The last few years have seen a shift in the financing of businesses. Where entrepreneurs were previously dependent on the bank, there are now many more ways to give a capital injection to your business by, for example, crowdfunding or finding an investor.
But how do you find an investor for your business, what should you look for and how do you sell (part of) your shares?
Types of investors
There are different types of investors. From silent partner to coaching investor, in the form of a business angel. And from venture capital in a risky innovation to investment company for an established business. Which investor is right for you depends on the market and phase of your business, the amount you need and the period over which an investor in your business is needed.
Business angel
If your company is a startup with a lot of growth potential, then business angels or informal investors as investors can be a good fit for the ambition of your business. These investors are individuals with a lot of business experience (often former entrepreneurs who have successfully sold their businesses) that they would like to pass on to the next generation. On average, business angels bring between 100,000 and 250,000 euros to a business.
Venture capital
Venture capital in Dutch. These are investors who put money into businesses with a high risk profile, because they expect that the business can also grow quickly through their capital injection. High risk, high reward.
Investment company
Have you had a company for a long time, but do you need a lot of extra money for expansion, for example? Then you could turn to an investment company. These investors often invest in businesses with a medium to low risk profile, and for that you do need some history of existence. They buy the partial business, to grow it and sell it to a new owner after a period of about 7 years.
