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Private Money Investors

Private Money Investors

Private money investment is a great source of startup capital for new businesses. Start-up businesses seeking private investors have received a great deal of financial aid and expert assistance. Private investors invest in all venture ideas- entertainment, contracting, construction, real estate, brokerage, catering, pet supplies, craft stores, appliance repair, retail, greeting cards, photography, consulting, beauty salon/products, interior design, online businesses and others.

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.