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  1.  
  2. ENTREPRENEURS 411
  3. Fundraising
  4. How Do Investors Make Money?
« Best Practices for Entrepreneurs Seeking Funding
Venture Capital – Knowing the Rules – The Fundraising Process »

How Do Investors Make Money?

4 Sep 2008   | Fundraising

Tags: angel · vc

LINK TO ORIGINAL ARTICLE:
  • http://www.entrepreneur.com/money/financing/startupfinancingcolumnistasheeshadvani/article180846.html

When you’re raising money for your startup, it helps to understand how the investors you’re pitching will make money for themselves. The formula for paying investors is often not as simple as taking their return on investment and allocating it equally among the key players. For angel funds, venture capital funds and other investment partnerships, there are often complex formulas for how the individuals involved in managing investments make money. You should keep the following formulas in mind when developing your fundraising approach.

>>> READ MORE at:
  • http://www.entrepreneur.com/money/financing/startupfinancingcolumnistasheeshadvani/article180846.html
« Best Practices for Entrepreneurs Seeking Funding
Venture Capital – Knowing the Rules – The Fundraising Process »

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