Week 7- ENT-600 Investor Dilemmas
When I first started thinking about starting my business, I did not know which kind I wanted to start. As time went own and I learned more about Angel Investors, and Venture Capitalist, I knew neither were for me. Let’s take a closer look at what each of them does and represent.
First the Venture Capitalist, according to the Small Business Administration the “venture capitalists provides equity financing that addresses the funding needs of the entrepreneurial companies that for reasons of size, assets, and stage of development cannot seek capital from the traditional sources, such as public markets and banks.” I have a hard time with this because typically the venture capitalist wants a high percentage of the shares in the company as well as an active role. I can tell you that for some situations that this is the perfect set up, however at this time for me I would like to develop my company a little more.
Next, let’s take a peek at the Angel investor, according to the SBA, “angel investors are still offering cash as the equity, however, unlike the Venture capitalist, most are former entrepreneurs themselves and have cashed out of their own business.” They are more like a consulting and mentoring partner. Out of the two, I would probably use the angel investor just because he or she may have gone down the same path that I am traveling now. It’s more about building the business at this point and enjoying it while I do it.
Finally, I would like to grow my company slow and methodical. I would like to see the process through and not to have my equity taken from me. I chose the path of starting a non-profit because it is an organization that is dedicated to furthering social causes or advocating for a particular point of view. This is what brings me joy, and if I can make a good living from it, I will be just fine.