Many new entrepreneurs need seed capital in order to start their business, and they either choose venture capitalists or angel investors. Even though venture capitals are considered as a good source of funding, there are several reasons as to why new and small scale entrepreneurs should approach angel investors to fund their business propositions.
The drawbacks of taking a fund from a venture capitalist
Unlike angel investors, venture capitalists usually invest in high-scale projects, as they have higher amount of funds at their disposal. So there is a high possibility that a venture capitalist would not even consider a small-scale business proposal. Even if a venture capitalist decides to invest in a small level project, he or she would want returns instantaneously. This will put immense amount of pressure on the entrepreneur, and it might affect the business negatively.
In most cases, venture capitalists invest in business offers that are tried and tested, and they rarely invest in schemes that are risky and novel. So if you are passionate about your business, and you have a business proposal that is very unique, there is a high possibility that a venture capitalist will not consider it.
In addition to this, even though venture capitalists are ready to fund business proposals with large amounts of money, they have higher demands in terms of control as well. Many venture capitalists would want ownership equity of close to 51 percent. Additionally, they would also want the power to vote in the right of sale. So taking a fund from a venture capitalist will automatically make him/her a strong owner of your business and you will not have the freedom to make any important decision on your own.
The benefits of using angel investors
Angel investors, on the other hand, work in a very different way from the venture capitalists. Many angel investors target small-scale businesses, as they want to provide seed capital for business proposals that would benefit the growing economy of a country. The angel investors want to make profits from the business proposal eventually, but their decision to choose a business proposal in not solely based on terms of profitability.
Many angel investors fund projects that belong to their particular field of work, and since these investors work individually, or in small groups, they don’t push the entrepreneurs to yield profits as soon as possible. As a matter of fact, in a lot of cases, angel investors give their feedback to the entrepreneur and they try and better the business proposal.
In addition to this, many angel investors have a large business network. So if the entrepreneur wishes to expand his or her business, he or she can take guidance from the angel investors. So, not only do the angel investors fund a business proposition, but they are also willing to expand it with the help of their contacts. They don’t have extraordinary demands with regard to ownership, so you can continue to make independent decisions with regard to your business, without unnecessary interference from the investors.
Angel investment is on the rise in the Asian business market as many first generation entrepreneurs are seeking help from angel investors to establish their businesses. As a matter of fact, a large percentage of aspiring businessmen want angel investors to fund their business proposals. According to statistics, the businesses supported with angel investment have lesser percentage of failure.
How to approach angel investors
As an aspiring entrepreneur, there are many things that you need to keep in mind in order to get a reliable angel investor to consider your business proposal. This is because angel investors are very demanding, and they need to be fully convinced of the fact that your business proposal is going to yield profits in the long run. So, if you are planning on approaching an angel investor with your business proposal, be patient to listen to all their demands, and make sure that you present your project in an elaborate way.
It is essential that you have a fair amount of knowledge about the field that you want to start a business in, before you approach an angel investor. This is because these investors do a lot of research in order to predict the success rate of any business proposition. So if the investors question you on any aspect of the business proposal, you should be able to answer appropriately. It would be better if you could also quote some industry statistics, and company examples to explain your proposal.
In addition to this, make sure you include a system of governance for the investors in your proposal. Once the investors have given you the fund, they will own some part of your company, and they would want to keep a track on the progress of the firm. If you include a monitoring system in the proposal itself, they will be motivated to fund your proposal. As a matter of fact, if any of the investors has experience in your field of expertise, he or she might give you some suggestions as well.
Why would angel investors invest in business proposal in Asia?
Many entrepreneurs have the misconception that angel investors prefer to invest in businesses in developed countries. But in reality, many angel investors are more than willing to invest their money in developing economies, especially in Asia. This is because Asian countries have extremely fast growing economies at present, for instance China and India. So by investing in these countries, the angel investors secure their own future, as they develop business relations with all the flourishing economies of the world.
Since various Asian countries are growing in terms of economy, angel investors have a very good opportunity to connect their contacts from rest of the world to these countries. In addition to this, developing countries have a higher demand for investors, as majority of the business owners in these countries are first generation entrepreneurs. So they do not have any inheritance funds or substantial amount of savings to support their businesses.
