Investing is becoming a more popular way to make a return on your money, with apps, research, and investment platforms making investing easier than ever. Investment networks are a great way of finding the perfect business or property to invest your money in. Equally, they can be a good way for small start-up businesses to find a way of funding their new business venture. Below, we’ll take a closer look at investment networks, as well as 3 networks that need to be on your radar this year.
What is an investment network?
Investment networks are groups of investors that share a mutual interest in launching a new business or even reconstructing an existing one with the aim of being able to make a return. This type of network allows entrepreneurs to connect with investors that have specific business ideas and expertise that can help to advise on how they can proceed to generate cash flow or even just fund their idea to get their business off the ground. Investors may also consult with an expert network to ensure they are investing in the right entrepreneur or start-up.
What is an expert network?
Expert networks refer to a group of people that are experts in their field. They can be useful for investors when making decisions on where to invest their money– using an expert network allows investors to get in touch with experts around the globe, they can answer specific and often niche questions, as well as provide vital information before the investor makes a final decision.
Who can benefit from an investment network?
Investment networks could be a great way for start-ups to get their business off the ground. There are a few different online platforms that offer a way for smaller businesses to get in contact with potential investors. All you must do is create a pitch – explain a little bit about your business and publish it on your chosen platform. From here, you can connect with investors via email if they think your idea is something that they would like to know more about. You can discuss, arrange meetings, and schedule calls, which will hopefully result in a closing investment!
In contrast, if you’re an investor, you can use investment network platforms to find entrepreneurs to connect with. It allows you to arrange calls to discuss potential investments and fix meetings. It is a way of keeping track of your investments so that you can stay up to date with the companies or start-ups you’ve invested in. An investment network platform allows you to finalise the terms of your investment deal and communicate directly with the entrepreneur.
- Angel investment networks for businesses
An Angel investment network is a group of individuals that seek to invest in start-ups and businesses in their early stages. Although these types of investments are risky with there being no evidence that the start-up or business is going to be successful, these types of investments make up around 10% of an average Angel investor’s portfolio. This is because a lot of angel investors tend to invest in start-ups if they have some extra funds, looking for high-risk, high-return opportunities. Angel investors provide better terms compared to other lenders because they don’t consider the viability of the business to the extent that other lenders do. These types of investors are looking to help businesses get off the ground, rather than benefit from the profit the business will make in the future.
2. Property investment networks
A property investment network is a way of connecting with investors to properties that will make them a guaranteed return. There are several platforms online that work by consulting with potential property investors, discussing the funds they’d like to invest, and advising them on how they can make a return from this. Once the terms have been discussed, properties are matched with investors and their requirements so they can invest in a property that is most suited to the return they would like to see. Investments can be made on buy to let properties or commercial properties.
3. Mutual Fund Investment Networks
Investing in mutual funds means that investors can spread their money across a range of different investments, all with varying risks, depending on the financial goal that they have in mind. Mutual fund investment means that investors have their share in company bonds, stocks, lower-risk money market funds, and balanced funds. When investing in a mutual fund, investment networks can help with guidance when splitting your money, using their expertise and research to make sure the investor is paying money into the correct companies or funds, with the results best suited to the requirements that have been discussed.