| |
| |
|
Investing Information |
|
|
|
Angels Investors and Their Networks
What is an Angel Investor? Angels are mainly successful entrepreneurs who may have retired. Angels can also be made up of friends and relatives who simply want to invest in a business where family are involved and where there is potential for good gain in due course. They are obviously wealthy and have sufficient extra capital to invest in a growing business in return for a share of ownership of that business. They supply funds at various stages of the growth process of the business and are more involved in the start-up phase, rather than in the other phases later on. Angels also have a lot of experience in running businesses, so they can assess an investment opportunity and will invest if they feel that the risk is small. They usually like to invest in businesses that are located within a reasonable distance from their home and their reasons are varied, including not only economic, but also personal. What do Angel Investors look for? Angels can bring their own experience, as well as their business contacts which are all important factors in the success or otherwise of the venture. Those who do not want to take an active day-to-day role in the business can take on a management type involvement by serving as a consultant or as a member of the board of directors. Because of the amount of money Angel investors usually put at risk in a business investment, they are a lot easier to secure than going for the larger funding from the likes of venture capitalists. Typically an Angel would invest anywhere from between $10,000 to $500,000, especially in the start-up phase of the business development. What is an Angel Network? These Angel networks vary in size and in makeup and can include other businesses, business development groups, government agencies, and even academic bodies and institutions. They are all usually non-profit groups whose sole reward is to see successful businesses brought about because of a partnership with Angel investors. The Advantages of Business Angel Finance If your business is new, too risky or unproven to qualify for the usual methods of generating business funding, and if it is too small or with insufficient substance or potential to get the attention of venture capitalists, then you may need to look for an Angel for finance. Many businesses have grown and become large successful corporations because at the early stages an Angel or a few business Angels banded together to provide the capital necessary and the start-up at the early stage of the business. The biggest advantage of business Angel finance is that they do not require security. This means that they are suited especially to those business that have little in the way of assets, but whose main asset amounts ideas or inventions, or copyrights they possess. Their main asset may simply be intellectual capital only. Angels do not require security because they purchase a share of the business by taking in equity or shares in the company. Another advantage of business Angels is that they are much easier to secure than venture capital or bank finance. The reason is because an Angel can be anyone that they entrepreneur comes across, whether a relative or an associate, or simply a professional investor who is involved in small business financing. One of the biggest advantages an Angel brings to a business is their valuable experience and skill, which can be just as advantageous to the business as capital. There is little gain in your business if you borrow $˝ million from an Angel investor, only to see it frittered away and lost because you did not have the management skills or the experience to capitalise that investment capital.
StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.
MORE RESOURCES:
Investing - Google News |
|
|
|
RELATED ARTICLES
A Gadfly On A Dinosaurs Butt, Or The Hood-winking Of The American Investor Have you ever noticed how some words in the English language are so perfectly named for what they describe? And how some words seem to be, I guess you could say, backwards? For instance, the word sunflower! How wonderfully aptly named is the sunflower, that beautiful yellow flower that follows the sun from sunrise to sunset.And then there are those words in the English language where there meaning appears to be backward, so to speak - like parkway and driveway. Eight Questions to Ask Your Financial Advisor You may like your financial advisor, but is he really looking out for you? All advisors are not created equal, and you have a right to know what makes them different! You also have a right to ask yours if he compares!(1) Do you use a holistic approach to financial planning by determining my values and goals?(2) Do you work on a fee-only basis, a commission basis, or both, and why?(3) Do you have company-established insurance requirements, or do you recommend insurance only when it is needed by your clients?(4) Do you attempt to 'beat' the market through timing and selection, or do you believe that attempts to do so are not worth the additional level of fees and risk? Are you aware that a vast majority of my returns will be based on asset allocation, rather than timing and selection?(5) Are you a Registered Investment Advisor, and therefore a fiduciary? In other words, must you legally and ethically put my interests above your own?(6) Do you meet with your clients at least three times a year to refine their portfolio and find out how events in their lives may have changed their financial goals?