What Investors for Start Up Business Ventures Know That You Don’t

Any time you’re entering into new territory as an entrepreneur, it’s important to find out what the people who have come before you have learned from their experiences. No matter how innovative your start up idea is, more seasoned entrepreneurs and investors know a lot of things that you don’t about running a business and making it profitable. When you’re looking for investors for start up business ventures, get ahead of the game by learning what they know that you don’t yet. Showing that you’ve done your homework is a great way to secure more investors for start up business ventures.

Investing in a Start Up Early Can Yield High Returns

A brand new start up often doesn’t need a huge amount of cash from its investors for its current goals. Giving a few thousand dollars to a new company in exchange for what might seem like a small equity percentage can return massive amounts if that company turns out to be a success. Consider these prominent examples: investing $1,000 early on in Facebook turns into $624,500 today, while investing the same amount in Dropbox is worth $391,500 today. If percentages work better for you, consider this: that Facebook investment gives a 62,450% return on investment. Dropbox is a smaller, but no less staggering 39,150% return on investment.

Recognize the Risks

The Dropboxes and Facebooks of the world represent a very small percentage of the portfolios that investors for start up business ventures create for themselves. Investing in start ups is a high-risk, high-reward game. It’s highly illiquid, and should never be explored without the advice of an investment expert. When you gain something, it’s likely to be a lot. However, you are more likely to lose your money investing in start ups; after all, 75% of start up companies fail. In addition to looking for those high returns, most investors for start up business ventures have a passion for entrepreneurship and helping early stage companies get off the ground that in some ways justifies the financial risk. Sometimes you’ll get a mentor as well as money.

Economic Recovery Isn’t That Simple

Without getting into a complicated lesson in economics, it’s a simple fact that economic recovery hasn’t been as clear-cut as we’d like to think. As a result of the economic crisis, investments previously considered as alternative have been on the rise, since investors are looking to diversify their portfolios. The number of angel investors for start up business ventures has gone up quite a bit, as this has become a popular form of diversified investment.

Building a brand with impact is another key factor in securing capital for your start up business—after all, you need an attractive, unified concept to pitch to investors. If you need help branding your company, even a name for a finance company, contact the experts at A Hundred Monkeys today to see how we can help you!