Types Of Investors For Startups To Consider

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We are all aware of the basics about investors, they invest money. But in this process of becoming an investor, there is much more than just selecting the business and putting money into it. For being an investor, you must be aware of the different types of investors so that you can choose for yourself which way you would like to invest your money in. Similarly, if you are looking for an investor for your business, you must know which direction you need to go for meeting your requirements. So, to become an equity investor in Texas here is your guide to the main five types of investors.

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Types Of Investors For Startups To Consider  We are all aware of the basics about investors they invest money. But in this process of  becoming an investor there is much more than just selecting the business and putting money  into it. For being an investor you must be aware of the different types of investors so that you  can choose for yourself which way you would like to invest your money in. Similarly if you are  looking for an investor for your business you must know which direction you need to go for  meeting your requirements. So to become an ​equity investor in Texas​ here is your guide to the  main five types of investors.    ● Banks  The most basic source of investment for a new business is getting a business loan. So  banks are the first type of investors perfect for the initial startup businesses. The  owners of the business has to prove that he is financially responsible and has to  provide a collateral along with a perfectly lengthy business plan which includes a  detailed description of the business and its core products or services financial and  management projections and plans for the goal implementation. Even after all these

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preparations it may be rejected by the bank. Thus strengthening the role of other  investors in the business.    ● Angel investors  Angel investors are usually individuals whose net worth exceeds 1 million. They profit  from their wealth by investing it in business. Especially those startups which are having  a problem getting funds in a traditional way. They usually invest in projects of their  interest and may sometimes act as advisors or mentors for them. They are most active  when the economy is stable.    ● Peer-to-peer lenders  They are usually individuals or small groups who are registered with funding websites  like Prosper and Lenders Club. They apply for such websites. Once their application is  approved they decide the types and area of business they are interested in investing and  get the results accordingly. There are state regulations about peer-to-peer lendings that  the companies and investors must be aware with.    ● Venture capitalists  Venture capital investor Texas​ ​also invest large amounts of money in businesses. The  only difference between them and angel investors is that they invest the money of their  employer whereas angel investors invest money of their own. They are most likely not to  invest as soon as they perceive a business as risky. ​Venture capital funds Texas​ benefit  by getting a higher rate of interest than a traditional loan.    ● Personal investors  It is a common process to ask for financial help from family and relatives to set up a  business. Those relatives who fund you for your business come under personal  investors. However there are legal limitations regarding the number of people that can  invest and proper documentation is required.    Resourse: ​https://investorconnect.blogspot.com/2018/12/types-of-investors-for-startups-to.html

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