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.
candidatefor them?
are you the best
best option
and are they the
for you?
check these 4 investors that can
help your business take off!
Family and Friends
#
1
type:
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.
check out
crowdfunding
these top
organizations
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 woo
THOSE INVESTORS?
count on us
to get you there!
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Show Me The Money! - Know the 4 Types of Investors @BlueStartups