The SCORE Small Business Success Podcast features interviews with the best and brightest in the world of small business, covering topics such as business plans, financing, marketing, human resources, SEO, social media and more. In this podcast, SCORE mentors chat with Maryann O’Neil and John Montelione about crowdfunding.
Click here to listen.
A: It depends on what you want to do.
At first glance, this may sound like a difficult question to answer. But it’s an important one if you’re considering taking on a partner or selling your company.
If you’re in the market to buy an existing small business, you want to know exactly what you’re paying for, and how that value was determined.
There may be other situations where establishing the value of a business may be important. You may be considering spinning off part of your current business, or dealing with a dispute or litigation. Business value also figures in divorce proceedings and other cases where the value of one’s assets is factor. Continue reading
Angels Invest Their Own Money
VC’s Invest Other People’s Money
- Angels invest $23B while venture capitalists invest $27B.
- 67,000 deals are done by angel investors while 3,700 are done by venture capitalists.
The Software Industry Receives Most Angel Financing
The industry receiving the most angel funding is Software (23%) followed by Healthcare (14%), Biotech (11%), Media (11%), Retail (7%) and Financial Services (7%).
The Typical Angel Investor
The typical angel investor is a successful entrepreneur investing their personal money in businesses close to home. They judge potential investments primarily by ROI (return on investment) and 26% ROI is the average annual return. On average, 3 of 10 considered deals are accepted.