There are currently a few major categories of investors:
These people have extensive business experience, owned their own businesses or have led successful business. The vast majority have accumulated large funds in relatively short time. He engages in high risk business, despite losses. It has a diverse portfolio, predominantly in the field of innovative industries.
These people have less business experience than the “Core” category, but they take high risks by investing in the trend and trends of high-tech. Sometimes they are motivated to promote new technology or new standards in technology. Some of them may not get involved in funded companies.
“ROI” Return of Investment
This type of investor operates motivated to risk-free investment. They have a specific behavior in the sense that they can stand aside when the performance is weak, but they can become extremely active when the market shows signs of stability. They rarely get involved actively in the companies they invested in.
They are generally people who were managers in large corporations who have been restructured, retired or replaced. Even if business profitability is their central goal, when investing seeks active involvement in the funded business. In fact, I am looking for a job and, in addition, I invest up to 200,000 euros in the funded company. Generally, these investors do not personally have more than one million euros.
These people are successful investors who own and operate their own businesses. Constant revenue flow allows them to invest a large amount of capital in start-ups. They usually invest between 200,000 and 500,000 euros, but they can invest even more if the business grows well. He assists entrepreneurs in launching the business, and he rarely gets involved in managing a company.
These investors are 65 years or older, they are prosperous business people, but they only make small investments between 10,000 and several hundred thousand euros in different businesses, sometimes as a hobby. I do not take seriously the active involvement in business as well as managers.
These people are considered extremely serious investors. Even if many of them are born rich, they gain fame and success through their own efforts, independence and successful strategies. They often demand an important management position and, as a rule, succeed by imposing the same strategies that they have consecrated. I usually invest between 100,000 and 1 million. If the active role is not too important, they get involved when the company has problems.
These investors act as doctors, lawyers, accountants, etc. who invest in companies in their field or related fields. I can invest in several companies, at the same time, between 25,000 and 200,000 euros. At the same time, they can provide services to the company they invested in (legal, accounting or financial). They are very valuable for the initial capital and for the real skill in business management.
People who are true leaders. They will attract and convince other investors. They are generally motivated to have their professional value confirmed by discovering opportunities.
These investors are, in fact, mentors to the success of young entrepreneurs. Moral rewards are equally important or even more important than material ones.
“Silver spoons with silver wings”
People with good financial status, heirs of the second or third generation of business success. Even if they are younger than the average investors, they have acquired a significant amount of business expertise.
These investors will invest a lot, being interested in taking over the company, escaping the founders.
They are inexperienced investors who do not have the credibility of an authentic investor. They usually invest in what everybody invests in. Therefore, when they are in trouble, they can retire, leaving themselves intimidated by difficulties.
Some firms may have strict rules when it comes to foreign or independent investment. Sometimes a business can be so tempting that one or more shareholders want to invest in the company as independent, through a “Moonlight” investor.
These investors are service providers who intend to change their services on a percentage of the company’s shares. When a young company takes advantage of such an investor, it can often save long-term money.
There are three major types of investors that business owners should be aware of:
Entrepreneurs looking for this type of investor should not just emphasize the purpose of their business idea. The business plan should include percentages that would be for the shareholders but also how costly the investment could be.
Investors who are attracted by investment due to adrenaline, and the thrill associated with risky businesses. They think they deserve, and they want to help, the entry into the market of entrepreneurs who have innovative ideas. While the process of getting capital from an investor is a highly competitive process, new business owners looking for funding from such investors should have a well-prepared business plan to put it step by step , convincingly.
Investors who are happy to help small businesses to thrive. They enjoy their promotion, community development, and job growth. Entrepreneurs wishing to attract capital from this type of investor should probably highlight the benefits of economic growth in local communities.
* Hedonism = ethical conception that the purpose of life is pleasure; the cult of pleasure.