Many people who are looking for
startup capital for their new business do not want
to utilize outside angel investors to raise the money. For the most part this is
because they do not want to be tied to another individual when it comes to the profits
and business decisions. But for some people trying to get startup capital going
there are times where an angel investor is the only option that is available. It
is important if you starting a new business that you are aware of this option and
how they can help you. Angel investors usually are successful entrepreneurs who
are able to offer a great deal of
startup capital in return for an expected large
profit and dividends when the company starts to make money.
The advantage of obtaining
startup capital for your company from angel investors
rather than a lender is they will not expect any financial returns until your business
is turning a profit. Also, as business owners themselves, they can be a valuable
source of advice to guide you with your company. Investors will no doubt have a
level of influence and decision-making power in your company, though.
Most will want to be kept informed of what is going on as they will want to protect
and develop their investment so you will have a responsibility to them. Also, when
you start to turn a profit, it will be divided among everyone who has invested.
Finally, you’ll need to put forward a very good business case to attract an investor
since these are very wise, shrewd and experienced entrepreneurs. Angel investors
are certainly a viable option to raising startup capital for your new business.
It is up to you to see if you are comfortable with the setup before going ahead