Raising money is a critical consideration for any young company. For most entrepreneurs, the questions of where they can secure financing, and how they’ll achieve the funding they need will inform the foundation of their business strategy. Often, the personal circumstances of the entrepreneur in question influence the answers to these questions — but, federal securities laws also play a critical role. For some young businesses, calling up wealthy individuals and venture capital firms may seem like a logical place to start in obtaining financial support. In the past, these types of calls could have placed entrepreneurs in hot water because of the ban against general solicitation [...]
In many ways, venture capitalists and angel investors seem like the perfect solution to capital woes for startups and SMEs—but how do you go about looking for the right VCs or investors for your business? It’s not quite as easy as showing up at an office tower with your proposal in hand, hoping for a run of good luck or blind faith. Instead, read on to learn about the process of approaching venture capitalists and angel investors, what documents you should have on hand, and how to be prepared for your big pitch.What Investors Should You Be Seeking?
Your startup or small business may have been able to get off the ground by using your own savings or funding from friends and [...]
For small- to medium-sized businesses (SMEs) and early-stage startups, accessing capital is crucial. Whether the funding comes from a bank, an angel investor, a ridiculously wealthy family member, or less conventional methods, most businesses will need access to capital during various stages of their development. The problem is that banks really don’t lend funds to SMEs anymore, angel investors are tough to find, and not everyone has that wealthy uncle either. So how can you grow your startup or scale your SME to new markets?
The answer could be in equity crowdfunding. This financing model has begun to change the landscape for how smaller private businesses can find [...]