have to make a plan to approach them. Finding out as much as possible about them will help. You may know someone who is in the same alumni association for instance. You should contact anyone who worked closely with the investor on a similar project. You could even attend an event where the investor is speaking and try to introduce yourself once the event is concluded.
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.
Great businesses, that start fast and grow quickly, fall by the wayside every day because the entrepreneur didn't get expansion plans in front of the right investors at the right time. It is not enough to have big ideas, you have to know how to turn them into reality.
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