Angel Investor Network
Why Raise Venture Capital amid Unstable Economic Situation?
Posted on Friday, May 6th, 2011 at 11:19 pm.
As we know, venture capital lies on the opportunity of investing. It involves high risks and it can be very time consuming. However, if the ventured business grows it can reap a very huge reward. A few years ago some venture capital partners are holding back their expenditures amid the financial downturn, according to some financial blogs. This financial crisis made it harder for investors to get funding for startup businesses or business expansion but those who prove themselves during this period of financial crisis will be better positioned to flourish when the economy recovers.
According to the IMF’s World Economic Outlook report last January 2010, they forecasted 3.9% GDP from the said year and projected 4.3% GDP for this year. Some people thought that the global economy recovered faster than what was planned, but some believed that the recovery has been slower than they had hoped. According to IMF chief economist Olivier Blanchard, a global recession has been avoided, so that a gradual recovery of world economy is present. But some developing countries have restored faster after the global crisis particularly in Asia such as China and India, and in Latin America such as Mexico and Brazil. Despite this unstable economic situation, the United States has always been a dominant force in fostering world innovation.
With the economy turning down and some educational concerns remain an issue; the United States has been desperately conscious of a changing world. Transforming ideas into marketable and lucrative products is the greatest skill of venture capital that was challenged by the globalization and technology breakdown in the past years. The venture capital community was more pressured to continue superior performance and maintain competitive edge as the global standards are arising. Since taking his office, President Obama has taken historic steps to lay the foundation for the innovation economy of the future.
The United States strongly focuses on innovation. The Obama Innovation Strategy builds on well over $100 billion of Recovery Act funds that support innovation, additional support for education, infrastructure and others in the Recovery Act and the President’s Budget, and novel regulatory and executive order initiatives according to the White House website.
This is an exceptional time for the venture capital community, and together as a whole, the industry must address venture investments and methods to make certain to have a continued growth direction for promising young or startup companies. The economic situation today creates ideal opportunities for angel investors and venture capitalists. The importance of venture capital lies not only in providing money for this innovation but also ancillary services such as selecting good firms, mentoring entrepreneurs, hiring executives, formulating strategies, and professionalizing companies thus, providing job opportunities for the Americans as well.
How to Re-Apply for Startup Loans or Seed Capital after your Bank Declined
Posted on Tuesday, April 5th, 2011 at 11:46 pm.
So your bank declined after complying with all the requirements necessary in applying for a startup loan? It is very discouraging when after all the efforts you have invested in and the time consumed of securing all the documents needed, you were still rejected by your bank. This loan rejection could affect your business lines of credit for future business loans. But do not take it personally because there are always challenges when going through the business loans application process. Try to stay calm and find out why your application was not approved.
It is imperative to know and understand why your loan application was not approved by your bank. Most of these financial institutions would not go through the details as to why your application was declined because they are afraid they might be offending you, but knowing the reasons why can be crucial to your business success and it can be very helpful in your subsequent business loan applications. You may ask your lending officer politely and tell him that you understood why they would not be able to help you; however, you need to know the reasons of their disapproval in preparation for your next loan application.
After being turned down from your local bank, stay calm and do not lose your hope. The rejection of your loan application may only reflect the financial health situation of the bank, perhaps the bank is not really in good financial shape and are only offering loans to their best valued customers. But it does not mean that you are not one of their best valued customers, perhaps these clients are their loyal customers who have been in business with them for such a very long time. If you have been their client for such a very long time as well, perhaps you were the last one to apply.
There are few best options left for you in acquiring startup loans or seed capital for your startup business. Your best solution is to look for a financial firm that offers unsecured business loans which do not demand for many requirements unlike your local conventional bank. It is best to partner with this type of unsecured business financing firm who understands your financial needs and helps you obtain unsecured lines of credit.
There are angel investors network as well that can provide you seed capital that eliminates unnecessary applications which could also have resulted in disapproving your previous loan application. This network of investors may help you analyze your business plan, offer essential coaching for entrepreneurs seeking to raise venture capital, and will work with you to accomplish your goals. Partnering with angel investors for your startup business enables your business to succeed and they will continue to help your existing business for future expansion.
There are several financial institutions other than banks where you can obtain business funding for your startup business or business expansion. If you are not familiar in your area, you may search on the internet and apply through online, or you may call their hotline numbers and they would be happy to assist you with your financial needs.
