Category: Investment

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Angel Investors and Venture Capitalists – A Full Picture

A lot of fresh young entrepreneurs looking for capital haven’t heard of angel investors. Angel investors are wealthy people who pump in money or capital into your business venture, generally for starting a business. Of course, you can approach angel investors even if you are a seasoned businessman, in which case, you have probably heard all about them. Angel investors pump in capital in return for ownership equity or even convertible debt.

A Brief Overview

When an angel investor invests in your company, he becomes a part of your company and is not just another person who holds shares. The progress of your company becomes important to him because his money goes into making the company what it is. Angel investors don’t really exert too much control over your company. Moreover, the rates of interest charged by them are not too high either. What is more, they do not mind a slower return on their investment, compared to say, venture capital firms.

What are venture capital firms and Crypto Capital Venture? This is yet another reliable source of funding for companies just starting out. But there is one condition; companies should approach venture capital firms only if they are confident in their abilities to produce a really high growth rate. Entrepreneurs should definitely not apply the policy of “once bitten, twice shy” when they approach venture capitalists.

A venture capital firm knows how to recognize a good idea and a solid selling technology when he sees one so don’t be afraid if your product or service is saleable. Venture capital is basically a technique of fundraising for companies which have no reservations about exchanging equity in their company for money or funding which will enable them to grow their business.

Venture capital investments can apply to all kinds of businesses -Crypto Capital Venture

Both technology and non technology based businesses. Like angel investors, you can also approach venture capital firms if you are a mature firm. This form of fund raising is not restricted merely to newbies. This is definitely a very viable source of funding and investment for your business, provided you have the ability to provide a good growth rate as mentioned before.

Helpful information

Venture capitalists demand a really, really high rate of interest (exceeding 20% per annum), but on the upside, the money provided will also be a large sum – the minimum interest is in the range of five hundred thousand dollars and it goes on to many millions. They also require a quick return on their investment, so, if you are confident of the ability of your business to take off, this is a really good source of funding for you.

What is more, after a temporary lapse, the venture capital market is now well on the way to recovery, so you need not worry about its reliability. One thing common between angel investors and venture capitalists is that they are on the lookout for capital growth and revenue increases so that they are able to recover the total sum of their investment over a period of time, if you are able to assure them of that, then there’s no stopping you!

runescape gold

Runescape Gold Investing – Levels of Risk

runescape gold

When I started serious gold investing back in 2000, gold had recently hit its low of $252.80 on 20th July 1999. At that time the range of gold investments was severely limited to a small number of funds and to a far smaller number of gold equities. They were all performing very poorly and to purchase gold at that time was the ultimate contrarian investment.

My bank, which had been running a precious metals fund for more than 10 years, decided to close it in 2001, forcing me to relocate my funds. I’m sure you won’t be surprised to hear that in the normal far-sighted approach banks seem to display, many funds were closed at or near the bottom of the market, or even when the market had begun to show signs of rising. That same bank waited until 2008 to reopen its gold and precious metals fund.

Of course Gordon Brown, the UK Chancellor at that time runescape gold, also became rather notorious for his sale of 400 tons of the UK Gold reserves at the magnificent average price of $272 an ounce. Gold has risen by 400 percent since 2000, representing a loss to the UK in excess of $8 billion dollars, money the UK can ill-afford to lose right now.

Since those far off days of bottoming-out gold markets, the range of investment vehicles for gold, both virtual and bullion, has expanded very significantly. Gold has become close to being a main-stream investment and the choices we have which cater for a wide range of risk levels is nothing short of impressive.

The choice of gold related investments continues to expand. The amount of gearing determines the

risk levels.

1. Gold Coins and Bullion are the traditional way of investing in gold and silver. Bullion coins are legal tender and free of capital gains tax. There are now a number of reliable storage facilities which guarantee security and which enable you to trade your gold holdings. GoldMoney and the Perth Mint are both excellent examples of ways to hold and trade gold and other precious metals without having to take delivery. Bullion will track the price of the metal, making it the least volatile way of holding gold. 

Rare runescape gold can on the other hand be very volatile

2. Gold Bullion Funds – This is a way of holding the ‘virtual’ metal by holding the shares of the trust. Each share is secured by gold bullion holdings which theoretically can be delivered in lieu of the shares. SPDR Gold Trust is the largest of these and has been the focus of significant buying activity by George Soros recently. And where George Soros is seen to go, many follow!

3. Gold Mutual Funds – If you prefer some gearing to your investment choices, Gold mutual funds are one of the safer ways to invest in gold stocks.There are now a wide range of gold funds, Blackrock Gold and General being one example. It has performed fantastically well since its launch in 1988 (note, near the bottom of the market) at 1 pound sterling per unit. It now stands around 11.50 sterling and has been as high as 13.50 sterling.

4. Exchange Traded Funds (ETFs) are securities trading on the stock exchange generally tracking the underlying index. One of the most popular is Market Vectors ETF (GDX) representing the BIG Gold companies, was launched in 2006 at $37 and has been as high as $55 and as low as $15. It now stands at around $44

5. Higher risk ETFs – Market Vectors Juniors (GDXJ) tends to be a notch higher in risk level. It was launched very recently in November 2009 at $26, and has already demonstrated swings of almost 20% in both directions. GDXJ represents a basket of fairly high risk equities on the Canadian Market which is reflected in its volatility.

6. Individual Equities – Unlike Gold Bullion which is regarded as a safe haven asset, unhedged gold shares are regarded as risky and can be extremely volatile. There are hundreds of listed companies out there claiming to be gold exploration concerns. The majority will never produce a dime. Good research or professional advice is recommended.

7. Futures and Options – And at the top end of the gearing and risk scale are gold and silver futures, or options on gold and silver futures. This is a highly specialized area which can win or lose fortunes.

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