If you are looking to start a business, but have run into trouble with the financial aspect of things due to lack of funds, then cash angel investors are what you’re looking for. Cash angel investors are people who will invest their private money into your business and help it flourish. They also offer the least risk funding option. This is because they don’t expect as high a return on their investment as Venture Capital firms, nor do they expect returns very soon.
This may be because many cash investors from Angel have had previous entrepreneurial experience in the past and have set up successful companies of their own. Having been there and done that, they do have sympathy for the struggling entrepreneur. They also aid the company in ways other than just by providing cash; they give you suitable experienced assistance that serves to set up your company’s management.
While looking for investors for your business, it is important to keep in mind that you should find an angel investor whose ideologies matches with yours. Match your startup business to an angel investor whose goals are similar to yours. Try and have a symbiotic relationship. For example, if you want to set up a shoe factory, you can merge your company with someone who has an established leather business.
Now comes the all-important question. How much should you ask an angel investor for? Now it is but natural for anyone parting with their money to want to know exactly how you intend to use their funds. Here is a brief guide, depending on what stage your company is in:
Seed Stage: When you’re at this initial phase of setting up your company, you can ask for a sum which is near about a hundred thousand dollars. In return, you can offer equity, ranging from ten to thirty percent to your angel investor. It’s not such a great idea to get funding at this stage, because it is such a high risk stage, but sometimes you just can’t help it!
Young Business: When you’ve managed to prove that your idea is a pretty good one and has loads of potential, you can ask for about three fifty thousand dollars. The equity you offer will be about thirty five percent, not more!
A Mature business: When you’ve been there and done that you can ask for a whole lot more money. You can ask for about a million dollars, but do be careful because cash angel investors tend to ask for a whopping amount of equity at this stage – near about sixty five percent. Can’t blame them, they’re shoveling in a lot of cash. They might even end up controlling the show!
Now we all know that pretty much every sort of funding has their advantages and disadvantages, so before you jump to any conclusions and make any hasty decisions, do think it through. Try and avoid getting funding if you can, but otherwise cash angel investors are a pretty safe bet.
Do you need financial assistance in your startup business? Cash Angel Investors is there for you to make your business successful. Visit http://www.ventureworthy.com/Cash-Angel-Investors.asp
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