BrokerDealer Profile: StartUps Embrace “SAFE” Approach For Investors

Vinayak Ranade, the founder of Drafted. Photo: M. Scott Brauer for The Wall Street Journal

BrokerDealer.com blog profiles a new investment document approach for Startups seeking capital from angel investors and others; courtesy of 2 April coverage by WSJ’s Adam Janofsky and Angus Loten “Startups Offer Unusual Reward for Investing; Simple Agreement for Future Equity aka “SAFE.”

When a young Boston entrepreneur sought half-a-million dollars to launch his startup last fall, he turned his back on today’s usual tactics, such as selling equity stakes or issuing convertible notes.

BrokerDealer.com global database can link you to angel investors and qualified brokerdealers

Instead, Vinayak Ranade opted to use a largely untested way for entrepreneurs to raise funds known as a Simple Agreement for Future Equity.

The agreement provided investors in Drafted Inc., Mr. Ranade’s fledging, four-employee company, no equity shares, and the investors weren’t categorized as creditors. Continue reading

BrokerDealer.com Launches Business Intelligence Portal For Bankers, Investors and Entrepreneurs Raising Capital

Immediate News Release

BrokerDealer.com Launches Broker-Dealer Business Intelligence Portal for Global Bankers,

Qualified Investors and Entrepreneurs Raising Capital

New York, NY—May 28–Broker Dealer LLC, a provider of financial industry corporate intelligence and qualified investor databases, announced today the launch of a new, broker dealer web-based portal that incorporates 100,000 broker dealer, investment banker and securities dealer profiles as well as upwards of 20,000 qualified investors extending across 35 major countries, including capital formation brokers and deal investors based in North America, EU, Eastern Europe, China, Pacific Rim, the Middle East and Africa.

Apart from detailed lead generation and decision-maker metadata, the company’s platform incorporates a range of social media applications, including a “deal room” forum that enable capital-seeking business enterprises to share their business plans with professional deal-sourcing bankers and private funding sources that include qualified angel investors, hedge fund managers, private equity and venture capital firms and family offices seeking investment opportunities. The firm’s investor database is available for free and is accessible via http://BrokerDealer.com.

According to Jay Berkman, head of the financial services practice group for marketing consultant The JLC Group, “Brokerdealer.com could be the right domain for this new player in the business intelligence space when considering the evolution of the JOBS Act in the U.S., the global embracement of crowd-funding in advance of traditional investment bank capital-raising techniques and the depth of global contact information available within the brokerdealer.com database.” Added Berkman, “The social networking function within its subscriber-based platform is compelling, and it’s advertising-free.”

Brokerdealer.com was designed to help connect companies seeking broker dealers, funding, underwriting, or lead manager assistance for debt and equity offerings. The platform was created out of the need to give entrepreneurs, investors and data providers the ability to connect with one another. The broker dealer databases found on brokerdealer.com includes information such as broker dealer’s name, address, phone, URL/emails, and most important, a description of what the broker-dealer actually performs. If a company is seeking to raise capital for a real estate project the user will be able to filter the broker dealer databases – on a global scale – and reach out.

Brokerdealer.com anticipates adding 45 additional securities dealer and broker directories, giving network members of brokerdealer.com upwards of 75 of the world’s most popular broker dealer lists.

For Additional Info:

Email: brokerdealer@brokerdealer.com

Twitter: @broker_dealer

What Are Angel Investors And How Do They Differ From Venture Capitalists?

Early-stage startup companies have big challenges ahead when it comes to making their business a success. You already have the concept. You may even have an eager customer base ready to buy the products. What you may still need is the seed money to get operations off the ground. Without the proper funding, success may be unattainable. It is often important in these early stages for a startup company to for angel investors to help get things moving in the right direction.

What are Angel Investors?

An angel investor is an entrepreneur much like yourself. They have had the previous experience of owning and operating a successful business until they became a very high net-worth person. They are ready to invest their own funds into a successful startup company to help you build and grow your operations.

Since they understand the high risks of investing in early-stage startups, angel investors seek companies that hold a certain criteria. You, as the business owner, have to be ready to build up the business until the time comes to exit through a merger or sale. This process is how the angel investor gets a return on their investment.

In the past, many angel investors would try to stick with companies close to home, but the advent of the Internet has made it easier to invest globally. Websites like BrokerDealer.com are part of this revolution. Ideally, angel investors are looking for a startup company that promises high returns, scalability to its operations, strong management, and a unique product or service that will attract a large market for an extended period of time.

What Is the Difference Between an Angel Investor and a Venture Capitalist?

You may be wondering what the difference is between an angel investor and a venture capitalist. Both are entrepreneurs who invest in startups that promise high returns. Yet there are some major differences between the two of them.

While an angel investor will give your business the seed money at the very early stages of your operations, venture capitalists usually wait until the startup has a bit more groundwork underneath it and is beginning to produce revenue. Angel investors also often invest using their own funds. Venture capitalists, on the other hand, will use other investment sources such as foundations, pension funds, and insurance companies.

Another major difference will be the amount of invested money given to you. Angel investors normally stick with investing smaller amounts ranging up to $100,000. A venture capitalist may invest $2 million or more into your startup. Some angel investors may work in entrepreneurial organizations called angel groups that will invest from $200,000 up to $2 million in a startup based on the size of the group.

Understanding angel investors and how they operate can help you decide if they are the ideal investment partner for your startup. If you are running a fledgling startup and you don’t mind giving up some ownership of their business, have a high-demand product or service, expect large revenues in the coming years, and have an exit plan in place; then seeking an angel investor may be the answer to your company’s financial needs.

 

Sources: http://www.forbes.com/sites/tanyaprive/2014/03/11/the-most-common-question-that-new-angel-investors-ask-2/