Choosing and approaching new share investors

Choosing an investor to buy sharesShares in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. in your companyA private company limited by shares incorporated and registered in England and Wales. is a crucial decision, as they will have some control over business decisions and will be a fellow owner and partner. The amount of money the person may invest should not be your only criteria.

This section will help you to choose a shareA share in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. investor (whether family or friends, seed investorAn organisation which provides funding for start ups or very early stage businesses. Two examples of seed funders are accelerators and incubators. s, business angelAn individual, who can invest alone but will often invest alongside other business angels, who will provide funds to early stage businesses in return for a shareholding.s, crowdfundersPersons who invest in companies'shares or lend money to companies via a crowdfund platform. There are three forms of funding enabled by a crowdfund platform: (1) where each crowdfunder becomes a direct shareholder in or lender to the company concerned; (2) where one crowdfunder leads the fund-raising, carries out due diligence and negotiates terms, and the other crowdfunders follow; (3) where the crowdfunders hold their shares or loans via a nominee company which is operated by the crowdfund platform., venture capitalVenture capital is a form of investment for businesses which are generally at an early stage and/or with strong growth potential. Venture capital provides finance sectors across the board and is particularly strong in technology-based sectors such as ICT, life sciences and fintech. Private equity is typically a source of finance for businesses which are a lot more developed and mature than those in which venture capital invests. funds, or private equityPrivate equity is typically medium to long-term finance provided to mature companies which have the potential for strong growth, the finance being provided in return for shareholdings in the companies. Venture capital generally provides finance for businesses which are at too early a stage for private equity to invest. Private equity finance commonly backs acquisitions of businesses either led by management (management buy-outs) or in which the private equity investor installs its own management team (management buy-ins). funds). This section will also help you to avoid pitfalls when approaching investors.