If you want to know the ins and outs of raising capital to start your own business then what you are looking for are Angel investors to guide you through the process. Everyone knows how tough it can be to raise capital to start a new business and most companies or people who are new in the field, don't quite know how to go about it.
The Utility of Capital
Who do you need capital when you're starting a business?
• Firstly, you will need liquid cash to get off the ground.
• You will need money to pay your rent for your office premises, or, if you have purchased office premises, you will need money for that – in fact, much more money!
• You will need money to furnish your office, to purchase equipment necessary to manufacture your product, various supplies and utilities etc.
• Lastly, but probably, most importantly, you will need the money to pay your employees.
For all of these, you will need funding. Now, let's face it, it isn't easy to get funding in today's day and age. People don't want to part with their money too easily and you can't blame them, what with the recession and financial downturn which has invaded the business world like a plague.
There are sites which will help you raise funds for your various purposes. This is an especially useful feature for new entrepreneurs who want to establish their own business and fast. Venture capital is basically a method of fund raising. How does it work? It's very simple – companies have to exchange their equity in return for liquid cash so as to grow their business. This form of fund raising can apply to all types of business and what is more, no matter what stage your business is – a fledgling business or a well established one – venture capital can help you raise funds.
A Mortal Angel
Where does an angel investor come into the picture? Venture capital firms generally want a really high rate of interest on their investment – generally the rates they charge are upwards of 20% per annum! But an angel investor demands much lower rates of interest on their investment. Moreover, where venture capitalists want a high rate of return, angel investors don't mind a slower return on their investment.
This is probably why companies actively seek out these angel investors. They are great sources of private capital and have been known to frequently invest this money in new companies. This is probably why the money they invest in a company is known as "angel money" because most companies don't have a hard time returning the money, what with the low rates of interest and the relaxed time period within which companies are allowed to return the money.
If you are looking to start up a new business then instead of going to banks, you could go to a venture capital firm if you have that kind of confidence or angel investors – they are indeed angels because they help you in the hour of need!
Great !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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