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In the modern business world, it is becoming an ever more popular means of generating capital to seek out private equity investment. While this is, in general, proving more popular and accessible than getting a bank loan, there are still several methods to secure investment.
We looked at the various ways you can secure business investment and how they could prove beneficial to you and your company moving forward.
Private Equity Funds
The most common method of seeking out business investment is to go to a private equity fund. Securing investment in this manner can be reasonably straightforward, providing you target a fund that deals in your sector and you are able to meet all of the necessary requirements for landing a capital injection.
When sourcing a private equity fund with business investment in mind, you should already have completed a business plan and know the sort of investment proposition your company is likely to be. Heading off to meet a company that seeks out low risk, low return investments when your business plan is centred around a high risk strategy with the potential for high returns is a waste of everybody’s time, and could even hinder your ability to secure future investment if the experience knocks your confidence.
Understand that private equity funds are usually fairly rigid in their investment strategies, so unless you have plans that give you a chance of becoming bigger than Google they are unlikely to change them.
Angel Investors
Angel investment differentiates from private equity funds in that you tend to be dealing with one, wealthy investor. An angel investor is usually a retired or semi-retired individual who is looking to invest in new business ideas and entrepreneurs. If you are finding difficulty in securing investment from a private equity fund due to high risk, angel investors are known for looking for increased risk, high return opportunities, so it is definitely an avenue worth exploring.
Should you plan on seeking out angel investment, you are best suited targeting an individual with experience in your field, who may be able to offer additional time and expertise in addition to a large financial commitment.
Business to Business Investment
If you feel you have a product that could eventually be of a great use to certain businesses or industries, you could always pitch to one of these for investment into your company. While you may have to agree to an exclusive licence of a product going forward, for example, this will take away a lot of the risk involved and enable you to develop your business with the help of a major player in your selected industry.
Due to the competitive business world, this form of investment is not sought out as often as it could be, which is surprising given the potential for lucrative deals and long-term commercial partnerships.
We looked at the various ways you can secure business investment and how they could prove beneficial to you and your company moving forward.
Private Equity Funds
The most common method of seeking out business investment is to go to a private equity fund. Securing investment in this manner can be reasonably straightforward, providing you target a fund that deals in your sector and you are able to meet all of the necessary requirements for landing a capital injection.
When sourcing a private equity fund with business investment in mind, you should already have completed a business plan and know the sort of investment proposition your company is likely to be. Heading off to meet a company that seeks out low risk, low return investments when your business plan is centred around a high risk strategy with the potential for high returns is a waste of everybody’s time, and could even hinder your ability to secure future investment if the experience knocks your confidence.
Understand that private equity funds are usually fairly rigid in their investment strategies, so unless you have plans that give you a chance of becoming bigger than Google they are unlikely to change them.
Angel Investors
Angel investment differentiates from private equity funds in that you tend to be dealing with one, wealthy investor. An angel investor is usually a retired or semi-retired individual who is looking to invest in new business ideas and entrepreneurs. If you are finding difficulty in securing investment from a private equity fund due to high risk, angel investors are known for looking for increased risk, high return opportunities, so it is definitely an avenue worth exploring.
Should you plan on seeking out angel investment, you are best suited targeting an individual with experience in your field, who may be able to offer additional time and expertise in addition to a large financial commitment.
Business to Business Investment
If you feel you have a product that could eventually be of a great use to certain businesses or industries, you could always pitch to one of these for investment into your company. While you may have to agree to an exclusive licence of a product going forward, for example, this will take away a lot of the risk involved and enable you to develop your business with the help of a major player in your selected industry.
Due to the competitive business world, this form of investment is not sought out as often as it could be, which is surprising given the potential for lucrative deals and long-term commercial partnerships.
Posted in: Finance
2 comments:
I always find Angel Investors as the first option I can do seeking for investments. I think I'm more knowledgeable on this than the other option.
Open an account in www.associare.com and you'll find a wealth of business plans. You can invest in new business ideas that are really well thought out.
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