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How did you fund your most recent deal?

Matt Malouf , CA

November 20, 2019

Traditional mortgage? Private funding? Commercial funding? Biz credit?

What were your rates and terms?

Any lessons learned on your recent finance deal you care to share?

 



Matt Malouf

Author-Adventurepreneur

Comments

Adrian G. Maplewood, NJ

Jun 06 2020, 10:02 AM

Angel investors are high net worth individuals who are interested in helping small startups financially. They provide similar startup financing as venture capitalists but in smaller amounts. They can be either individuals or groups, and can be formed through investment pools and crowd funding. You can find angel investors during events, online platforms, and angel investment networks and groups. Although, contacting angel investors through networks is the least effective because they usually screen out ideas without even looking at them, unless you know them personally. You can also get in touch with angel investors through fund raising advisors if you are not confident enough with your fund raising skills, they can appoint a highly skilled professional who can help you seek potential investors based on your requirements. Angel investors usually take longer to invest than you think therefore patience is the key here. Even if you find angel investors, you have to go through multiple meetings, due diligence, negotiations on terms etc; therefore raising capital through angel investors can be lengthy and a time consuming process.

Virtual capitalists: Venture capitalists are another set of people who invest money in business ventures, start-ups, and expansion. They’re wealthy people looking for a place to invest their capital with a long-term growth perspective. The capital that they invest in known as venture capital. These investments are risky as they are illiquid, but they also guarantee impressive growth depending on the build-up of the company. Since it is their money that is at stake, they have the power to influence major decisions of the company they have invested in. Virtual capitalists are very exclusive when it comes to investing in a start-up. People without track records and who have service businesses usually don’t get virtual capitals. If getting an angel investment is hard, then getting a venture capitalist is harder therefore it is wiser to aim for an angel investor before a venture capitalist for your start-up business.

I hope this helps.

 

Regards,

Adrian

QuickBooks Pro Hosting & Drake Hosted Consultant