If you are looking to start a small business or have already launched an early-stage start-up in Chicago, then one of the first issues that you are going to have to deal with is how to fund your business in the beginning. Even established businesses that are perhaps looking to grow can have issues surrounding cash-flow and require outside involvement to help their business flourish.
There are several ways that a business in Chicago can raise cash. This can range from traditional banks or venture capital firms to angel networks and even for the wealthy entrepreneur, self-funding.
However, many business owners in Chicago find that it can be hard to raise capital for a new business, especially if that business does not have a trading history. Banks and VC firms tend to want to see facts and figures on how the business is performing before they will invest. This is not always possible with a new business.
In these situations, releasing some of your business equity to attract angel investors may be the best way forward since this sort of investor tends to invest more in the individual or idea and do not always need to see (or even expect) an extensive trading history.
Ultimately, angel investors are interested in entrepreneurship and are looking for business investments that, on the surface may appear riskier but also have an attractive upside, in that if they are successful, then those who were involved at an early stage will likely reap the most rewards and profits.
For the right idea, angel investors can even provide start-up equity, called seed capital. For these kinds of pre-seed stage companies, private equity investors are a great source for securing this kind of initial financing.
To attract an angel investor, you will need to relinquish some of the equity in your company, but in return you will receive the finance you need to grow your business. Angel investing is a great way for both investors and Chicago business owners to work together to grow a new business.
You will still need a solid business plan to attract the right investor, but not only will you receive capital for your business, but some investors will also offer some sort of mentorship since they often have years of experience in business that they can impart to new business owners.
If you are going to launch a business in Chicago there might be a few areas in and around the surrounding areas of the Windy City and the Midwest, that you might want to check out as they are popular with start-ups. For example, The Loop and West Loop are both popular business destinations, as are Near North Side (known as the Silicon Railway) and West Town. In these locations you will find a wide number of early-stage companies and start-ups working across several industries and areas. Technology companies flock to these areas but you will also find businesses working across real estate and healthcare to name but a few.
Entrepreneurs can sign-up to put details of their business idea or project and pitch to business angels and investors based in Chicago.
Since the Angel Investment network is a completely global enterprise this means that both entrepreneurs and angel investors can find partners close to home in Chicago, but also from across the rest of the United States and from around the rest of the world.
So, whether you are based in Chicago, Illinois, elsewhere in the United States or overseas if you are looking to start up a brand-new business and need early-stage funding from investment angels, then the Angel Investment Network should be your first destination.
AIN helps investors and entrepreneurs build lasting and profitable relationships to build better businesses and brighter futures.