Angel Investor News provides the latest in investment, finance and funding from an investor and entrepreneur's viewpoint.
Glossary of Terms Angel Investor NEWS
Investment Reason / Rounds of Funding
Definition Round of Funding
Round of funding - Round of funding is the stage of financing a start-up company is in. The usual progression is from start-up to first round to mezzanine to pre-IPO.
Seed Capital or Early Stage
Seed Capital is the money used to purchase an equity-based interest in a new or existing company. This seed capital is usually quite small because the venture is still in the idea or conceptual stage.
Angel Investor News has listed this separately from Seed or Early Stage, because this category is specifically categorised for Investment proposals for businesses that are ready to launch immediately, and are seeking investment capital for these purposes only.
In context of Angel Investor News, we refer to Working Capital as though an entrepreneur OR established business is seeking to raise capital or capital expenditures in exchange for equity to individual and/or institutional investors. This can be quite attractive to Angel Investors, as the business is already established, with the workforce in place, and therefore, the funds can be regulated and distributed by using an Angels existing experience. First stage capital investment proposals would be also be used in the context of Angel Investor NEWS. First Stage Capital is the money provided to an entrepreneur who has an operational business or product. First stage capital can also refer to the capital required to start commercial production and marketing of your product. First stage capital will not cover market expansion, de-risking, or acquisition costs.
In context of Angel Investor News, if an entrepreneur wished to form a strategic partnership with an Angel, ideally, each would possess one or more business assets that will help the other but may not wish to develop internally. One common strategic partnership involves one company providing engineering, manufacturing or product development services, partnering with a smaller, entrepreneurial firm or inventor to create a specialized new product. Typically, the larger firm supplies capital, and the necessary product development, marketing, manufacturing, and distribution capabilities, while the smaller firm supplies specialized technical or creative expertise. Another common strategic partnership involves a supplier / manufacturer partnering with a distributor or wholesale consumer. Rather than approach the transactions between the companies as a simple link in the product or service supply chain, the two companies form a closer relationship where they mutually participate in advertising, marketing, branding, product development, and other business functions. As examples, an automotive manufacturer may form strategic partnerships with its parts suppliers, or a music distributor with record labels.
In context of Angel Investor News, our publication would state you the investment directly required for any property related issue.
Research and Development
(R&D) refers to systematic investigation or experimentation involving Innovation or technical risk, the outcome of which is either new Knowledge (with or without a specific practical application) or new or improved materials, products, devices, processes, or services.
In the context of Angel Investor News, if an angel investor or entrepreneur wishes to raise capital for a buyout (or takeover) of a company or purchase a controlling interest of a company's shares or product line. This term refers also to funding requirement of the acquisition of purchasing some of a business.
Other important Glossary of terms for Angel Investor News
Total investment required
This is the total investment that is being sought by an entrepreneur seeking to realise their business.
ROI per annum
Return On Investment or ROI is the profit or loss resulting from an investment transaction, usually expressed as an annual percentage return. ROI is a return ratio that compares the net benefits of a project verses its total costs. A Return on Investment (ROI) is calculated to measure the performance of one investment relative to another.
Calculating your ROI is expressed as a percentage and is based on returns over an associated time period, usually one year. For example, a 25 percent annual ROI means that a £100K investment would return £25K in one year. Thus, after one year, the total investment returned would be £125K.
ROI (Per Annum) is often confused but it is calculated by:
Investor Investment - Potential Return from your proposal X 100
This is obviously a very simplified version of calculating an ROI for an Investor but the foundation of calculating it will remain the same always.