Hi I have been doing IM for some time, and want to get to the next level so have decided on a partnership or an investors financial input as a possible way forward. Has anyone gone through this, and is their any standard percentage offered, a loan arrangement over piece of the business, that kind of thing. Would love to hear some success and horror stories. Sean
Venture investors often look for very high annual returns.... maybe 50% as a guess? That means, with compounding, that the investment should be doubling in value every (roughly) 18 months. If they put in $100K on Jan 1, 2007, by June 30 2008, they want their $100K to be worth $200K... by December 31, 2009, $400K, by June 30 2011, $800K The vig, as they say, is crushing. Angel investors probably accept way less... Maybe 25%? That means their investment should double in value every three years (roughly)... Most small businesses, in my experience, don't produce ROIs anywhere near these levels--which is probably why outside investors shouldn't be brought into deal.