Business

The different types of investors

Investors are the reason that all the startup companies can actually stand on their feet. Investment is a very important part to actually be able to sustain the market. With the popularity of startup, more and more investors are looking into it a great potential to make more money.

There are investors like Adam Jiwan who look up to promising companies to invest their money. The main types of investors that you may find are given below.

Personal investors

There are many individual investors like Adam Jiwan who hunts for potential companies among the various and invests in it. Personal investors represent a bigger portion of the investing industry. These investors can be your friend, family, relatives that have a connection with you. On the other hand, they are individual investors you look up to the business plan and product and seek the growth of the ides if he is convinced the investment is made.

Personal investors

Banks

This is the easiest way to get investment. Banks actually gives loan and you have to return a principal at the end of the date. They are a lot of official work that needs to be done. The bank also looks into the business plan that has to have the following things:

  • The full detailed implications of the project
  • The description of the product
  • The marketing strategy
  • Management strategy
  • Plan to make a profit

Angel investor

Angel investors are the one you would seek if you want to grow your startup. They have a great passion for investing in promising projects and ideas. Most of the world angel investors are themselves an established and successful entrepreneur. They not only invest money in the projects but also guide them through the process with their entrepreneurial knowledge. Most of them are corporate leaders and professional in the business.

Venture capitalists

Once you have been invested by the angel investors it is time to move to the venture capitalist. They are the ones who invest a dollar of cash in a project. However to get the venture capitalist investment isn’t an easy task. A venture capitalist invests in 1out of 100 projects that he sees. With the investment that they make, they secure a share in the company. They only work with the startup that has a solid business plan.

Conclusion

If you want to have a startup, look up to these investors for the funding.