Financing -- Loans/Angel Investors
I've tried to research my question on my own, as well as looked over your past Q&A, but can't seem to find the answer to what I'm looking for...
Regarding angel investors, I've heard that they generally ask for 25%-30% in return for their investment. Is that for the *whole* life of the business? Or only until they earn their investment back plus a certain amount?
Sorry for my ignorance, but we all have to learn somewhere, right?!(LOL)
Thanks for at least being thoughtful about asking your question.
Many ask questions, that could easily have been googled, so I appreciate your pre-work.
Typically they will want a 25-30% IRR on the life of their investment.
However, this can be negotiated somewhat, depending on the desirability of your idea/concept/creation/product/company, etc.
You must be clear on what YOU GET, for the investment...
Do you get management assistance?
Marketing? R&D? Do you agree with THEIR strategies for the development and growth of your company?
Do you like the people? Have they been successful with a similar product or idea?
Interview other entrepreneurs, in whom they have invested, both successes and failures.
Get an attorney to assist you in the negotiation, one who is knowledgeable in venture capital investment structure.