How do you find investors for a business? What do you need to do so (ie - busine

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   kelfr30posted 15 years ago

   How do you find investors for a business? What do you need to do so (ie - business plan...)

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   Paul Edmondsonposted 15 years ago

   It depends on the type of business and the stage.  Early stage technology companies have a few options when it comes to investors - ie people that own some of your company, but you don't pay back like a debt holder.
   
   Angel investors are wealthy individuals.  Search for Angel investors on google and you'll find well known angel groups like Band of Angels.  These groups have processes to submit your business plan.  They are pretty clear on what they want to see.
   
   There are also Venture Capitalist.  You can meet them by hiring a well connected law firm.  We used Orrick and they were very helpful with introductions.  Surprisingly, it also works well to find a venture capital firm online and send them an email.  The response rate is very high.  To raise money from a venture capital firm, I'd have three things.  First, a slideshow of your business that includes the problem your addressing, the solution you're offering, the market opportunity, competition, your team.  If you check out the sequoia capital website, they have a nice outline.  Second, write up a marketing plan.  I was never asked for a business plan, but I did get asked for a marketing plan a few times.  Third, create a detailed financial model.  Every serious investor wanted to review this with me.

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3. 61

   ShortSalesMVPposted 15 years ago

   1st you need a business plan or a marketing plan, you should check  www.gobignetwork.com, where you can find different Angel investors, but this is a tiring process at first.
   
   
   The second thing will be to try and get an unsecured line of credit, but I am not sure if this would be the best option in this market.  but best of luck.
   
   www.WinderAlexandre.com
   
   www.Massequityrealty.com

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   I'm my own Bossposted 15 years ago

   You would first need to determine the stage in which your business is in, as Paul Edmondson mentioned in his answer.  This is wise counsel.  Most investment groups focus on certain sectors and stages for capital infusion.
   
   To answer your first question, the way to find investors is to start with you immediate network and work out.  The ones closest to you are the most likely to invest in you.  Most investors invest in the Jockey, not the Horse.  So you are a key factor in most people's decision to invest.
   
   A general rule to follow in answer to your second question is, the less sophisticated the investors are, the less you have to prepare. The more sophisticated the investment group is, the more you should prepare to justify your valuation.
   
   It always good to prepare for any investment pitch but understanding this general concept will help you maximize your time.
   
   I just wrote a Hub about raising money...
   
   http://hubpages.com/hub/Raising-money-f … r-Business

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   lindagoffiganposted 15 years ago

   GoBigOrGoHome.com is a venture capital website that has investors looking for small business startups.

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