4 Types of Investors for Start-ups

4 Types of Investors for Start-ups

Investors come in many different forms and have different advantages depending on what stage a business is at. Here we provide some information of a few investor types for start-ups

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Peer-to-peer

Peer-to-peer lenders are individuals or groups that offer funding to small businesses. Access to this type of finance requires entrepreneurs must apply with companies that specialise in peer-to-peer lending

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Angel Investors

Angel Investors are individuals who provide capital for a business start-up, usually in exchange for ownership equity. Angel investors sometimes give support to start-ups in the initial moments

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Venture Capitalists

Venture Capitalist are used mainly at a point when a business begins to show a significant amount of revenue. Venture capital firms are most known for investing substantial amounts of money when they invest.

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Personal Investors

Business owners often rely on family, friends, or close acquaintances to invest in their companies, particularly in the beginning. While it may be easy to convince loved ones to help, thorough documentation is highly recommended.

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