

And you might prefer one type of investor over another depending on the strategy, capital needs and the company’s size. Different types of investorsĪs mentioned above, there are many types of investors who have their own resources, capabilities, and motivations.

Nevertheless, every situation is different, which is why companies should always take precautions before contacting an investor. Generally, the capital from these types of investors is utilized by the company to upgrade supplies and equipment, expand operations, or introduce a new product. There are four main kinds of investors for startups which include:

It is normal for budding startups to seek the help of investors that would help them give a proper base to their project and plan. This may even end up coming from you, injecting funds into your own business as an investor.Įven though there are many stories about people who fund their own startups by utilizing bootstrapping and putting all their earnings and wealth into a business, this approach is many-a-times too difficult and unrealistic for many starting off. There are various types of investors in the market, and in order to figure out the right one to help you with funding your company, you need to be aware of all the different types.
