08.10.2009 18:06:31

Investors Network Team

Most people see Business angels as those lucky types with enough cash to consider investing in early-stage businesses. If you’re looking for a third party to inject cash into your business, the first question you have to ask is: how much ownership of the business are you prepared to give up?

Ben Botes, co-founder of a South African based business planning and growth consultants, SA Business Plans, comments that: ‘Many businesses look for debt finance in the first instance. But the bottom line is that if you don’t have assets, you’re not going to get any finance.

‘Business angels tend to be seen as the last option because people are reluctant to give away any equity. But you have to be sensible and ask yourself which is better: owning 100 per cent of nothing or 50 per cent of something that’s worth R10 million?’

Speaking to investors

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