The advent of technology has truly transformed our planet into a seamless world, blended effortlessly into one. Performing profitable business transactions have therefore become simpler and easier. Communications and collaborations have led to various community building exercises like formation of investment forums and networks. It is the accessibility of information that has made all the difference. Primarily, the internet has been responsible in playing a major role in setting up and upgrading this interactive communication network. Whether it’s a platform for fund seekers or a forum for investment, they have been superbly beneficial for all.
One such platform is the angel investment network which is an investment forum and a platform for fund seeking entrepreneurs blended into one. Therefore it can be more aptly described as a confluence of entrepreneurs and investors who are here to access the advantages of a diversified investment forum. Angel investment networks are steadily gaining popularity in countries like the United Kingdom for providing wider and quicker accessibility to investors and find raisers.
The term “Business Investor” refers to the investors who provide the necessary funds for starting up, developing or expanding a business. They provide for the much needed capital inflow, without which the profits of any business would dwindle. The relationship between an entrepreneur and a business investor is that of mutual benefit.
On one hand the entrepreneur can manage his business processes successfully with ample funds at his disposal, at the same time the business investor reaps the monetary profits and enjoys tax benefits as well. The sum of capital required will naturally depend on the type of business. For example, if it’s a huge construction business, requirement of funds would be substantial whereas a start-up could do with a relatively smaller amount. Mostly, these small business ventures thrive on powerful ideas but their performance dwindles due to lack of funds. Injection of funds can help them flourish to their ultimate potential.
provides them with opportunities of providing business funding to small enterprises, which can prove extremely lucrative. Mostly, these small business ventures thrive on powerful ideas but their performance dwindles due to lack of funds. Injection of funds can help them flourish to their ultimate potential.
Angel investors normally select ventures from investment forums which allow them to invest their knowledge and skills along with the capital. They look for suitable options from investment forums which would allow them greater involvement in the business processes. They want to be accountable for the success of these businesses in more ways than one. Angel investors generally opt for informal businesses from investment forums. They prefer small ventures in their vicinity to well established business houses. They generally choose businesses from investment forums which are easy to manage and monitor. Sometimes, they even go to the extent of providing personal guarantee along with funds, which helps in enhancing the capital volumes of these businesses considerably.
For the angel investor there are other options like registering with the “London Business Angels” through their networks. These can provide access to diversified investment forums which feature everything from inventions and newer start-ups to speculative R&D based enterprises.
The other half of business investors comprise of venture capitalists and the way they look at investment forums is slightly different from the angel investors. They make a
Some investors look for options from investment forums which provide a stake in the invested firm apart from a share of profits.
Some investors also look at specific investment opportunities which allow a role in major decision making processes of the company. Some even ask for a first refusal option at the time of refinancing. It’s important to consult your investor at length before signing on the dotted line. Proper communication and sharing of crucial and relevant information is essential, for a clear understanding of terms and conditions.
Angel investment networks not only provide a wide range of exposure to investors and entrepreneurs alike, they also provide expert advice and counselling which would help you make the right choice from the available options of the investment forum. You need to utilize the facilities provided to the fullest in order to strike a profitable deal, which would be equally beneficial for you and your investor.