Money for Entrepreneurs

The best way start any venture is by raising seed capital. It is very common at the beginning of the venture to be raised from friends and family. This start up money is usually enough to germinate the business through the process of conducting market research, building a prototype or getting the product or service ready to be sold. Until this first step is taken, approaching potential funding investors is fairly pointless since they will perceive that there is no business in which to invest.

Once you’ve started the process rolling, you can start looking at the options of approaching companies who provide venture capital such as angel investors and venture capital companies. There are major differences in these two types of investors and the best ways to approach them.

Whether you are presenting to a venture capital company or an Angel Investor, prepare a realistic and well structured business plan and  be sure that you know your product/service inside out. After the initial approach and only upon further invitation send a detailed executive plan – this will be your sales pitch so don’t just list features of the product without revealing benefits.

Angel investors are individuals who invest their own money so take a greater risk. It’s best to approach an angel group who, if you’ve made it past the screening committee will allow you a 20 minute presentation and then decide whether they will invest. Expect to give them 20 – 40% equity.