Angel investors and venture capital firms provide financing to business owners but will often take an equity position in the business. Angel investors will typically invest in a business at the start-up stage and they can provide strategic business experience to the entrepreneur. Venture capital firms invest in business that have a record of sale success and want to take the business to the next level. They provide the entrepreneur with industry specific experience and will be more involved in the day to day operations of the business. If an entrepreneur lives in Louisiana, Texas, Colorado, New York, Wisconsin, Alabama, Florida, Missouri or Washington DC, they may want to look into the Certified Capital Company program or CAPCO. CAPCO is a program created by individual states that give start-up companies the ability to have access to venture capital and the guidance that venture capital firms provide.
Finding the right form of financing
There are many forms of financing an entrepreneur can choose from, so it may come down to a personal choice. Some may not want to give up equity in their business or they may not want to deal with high credit card interest rates. Others may not be comfortable asking family and friends for a loan. No matter what the situation is, entrepreneurs should be open to looking at all financing options to find out what will work best for them.