Making a sales pitch to an angel investor might be one of the most important steps for an entrepreneur who is looking to start his or her own business, especially in Asian countries which have a high demand for angel investors. So before making a sales pitch to an angel investors, it is essential that you understand the various factors that these investors consider before they invest their money in any business proposal.
The amount that needs to be invested
The most important factor that any angel investor would consider before investing his or her money in a business proposal is the amount of funding that is required for the business project. In Asian regions, most of the entrepreneurs who approach these investors want to start their business at a small-scale level, so they do not require large amounts of funding. But in many other parts of the world, established entrepreneurs also approach angel investors for their ambitious projects.
All investors do a thorough research on all the proposals that they receive before sanctioning any funds for them, and they calculate the validity of the funds that the entrepreneur has proposed in the sales pitch. If the investors feel that the proposed amount is justified, and that the project has the potential to excel in the market, they support it.
The location of the project
Most of the investors prefer sponsoring projects in the regions where they are located. This is because, when investors fund projects closer to their location, they are able to monitor them easily. If the project is based outdoors, the investors will have to take out time from their busy schedule to assess the progress of their project. In addition to this, if the project is located closer to the investor, he or she can promote it among his or her business network. Also, if there are any problems in the execution of the business plan, the investor can step in.
The field of the business proposal
Unlike other forms of investment, angel investors tend to invest in business proposals that belong to their field of expertise. So if possible, the entrepreneur should do a little research on the angel investors before he or she approaches them. If the business proposal belongs to the field of expertise of the investors, there is a higher possibility that they will fund it. In addition to this, they will also guide you through the process.
The competitive advantage of the proposal
When the investors analyze any business proposal, they try and determine the competitive advantage of it. In order words, they try to determine why customers would choose to purchase products, or hire services from the entrepreneur. The investors conduct research on businesses that offer similar products and services in the market, and compare the business proposals as well. So it is essential that you highlight the uniqueness and the advantages of your business proposal in your sales pitch, so that the investors can determine your competitive advantage easily.
Angel investments have become very popular in the past few years, especially in the Asian countries. Asia is one of the biggest hubs for angel investment, due to its growing business section. But there are few Asian countries that have a higher rate of such investments in comparison to others. India is one of the Asian countries with a high angel investment rate.
What is angel investment?
Angel investment is a phenomenon where an affluent person helps a start-up by giving it seed capital. At present, most of the individual angel investors have formed groups, and they fund start-ups in exchange of ownership equity or convertible debt. Unlike venture capitalists, angel investors invest their own money in the starts-up that they sponsor. Even if the investment is transferred through a trust, investment fund, or a limited liability company, it is based on a single individual’s judgment.
How did angel investment become popular in India?
The Indian economy has grown considerably in the past 20 years, and the government has been encouraging the business sector within the country. Even though entrepreneurship was being encouraged within the country, the businessmen were handicapped because of the lack of seed capital or initial investments.
Seed capital can be defined as the initial capital that is essential to set-up a business. In most cases, the founders of the company provide the seed capital to start a business. Most of the times, the initial investment required for a start-up is not very large, but it still takes a toll on the pockets of the investors. Since many new breed of entrepreneurs in India don’t have sufficient savings to start a business, angel investment has become popular in the region.
The impact of angel investment in the country
The introduction of angel investment has had a significant impact on the Indian economy, and the Indian business sector. The availability of seed capital has encouraged a lot of individuals to set-up their own businesses within the country. In addition to this, the companies that have been funded by angel investors also receive support from banks. So if the individuals are confident about their business plan, they don’t have any shortage of seed capital.
The introduction of angel investors within the country has encouraged many people to take risks. At present, even students with interesting business ideas approach angel investors, and they are willing to run their own company at the age of 20 or even younger. This is a drastic change in the Indian economic sector. This is because prior to the emergence of angel investments, the businesses within the country were passed on from one generation to another, and few new comers had the opportunity to join this sector. But at present, a large percentage of the entrepreneurs within the country are first generation entrepreneurs.
