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Where to find private investors
By Jenny
C. McCune • Bankrate.com
 The
private investor can be an elusive beast. But if you do your homework,
you'll be able to flush him out of the woods.
- Start the hunt by using your own personal
contacts. Ask family and friends if they know of anybody who's
looking to invest in a company. Who knows? Maybe some of your
personal contacts qualify as high net-worth individuals and are
therefore candidates.
- After you've hit your inner circle, expand
the search to your professional contacts. Your attorney and
your accountant may be able to provide you with leads. Glennon
says he's set up investment deals for his clients in exchange
for a finder's fee, consisting of a certain percentage of equity.
Kathy Morell's Make Us an Offer found an investor through a consultant
who was advising the company how to write its business plan.
- Talk to other businesses in your area.
More established business owners can make fine investors.
- Look for venture capital clubs in your
area. These clubs allow businesses to present their business
idea and investment needs to their members. Most major metropolitan
areas have them. There are even "niche" investment clubs such
as the New York New Media Association that Kathy Morell has presented
to. The New York New Media Association strictly focuses on Internet
companies for possible investment.
- Comb the Internet. There are online
angel networks that match investors to companies searching for
capital. You can start your search with the SmallBiz Finance Links Library.
A recent article
on how to find an "angel" investor may also be helpful.
Jenny C. McCune is a contributing
editor based in Montana
To comment on this story, please e-mail the
Bankrate.com
editors
-- Posted: Jan. 10, 2000
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