The two major requirements before starting a new business are a clear business plan and sufficient investment capital which can be obtained with the help of angel investors. The investment capital or the initial capital amount is the fund used in the initial stages of the business to meet the expenses for setting up of the business. Companies use various means of fund raising process for getting the initial investment. Bank loans and public offerings are the other ways to raise the startup capital. Venture capital is one of the most preferred ways by business people for acquiring funds for their business.

The venture capital is a funding process through which the venture capitalist invests their funds in your business for exchange of shares in your business. They become a part of decision making team in your business after their investment. Being a venture capitalist for a startup business earns them power and authority in makes phases of the business. They have authority similar to owner of the business. Hence you need to clearly mention all the related information in the papers before both the parties accept for the investment. Always look for a well experienced venture capital for funding your company.

Before getting the investment capital from the venture capitalist, you should also clearly form the exit strategy of these investors. Usually the investors plan to stay in the same company for five years. Once the agreement and the amount are settled with them, they will leave the company and start investment in any other new growth oriented company. Thus venture capital will not have any complications like high interest rate, payback period difficulties or any lengthy procedures. By getting start up capital through venture capital makes your job much easier. To find the best venture capital, first you need to make a clear presentation on your business plan. Next you must provide information on return on investment and agreement expiry time to the investors. Make sure you make a plan for maximum 5-7 years with the rate of returns.

Angel investors are another means through which you can source money for the investment capital. These investors simply refer to the investing professionals who are enjoying their retirement period and are ready to make investments in any small new businesses. Here also, the investors plan to stay for a period of 3-7 years and once they get back the amount with the specified ROI, they retire from the company. As the angel investors are very experienced, you can use them as the expert advice for your business. The angel investors can also help you in building the business networks through their contacts.

Before choosing the investors for your business, make sure they are reliable and stable in this business. Also make sure you are comfortable with these investors and ready to take them as your partners in the business. You can search and find many such services through internet. There are many such services available in the internet where you can visit their website and ask any clarifications.



For getting funds as startup capital please visit venture capital http://raaventures.com and to get funds through online you need to visit angel investors http://raaventures.com .