If you want to find startup capital or you want to find a way to start raising capital for one of your business models or products, you are going to need someone to help you with the start up obviously. One of the most revered ways to gather venture capital is to do so via accredited investors. However, there are certain pieces of criteria you should take a look at BEFORE you choose to take an investment deal with business angels for your venture capital. Here are a few points for you to take note on:
– Try to Partner only with Accredited Investors who meet one of the following criteria:
An individual with annual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.
– An individual who has a net worth exceeding $1 million, either individually or jointly with his or her spouse excluding the personal residence.
– An individual who is a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
– Keep your offering private, never blatantly advertising to the public. On the other hand, you can provide general information about what activities and why you need money.
– Raise no more than $5 million
– Require your investors to sign a Subscription Agreement
– Do not guarantee a rate of return or refer to performance of past offerings.
Beyond finding an individual accredit investor you can also look into a funding platform like INISMO; INISMO offers entrepreneurs the unique opportunity to present their business concepts using a structure that grabs the attention of potential investors.
The structure that we use provides investors with a fast business overview and a list of relevant concept facts at a glance. This allows investors to quickly decide whether or not they are interested in a particular concept.
This Author is a huge fan of INISMO