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Showing posts from May, 2019

How to find Angel Investors

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How to find Angel Investors Public Angel Investors  ·        The advantage of “public” angel investor is that they are easy to find. The disadvantage is that because they are easy to find, they are constantly being approached with investment opportunities and can only fund a tiny portion of those that they see.   ·        Public angel investors are angel investment groups or individual angel investors that you can find online and/or specify themselves as angel investors.   ·        The other type of “public” angel is someone who publicly identifies themselves as an angel investor. By going to a site like LinkedIn and searching the keyword “angel investor”, you can probably find such individuals. Private Angel Investors  ·        Private angel investors are people who have either made just one or a small amount of angel investments or who have the financial ability to make an angel investment, but has.   ·        Most “private” angel investors have the mea

Being a public company - what it means?

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Being a public company - what it means? In simple term public company is company whose shares are publicly traded on one or more stock exchanges or over the counter market (OTC) and that ownership is dispersed among the many investors. History of public market dates back in early modern period when Dutch helped lay foundation of modern financial system. Publicly traded companies usually have many investors while privately held companies had fewer, but company with big number of investor doesn't have to be public company. Securities and Exchange Commission (SEC) states that every company with more than 500 investors and more than $10 million in assets must register with SEC and adhere to its regulations. Most public companies where private and after that they meet requirements to become publicly traded company mainly because it brings many advantages. Public companies are able to raise capital through the sale of stock in a way shares become company's currency

What is an Initial Public Offering?

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What is an Initial Public Offering? When a private company first offers shares of its stock (ownership) for purchase to the general public, this is known as an initial public offering (IPO). Goals and Reasoning  There are a few main reasons why a private company will decide to make an IPO: - Raise expansion capital - Monetize the investments of early private investors. - Become a publicly traded company on a securities exchange - Gain credibility and prestige The Process When a company is ready to offer shares of its stock to the public, there are a few major steps involved: Step 1: Company hires an investment bank (underwriters). Step 2: The investment bank puts together a registration statement to be filled with the SEC. This document contains information about: - The offering - Financial statements - Management background - Any legal problems - Where the money is to be used - Insider holdings Step 3: The SEC then requires a cooling