| If you have a small company, you may want to | | | | 10. Sales potential from your product. |
| consider exploring this option. I just went through the | | | | When you decide to raise money through venture |
| process of finding a venture investor for my | | | | capital, search first the firm will represent you to |
| company. This experience was time consuming and | | | | negotiate and select the party interested in your |
| emotional roller coaster but it is much better than | | | | company. |
| approaching a bank these days. My case was a | | | | Request to have 2- 3 alternatives. You may be |
| classical Angel venture capital. They were investors | | | | presented by a venture capital, showing strong |
| looking to finance a business that will be worth 5 | | | | interested to participate in taking action on the |
| times or more the capital invested in five or 10 years. | | | | proposal but never, never loose sight to look for |
| These Angel investors look for medium-long term | | | | second or third option while negotiating with the first |
| capital gain on their portfolios and typically invest their | | | | one. |
| financial and managerial experience as well as their | | | | You must have a burning desire to keep working and |
| capital. Your investor will be aware on these following | | | | taking you company to a level of growth and |
| characteristics when considering to invest in your | | | | profitability. Your vision and your business plan need |
| company. | | | | to support the investor's expectations. |
| | | | Start planning to consider this option with one year |
| 1. It involves high risk | | | | ahead. Specially if you are seeing a negative trend of |
| 2. There is a lack of liquidity in your company | | | | cash flow in your company. |
| 3. The investment returns will be primarily from capital | | | | The size of investments for a Angel Investors, |
| gains | | | | usually ranges from $100,000 to less than $500,000. |
| 4. Investors expects 20- 25% return on their money | | | | Make sure to define your financial needs. It will be |
| 5. Will require extensive information on your company | | | | disastrous to request more funding while you are |
| 6. Prefer entrepreneurs who have put their savings | | | | about to close the deal. Believe me. |
| into the company. | | | | These are good time to search! The interests rate |
| 7. You must be trustworthy | | | | are low as ever in banks and bonds! Due your |
| 8. The expertise from the entrepreneur. | | | | diligence in preparing your stage and don't loose hope! |
| 9. The enthusiasm from your part. | | | | |