A sump pump is a device that helps to remove water which is present in the basement of a building. This device is quite handy if you face problems of leaking, dampness, and flooding in the basement. The sump pump has an inlet and an outlet, through which water enters and leaves. Find out how they work at http://home.howstuffworks.com/home-improvement/plumbing/sump-pump.htm or read below.
The water which leaves the pump is re-directed to another location like a ditch or a storm drain. The pump deposits the extra water present in the basement to some other location. There are different types of sump pumps that are available in the market. Before installing a sump pump, make sure that the device is appropriate to suit the needs of your basement. Following are the classification of sump pumps based on various factors.
The design: Sump pumps can be classified into 2 different models based on their design. The first model of sump pump is of a pedestal style. Here, the sump pump is placed on a basin. It is quite easy to do periodic maintenance on this model.
Another model of a sump pump is a submersible sump pump. Here the pump will be submerged inside a basin. There are chances of electrical hazards occurring with this type of sump pump. So, you should ensure that the pump is covered up properly. Many sump pumps have a switch or a float that turns on the pump automatically if water is present in the basement.Battery operated sump pumps will be portable, and they are suitable for instances when there is accidental flooding or flooding due to rainfall. These pumps are less efficient than the electrically operated ones.
Electric sump pumps are not portable and they are installed in a particular place. Such pumps are suitable for areas where there is a chance of experiencing continuous flooding. If you buy a sump pump that runs on electricity, then you should use a separate electric circuit for the pump. This is because the pumps require a lot of power to operate efficiently. Some electric powered sump pumps come with a battery backup too. So, in these pumps the efficiency of the pump is not compromised. The external electrical circuit also helps to ensure that the pump will work well, even in the event of a power black out.
The size of the pump and housing: The first thing to be kept in mind before buying a sump pump is its size. The size of the sump pump is dependent on many factors like the size of your house, the quality of your lawn grading and gutters, as well as the amount of rain that is received in your locality.
Sump pumps come with plastic, metallic, or cast iron housings. Plastic housings are cheaper then metallic housings. But such pumps are not suited for areas which can always get damp and flooded. These pumps also tend to get damaged very soon. To avoid these difficulties, you can buy a sump pump with a metallic housing. Even though it may be pricier than a sump pump with a plastic housing, it will last much longer without any major complaints.
So what is the hook. Sump Pumps that are solar powered. They are not new, but starting to become more affordable. Our version looks at a solar powered roof that charges in advance so that you can take it out to where th incident is happening and get to work.
When I was younger it was crucial to get your resume looking right, set up right, have the right things, say the right things. Do a spellcheck too perhaps? But nowadays….? Its a mish mash of looks, errors, styles, and some of them make no sense. People even spell the job title wrong. Some look like they were typed up on a mobile phone. I even saw one where they spelled THEIR OWN NAME WRONG.
So lets help the youth of today and make a resume creator site. Have it ask you questions and then let it list your skills accordingly. Check which boxes are programs you know, etc.
Oh wait, you mean sites like http://www.gotresumebuilder.com/ already exist!?!? And its free? Ok then I’m out of excuses for you.
Name That Tune, for those that don’t know, was an old game show. I thought it was something from the 80’s but I was way off. No better source for trivial nonsense than wikipedia.
Anyway, years have passed and people barely remember this classic game show. And sure people have made apps on the android or iphone mobile or online versions of the game, but they are pretty weak. But I’m not a game developer or an app coder, so don’t ask me how to make them. Still, here’s some advice. The games are missing the same thing that the game of Karaoke games on consoles, PC’s, VCD’s etc were missing for a while. And when they did it, they were a few years too late perhaps….. example: Def Jam Rapstar
Many have said they had that idea over the years, so the fact that finally someone did it was a no brainer. Well, same goes for an online database of hip hop lyricism. A hybrid of name that tune and name that rhyme. Name That Thyme.
There are two modes to the game…. one mode shows a line or two of rhymes and you need to figure it what track it came from, the artist, etc.
