Bài đăng diễn đàn

Uyển My
28 thg 11, 2022
In Kiến thức Khởi nghiệp & Đầu tư
A startup is a long-term process of developing a business from its conception, through research and scheduling, renting or even purchasing premises, hiring employees, bringing in partners, and most importantly, raising funds to sustain it. The initial times of a business always are the most challenging because of the costly expanse whilst no income. Thus, its founder must find money resources that will ensure the survival of the business. Excepting the founders' own equity, some potential projects succeeded in the due diligence round of banks that can have a chance to get their loan. However, enough to raise the businesses until getting investment from VC funds, startups need more investments, and most of them come from angel investors’ money. The crucial role angel investors play in the existence of startups requires entrepreneurs to become familiar with how to find them. What is an Angel investor? An angel investor or a seed funder is a high-net-worth individual or organization. They mostly use their own money to fund the startups in the seed or early stage, which is the cardinal phase of building up a business and deciding their fatality, to exchange for convertible debt or ownership equity. In most cases, angel investors invest in startup companies with a prominent level of risk. They will have to follow those companies' plans for at least 5-7 years to help businesses regain the capital. They often claim a sizable share of the company because the likelihood of failure is extremely high. Why do startups need angel investors? Angel Investors are mostly forerunners with pretty experience in one or more different fields. As well as providing capital, they also serve as advisors, providing advice and helping startups to launch successful businesses based on their experience and relationships, especially with investors. An experienced Angel investor will give valuable advice to start-up businesses, create motivation, and inspiration, and help connect startups with other partners and resources. Where can startups find angel investors? 1. Friends and family. Friends and family investors have their flagrant advantage and disadvantage. The plus is these people know you the best to determine whether you are backable, as firsthand references. However, funding for a startup is precarious, make sure they get prepared that they could lose 100% of their investment. This minus is pretty major: these are your friends and family! It is difficult when mixing personal and professional relationships. And, the fact that only one in 10 startups is successful. It is very likely you will lose all the money invested by your nearest and dearest, and perhaps even them as well. 2. Angel investor network. Like the family offices, a professional team sources deal for the network screen the Angels and keep their anonymity while comfortably behalf doing due diligence on investment targets. Because of the connection, the amount of funding will be larger. For example, 100 angels aggregate $100MM to invest in the deals they like best, individually or together, instead of one angel investing $1MM alone. In addition, it is much easier for you to raise your full amount needed, with one phone call, instead of calling numerous investors individually. 3. Business events Many startup founders are likely to join in business events to find their angels. It does not matter what the purpose of event is, angel investors would mostly pop-up here-and-there. That could be the corporate event, product launch, Congress, etc. This is because they all have similarities when they bring people together in face-to-face meetings in order to connect and exchange the ideas or information, which could throw a big chance to open a new potential corporation. 4. Third-wheel company In reality, even startups can find their angel by networking and coming up with a solid plan that includes a proposal, financials, and a pitch deck. Nevertheless, entrepreneurs sometimes have trouble knowing who to approach because millions of startups are competing for the same amount of money. So, they need a third-wheel company that expertly collects angel investors' data and be the best place to find them. For instance, Wiziin Inc., a high-quality partner that connects startups and investors. So, how does Wiziin work? Wiziin has experts, who have high experience in VC and startup fields that can support startups to fundraise successfully. It will be easier for startups to reach investors with the huge data resource collected from investors. Additionally, Wiziin organizes events to give startups a chance to pitch to investors. You can learn more about angel investing from Wiziin's website. The goal at Wiziin is to provide startups and investors with information and insights that will help them get effortless connections and work effectively.
How to find Angel investors for your startup? content media
0
0
3
Uyển My
18 thg 11, 2022
In Kiến thức Khởi nghiệp & Đầu tư
Many founders, especially in the startup business, cannot find the fund to raise their business because of the unknowledge about the investors. To build a startup strong and survive in the market, the founders need more money than just their own funds or debt from the banks. However, the banks tend to not be available for new startups due to risk. In that case, getting funding from Venture capital or an Angel investor pops up as a pilgrim (a startup) looking for a lake among the arid desert regions. In fact, angel investors and venture capitalists are interested in funding companies, particularly startups, to exchange a piece of the action. Nevertheless, there are still several differences between the two entities. What is an Angel investor? An angel investor (private investor or seed funder) is a high-net-worth individual, who invests their own money into startups. They mostly fund into an early-stage (seed stage) business when the company exists only as an idea or perhaps when the running up is initially in place. Apparently, this is the most important phase of a new business to survive in the market and faces a bunch of challenges. The funds help startups grow and sustain in the critical stage of development until the companies require more sizable investments from venture capital firms for the next stages. The funding of angel investors varies at different levels. It can be low around $5k, or even higher, approximately $100k. They also can combine into a group form as a syndicate with an amount of funding up to 1 million dollars and more for selected companies. As the name of angel investors, they might not be mainly on profit like a venture capitalist but could invest to exchange the ownership equity or convertible debt. However, some seed funders pour their money into a startup merely to supply the finances that push the company's development. Because of the comprehension of the founders who need to hold the highest stake to encourage their companies to succeed, angel investors don’t usually acquire more than 25% stake in the company. Furthermore, the business owners will not be required to repay if the companies go belly up. What is a Venture capitalist? Unlike an angel investor, a venture capitalist pools funds from other investors called a limited partner (LP), and perhaps in addition their own money. They can write larger checks than angel investors, which could reach 100 million dollars for the company. The limited partners (LP) can be wealthy individuals, insurance companies, pension funds, and other institutional investors. While each partner has partial ownership of the fund they have invested in, it is the venture capital firm that holds control over where to invest. Indeed, venture capital basically invests in new businesses with breakthrough ideas with high potential for growth and advancing social progress in the long term, but coevally containing a substantial amount of risk enough to scare off banks to fund. However, as the above saying, even venture capitalists are gamblers who could hazard into very new ideas, they usually don’t want to jump into the idea stage because of the risk and lack of conviction. In this case, venture capitalists tend to wait until getting a proof of concept in hand, then do due diligence before deciding to invest. Metaphorically, they are the high experts at hunting a 'unicorn' among a herd of horses. After investing in a company, angel investors are more likely to keep a 'hands off' policy while venture capitalists usually take a board seat and are operationally involved in the company. How can startups approach investors? In conclusion, both angel investors and venture capitalists are holding a substantial position in the startup process of a business. That’s why most startups try to incarnate themselves as the 'unicorns' of these hunters. However, not many of them know how to perform, or at least convince investors to take a stare at their projects. For the resolve, besides preparing a potential project, startups can begin finding the chances in real by attracting investors through: Involving in offline business events or association meetings. Businesses and founders usually attend these events to network and explore collaboration opportunities. Hence, it is a chance for startups to introduce their potential projects to investors when they attend these events. Being enthusiastic to dip into the startup communities on social media like Launch, Vietnam Venture Capital Community (VVCC), TAO start-up, etc. These communities are 'fertile grounds' for startups to connect and make attention from investors. Connecting to a third-wheel company that collects a huge amount of data from investors and has high expertise in supporting startups fitting themselves with investors' tastes and raising the ability to get the deal. This is also the way that most previous successful startups used its speed, convenience, and effect. In Vietnam, Wiziin Inc. is one of the most dynamic partners who provide the service connecting startups with investors.
Angel investors vs Venture capitalists: What's the best for you? content media
0
0
9
U
Uyển My

Uyển My

Người viết
Thao tác khác