Sometimes
conventional loans are simply not enough to fund your
business and you need to seek more substantial sources
of capital. Two such sources are Venture Capital and
Angel Investors.
Venture
capital funds make long term investments in companies
averaging three to seven years. These funds attempt
to generate annual investment returns
in the range of
25% to 100%.
Their compensation is primarily based upon the actual
performance of the companies where the investments are made.
Angel
investors are private individuals that make investments
in a company in exchange for equity ownership. Often
times, these people are family members, friends,
associates and high net worth individuals looking for
alternative
investments. |