Derisking is the process of removing risk factors from your business in order to make it more attractive to an outside investor or to an outside buyer. It is one of the most important factors in the grooming process in order to be an attractive company to invest in i.e. "Investor Ready". There are dozens of areas and hundreds of ways in which a business may be exposed without knowing it.
Venture Capital is a specific term that refers to funding obtained from a venture capitalist. These are professional serial investors and may be individuals or part of a firm. Often venture capitalists have a niche based on business type and or size and or stage of growth. They are likely to see a lot of proposals in front of them (sometimes hundreds a month), be interested in a few, and invest in even fewer.
The single most frequent question that I receive about raising capital is to raise capital from friends and family. Of course, people want to know where to get big money too -- but you have to learn to walk before you run, so I have put together a beginner's guide to successfully raising the money that you need to launch or grow your business from people who are close to you.
Raising Big Money Professional Investors These are people who are looking to put serious money into a new product or business that has the potential to give them a good return. They may put anywhere from $50, 000 to $1, 000, 000 into a project. Expect them to be very careful about where they put their money and check and double check everything about your product and business.
A positive data point that the bottom may have been reached is that per the University of New Hampshire's Center for Venture Research mid-2009 report is that angel investment numbers have started to rise. During the first half of 2009, angel investors financed 24, 500 new ventures, 6% more than during the same period in 2008. The figures suggest that 2009 will have shown the birth of roughly 50, 000 companies-all funded by angel investors and not venture capital firms.
If you're a business owner or entrepreneur who wants to find a way to increase sales and enter new business arenas, a joint venture is a great way to break into new horizons. An entrepreneur with savvy business acumen can research, find, and negotiate a JV deal with another business that can help achieve new business goals. And a few lessons from the world's largest retailer, Wal-Mart, may be helpful in finding creative JVs that will help expand your business.
When you are raising private money to buy real estate, you typically have a target number in mind for how much you need from investors. By performing a project budget and financial projections, you determine the right number. Perhaps you need $100, 000 to buy and rehab a foreclosure house. Maybe you need $2, 500, 000 to buy a commercial building.
Equity capital, unlike debt capital, is when someone or some company invests in a company in return for shares or stock in that company. Angel investing is generally done as such an equity investment. This money does NOT need to be paid back to the investor. Rather, the investor generally gets paid when there is a liquidity event, which is the event through which the company "cashes out" such as being sold to another company or having an initial public offering or IPO.
Those in need of credit debt relief have a few options to help them get out of debt fast, and debt grants are one of those options that many Americans can qualify for. Grant money are funds that are provided by the government, non-profit and other private organizations to help you meet your goals. What makes debt grants so unique is that they are not loans and the money never has to be paid back.
I get asked more than ten times a day how much capital a person needs for a new start-up venture. This is a very hard question to answer as it depends on many, many things including: Will you rent/lease or purchase space? What industry the start-up will participate in? What geographical location? How much marketing will be required or how much consumers will need to be educated on the product/service and its benefits?