Private Money Investors
Private investors tend to invest based on goals, interests and location.
- Entrepreneurs starting up businesses should research funding sources to ensure they find the best source for their purposes.
- Private investments are estimated at approximately $130 to $150 billion of private money annually, compared to an annual $70 billion from venture capital firms and funds.
- Private investors tend to invest in businesses located within 50 miles or so of their homes or offices.
- A private investor is generally prepared to take a risk in investments, and is prepared to face substantial capital loss, yet still invests.
- Some common reasons why private investors reject a deal are lack of growth potential, overpriced equity, under-qualified or untalented management, or lack of information about the entrepreneur.
- Finding private investors has become much easier with advanced communication media, such as the internet and investor search programs.
- Take the VentureWorthy survey to find out more about Angel Investors.