Have You Heard of an Investor Club?

ed to be said that the best place to find a privatenew businesses fail in their first year; the reason for
investor is through personal contacts. At the time thisthis failure is mostly because of lack of commitment
was generally true but now the Internet is takingfrom the person who started the business. Also a
over as the best place to find a private investor; thisstaggering 90% of new businesses are out of
is thanks to a little something called an investor club.business within two years of starting up; the main
First let’s cover a few basics as whatreasons for this is down to aspects such as lack of
constitutes a private investor. They are in generalfunding and managerial incompetence; both of these
successful entrepreneur that are specifically made upproblems can however be overcome with the
of figures such as CEO’s and businesscorrect drive and determination as well as the help of
owners. Private investors such as these offera private investor.
experience and contacts that are of great value toA private investor will not only bring the necessary
new business ventures. They are a common sourcefunding to a business but they will also provide their
of funding for early stage and start-up businesses.expertise and introduce you to a number of contacts
There are many of these private investorswithin your area of business.
throughout the UK but they can often be hard toIf you are one of these private investors and you
find if you don’t know where to start looking.are looking for a new venture to invest in then did
The role that this private investor plays in youryou know you could find exactly what you are
business after their investment has been made canlooking for with the help of an investor club?
vary. Some of these private investors invest in aInvestor clubs were set up so that private investors
way that is known as passively, which basicallycould search the member database to find out about
means that once they have provided a companythe latest business ventures that are available for
with money they play a limited role within theinvestment and the best thing is you will be the first
company. In other instances a private investor willto know thanks to the exclusive membership of an
provide your business with money and then seek toinvestment club.
play a strong role in aspects such as a businessesAs well as helping private investors these investor
decision making. This type of investor may want aclubs also help entrepreneurs who are looking for a
seat on the board and control of some decisions.private investor to fund their new venture meaning
Other investors prefer to serve in an advisory orwhether you are a private investor or an
coaching role.entrepreneur you are in a win, win situation!
If you think about what happens to most newSign up to an investor club today and you will find
businesses you will start to understand why privatewhat you are looking for as a private investor or
investors are such a good idea. It is said that 75% ofentrepreneur in no time.