(7) Do you return phone calls the same day you receive them, and are you available to answer questions as they arise?(8) When you wake up each morning, do you ask yourself how you can best be of help to your clients that day?Adjust these questions as you see fit, and depending upon what your own objectives and needs are from an advisor. The best advice is to never be afraid to ask!© 2004 Matthew S. Quit and Retire Three Years Earlier! For most people, there is a direct correlation between how worried they are about retirement income, and how much they can actually do about it. This is because the more worried you are, the closer you probably are to retirement, and the less time you have to do anything - like save up. Rules of Simple IRA Your Business Needs to Know A Savings Incentive Match Plan for Employees plan, better known as a SIMPLE plan, is an IRA-based retirement plan available to employers with fewer than 100 employees.Under a SIMPLE IRA plan, an employee can contribute a portion of his pay to his SIMPLE IRA account. Stock Market Retirement Investment Plan For a successful retirement investment plan to work in the stock market, some 'reasonably sure' assumptions would have to be made:The retirement investment plan must take into consideration the one prevailing constant in any stock market security - risk and uncertainty. Understanding that risk and uncertainty are the key factors that propels the return on investment in the stock market far beyond the returns of Passbook Savings Accounts, CD's or Bonds are a start. Basic Options Terms Options are good investing and speculative instruments. But options terminology may confuse even experienced investors. Franchise Opportunity Sellers Beware; franchise buyers lie on forms? It seems completely absurd that franchise buyers lie about their financial position, available cash and abilities in order to buy a franchise. After spending 8 years setting up franchises around the nation and fielding inquiries I am appalled at the lack of integrity of the average business buyer. Understanding The Real Rate of Return! There is one indicator more than any other which determines the health of an economy and it is the Real Rate of Return. Furthermore this is the simplest of all indicators to understand because it determines the safety of assets. Choosing A Financial Advisor With so many financial advisors trying to woo you with their qualifications and experience, how do find one you can trust your finances with? 'Trust' is the keyword here, as you will depend on him/her for your future financial security. A good financial advisor can help you determine which investments are best suited for you, based on your financial goals. Investors: Avoid These 5 Common Tax Mistakes For many investors, and even some tax professionals, sorting through the complex IRS rules on investment taxes can be a nightmare. Pitfalls abound, and the penalties for even simple mistakes can be severe. Investing: Do You Want To Make Money, Or Would You Rather Fool Around? It always amazes me how much stock market investors resemble horse track bettors. Some are very conservative, willing to trade low returns for relative safety. Numismatics are for Collectors, Not Investors As a precious metals investor, you may heard much about numismatic and "semi-numismatic" coins, particularly the St. Gaudens $20 double eagle gold coin. How to Invest Your Money Think carefully on how to invest your money because if you make wrong decisions it could cost you dearly. There are many ways in which to invest your money and as such seeking the advice of a professional would be a very wise move. Investing As A Sport? I said last week that money doesn't generally buy happiness, but the lack of it can buy absolute misery. This, by the way, is not just my personal observation. Delist My Corporation Please It use to be said that once a company was de-listed from the NASDAQ it was the kiss of death, not so any more. With Sarbanes Oxley and all the insane reporting requirements it might save your company from incessant lawsuits from investors and the government regulators who are out to destroy free enterprise. July 2005: Hurricane Forecasts for Weather Traders Tropical Storm Arlene formed as a tropical depression on June 8, 2005 near 83 West Longitude and 17 North Latitude. Although Dr. Mutual Fund Selection Made Simple By Indexing! Non-indexed mutual funds try to keep it secret that actively managed mutual very funds rarely do better stock market indexes. The higher fees of the managed funds really make it hard for these funds to out compete indexed funds. Asset Allocation Lessons: The 70% Inflation Solution For investors only.. Day Trading the SP Futures with Initial S/R and the NYSE TICK For instance, if the market moves up in the first 20 minutes of trading, touches the initial resistance zone, and then turns down, this implies that a good tradable downtrend move is likely to develop.How strong that new trend becomes is market-dependent. College Savings Plans - Are They The Best Choice For My Child? College Savings Plans - are they the best choice for my child?College Savings Plans, also called Section 529 plans, are one of the best ways to save for college because they offer:- Tax advantages- A variety of investment options- Flexible contribution options- Parental control- Little impact on eligibility for need-based financial aidTax advantagesInvestments in 529 plans are usually exempt from federal taxes. Earnings are tax-deferred and are not subject to capital gains taxes.
|
| home | site map |
| © 2006 |
