5 Risk Capital Financing Sources - Book Report/Review Example

Entrepreneurs can have a better knowledge as to the type of firms usually seek business angel investments, easing their emotional sense knowing that they are not alone in the scarcity. Furthermore, entrepreneurs can know whether they belong to any category or not. It is highly practiced in the global market. Criteria usually involve firms that are around 50 miles within the reach of the investor or an hour’s worth of drive. Europe is currently showing high statistics of Angel Investors. Entrepreneurs can know how far they can go to seek investors within their vicinity, thus avoiding time wastage.

This also provides investors with the knowledge that angel investors are convenient for they are within proximity. Business angels highly value firms by assessing their internal processes, especially in the financial part. Firms who are dependent in their tangible and manufactured products in generating revenue are highly valued. On the other hand, firms who depend on their labor force, such as in the case of agencies, are valued less and are more likely not going to be invested. Early preparations of such requirement will entitle entrepreneurs the easy preparation and early approval.

If entrepreneurs know this, they can prepare beforehand, and they will have enough time to make these requirements as comprehensive as possible. Knowing this will make entrepreneurs realise how binding such investment is. Also, they will know that they can get this type of investment in no other way. Thus, they can still change their mind if they want another option other than paying with equity. While still planning on putting up a business, entrepreneur can decide on choosing the most financed on so as to ensure help from business angels.

This is also applicable for entrepreneurs planning for expansion as they will have an idea on what industry they can