A business investor, commonly known as an angel investor, is described as a small business or person who provides finance for start up companies. This is usually done in exchange for partial ownership and stocks or shares in the company. It is now a common trend for a small portion of angel investors to form organizations known as angel investment networks or venture groups. They share info, pool their funding together, and provide advice to the various entrepreneurs and start up companies.
Angel investment has a high growth potential especially in Asia. Generous investments by private individuals can represent a huge proportion of capital for many businesses. It is a modern take on the traditional method of doing business in Asia. For centuries, Chinese and Arab traders got their financing from affluent merchants. This funding was usually given for the purpose of establishing new trade routes and expanding their business across Asia and the Middle East.
Angel investors face a greater risk compared to traditional capital investors, as they tend to invest in start up companies, so they usually demand a higher return in investment. With the growth in business networking in Asia, the use of angel networks is slowly gaining popularity, particularly in markets such as China and India.
Professional angel investors usually seek investments that have the potential to return over 10 times the original investment within a 5 year time-frame. With the growth in business networking in Asia, the use of angel networks or angel groups is slowly gaining popularity, particularly in markets such as India. There are now several reputable angel investment groups that provide investment capital to help small and start-up businesses grow and succeed. However, in some regions where businesses networking is less established, many entrepreneurs face funding problems when starting a business. When seeking funding, entrepreneurs from Vietnam or Thailand usually travel to places like Singapore.
When you seek funding from angel investors, make sure you are fully-prepared with an investor presentation that gives them a strong idea about your business and financial plans, the strength of your management team, and a proper business plan for coming years.
It is very important to contact angel investors most suited for your business while understanding that raising capital for your business takes time. It is not enough to simply have a rough idea of where your business is headed and is important you do your due-diligence before approaching an angel investor.
Angel investment has a high growth potential especially in Asia. Generous investments by private individuals can represent a huge proportion of capital for many businesses. It is a modern take on the traditional method of doing business in Asia. For centuries, Chinese and Arab traders got their financing from affluent merchants. This funding was usually given for the purpose of establishing new trade routes and expanding their business across Asia and the Middle East.
Angel investors face a greater risk compared to traditional capital investors, as they tend to invest in start up companies, so they usually demand a higher return in investment. With the growth in business networking in Asia, the use of angel networks is slowly gaining popularity, particularly in markets such as China and India.
Professional angel investors usually seek investments that have the potential to return over 10 times the original investment within a 5 year time-frame. With the growth in business networking in Asia, the use of angel networks or angel groups is slowly gaining popularity, particularly in markets such as India. There are now several reputable angel investment groups that provide investment capital to help small and start-up businesses grow and succeed. However, in some regions where businesses networking is less established, many entrepreneurs face funding problems when starting a business. When seeking funding, entrepreneurs from Vietnam or Thailand usually travel to places like Singapore.
When you seek funding from angel investors, make sure you are fully-prepared with an investor presentation that gives them a strong idea about your business and financial plans, the strength of your management team, and a proper business plan for coming years.
It is very important to contact angel investors most suited for your business while understanding that raising capital for your business takes time. It is not enough to simply have a rough idea of where your business is headed and is important you do your due-diligence before approaching an angel investor.
About the Author:
Mike is an expert in start up business capital funding and markets around the world, including angel investment in asia, such as markets like India, where angel investment have become a bigger factor in the rapidly growing marketplace.
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