Signing for the right credit approach
Besides senior management considerations, it is helpful for you to understand what VCs and Business Angels expect by way of return on their investment. VCs will be looking for a high return and a likely exit in five to seven years. They are attracted to businesses that have a chance of going public, or being on-sold at a significant profit. (You need to bear in mind, however, that very few private businesses have a realistic chance of taking the flotation route.)
Business Angels are a mixed bag of individuals. Some of them take a professional investment approach by seeking high returns through a three to five year exit (and will keep at arm’s length from your business in the meantime). Others will be quite happy to be involved in the business in a non-executive capacity with no particular rate of return, or exit time frame in mind: these people might be, simply, looking for something exciting to do!
About Me
My name is Caroline Derringer. I work as a professional business advisor and university professor of economy. The content of this blog is based on a series of lectures that I delivered in a few major US universities. They will soon be published as a book, but for the time being you can read them online.
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