According to a group of
studies performed by the SBA and SEC it is found that only about one in
two hundred startup businesses that seek capital actually get funded.
If you want to increase your likelihood of being a success story, you
must know what really works. Lenders and venture capital firms invest
around five billion annually in startups. Whereas private investors
invest over two hundred billion annually in startups. That is why 96% of
all startup businesses are funded by private investors. Therefore, if
you have a startup it is usually unwise to pursue funding through
anything other method than private investors. However, you should be
aware that when you seek private capital from investors there are
three very important elements in obtaining funding.
1.
Legal Compliance
2.
Professional Image
3.
Qualified Investors
If
one offers an investment to even one company or person who does not meet the legal
requirements as an accredited investor (individual with annual income
exceeding $200K per year or net worth over $1 million) or a person highly sophisticated in business investments, the entire
offering is likely in violation of federal and state law.
Therefore you MUST survey the investor prior to offering your
investment and ask if he or she meets one of the above criteria! An online survey form will be provided USE IT--we
keep it as a record to show you surveyed the investor properly. Plus
you will not have to login again to get another investor. If you have
any questions please see our tutorial for further details |