Sunday 27 November 2011

Are Angel Match Investors Good for My Small Business?

CPSM1 Small businesses, impatient to take off will desperately want any kind of investor to invest in their business, as long as they get funds. But hold on; this mentality may be the worst turning point your business is ready to suffer. Not all investors are angels and not for nothing are angel investors called so! Every given a thought as why angel investors are called so and not other investors when their basic job is the same - to invest in a venture?

Angel investors are the best possible source of funds that your small business could do with. The following points will give you an insight into why they are the best for your business venture. In fact, they are any day better than banks and similar financial institutions because in these days, banks simply and mercilessly will leach away your profits. Banks recovering from the recessional hammer simply want their loan amount to be back to them by hook or crook and things might get a bit difficult even after you successfully obtain a loan from them - the axe of threat perpetually hangs above your head until and unless you clear all your debts!
• One time investment amount is higher: Angel investors are known to invest a good amount into a promising business venture. When paying in a single installment, they help you with higher funds than that any investor would (strictly speaking of small businesses). Banks have always made available huge loan amounts but then the size of the business in discussion is 'small' here. The range of invest may go up to $1million at a time, depending on your requirements and the potential of your idea.
JN0-120 • The Problem with NDAs: Now, be very clear about this part. Angel Investors will not sign a NDA and if you think that is a risk to your multi-million dollar business idea, so it is! In fact, if you compare funding authorities on the same point, there is lesser chance of angel match investors leaking/using/selling your idea to their own profits than anybody else because in the end they will have to shut shop, if they can't garner/generate faith and goodwill in their clients - the wannabies!
JN0-130 If you're aware of intellectual property rights, you will be in safe hands and also
• They Won't Kill your Profits: If this is something you are worried about, then banks are the most notorious of the lot. Angel investors are never known to leach away your profits or make any deal that harms you and your idea in the long run. After they get their 'amount' back within the stipulated time frame, they are done with you.
• They Won't take over your small business: This is the last thing that angel investors will do with your business. In fact, they will never interfere with your way of working or running the business. If you require their help at some point of time, they will be only eager to help you - but then only with your consent!

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