It shouldn't really be that hard. We have new institutional funds being created almost weekly that are geared toward what used to be termed higher risk investments. And we have venture capital firms that are aggressively seeking our promising new companies. Yet the unfortunate reality is that for every success story that you hear or read about, there are probably a hundred or more companies who weren't able to secure funding. So what are these unsuccessful companies doing wrong.
Private investors are almost always a better alternative for a new or early stage company.
The problem is that these individuals don't advertise, they're not listed in the yellow pages and you won't find their name on some list through an Internet search. As a group, they are very selective and they tend to focus or specialize in a certain business segment which most often has something to do with their background. How do you reach these individuals. In some cases the contact is made through an attorney who functions as the due diligence arm of the investor. Another alternative is to use an intermediary such as A.B.S. Capital Markets.