Capital Raising After Writing a Business Plan
Capital raising options for financing a new project include various types of potential investors. Each option has its advantages and disadvantages for its pursuer during the process of capital raising, after writing a business plan.
- A Private Investor (or in professional terms: an “Angel”) – Is a wealthy individual who seeks to invest his money is new projects, which will potentially give him better financial return, more than the standard investment options available in the market.
- A Strategic Investor – Is one who seeks to invest in any plan or idea that meets his ongoing business operation. For example: A well based leading green energy company which promotes a new, relevant project, which integrates successfully with its own business plan.
- Venture Capital Funds – This mainly refers to those who invest in technological projects and start ups, which involves a greater risk factor (and higher return as well).
- State Given Sources – Just like the “head scientist”. Investing in technologies and ideas which were defined by the Ministry of Industry, Trade and Laborof Israel, under specific requirements, as a high business potential in accordance to the state’s priorities.
- Private/Public Funds – Occasionally, there are private or public funds available which are designated for developing specific ideas which were prioritized by the state (public funds), or that match the investor’s intents (private funds).