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Strategic Investment: Games Of The Big Business

What is the strategic investor?It is a rhetorical question. Anyway, many people freely enough operates with the given word combination. It is not simply the most desired investor who possesses sufficient money supply and capability fairly to purchase the state enterprise or control stake of its shares. The investor should be the pro in the given segment of the market, to have successful experience of similar transactions, to be dear client among investment banks and funds and so on. All countries where privatize something wish to have the powerful strategic investor, to involve the company with a name. So it was always and everywhere like this and the given concrete case is not an exception.

Very often beginning businessmen try to take money under percent or address in bank for the credit. As a rule, the majority of them expect disappointment. Banks disagree on granting of credits for starting campaigns. Also add that they don’t trust much in venture projects. It isn’t urged to finance venture projects but those project that intended for the large and average companies with already developed credit history, the settled market position, say, if company activity can be predicted.

Optimum variant for beginning businessmen who want to leave on more or less serious level is to interest representatives of a so-called venture capital. Feature of venture investment that, as a rule, performed without granting of any pledge. In this will be its main difference from bank crediting.

“Angels” among us

All over the world the venture capital is presented by two sectors: formal and informal. In formal sector prevail the specialized venture capital companies managing venture capital trusts. Also as participants of formal sector the divisions created for these tasks or affiliated undertakings of commercial banks or not financial industrial corporations and also the state investment programs often act in this sphere.

The informal sphere of the market of a venture capital is presented by exclusively private investors whom it is accepted to name “business angels”. “Business angels” are, as a rule, successful businessmen, highly paid specialists (accountants, advisers, lawyers) that are occupying higher posts in the large companies.

Informal investors possess the considerable financial savings received thanks to indefatigable work. Many “business angels” invest directly in new and growing firms, being a part of the syndicate uniting friends and partners in business, and also members of their families. And their market force is simply huge: in the USA and the Western Europe the volume of venture investments of informal sector several times exceeds volume of similar investments of formal sector.
Formal and informal sectors supplement each other. Investments of informal sector are especially important at early stages of development of firms when they need ?the sowing capita? (seed finance) for development of the concept of a product and a pre-production model while the formal sector is more active at a stage of fast growth when means for expansion of production and sales volume increase are required.

The times when governments have been flooding people with all sorts of grants are over. At least for a while. But that does not imply that one must get rid of the idea of getting small business grants.

Everything is doable with nicely balanced approach; small business grants including.

Visit this blog for more helpful tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This information will help you to get small business grants or any other grants easier.

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