Sponsored Links

Sponsored Links

Common Stock
Mission Statement
Outsourcing
Venture Capital

Overlooked When Raising Capital: Investor Preferences

Topics: Angel Groups, Credit, Entrepreneur, Investor, Venture Capital

Financiers prefer to back entrepreneurs who are similar to them. If you're an entrepreneur looking for money, you probably have a list of factors that you've heard increase the odds that someone will finance your business. But here's one you might not have considered: homophily. For those of you who do not spend your spare time reading sociology textbooks, homophily is just a fancy word expressing the birds-of-a-feather-flock-together cliche. Sociologists have found homophily to be very common. Studies show that rich people want to associate with other rich people. Lawyers like to be with other lawyers. Doctors prefer to hang…

Read More

Why Equity Financing Eludes Startups

Topics: Angel Groups, Equity, Investor, Small Business, Venture Capital

Despite the hype surrounding equity capital, very few startups raise money from outside investors. The Census Bureau's most recent Survey of Business Owners shows that only 2.7 percent of U.S. companies obtained startup financing from a venture capital firm, strategic investor, friend, or family member. Even raising external equity after the startup stage is uncommon. Data from Angelsoft, a provider of angel investment tracking software, reveal that only 2.8 percent of those seeking money from angel groups receive it. The share of successful requests for venture capital is even lower. A primer on venture capital produced by the Small Business…

Read More

Find the world's best tweeters