SA Crowdfunding Blog

Venture capital and start-up investment have traditionally been dominated by the big players. After all, they have usually had more resources to help them choose a good startup business than the others. Moreover, entrepreneurs have traditionally preferred wealthier investors because they get more capital. However, start-up investments are slowly but surely becoming accessible to the average investor. To understand what this means for entrepreneurs and investors, it is important to learn about startup investments first.

Startup investments

The terms venture capital investment, start-up investment, and angel investment are different in their own way, but they share the same common concept, which is that of investing in a new firm or a new product or service that is being launched by a firm. The money that is invested is used as capital by the company to carry out its plan.

If the investment is for a start-up, the money is generally used to begin product of a company until its revenue stream increases to the point where it can sustain its capital. Of course, the investors who provide the money to the company get something in return as well. This can either be a certain number of equity shares in the company or a certain percentage of equity ownership.

Why invest in start-ups and support entrepreneurs

Every year, several entrepreneurs think of new and promising ideas for a business, but fail to turn them into a reality. One obstacle that stops a great business idea from getting into the real world is capital, or the lack thereof. The large money lenders, including banks and financial institutions, are very cautious about funding any business idea, and so, a lot of promising ideas go to waste. However, startup investments or angel investments can help such promising and radical ideas to see the light of day.

Published in SA Crowd Funding Blog

Online investing is one of the most lucrative areas of high growth investment today, and for a reason. For those who are not aware, high growth investment is a relatively new type of investment strategy where you invest in companies that are expected to grow faster than others do for shares or ownership equity. This is often done on a crowdfunding platform such as Startme in South Africa where you have the opportunity to invest in a business or creative idea together with a host of other investors. Not only is this more affordable and the risk is shared among many of you, but its an exciting opportunity to see your money grow. This investment is used for financing the company.

Those who provide equity finances as an investment to high growth companies are called venture capitalists, while those who provide finances to a startup with high expectations of growth are called angel investors. Let us take a closer look at what these investors do.

The role of venture capital and angel investors

Published in SA Crowd Funding Blog

Featured Projects

  • Damn Fine Coffee
    Damn fine coffee is a start up coffee company, with the intention of supplying e...
    Created on: 15 October 2014

    Days to Go: 34

    Target: R 8,000

     
    15% funded so far
  • Buy a (tyre)brick and up-skill unemployed future green builders
    The Qala Phelang Tala t/a Start Living Green Non-Profit Company (NPC) started ou...
    Created on: 28 September 2014

    Days to Go: 93

    Target: R 10,000

     
    5% funded so far
  • Educational Chat Site
    This project is a Web Project aimed at getting our School going people to be mor...
    Created on: 22 September 2014

    Days to Go: 56

    Target: R 30,000

     
    1% funded so far
  • Kuswag Rugby
    As Kuswag School, in Amanzimtoti, is the first school EVER from South Africa to ...
    Created on: 28 September 2014

    Days to Go: 92

    Target: R 500,000

     
    0% funded so far

Free copy for every StartMe! member

Accreditation

Help is at hand!

Do you need help logging in?

Want to add a new project?

Want to delete a project?

None of the above - get in touch This email address is being protected from spambots. You need JavaScript enabled to view it.