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Compassionate Capitalist Coffee Break – Who Invests in Ideas?

August 11th, 2016 · No Comments

Entrepreneurs often struggle raising seed capital because they subconsciously limit their expectation of who invests at the idea stage to rich friends and family.

In this series of short videos, Karen Rands explains the types of investors and how to find them and engage them to invest in a company at seed stage, when the entrepreneurs are just developing their idea and their company framework.    In the world of seed stage investors, of course you have what many have come to call ‘friends, family and fools’…. the fool part is because they often invest for emotional subjective reasons, rather then based on a list of objective criteria.

Rather than Friends & Family, you could really consider them and ‘Affinity Group’.  An Affinity Group is a term Karen started using years ago during her The Money Hunt© Workshops.   An Affinity Group has a special connection to the Company, either because of a relationship or trust in the entrepreneurs/founders, or because of their belief in the market value of the product.

Click here to see 1 min explanation of Affinity Groups:

or use this link: https://youtu.be/4u4q_HPlFYc

And when you are fortunate enough to find a series investor, that does have business criteria, but is not opposed to investing at the seed stage, it is important to understand how they think.

 

Karen Rands discusses how entrepreneurs can attract capital at the “idea stage” of their startup. If they can find their ‘affinity’ group of investors that have knowledge of the product and industry, and value proposition or a specific connection to the entrepreneur and founding team.  Sometimes that is from ‘friends & family’ but not always.  Karen explains the mindset of the Seed Stage investor.

To schedule time with Karen to talk about your business and how you can attract capital, click here to complete a short form for a free consultation. Then click the link in the confirmation email to find a time that fits your schedule on Karen’s calendar. 

Are you an investor wanting to get started in angel investing, or wonder should you invest in a deal that has come your way.  You can sign up for Karen’s Inside Secrets to Angel Investing and get a link to Karen’s Calendar. 

 

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Tags: Compassionate Capitalist Coffee Break · Entrepreneurs Seeking Capital Corner · Just Ask Karen!

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