If you first heard of equity raise, then briefly the concept of equity raising means, businesses will be available to ordinary investors sell a certain percentage of shares, investors through the investment stake in the company, access to future earnings. This Internet-based channels of financing model called the equity raising. In addition, the equity raise as well as an explanation that "equity raise PE Internet".
Digital technology via the Internet, the traditional investment pattern inevitably began to transition, and investments are becoming more widely, such as communications, transportation, shopping, and entertainment, these startups today can easily obtain investment. Not only that, with the continuous optimization of equity raised platforms on the line, but also further simplifies the process of private equity investment, so that ordinary people can participate.
When equity raise realize online processing, means removing the barriers of traditional financial threshold, equity raised for ordinary people to participate in private equity investment, if you think a company has high potential, can buy their shares. In other words, equity raising investment is no longer a privilege of the rich, and became a place where everybody can participate in the "democratization of investment."
Another benefit of equity raise, is the ability to make more companies access to financing and bringing more innovation, economic growth, and as companies become "profitable", investors get in return is increased, can be described as a win-win situation. Moreover, regulators in many Asian countries also hope to develop this new investment patterns, such as Malaysia Securities Commission released equity to raise investment limits. Thanks to the equity raising, more and more ordinary people can have private equity assets, but for many involved in the field of "small white" is concerned, is very important to understand the principles of equity to raise, but if you follow these rules and principles, then you can get a good return. Next, let us look at equity investment raised seven win trick!
Investment diversity: invest in startup companies and small and medium enterprises naturally occurring risks therefore diversity of investment will help you avoid some of the potential risks. In fact, if you're desperate to cash in a startup company, the result is usually not too happy about it. For example, if you have 10,000 dollars, it is better to invest in 10 startups, each put in $ 1000 instead of only 2 companies, and then put in $ 5,000.
II, and set investment ceiling: on venture early of company and SMEs for equity all raised investment, actually should is you many investment in the of part, actually, everyone in investment of when are shouldn't too blind, is we often said of don't put all eggs are put in a basket in, more alone, now of investment channel also many, like purchase listed company stock, and bonds, and real estate, and or other assets. But the investment community saying, that is "high risk, high return", so you'd better invest their own equity raising to set an upper limit, my advice is, best 5% per cent of your total portfolio to 10%.
Third, do due diligence: when you have an investment opportunity, may have several levels of due diligence involved. Of course, the most obvious of the due diligence work is a fraud investigation. Many equity raised platforms at the time of audit projects will help investors to complete this work, such as checking corporate and management structure, background investigation of the founder and major shareholder, ensuring financing agreed by way of equity raised, and so on. However, apart from fraud investigations, due diligence the main objective is to assess whether the start-ups can succeed in the future. In this issue, the following two key:
1, company founders and executive team: invest in a company, the most important thing, in fact, or a person. Those founders were smart enough yet? network wide it?: spending? flexibility when problems are encountered solved? sounds like a platitude, but as the CEO of a start-up company, it must have the pioneering accomplishment. All you have to do, is to make sure that the startup founders are confident enough, how should we do this so? answer is founder and more communication, more exchanges, encounters don't hesitate to bring up, until you recognize their abilities and attitudes, otherwise don't put money.
2, business scalability: when the slow development of a start-up company, and high business costs, so investors are unlikely to get a good return. So when investing in the equity raising, you need to choose startups with business scalability, easy to speak are those who develop faster, start-ups and operating costs continue to decrease. Ideal investment can help raise these start-up companies expand their business revenue and profits, prompting the profitability.
Four, and market potential: Dang you has found has a has business extended capacity of start-up company, first don't worried, also has other factors need considerations, now you need do of, is see whether has enough big of market to meet they of products or service, these products and service can fill market gap did? start-up company must to has clear of value advocates and market strategy, ensure himself can preemption most of market share. Fu sheng to a round of recommendations of the
Five and "exit strategies": as we know, has an obligation to give investor dividends of listed companies, but private companies don't have to, at least, most of the private companies will not. This means that if you want your investment to pay off, you can only hope that this startup could be mergers, acquisitions, or IPO listing. "Exit" strategy has some speculative and therefore equity raising before investing in you, must see that start-ups have a clear "exit" strategies, such as who would want to buy the company, and when will it make acquisitions. It is worth mentioning that, private IPO listed the possibility is very small, which means that if you want to take back their investment, the best are pinning their hopes on the startup can be acquired.
Six, followed by "experts" go: equity investment raised a very interesting phenomenon, is that you can see who was involved in the investment, so when you don't know how to invest, look for "top guns". For example, if you see a specialist investment a home appliance platform, or a well-known angel investors settled in XYZ Company, hesitate, hurry to vote!
Seven, trust your intuition: in fact, risk cannot be avoided, every company have some risk, no investment is easy, if you were raised in equity investments, serious implementation of the six principles, the last trick, is to trust your gut, that investment will ever succeed? intuition will tell you the answer!
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