Information Guide On
UK Investors And Investments
 
Equity Investors

People in search of equity investors can get the help of angel investing networks. Venture Giant is one such networking portal that matches business proposals requiring funding with angel investors who are ready to invest their money. These angel equity investors are accredited investors who have money to invest in start up or have small businesses finance. Normally, angel investors provide second round business funding. Angel equity financing is opted for by businesses where debt financing is unavailable due to tight credit or risk associated with project.

Angel funding targets small businesses and demand high returns due to high risk factor associated with initial start ups and small businesses. Under normal circumstances, angel equity investors demand 10 or 30 times the amount they invest. Since angel equity investors take huge risks they expect good business plans. Equity investors conduct thorough due diligence and undertake competitive analysis of applications received from various small business entrepreneurs.

Securing an angel equity investor to invest in a project is a time consuming and complicated process. Small business owners might have to go through several presentation rounds to finally convince equity investor and secure equity investment. Registering in a network portal like Venture Giant can save business owners lot of time and energy since their business finding needs and proposals would be easily accessible to prospective equity investors who can check them out in detail prior to contacting a business owner or company.

Equity Investors to the Rescue

Financing provided by an equity investor is by far the best method to procure finance. There is no burden of debt but business owners would have to part with the right to ownership of company. Normally, the ownership is dispersed as shares and equities. Share holders, in this case the equity investors, enjoy voting rights and are eligible to attend annual general meetings of company. Sometimes, equity investors portray an interest in getting involved with the company and begin to take part in board of directors of company.

Professional equity investors can be angel investors or venture capitalists. Venture capitalists invest in businesses and get big returns. They can invest uptop 10 times more than an angel investor. Equity investors are well aware that new start up business ventures involve risks and therefore they take time and consider many factors prior to approving finance. Repayment and returns are considered only when the company begins to make profit. Hence the financial burden is largely shared between equity investors and business owners. Moreover, equity investors can sometimes bring in valuable skills, contacts and experience for assisting in decision making and strategy planning. A long term good relationship can be expected from healthy relations with equity investor.

It is wise to keep equity investors informed about various business decisions as well as use resources available through them for better prospects of business. Equity investors can do businesses a lot of good with their long understanding of industry and invaluable contacts. Business owners have to be aware that there are equity investors who demand high maintenance and show case hawk like behaviour. It is advisable to take advice of a lawyer and finance professionals prior to approaching prospective equity investor. A clear plan with strategies charted out carefully is a pre-requisite for approaching an equity investor.

Equity Investor Resource

Business owners can begin their search for investment capital by registering with Venture Giant. The investor network allows equity investors from all over to take a look at your business proposal and come to terms with the pros and cons of investing in it. As mentioned previously, equity investors prefer to be involved with the company they invest in and hence, finding an equity investor close to home would be a good option. Venture Giant compiles lists of small businesses seeking equity investors which make the due diligence process simpler and quicker.

Advantages of Private Equity Investors

Private equity investor have time and again proven to be an excellent source of funds for business. Private equity investors largely comprise individuals who have the skills and expertise along with money to start a business. The contacts and experience equity investors possess can prove to be an invaluable asset to new start ups. Potential growth of new business venture and the person behind the idea influences decision of private equity investor. They too demand high returns for their investments but unlike venture capitalists, equity investors have more laid out terms and conditions of payback. In comparison to venture capitalists, equity investors have following advantages:

  • Time taken for dispersal of funds is less than from a venture capital firm.
  • Less amount of due diligence.
  • Lower rate of return.
  • Does not interfere into company matters or try to take too much power with matters related to staffing, target setting and management of business.

A private equity investor has to be convinced of business proposal in order to sanction funding, hence, a good business plan is the first and foremost thing to be prepared. The plan should have clear objectives and realistic numbers. Being honest and truthful about the project is one of the best ways to get investor to believe in proposal and grant funding.

Venture Giant would allow investors to go through a compilation of business proposals. Investors can remain anonymous until they wish to reveal their identity. They can conduct background checks of interesting companies, the top management officials as well as managers. The company should be clear of any kind fraudulent charges and be interesting enough to appeal to investor. Register for a one time fee and reap benefits of having access to hundreds of investors. Investors also benefit from such a networking portal since for them the service is free of cost with many other benefits.