But what banks can not calculate or do not understand, they do not finance it. For innovative entrepreneurs are the road is long and full of obstacles. Not without reason is capital for innovative start-ups also called risk capital if the idea fails, the invested money is gone.
To venture capital, there are three main possibilities:
- business angels;
- venture capital;
The two agreed for a beer and discussed the idea of establishing Hobby Lobby. Green and his neighbor also mused about possible sources of funds and the neighbor must have said at one point, "Well, maybe we should invest in your concept." A few months later, Green $ 50,000 from him and two other lenders on the account. And not long after, his company operational.
The easiest are the ones who want to make themselves independent with a proven concept, for example, with a physiotherapy practice. And who can demonstrate additional collateral, yet will in most cases be a loan from his bank. Much more difficult, however, are the ones with truly new ideas.
?? Angels ?? they are called, because they help in the background:
- hand with money;
- on the other hand with experience and contacts.
Business angels are usually self very passionate entrepreneurs who therefore have anything to make starting a new business succeed. In the ideal scenario is one business already familiar with the founders and also knows the market and the industry already outstanding.
For their capital and their tips are given the angels ?? ?? Shares of the company, in order later to benefit from profits or sales. Negotiations on how large that share should be, is probably the biggest challenge for the budding entrepreneur. Because both parties must reach agreement on how the young company is actually worth.