Using an angel investor directory is a complex process. There are a number of different lists available that you can either download for free or purchase from a third party. As such, it is important for you to make sure that if you are using a freely available directory of angel investors that the list is up to date and has appropriate contact information if you are seeking an investment for your small business. There are a number of companies out there that provide bogus directories or out of date information that will in no way help your business as you progress through the capital raising process. As such, it is imperative that you are able to find a company that can provide you with the research that you need when you begin your quest for private investment into your small business. zodiac signs elements
As an alternative to purchasing an expensive angel investor directory, you can work directly with a private placement brokerage or capital introduction firm. These companies are usually licensed securities dealers that can assist you tremendously as you seek capital for your new business or ongoing business concern. However, the fees that are associated with working with these businesses is extremely high. Usually, a private placement broker will charge a fee equal to 10% of the total amount of capital raised. Additionally, there may be some upfront fees as it relates to the production of a private placement memorandum, business plan, subscription agreement, and other documentation that is necessary when you are working with an angel investor. An attorney will also need to be involved in any transaction that you have with a third party funding source.
In short, an angel invest directory is a great way to start your search as it relates to finding leads for your needed small business investment. One of the ways that you can also find private investors for your business is to work closely with your certified public accountant. These individuals and firms often have broad directories of wealthy individuals that are frequently seeking to provide capital to local small businesses. As such, you can reduce the expense of finding private investors on an ongoing basis by simply working with professionals that you already have hired in regards to your business operations. In many of our future articles, we are going to continue to focus on how you can effectively find angel investors for your small business on an ongoing basis as it relates to private investment into a small business.