Seeking Business Investors

May 12, 2015

Dear Cathy:

I recently started conducting research for a business.  I might think about looking for investors for my business to help me finance my business.  Who are investors and where can I find them? Seeking Investors, Oregon

Dear Seeking Business Investors:

There are two types of business investors, Angel Investors and Private Investors. 

Angel Investors:  Angel Investors can be family members, friends, neighbors and colleagues.  They can also be doctors, dentists, small business owners, successful salespeople, retired executives or anyone else with money. 

Private Investors:  There are about 250,000 high net-worth private investors (rich people) in the U.S. who fund over 30,000 small companies each year.  These are individuals who might give you $25,000 to 1 million for your business. They typically like to invest in groups so each can get a piece of the deal.  Private investors are sophisticated, drive a hard bargain and are looking for a big return usually within 3 to five years.

To learn more about business investors or other ways to finance your business read "How To Take Control of Your Own Life: A Self-Help Guide to Starting Your Own Business" - available as an e-book and paperback.