August 30, 2007

Tip of the Week: Picking the right investor

Need funding for that great show idea? There are several types of investors just waiting to help, but each have differing objectives, time horizons, ownership arrangements and management involvement. Just as they will want to know your plans for the future, make sure you understand theirs. "Angel" investors are usually people close to you who will lend a few hundred thousand dollars and are willing to let you be in control of your business. They invest less money and expect less in return. If you need more than $1 million dollars, a venture capitalist or private equity firm may be better for you. They'll both want an equity share and a say in company decisions. Venture capitalists typically fund ideas and start-ups, whereas private equity players are usually looking for owners and partners looking to grow through acquisitions or seeking to gain liquidity. To learn more about investment partners, read Finding Investors to Bankroll Your Business in the July/August issue of EXPO Magazine.

Stay informed with Expo's weekly e-newsletter:
Get daily industry news via RSS What is RSS?