Do you have an idea for one million dollars? Very well, only the idea and will remain the idea until somebody undertakes to realize it. So without the aid of the angel investor here not to manage in any way.
Angel investors - what beings are and where they fly?
Angel investors call informal private investors for business, ready to make personal investments in fresh and even risky enterprise campaigns. As a rule, they do not demand, unlike banks, providing any pledge. Similar investors got a nickname business angels (business angel) as except them nobody usually invests own money in risky projects, saving that the beginning businessmen and their projects which are in financial hardship.
Drawing an analogy to fans of bookmaker rates, one may say, that all players are divided into those who prefer not to risk and put on the favourite - their majority, and on those who, following the intuition, do the only rate on the dark horse. Put on the favourite, in case of a predictable victory of the last, divide revenue among themselves. And that only person who believed in the player famous to nobody in case of his victory breaks the bank together with the winner. And the private investor in business is a person who puts money for the little-known businessman, acting as the intuition prompts to it. He risks everything, but the risk, in some cases, comes true considerable gain of the capital. As an example of successful projects of investors for business are registered as Google, Amazon.com and Apple. At an exit from these projects, initial investments of investors increased more, than by 1000 times.
It is possible to find the investor for business, as a rule, on special events where angel investors from around the world gather and flown. The similar congresses are carried out also in the CIS countries. Besides, investors quite often look for business projects which could interest them, and quite often look on portals of investors and businessmen on the Internet. And if you manage to convince the unfamiliar businessman to provide in your order the large sum, then on it search of investors for business can happily end and begin real work on the project.
Why search of private investors is more favorable than the appeal to investment funds to business?
First, because work with the angel investor assumes the minimum level of bureaucracy and paperwork, than in a case with investment funds. Secondly, the investors allocating funds for business development take active part in project management which they finance. Money is one from main, but not the only contribution of angel investors to the project. They introduce own experience and management skills and also invaluable business contacts in business. Projects lack it, as a rule, at initial stages.
How do private investors for business choose projects with which they will work?
Certainly, really cool, top angel investors of unit, and persons interested to get for the project financial feed and experience of the knowing person - thousands and thousands. Therefore when the investor looks for business projects, he considers the arriving offers on the following parameters:
- Identity of the businessman. Very often this point becomes key at adoption by the angel investor of the decision on investments. Affirmative answer can be based on confidence of the investor that the businessman is capable to finish the project
- Potential of growth of this segment of the market.
- Competitive advantages of goods.
Before signing the contract with the investor, in turn do not forget to take an interest in his experience including in your branch sector and also to talk over with representatives of the companies which worked with the investor earlier. Learn from a baznes-angel about the size of income which he expects to receive from your project and also about opportunities of further financing of your business.