When looking for new sources of financing , companies often turn to various providers of venture capital , which serve as an alternative to a classic loan . One such alternative is a business angel - an investor who will take your company under his wing and help you develop your business faster. For a business angel investor, the average amount of investment tends to be smaller than for venture capital funds, typically from 50 - 100 thousand euros. When attracting capital, you should be careful how much of the company you plan to transfer to the control of a business angel investor. Also, it would be unwise to offer an investor a board member position if they don't have the time, experience or sufficient knowledge of your business.

Likewise, you can also consider the idea of bringing in a strategic investor instead of a venture capital fund. This could be a customer, supplier or other business partner with whom you already work, who may also be interested in investing in your company. A strategic investor usually has "deeper pockets" than an angel investor, but usually has a specific investment objective. Therefore, it is important to find out in advance the real reasons for investing. An investor can use your technology for their own benefit, which can have a negative impact on your business. But there are also cases where an investor wants to invest for the benefit of both parties, so it is always important that you and the investors have the same interests.

Another new possibility in the Baltics is the financing of the company's development through the co-financing platform capitalia.com. With the help of such platforms, you can attract the necessary financing without giving the control of the company to the investor. Platform financing also has other advantages, such as quick decision-making and fundraising , flexibility and simplicity.

Before you go to a venture capital fund, clarify your goals. How much capital do you need? Do you want passive or active investors? Are you planning to expand your marketing activities? Increase the management team? By answering these and other questions, you will have a better understanding of who to turn to for investment capital, be it venture capital , business angel, strategic investor, co-financing platform or something else.

If you choose the venture capital route, it is preferable to use a circle of acquaintances who could give the fund good recommendations about you. Also, always do your homework - find out what kind of investments the specific venture capital fund is interested in and what your company's needs are. Come to the meeting well prepared and give a short and concise presentation. Know your main business goals and be honest with your investors when you present them with those goals.