Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 44

• • • • • • • Ann Arbor Angels: www.annarborangels.org Blue Water Angels: www.bluewaterangels.com Capital Community Angels: www.ccangels.org Grand Angels: www.grandangels.org Great Lakes Angels: www.glangels.org Northern Michigan Angels: www.northernmichiganangels.com OU Incubator Angels: www.oakland.edu/ouinc When presenting to angel investors it is essential to make a strong first impression because the network is closely connected and word of mouth (bad or good) will travel fast. Venture Capital Venture capital (VC) is money from various sources held in a formally managed fund used to supply capital associated with starting or expanding companies that show the potential for an extremely high return on investment. The fund’s charter governs how the money must be invested, which makes it critical to select the appropriate VCs and properly prepare for a presentation. This form of raising capital is popular among new companies or ventures with limited operating history that cannot raise funds by issuing debt. The drawback for entrepreneurs is that VC’s demand a significant percentage of ownership and the ability to influence direction and decisions of the company. Examples of Venture Capital groups and websites: • Michigan Venture Capital Association: www.michiganvca.org • Michigan Growth Capital Symposium: www.michigangcs.com • Venture Michigan Fund: www.venturemichigan.com 42