A huge number of major companies in the world created with funding from private investors. They invest in various businesses and are among the richest and most respected people in the world. Such private investors called ‘business angels’ or’ informal investors. ” Usually they do not advertise their activities, so the market volume of private investment in the CIS countries, little is known. The essential difference between business angels from venture capital companies is that private investors are investing their own funds, while foreign companies manage their assets. The object of investing is risky projects in the initial stages development with high growth potential, which often do not have sufficient collateral.
The main criterion for funding is the confidence of business angels is that the entrepreneur is able to fulfill project. If you would like to know more about Southwest Airlines, then click here. Typically, the investor does not extract the profits immediately, and reinvests it in order to maximize the value of the company with the subsequent sale of its share. Benefits of cooperation with business angels Experience in business management, which often lacks the budding entrepreneurs. Good communication in business circles. Knowledge and experience of investors play an important role in the overall success of the business and are even more weight than the funding that they provide. Ability and willingness to take risks. While bankers prefer to lend to existing and successful business, get financing for the implementation of new ideas extremely difficult. Using the venture capital investment vehicle, business angels provide funding for the long term without collateral or guarantee.
Ultimately, the entrepreneur receives the necessary funds for project implementation and business angel – a stake in the project. less formal and bureaucratic approach to the investment process. Financial decisions are made more flexible. Ability provide additional loan guarantees. If your business need arises attract additional funds from outside, business angels can provide additional credit guarantees for the bank, which in the absence of alternative collateral, also play a crucial role in the decision on granting a bank loan. To attract investors to your project requires: Quality business plan, containing a summary of the project. Its easy you can prepare with a software product Plan Business Intelligent. Information about potential investors, links to which also contains a program Plan Business Intelligent Determination and willingness to prove their ability to implement the project with the provision of high financial returns for investors. Post-Soviet space, as well as throughout the world, there are associations of business angels in the form unions and associations. This reduces the risks of investing, as well as attract more projects that need funding. There are regular presentations, which entrepreneurs are given the opportunity to present their projects and negotiate funding. If you have a decent idea for a business, attract business angel is not too difficult!