Q&A with Adam: Do small scale equity investors / venture capitalist exist, and if so, how do you get them to finance your small business?
Another great question from my fellow Quorians on the question and answer community called Quora! Here's my answer
Yes, small scale equity investors exist. They are called angel investors. I have raised $715,000 for various ventures from them.
You get them to finance your small business buy presenting them with an investable opportunity in a compelling and sophisticated way. This is a skill I learned from mentors. (I can mentor you or anyone else about how to pitch to angels.)
Think about your project like a product that you want to sell to an investor. It has to be attractive to and suit the needs and aspirations of the prospective angel.
It’s no different than offering a product to a customer. More on this in my answer here. The value you have to offer is a return on investment, maybe even excitement and the feeling of being part of something fun for the investor.
You have to capture the imagination of the potential investor. Even the most sophisticated investor will be persuaded by the emotional component of the story you tell over even the hard numbers.
One mistake a lot of entrepreneurs make when raising funds for the first time is thinking that the investor has all the value in the form of money.
The truth is that investors need entrepreneurs to give them investable opportunities just as much as the entrepreneurs need investors to make investments.
So be confident in what you’re offering. You have just as much value on your side of the table as the investor has on his or hers.
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Adam Dudley is an author, coach, mentor, and consultant. He writes. He mentors. He adventures. Explore, learn, grow, repeat.
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