show me the money! - know the 4 types of investors @bluestartups

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money! show me the

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money!show me the

Are you looking for investors to help get your business off the

ground?

FINDING INVESTORS CAN BE DAUNTING!

BUT HAVE NOT FEAR!

Investors are looking to fund your business or product. It’s

not only about the money. Investors become part of your team.

Business investing is a mutual partnership.

candidate for them?

are you the best

best optionand are they the

for you?

check these 4 investors that can help your business take off!

Family and Friends

#1type:investor

Funding from “family & friends” usually comes in small amounts. $23,000 the average amount invested.

Pros & Cons: You’re already familiar with your investors. It’s a no nonsense approach of getting your funding.

pros & cons: there are usually few contractual strings attached.

pros and cons: Be careful!!! It can ruin good relationships!

The Angel

type:investor

#2

“Angels” look to invest their money in small businesses. $74,955, the average amount invested.

Many investor “angels” are successful business leaders

and professionals.

the pros and cons: “Angles” also act as business coaches by providing mentoring and networking opportunities.

the pros and cons: “Angles” are relatively patient about their investments.

Pros & Cons: Once the deal is made, the “angel” investors become a part owner of your business.

Pros & Cons: Trying to please a large group of “angels” can be difficult to manage.

The VC “venture capitalists”

# 3type:investor

Venture capital firms review and asses promising businesses.

If they like what they see. They will invest.

VCs look at many deals and on average only invest 1 out of every 100 deals they consider.

VCs seek to add value & capital to the companies in which they invest. $2.6 MM, the average amount

invested.

This also means most VC’s will want a seat on your Board of Directors.

pros & cons: VCs enhance your industry credibility.

pros & cons: You may gain access to benefits such as: manufacturing, distribution and marketing.

pros & cons: They hold a lot of power. And can force you to alter your business to serve them.

pros & cons: They can also prohibit you from selling to their competitors.

“customers”

#type:investor

4

thanks to the rise in social media, “crowd funding” campaigns have become a

powerful tool in raising funds.

“crowdfunding” brings people together to support their favorite product by pledging money.

In return, participants receive rewards for their contribution. !Pebble: E-watch 68,929 backers $10,266,845 raised !Example rewards: Pledge $1, get: Pebble exclusive updates !Pledge $1,250, get: Custom watch face + 5 pebble watches.

In 2013, “crowdfunding” raised an estimated $5.1 billion via online

crowdfunding.

Kickstarter success example: “Elevation Deck”

Through ‘Kickstarter’ raised: $1.4 million dollars.

Crowd Funding success example: !

Form1+ Over 200,000 backers

$3 million investment dollars

pros & cons: It’s a very simple and

interactive method of getting funding.

pros & cons: “crowdfunding” not only provides money, it also contributes to word-of-mouth advertising. For “crowdfunding” social media is a must!

Pros & Cons: Not ideal if you need millions of dollars in funding.

!$10,000 the average amount raised.

Pros & Cons: When raising funds, owners reveal their IDEAS

and run the risk of someone copying their project. !

Especially if their competitor has better financing.

Whatever your business, there’s an investor for you.

Be careful! Don’t jump into an investment relationship blindly!

Know what kind of relationship you want with your investor.

What are your expectations?

There’s more than just money that goes into an investment relationship. Consider all the

aspects your investor brings! Then together, watch your business grow!

venture accelerators

like “blue startups”

provide fantastic resources

for new startups.

APPLY

check out these

past pitches

TODAY!

ready to wooTHOSE INVESTORS?

count on usto get you there!

WANT MORE BUSINESS INFO?CHECK THESE OUT!