Raise private equity is a great opportunity for obtaining financing.
Raise private equity means seeking investments from angel investors who are high net-worth individuals also commonly known as accredited investors. Recent estimates show that approximately 1/7th of more than 300,000 startup or early growth stage companies are receiving investments form private investors.
Over $20 billion in investment capital is raised each year. You can see why it is so important to raise private equity for your business. Angel investors typically have the same characteristics. This includes investing quickly in a proposal. They will often invest within one day of hearing about your proposal. Most of them are well educated and sophisticated investors. Often times the investors will invest in a group.
Their investments will range from $10,000 to $500,000 with an average investment being made of about $200,000. Most private investors won’t invest every year, but they will make a large investment in to the right business model once every couple of years.
To raise private equity you should stick with private investors because they fund 30 to 40 times more companies than venture capitalists. Also venture capitalists will be harder to convince because they make much large investments which generally get into the millions.
Having good moral character and good planning skills will increase your chances of getting approved by an investor. Often times these investors will not only contribute their money, but they may also contribute their business expertise to really help the business take off. This means you may have to give up some ownership control if you get an investor, but the benefits tend to out weight the negatives.