Finding Investors for your Start-Up

Finding Investors for your Start-Up

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Entrepreneurs often have a tough time finding someone to fund their venture; many fail to do so but go ahead with the launch anyway, and then they run out of cash. Finding a reliable source of start-up capital is likely to be fundamental to your business’s success. If you can fund it yourself, that’s terrific. If a partner is able to provide funding, then that can work, too.

Retaining control

At the start of my career, I made a conscious effort not to bring on any financial partners, as I wanted to hold all the equity in my businesses. My friends and I worked hard to keep our businesses going using only the cash they generated. For our first business, Student magazine, we did all we could to sell advertising to pay the bills. When we started Virgin Records, we handed out leaflets to promote our shops.

This meant that our expansion was slightly slower than we would have liked, but it also meant that I could reward my colleagues with equity in the company. I was free to steer the business in any direction I wanted. This gave me freedom to move on opportunities quickly and also to make tough decisions without delay or distraction.

Remember, a partner with money is very useful, but a partner who will also provide you and your team with the space, time and freedom needed to build the business is a true friend – and that friendship will stand the test of time.

Richard Branson
Richard Branson is the founder of the Virgin Group and companies such as Virgin Atlantic, Virgin America, Virgin Mobile and Virgin Active. He is the author of "Business Stripped Bare: Adventures of a Global Entrepreneur."
  • The title of this article is out of sync with the content. For such a big magazine, that is poor and disappointing. http://www.entrepreneurmag.co.za/advice/funding/attracting-investors/finding-investors-for-your-start-up/

  • I have just purchased a fully operational 60-seater pub with an asset value of R245, 000 and the gross turnover of the previous owner being between R30, 000 and R42, 000 per month. A kitchen is being installed and light pub meals will be introduced that will substantially increase the turnover. We do not need start up capital but we are seeking funding of R150, 000 for expansion and working capital. We will offer the investor a full refund on his/her investment plus an added 30% ROI as part of the exit strategy. If you are interested in becoming a silent partner/investor in our venture please email me on superservice@lantic.net for further details. Nicky Day-Anderson