Why Angel Investors would expect you to have invested first!
By Venture Giants
Business Angel Investors want to see as much investment from an entrepreneur as possible and the reason for this is if you have a serious financial vested interest in your company and its success, you will likely work harder to insure that the business succeeds.
The perception is that if you have not invested anything into a company, it makes it easier for you to walk away. If you have your life savings invested, you are most likely going to do everything possible to make it succeed. Investors love to see this commitment.
Just how much of your personal investment will satisfy an angel investor depends on the size of the business, industry and some other factors. It is a relative number based on many factors including how much angel funding you require. However, angel investors want to know how much you have personally invested, how much you are trying to raise and what percentage of the total amount they will be funding.
Your chances significantly increase if what you have personally invested is a reasonable percentage of the total capital required. In other words you are financially motivated not to walk away.
Venture Giants Considerations:
Q: How much cash have you invested into your business so far?
If you have not invested any of your own capital into the business so far and this is part of your investment proposal that requires additional consideration.
A: £10,000 - £250,000.00
Because you have invested some cash into your business, an angel investor will see this as increased commitment on your part.
The more you risk, the more an angel investor will perceive is your level of seriousness and the greater the chances of success for all parties.
Venture Giants is a premier UK business Angel investment network and small to mid sized business networking portal that matches active business angel investors with entrepreneurs' seeking investment capital and business funding.
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Written for and behalf of Venture Giants Enterprises Ltd. All rights reserved 2009