Investors are always looking for smart sources for funding. One area for funding would be for corporations searching for help with funding. Investors who fund small start up companies are known as Angel investors. Angel investors can do Google searches to find the various companies who need sources for funding. One site that showcases some sources for funding is Go4funding.com. This sites brings Angel investors together with entrepreneurs, business owners, and venture capitalists.
When looking for sources for funding it is important to define goals ahead of time. Angel investors are not venture capitalists. Though both provide funding, their goals are very different. Venture capitalists are interested in large gains. They invest in existing companies with a great growth potential. They want to capitalize on their investment and make sure that they yield high returns for their investment. Venture capital firms have a portfolio of companies that they will invest in.
Although venture capitalists can be individuals, they are often a small group of investors or partnerships or limited liability companies who can look for and maintain various sources for funding. This way the investors in the firm can pool their money together to raise the capital to the tune of up to a billion dollars.
Angel investors on the other hand, are independent individuals who do not necessarily have large amounts of money when they are looking for sources for funding. They also focus on a start up businesses who needs their investment to open up the company. When this is the goal for the investors, they may not be looking for several sources for funding, often one single company will do. Angel investors fund these new companies and expect to hold a percentage of the companies equity. Usually Angel investors invest their own money in the start up business; however, it is possible for a group of angle investors to pool their money and therefore are able to look for several sources for funding.
On average, an angel investor can provide from 150,000 to a million dollars in capital for a new company. This money is very attractive for a start up company who has not been able to acquire a bank loan. Big venture capitalists do not want to take the risk of investing in start up companies; they are looking for a record of performance. However, angel investors have the money, the business experience, and they are primarily retired businesspeople and executives. Because of this perfect fit for investor and start up companies who badly need their services, angel investors have no trouble finding sources for funding?