Listen to the podcast Show Me The Money! Guest: Karen Rands
Search for Angels: By developing a new minority-focused angel fund, the Atlanta Urban League’s Lucy Holifield hopes to boost entrepreneurs to the next level of growth. Lucy Holifield knows that hard work and sweat equity can fuel a company’s growth only to a certain point. To go farther and faster, you may need outside money. Joanna Soto Carabello, Contributing WriterLearn More
Continuing the momentum set in 2005, LAUNCHfn, in conjunction with the Network of Business Angels and Investors (NBA&I), will host another Investor event on March 15th. The “Do the Deal” segment will be preceded by an Investor Luncheon Briefing, covering “The 5 Ways Angel Investors generate ROI”. This event is co-hosted by GA Tech’s Minority Business Enterprise Center.
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When it comes to funding your company, it is important to understand the difference between objective and subjective investors. The subjective investor is some how connected to you. Often referred to as “Friends and Family”, but in reality they are business investors with a connection to you directly through a common connection like your friends and family. These investors, or friends, believe in what you are doing and invest in your business. At some point, a business who seeks private investors has to move beyond Subjective Investors to the world of Objective Investors.
Objective investors examine the overall business model and investment opportunity. Objective investors see dozens or more offerings each year. How do you think they determine which businesses to invest in? They look for reasons NOT to invest. By examining your complete business model and investment opportunity they can determine red flags.
5 Reasons an Investor Will Not Invest:
Incomplete financials and/or business plan (market/sales strategy, operational information, barrier to entry not established)
Complex or confusing message within the investor documents regarding business model or investment opportunity
Structure of the offering, perceived cost of the investment relative to a high valuation or unclear exit and return to the investor
Inexperience or incomplete management team, and/or attitude of the management conveying a sense of entitlement or resistance to advice & counsel
Specific industry focus or niche marketplace that limits the potential number of investors
Many of the reasons for no-go investment decisions can be identified and remedied before the investment process begins. How can your company determine if you business model and investment opportunity is investor ready?
Raising Capital with Investors 