Skip to main content

4 types of investments

 A retail investor, he must know the different phases of investment that companies undergo. Not each and every, but almost all companies.

The first ones are from the founders. They muster their hard-earned money or money in exchange for some obligation to build the company. Actually, this is the initial investment and the best part is they can take as much as share they want. If it is founded by a single, he owns every share at the initial stage. But as the company grows, like any other company, it requires money for its future growth. So what the founders and chiefs of the company do this time is that they go to an Angel.

Angel investors are the second-term investors backed up by their own money. This looks closely to each and every corner of the business and after a lot of obscure examination, they either accept or neglect the offer. If they’re to invest, they will do so by pledging share in return. Since the company is still at its initial stage, the ‘angels’ will get a large number of shares for the least money. This will generate a multi-bagger return if the company is about to outperform the industry.

Next comes the big VCs. These are giant corporations that invest a large amount of money. They only invest after the company proves that they can stand and progress efficiently with their current management and system. These instructions do take risks, but not like betting at the initial stages. Even though they pour money, they won’t get the same amount of shares they desire. Because the company is more valuable than before and the responsibilities and obligations are more than before.

Even from big VCs, sometimes companies might face financial challenges that lead them to go public. Going public can be a game-changer. By going public and raising investment from them, it is going transparent. It must show its activity from very minute one to major ones. That’s the rule. Going public also determines the reputation. A retail investor could only buy at this stage.


Labels:

Comments

Post a Comment

Most viewed

Use information for seduction

The ability to get out of yourself and dig into other people's lives can be useful when it comes to seduction. we must let ourselves subside and know the opposite person well. Know what they want, what they like, how they would react to different circumstances, and whey they like and dislike. During this process of minute scrutiny, never leave a clue that might lead to suspicion. Digest this information and keep tracking the person occasionally and ask them subtly about those private things to show you really care what they said. This sense of feeling that this person cares about us when used correctly can be a tool for seduction.
Post a Comment
Read more

Business asteroids

  Several million years ago asteroid in a size larger than the moon hit the earth and wiped most of the species leaving the dust particles to afloat. Since then, asteroid is identified as mostly a negative thing. In fact, many historians believe that that was the turning point to the second life of the planet. Generally, we could see people referring asteroid as capable of destroying anything. This true, but it is not complete. The sentence only fulfills the moral meaning when we add “and bringing the new world of new opportunities”. We would be survived if it hadn’t happened amid the dinosaurs. We must have gone extinct long before. It is common to assign asteroid anything that is about to wipe out the old and bring the new.    The term Business asteroid got popular in the last two decades. Reason: we barely saw anything before. Like an actual asteroid it is perceived as wrong at its entry. Many people said it would not be a problem for them. Some sided with ´this is shit and child pl
Post a Comment
Read more

Diversified investment

The importance of diversification is still unknown to many and they focus on pouring their majority of money into one thing or few things of the same sector. Investment should be diversified and must be done ater thorough study.
Post a Comment
Read more