Tips for Choosing the Right Investment Partner

Tips for Choosing the Right Investment Partner

Taking that first step as a new business and looking for the right investment partner can be challenging to say the least. There are a few things you need to be aware of as you start your search that can help you in the long run.  

Types of Partners

Choosing the right type of investment partners is just one part of the process, but it is many times the most important part. As you search for the startup capital for your new business, there are a variety of funding opportunities that are available to choose from. 

Private Equity

Private equity is a broad term used to describe capital invested in a company that is not publicly listed or traded. Private equity firms provide an alternative to capital loans, but this capital infusion typically comes at the price of equity in your new company.

Venture Capital

Venture capital is funding given to startups and early stage businesses who show strong growth potential. From an investor’s perspective, venture capital is one of the most risky investment opportunities. Because of this, venture capital funding is best suited for new businesses with a high growth trajectory and potentially significant return on investment. 

Angel Investors

Angel investors are private individuals who invest early in startups or young businesses.  Funding from angel investors can come as a one-time investment of capital or as an ongoing infusion of funds as needed. Angel investors are particularly desirable because they usually invest in the person rather than the viability of the business. 

Family Offices

A family office manages the investments of high net worth individuals. Family offices are becoming an increasingly popular and sought after funding source due to their flexibility and the expertise they bring to the table. Because of their autonomous nature, family offices can make a variety of investments in any way they see fit, allowing them to act as private equity, venture capital, or angel investors depending upon the unique situation of each individual investment opportunity.

Choosing the right partner is crucial and it is important that the investor understands the business they are investing in as well. As a family office, Scandia values people over profits and understand that family and people come first. While we maintain a high standard of excellence and put our expertise to work to help our partners achieve that standard, we also understand that success is measured by more than solely monetary returns. Our partners are truly an extension of that family. Unlike other lending and investment options, we take a long-term, partner-centric approach to our investment decisions, always holding people and family at the core. If you are interested in learning more about the family office funding options, reach out to us.