Angel Investors and Alternative Finance

It is extremely important to keep your financing options open. Before you start looking for angel investors, you should look at the programs offered by the Small Business Administration. Angel investors are the lifeblood of small business investing. In limited cases, these private investors will syndicate their investment with other funding sources when the investment is large but not large enough for a venture capital firm. Not every business needs an investment. Creating a business plan for your company is a difficult process.

There are many industries that are less risky and therefore more attractive to angel investors. If your business is profitable, an SBA loan may be a better fit for you. Popular industries include angel investors, including auto repair companies, medical companies, law firms, and other businesses that are always in need. If you are looking for private investments, you need a well-developed cash flow analysis. In some cases, your chartered accountant can handle issues related to incorporating your company in the pro-business state. If you qualify for a bank loan, using Angel Investor may not be in your best interest.

Only very large companies valued at over $50 million are viable candidates for an IPO if you are seeking a large amount of capital. As an alternative to finding equity investors, you can look into specialized white-using programs. Your solicitor should have prepared a set of documents for you regarding raising capital as you must comply with all applicable securities laws.

When writing your business plan, either for an angel investor or other type of funding source, you should always include an annual budget as part of your financial projections. There are many good quality sample business plans online that can help you through this process if you are looking for funding.

Technology-based companies are highly valued by angel investors, who may qualify you for alternatives to private sources of funding. It is imperative that you work with a suitably qualified attorney when seeking private sources of funding. It should be noted that most private funding sources that provide equity do not typically provide loans. Technology companies are highly favored by venture capital firms and this can be a better alternative when you need a large capital investment. Hard money can be an alternative for you as it involves raising funds from external funding sources.