Investors are individuals, companies or organisations that invest capital in a business in order to support its growth and, in return, to achieve a financial return. They provide financial resources to start-ups and established companies, thereby making a significant contribution to the funding of innovation, market entry and scaling strategies.
For start-ups, investors are often a key source of growth capital, particularly when their own financial resources are insufficient to fund product development, sales or expansion.
As well as capital, investors often bring other added value:
- strategic expertise
- Industry experience
- Access to networks and contacts
- Support for business development and growth
- Support with further rounds of funding
The main investor groups include:
- Business Angels
- Venture capital firms (VCs)
- Family Offices
- Corporate Venture Capital (CVC)
- Private equity investors
- public funding bodies
Investors’ objectives are generally as follows:
- to share in the company’s growth
- to increase the value of their shareholding
- to achieve long-term returns
- to achieve a successful exit
For start-ups, working with investors offers numerous advantages:
- Access to growth capital
- faster scaling of the business model
- greater credibility in the market
- strategic support with key decisions
- Access to potential customers and partners
At the same time, bringing in external investors often means ceding a stake in the company and granting them certain rights to have a say. That is why selecting the right investors is an important strategic step for founders.
A successful investor relationship is based on shared goals, transparency and mutual trust.
innoWerft helps start-up founders to develop their funding strategy, approach suitable investors and prepare compelling business presentations for successful funding rounds.