Tag Archives: Angel Investor

How to Make the Most of Equity Financing

Basically, there are two ways to fund a new business: debt and equity. Debt, commonly thought of as a loan, requires that the borrower/guarantor has an adequate cash flow or has enough unencumbered liquid assets to pledge as collateral. This collateral covers the debt's principle and any liquidation costs and discounts in the event that the borrower cannot make the agreed [...]

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16 Popular Crowdfunding Platforms

There are a wide array of crowdfunding platforms, each with its own unique spin on raising funds. Some platforms support charitable or creative campaigns, others reward-based campaigns, while still others support equity-based campaigns. Some are for accredited investors only while some are open to all types of investors. Some are designed to help raise funds for product development while others are [...]

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The Tech Start-Up Fallacy

Every community wants a vibrant economy for its citizens. Of all the categories of business, the most coveted businesses tend to be tech start-ups because of their higher paid employees. However, to provide the fertile environment necessary for them to spring up requires access to a pool of risk capital such as Venture Capital (VC) funds. Incubators and accelerators are [...]

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Connecting With Your Audience

A business associate of mine, Ken Jaray, is an Angel investor and earned his personal fortune as a very successful trial lawyer. When I asked him what was the most significant factor that contributed to his phenomenal success in the courtroom, he replied that it was his ability to connect to the jury on a personal and emotional level. As [...]

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The Hidden Value of Crowdfunding

Traditionally, entrepreneurs had 2 options to raise funds to start their business. They could either get a loan or give away ownership to investors. Because of the risk involved in the early stages of a small business, founders had to give up large blocks of equity to entice an early stage equity investor. On the other hand, having to make [...]

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The Power of Leverage to Make Huge Profits

Most serious investors understand the power of leverage. When it comes to investing in stocks many sophisticated investors have a margin account with their broker that allows them to pledge their securities as collateral for the ability to borrow money (usually up to half the portfolio's value) from their broker to invest more than the value [...]

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Using a Self-Directed IRA to Fund Your Business

Retirement accounts qualify for special tax treatment by the IRS. One of the most common retirement accounts is an IRA, where pretax dollars are deposited into an account and allowed to grow tax deferred. These funds are designed to create income during retirement and are subject to premature distribution penalties if the funds are used before the age of 59.5, except [...]

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Retirement Account Funds New Business

Many would-be entrepreneurs have money tied up in retirement plans like IRAs or 401ks that could be used to fund their businesses. Many simply believe they can't access these funds until they reach the age of 59.5 without being subject to a premature distribution penalty. That being said, there are a few ways that you can fund your small business [...]

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