What is Investment Capital?

It is an activity in which businesses, startups propose business ideas and specific steps to conduct business as well as the financial picture of the company to convince investors to invest capital in them.

Capital is a decisive factor in the development of a project or product to the market. Therefore, calling for investment capital can be said to be the most vital issue, especially for startups.

When to Call for Investment Capital?

Investors only invest when they are truly convinced. In addition to factors such as sales, strategy, the business needs to demonstrate its potential and vision.

However, the decisive factor is still the trust between the two parties. The timing of calling for capital is also a key factor in increasing the likelihood of success when calling for investors to invest capital.

You should only call for capital when it is truly necessary and you have prepared in advance. You need funding to invest in implementing your business idea before you can convince investors; then call for capital. You should prepare a well-thought-out presentation and presentation method to increase the probability of success when calling for capital.

The main purpose of calling for capital is still to raise investment funds to develop your project and products or services. Therefore, make sure the capital you call for from investors can help your business grow.

For startups: Call for capital when you need to invest in upgrading, repairing, buying equipment, machinery for business.

For newly established businesses: Calling for investment capital can be divided into stages as follows:

Stage 1: The company needs funds to build the product and reach the target customers. Stage 2: The company needs capital to develop beyond reality. Stage 3: The company achieves its initial goals and needs to call for investment capital to promote the development of the business.

Common Forms of Raising Investment Capital Nowadays

Raising capital from banks: For businesses with a stable operating time, good credit history, and enough assets to collateralize the loan capital. Raising capital from funds for startups Participating in fundraising programs: Nowadays, there are many reality TV shows or competitions born to promote startup activities, which will be an opportunity to support and legal advice as well as investment in various ways. Raising capital through venture capital funds: With this form, businesses or startups must convince professional investors, making them see the potential and huge profits that the project can bring. Community-based fundraising: This method relies on community support, the public, or what is also known as crowdfunding. Raising capital from individual investors: Seeking support from wealthy individuals who want long-term profitable investments or angel investors willing to invest in startups. They invest with their own money and in exchange for ownership stakes in the business. Due to the high risk of investment, the profit demands of these investors are also significant. Businesses need clear plans and goals to develop the business to convince these investors. Raising capital from relatives, friends: This form depends on the level of trust and reputation of the business owner.