angel investor – Page 3 – Business Plan Template

How to Evaluate Equity Financing Sources

In past articles, we discussed the things that entrepreneurs must do in order to impress angel investors and venture capitalists in order get secure equity financing. We have discussed business plans and presentations in this line.

But did you know that you must also evaluate the sources of equity financing in the same way that you are being evaluated by them? This is, after all, a two-way street where you are being given the funds to start your business while …

Why Are Angel Investors the Preferred Sources for Equity Financing?

In the past, venture capitalists ruled the industry of equity financing for many reasons. These organizations provide for large sums of money in the millions to companies that require additional funding either for start-up operations or for expansion plans.And then along came the angel investors.

They changed the face of the financing in more ways for many reasons that will be discussed later. The term was taken from the theater world when investors who were willing to finance theatrical productions …

How to Find Your Own Angel Investor

Angel investors are not exactly the soft-hearted angels of yore who will grant your wishes with the swish of their wands. Or was it the fairy godmothers? Anyways, you will want to find your own angel investors who will pour their money into your business with the expectation of actually making a profit within the medium-term period of 5 years at least.

You must approach angel investors instead of the other way around for obvious reasons.

But where will you …

Finding Angel Investors

You will not magically be flooded with angel investors by simply joining an online funding community; these are sites that match entrepreneurs with potential investors. Truthfully, getting an angel investor in this manner is rare. You may be wondering why? The majority of angel investors will choose to invest close to home as opposed to a faraway city; they have a better grasp of local markets and can keep a closer eye on their money. A few may still require …