Localfund.com - All about Fund and Investment
*Home>>>Angel Funds

Why so difficult to seek investors for my business?


Am trying to seek angel investors for my business, I want make partnership between my skilled, experience and expertize meet money and capital from angel investors, privately face to face without helping from venture capital company or company like that, please if anyone can answer mine would be much appreciated. http://fxmax.blog.dada.net

Yours is a very good question and an excellent example concerning how to seek investors.

You do not identify the country in which your new business intends to operate, but we assume that it is Indonesia.

It is illegal under the laws of Indonesia for a person to advertise publicly for "angels" (investors) in a new business.

In addition, it is illegal under the laws of the US for a person to advertise publicly in the US. This a violation of the Securities Act of 1933, which provides that no person may advertise publicly unless the company has filed a Registration Statement with the SEC. Furthermore, even with a Registration Statement on file, any advertisement must include information about the offer or solicitation (e.g. that the offer or solicitation must be accompanied by a Prospectus).

To answer your question: why is it so difficult? The answer is that the "angels" whom you seek are themselves very knowledgable and sophisticated (and/or they have sophisticated investment advisors). These angels know that it is illegal to advertise publicly like this, so they assume that -- if you violate these securities laws -- you are not the type of business partner that they would want to do business with.

So, with this background, we recommend that you go about seeking investors in the legal and proper way. Start by writing a very detailed business plan, including detailed financial profections. Also, obtain the assistance of qualified solitors (attornesy), accountants, bankers and other consultants and advisors. After all, you may know everything about your particular business, but none of us is an expert in everything. The secret for success is not to know everything but to surround yourself with advisors who do.

Most start-ups need money just to prepare a business plans and to gather a qualified board of advisors, and this money is called "seed capital". You may have to dip into your personal savings and borrow money from your bank, your family and even your friends. (It is illegal to advertise publicly for such money.)

Hope this helps.

Tags
  Business financing   Business Invest   Business Debt   Bond Investment   Angel Funds   Alternative Investment
Related information
  • Im trying to catch out a fraud, and i need your help.?

    I think you've got into something too big for you. Be careful and just turn it over to the authorities if it's illegal.

    ...
  • Is not responding to a stockholder by a corporation a crime? What about Directors fiduciary responsibilities?

    Your question is a little vague. As a general principle, officers and directors owe fiduciary duties to the corporation - not directly to shareholders (except in the case of an insolvent corpora...

  • What is the process for getting investors to invest in your idea involve?

    You can get money from: Friends and family Angels VCs The SBA Find ones who live in your area. They have lots of information on websites. Follow their process exactly.

    ...
  • What do you think of this forum?

    I dont think this is solicitation, she just wants to know how her site looks and get advice. I think its great forum and has alot of computer security programs trusted by other sites... way to go. ...

  • PLEASE...tell me what you think ladies?

    fabulous darling.....marry me!!! lol

    ...
  • How do you communicate with your angels?

    Shalom Well, it is easy to communicate with your angels. But I always communicate with my Eloh(G-d). My Eloh speaks right to my heart and I always believe Him even though his messages are seemed r...

  • Need a slogan for a product that i want to portray as angelic?

    For serenity & "peace" of mind. .

    ...
  • How do you write a business plan for a unique Web 2.0 startup with proper financial projections?

    Find a small business management consultant who can walk you through the process or an M.B.A. student who's willing to work for free. Both should agree to a compensation package payable once f...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster