A business funding strategy requires defining exactly what it is that you need to do to make your invention a profitable commercial success.
Funding supports a plan based on good research or proven results and successful actions.
A business funding strategy should include communicating your accomplishments.
What have you done that is impressive?
Your invention could be included in such a list but it is not the only criteria investors are interested in. What else can you do or have you done? What other skills, talents, achievements do you have?
Investors are looking for some track record so they may predict you. They would like to determine your character and the probability of you becoming successful with their help.
The more confidence an investor has in making money with you - the better chance you have of getting funding with favorable conditions.
In Five Big Lies I talk about what you can do to get results that will impress investors.
It's about being valuable to others. The more valuable you are - the more support you receive.
Angel investment networks are groups of wealthy individuals (angels) who invest in new ventures.
These networks are organized so that individual investors can share resources and collectively pool their funds for investment.
Angels are often retired successful entrepreneurs who have interests in specific industries or technologies.
For example, software, medical devices, bio-tech and other high-tech sectors draw interest from angels. Besides providing funds, angels also bring a wealth of management experience, resources and connections to a business.
Angels invest their own money and differ from traditional capital investors that manage investments for trusts, banks, companies and investment funds.
Entrepreneurs generally begin a new venture using their own money or monies borrowed from friends and family. These networks fulfill the need for more capital that cannot be borrowed from capital investors.
Angels will lend money to small business entrepreneurs because they believe the venture has merit and will eventually be attractive to traditional capital sources who will want to acquire an interest in the business.
This is known as an "exit strategy", meaning the investors will make their profits when the business appreciates in value and is acquired. This is part of their business funding strategy.