Investment Options for Entrepreneurs

Investment Options for Entrepreneurs Ro b To l l ey

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As well as crowdfunding platforms and start-up grants, there are several other potential sources of funding for entrepreneurs, such as angel investment, start-up loans and venture capital investment.

Investment Options for Entrepreneurs

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Unlike angel investment, venture capital investment typically comes from financial institutions or large organisations that provide funding to start-ups.

Angel Investors Angel investors are individuals (typically with a high net worth) who opt to invest in a start-up, in exchange receiving part-ownership of the business. In the UK, the Angel Investment Network helps to connect investors with entrepreneurs.

Start-Up Loans Secured, government-backed personal loans aim to give entrepreneurs the funding they need to get their business up and running and promote growth. Providing they have been trading for less than 24 months, start-ups could receive from £500 to £25,000 worth of funding.

Venture Capital Investment Unlike angel investment, venture capital investment typically comes from financial institutions or large organisations that provide funding to start-ups. Such investment usually entails being given an equity stake and decision-making power in the new business.

Choosing an Investment Source Entrepreneurs should carefully consider the type of investment they are seeking. While for some financial input is the primary requirement, others are looking for the expertise and experience a potential investor could bring to the table.

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