investor – Page 2 – Business Plan Template

Angel Investors vs. Venture Capitalists

What’s the difference between a venture capitalist and an angel investor? Quite a few, as it happens, but for your purposes as an entrepreneur in search of financing for your business, there are four important differences which you need to be aware of.

1) Management/Advisory Participation

Venture capitalists almost invariably take a hands-on approach to their investments and their funding comes with conditions. They’ll usually want one or more seats on your Board of Directors to make sure that their …

Attracting Funding from Angel Investors

Placing yourself in the shoes of a potential investor can be a useful strategy when you’re seeking funding from angel investors. For example, which factors would convince you to provide equity funding to a startup if you were an angel investor yourself?

As a general rule, the two main factors are the company’s market and the expertise of its management team. Angel investors will need to be assured that the market for your company’s service or product is substantial enough …

How Are Angel Investors Different than Venture Capitalists?

These two types of investors are different in several ways, but four differences between angel investors and venture capitalists are particularly meaningful for entrepreneurs.

Degree of Participation in Management or in an Advisory Capacity
Almost every venture capitalist that invests in a startup company will insist on making funding contingent on holding at least one seat on the company’s Board of Directors. The Board is ultimately responsible for the company’s overall operation and utilization of investor funds. Typically, a company’s …

Games company raised over $150,000 in less than a day!

In an attempt to revive the famous eighties game ‘Larry Quest’ or ‘Leisure Suit Larry’ an Israeli game company called Adventure Mob managed to raise more than $150,000 in a single day and are now aiming to raise at least $500,000 in just a month. In order to do this they went about gathering the money in a different way than you may be used to. After trying without much success to raise funding from venture capitalist, angel investors and …

The Top Four Reasons Angel Investors Invest

Angel investing, or any other type of investing early in the life of a business, can be quite risky. Often, angel investors don’t receive a return on their investment. Why would an angel investor take that chance? Here are four reasons why:

Excellent Return on Investments
The downside of angel investing, as with options (though options are quite different), is limited to the amount of money initially invested. The upside, though, is an unlimited return on the investor’s funds if …