Types of Investors For Small Businesses
There are various types of investors for small businesses they include the following:
- They provide private financing to projects this might be risky but there would be profit in the long run.
- It is quite difficult to access angel investors due to their reputations,arranging a meeting can be challenging .
- They are willing to risk more than venture capital investors but will also demand a greater return on the investment.
Venture Capital Investors
- These investors can be contacted in person or online. Venture capital investors invest money from third parties, therefore, making a profit is the focus.
- There are successful entrepreneurs who invest in projects in many colleges. You can look for venture capital investors with entrepreneurship programs in colleges.
- You can ask for referrals from companies who has existing relationships with venture investors already.
Family and friends
- This can seem as an easy option but it can hinge on your relationship If things don’t work out. All parties involved must know the risk they are taking before getting involved .
- I would advise you make this your last option, unless your family and friends wouldn’t mind putting their resources at risk.
- Allows access to funds made by the contributions of lots of small investors.
- Crowdfunding platforms are easily accessible and very easy to use.
- You must be doing well in your sector or actively involved in social media to get access to funds.
Incubators and Accelerators
- An incubator is an organization in search of startups with great potential and capacity for growth..
- Accelerators can quicken up the pace of projects, seeking short-term profit.
- This can be a good alternative, if you are in the technology sector..