Example 1: Oh, you think you’re tough, cookie. I think you better call your bookie. ‘Cause you can bet your life, I’m gonna play you like hooky
or… 2: I strive to be live ’cause i got no choice, and run my own business like my aunt joyce.
The other mode is name that beat, naming the hip hop song that plays without any rappers on it, and/or naming the sample source for bonus point. Or vice versa, for example answering who the original sample from songs past came from.
And as for the two lyrics above…. try answering. WITHOUT LOOKING THEM UP. In fact these games are made for phones and other devices where its not too easy to cut paste and search.
Whoever invented this is cashing in and is very lucky to. Its a dumb idea.
Yeah you see it in passport shops and photo places around the US, a passport photo cutter. And its one size fits all. Meaning that if you’re from a country that doesn’t have 2×2 passport photo size (and surely the US is full of people from elsewhere!) then you can’t get a photo.
Ever heard of making an “adjustable” version of the above? No one seems to have one.
Sure you can just buy the 35×45 mm one for those EU folks. But then thats when the Turkish person will enter your store and ask for a 60 by 50. So then you have to get another cutter. More money, more junk.
On a brighter note – http://www.epassportphoto.com/ lets you do this yourself at home, and cuts the photo for you. Good online invention there. But how about one for offline users, an adjustable passport photo cutter. Hasn’t been done yet, so consider this a new and recycled invention.
There’s no connection on the trains in big cities underground (at least in some parts of the world). You can use your tablet or laptop, etc on an airplane but you won’t have a connection (of course some flights offer wifi now, but it ain’t free). So yeah, there are parts of people’s days where they are disconnected!!!!! Oh no. But what can we do about it. And how can we make the most of that time.
Can’t reach your friends or check your status with no connection, but you certainly can shop online of course without one (to some extent). This application would have the stores catalogue, whether clothing or simply groceries, set on your tablet/mobile and would update periodically (you know, when you do have a connection or on a set weekly basis). The user would select what they want to purchase, fill out their shopping cart and make the purchase, enter all their info, etc. Upon submitting the order, you would then be alerted once connection is back in full swing and your order submitted. There you can confirm/accept and be on your way once back in the real world of constant connectivity.
If items are out of stock, you will be alerted this with your confirmation and can opt to replace it with something similar or simply remove them off your cart. Sounds easy and very doable. But I can’t find a single place that does it or at least does it right….
So when will a major retailer bring online shopping offline? Maybe soon, because the first one who does this right would get the perfect consumer, one that isn’t distracted by anything else, any messages, tweets, friends, texts (remember, on a plane or underground train your mobile isn’t working too well, but again, some cities have already gone past this).
And with a sort of directory based layout, its like building your shopping list on the way home. Except you’ve done the purchasing and finished the shopping too, without having to hit the shop on your way home. Instead of visiting the store when you leave the train, you just set it to submit and connect and minutes later it will – and yes you could order a delivery of those items with the likes of Fresh Direct (that’s someone I’d pitch this to, as the audience would be right, and it would work way better than http://itunes.apple.com/us/app/freshdirect/id346631494?mt=8) and other online supermarkets.
Think it would work well for groceries. As opposed to clothing, where you’d need to update catalog images frequently and fashions change often, but a piece of fruit, a quart of milk, looks the same as it did last year.
So you’ve probably seen the news:
GCHQ, the intelligence service of the government of the United Kingdom, is trying to hire some new recruits. And the site of “Can you crack it?” has picked up a lot of news recently.
The game goes like this, there is a series of letters and numbers and you need to decipher or…um crack the code and enter the “keyword” that comes as a result.
And there’s the result. keyword! As in Go to Google and put site:www.canyoucrackit.co.uk as your query. Sure enough, there was a road to the winning page – so here’s the answer to can you crack it, cracked.
Remember, its not about how you get the result, just get to it. I didn’t see any rules and T&C’s on it, so it wasn’t exactly cheating either….. not that I’d quit my day job though, thanks.
UPDATE: Yes this was similarly titled to a previous post on this blog, that was perhaps the point.