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The number one concern of start-up and growing small business
owners and managers is how to finance their company. The traditions
of going to family and friends, or incurring personal debt through
going to a bank and asking for a loan have become more complex,
frequently are not an adequate source but are not the only options
available.
Raising capital is one of the toughest challenges for many entrepreneurs.
Whether you have a small, established company poised for expansion
or a startup business, access to capital on the right terms is critical
to your success.
A wide range of alternative capital sources for financing is available,
but the questions remain; which is most appropriate for you, and
where do you find them? Today, more capital is available from more
sources than ever before. But recent developments (e.g., the public
technology stock market’s performance) have had an impact on
capital availability and competition for available financing. For
some companies, money is readily available, yet, for many business
owners, understanding where to look, how to present, and how much
money is really needed are among the issues for which they are often
ill-prepared. How do you uncover the dozens of alternative ways
to finance your company and raise capital?
How to find qualified, hard-to-find private investors who prize
their privacy is a case in point. How do you motivate them to read
your plan, meet with you, and interest them in your venture and
your deal? Sometimes asking the less obvious questions is most useful
(e.g., when should you not ask for capital?). Are your current money
sources structured most advantageously for you? Have you overpaid?
Has your company grown and have you recognized its changing needs?
Are you prepared for your company’s capital requirements in
the next phase of growth?
Capital is the single most important ingredient in getting a venture
off the ground. But finding it can be a challenge – particularly
if you are running out of funding options. Suppose your venture
is too small for institutional players. What do you do once you’ve
exhausted your personal financial resources? Where do you go after
the banks, the leasing companies, the venture capital firms have
turned you down? Which financing sources are worth exploring and
which are not (e.g. conventional lenders, institutional venture
capitalists or business angels)?
ICR is a well known advocate for business angels – private
equity investors with high net worth. The fledgling entrepreneur
has long turned to a wealthy uncle or well-heeled friends to provide
so-called "angel capital" for the early growth of a promising
business venture. However, companies don’t know where to turn
to find such investors, or how to locate willing risk-takers to
fund new ventures. As a primary source of capital for early-stage
and growing companies, the angel capital segment of the investor
market is a vital source for today’s entrepreneurs. But much
like the capital they provide, these private equity and debt investors
remain true to their name – private. Yet, what we are seeing
is the majority of venture capitalists moving out of early-stage
investing into later- stage, larger deals, thus creating a huge
vacuum that business angels have moved in to fill.
Private investors or "business angels" are the primary
source of financing for many early-stage deals. However, most small
business people have limited knowledge about the angel equity market
and how deals really get done. Also, few formal mechanisms exist
for bringing together angel investors and entrepreneurs. Tightening
regulations, coupled with an incomplete understanding of complexities,
creates the need for ICR’s groundbreaking research on what
really works.
What type of information do financiers want, and how do you effectively
present that information? What are private, not institutional, investors
really looking for? What documentation do you need, and how do you
make your presentation to investors? With its proprietary research
in building the largest database of business angel investors in
the U.S., ICR provides valuable insights into the motivations, preferences
and expectations of the selective private-equity investor. ICR does
not negotiate, sell or personally contact the angel on your behalf.
We supply the know-how to you and the names – you do the rest.
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