As capital and investments start shrinking for small
businesses in these economic hardships, a glimmer of hope has appeared for
small businesses looking to grow. Angel investors are not as commonplace as we
would like them to be, but if you and your company have what it takes you can
be seeing major growth and experience in the future. With uncertain and
tentative bank financing, big companies have become an alternative to small and
mid-sized companies looking for venture funding. Angel groups usually invest in
only 1%-10% of those who applied.
Small companies on the prowl for extra cash may benefit from
the deep pockets large companies possess. According to a recent study, more
than 800 companies cash balance have quadrupled since 2001. Those deep pockets
can help growth companies find weary investors with renewed liquidity.
“If the large corporates make more acquisitions and create
more exits, they may get people more excited about investing again” -Jeffry Sohl Center for Venture Research
Large companies looking to speed up their growth are looking
to sink their money into companies that can help them do so. With the new partnership
established, investors and small and medium CFO’s can become closely involved
with the business. The experience gained from these partnerships will not only
benefit the CFO in regards to management but would also progress the company in
new ventures.
“In the past, they
kind of stood back and did not take board seats or an active role. Now they
want to be integral part of helping that company grow to the next level.” – Mark Hessen, President of National Venture
Capital Association
So what’s the moral of the story? With some creativity and persistence
high growth companies can find ways to acquire much needed capital from
investors both large and small. To do this successfully, CFO’s should research
what investment groups are looking for and sweep them off their feet once your
meeting is penned in. Good Luck!
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