A Look at the World’s Economic Situation Today
Posted on Thursday, March 24th, 2011 at 1:21 am.
Today’s economic situation creates ideal opportunities for angel investors and venture capitalists. It was reported that the world’s economy today may appear to be improving statistically but many believe that the global economic conditions are only getting worse. When a high intensity earthquake and ensuing tsunami devastated Japan last Friday – March 11, 2011, the world was shocked and in great turmoil.
Japan, as one of the richest countries of the world is currently suffering from nuclear crisis that may influence the global economy, and may affect the health condition of the nation and its neighboring countries. It was the worst earthquake experience that this country ever had, and the worst calamity that ever happened to this country. Japan gets more than a quarter of their power from nuclear energy. The country has several nuclear reactors and became the third largest nuclear power user in the world providing 34.5% of its electricity. So many countries depend on nuclear power. But what happened in Japan recently made safety officials seek desperately on how to avert catastrophe because this nuclear meltdown is enough to impact human health.
Prior to the catastrophic event in Japan, several countries experience tragic situations as the strong forces of nature hit these countries while some experience chaos and wasted so many lives due to civil wars because of political ill-power or political dynasty. Following are just few of the major disasters encountered by some countries today, creating a humongous effect in their economies.
- A strong earthquake wreaked havoc in New Zealand last month and killed so many people while hundreds are still missing and left damages that caused billions of dollars.
- The wettest season ever in Australia happened earlier this year where one of its biggest cities and some towns were ravaged by heavy floods, killed few people but affecting thousands of families and establishments that cost billions of dollars in its damages.
- In south-eastern Brazil as well, they experienced the worst natural disaster after several decades. More than 500 people were known to have died in heavy floods and damaged a huge amount of money in their properties.
- Egypt encountered its first real international crisis and the biggest disaster since the Iranian revolution that happened three decades ago, pushing the Egyptian regime out of power. This also caused several civilian lives and affected a lot of foreign workers in the country.
- The people power started by the Egyptians subsequently brought tumultuous revolutions by Libyan and Bahraini people, still with the aim of pushing their leaders out of power due to political dynasty or regime. These countries are major producers of oil and employed thousands of foreign workers but they were vastly affected because they have to be sent back to their own countries.
- Saudi Arabia and Qatar are afraid to be the next middle-eastern countries to have possible signs of hostilities. According to some economists, if this would ever happen this could be the worst catastrophe that would eminently disturb the global economy.
To raise venture capital is one of the solutions to economic recovery today. Angel investor networks are very positive of seeing their money grow by investing in start-up businesses with potential, or in some business establishments that are still in the recovery phase after the catastrophe. Those who have good business lines of credits are very much capable of acquiring these unsecured business loans quickly. Entrepreneurs and investors can easily connect with each other no matter which part of the world they are because of the advancement of technology.
The Importance of Venture Capital for Start-up Businesses
Posted on Friday, February 11th, 2011 at 12:18 am.
Venture Capital is a finance that is furnished to start-up companies that have high potential growth but are too small to raise capital and are not yet capable of obtaining a bank loan. The ventured capital fund which is also called as seed capital makes money in exchange for an equity stake of the company it invests in. They usually get considerable control over company’s decisions, apart from owning a significant portion of the company.
These financial resources are vital for entrepreneurs who have projects such as product innovation or research development that needs potential investors. Financial institutions like banks offer loans to entrepreneurs however, they demand the payment of interest on the invested capital. Angel Investors on the other hand, are mostly opulent retired individuals who are willing to venture capital in early-stage businesses or expanding enterprises, in exchange for stocks and bonds of the company. These enable them to stay abreast with the development of the business sector even while enjoying their retirement.
Naturally, these entrepreneurs need significant support to get their ideas off the ground. It is imperative to have a healthy system of connections of lawyers, accountants, and other business professionals who understand the challenges of start-up companies in establishing a feasible Angel Investor Network, with specialized services that include intellectual property protection, auditing, workforce development, and Initial Public Offering (IPO) registration. At an early stage of the business development, an experienced Angel Investor can contribute knowledge and skills to an entrepreneur on how to run the business. They may also be good sources of useful contacts allowing entrepreneurs the opportunity to network with others in their industry.