You have your business idea, and are sure it will be a success. You’ve studied your market and know who your competitors are. You have completed your business plan and have income and expense projections for the next five years. All you need now is start-up capital. It should be easy to find an investor, right?

Well, yes and no. It’s true that private investors, also known as business angels, reside in every country in the world. It’s also true that there are different investors for different businesses. Locating them can be a challenge, as they don’t walk around with a sign saying ‘free money.’ There are a couple of different places you can start your search, however. Some investors hook up with local university programs because they are always looking for fresh new ideas; so you can talk with some of the business professors to find out what they know. You should also be able to locate them on the internet. Finding the right investor will depend largely on the type of business you’ve chosen. Let’s have a look at the types of investors.

Core Investors – they will invest in a business of any industry or sector, as long as they can see the value in your product or service.

High-tech investors – they will invest only in high-tech or highly innovative products. This sector is usually high-growth with a huge profit-potential.

Medical investors – they will invest in products or services that are part of the medical field. These investors are usually doctors, or have extensive medical knowledge.

Specialized investors - they will invest in businesses that are close to their own areas of expertise. They feel they can offer more value as a mentor if they have first-hand experience in that industry.

There are some criteria that all private investors will need to investigate; they all look for businesses in which they are confident will provide value to the market as well as a hefty profit for them. They will also count on you to provide at least some of the start up funds. They will want to see a thorough business plan. Most important they will most likely want partial ownership in your company.

Related posts:

  1. What is a Private Investor?
  2. Why Do I Need a Private Investor For My Business?
  3. Should You Seek a Private Investor for your Business?
  4. How a Private Investor Can Help You Reach Your Business Goals
  5. Need Money for Your New Business? Consider a Private Investor!