Getting Investors – Surprising Types

By: Michael J Foycik Jr. 
September 16, 2013
The author is a patent attorney with over 28 years experience in patents and trademarks. For further information, please email at, or call at 877-654-3336.

So, you need an investor.  Probably to start a new business and launch a new product.  Here's a very short yet useful guide to some surprising types of investor.

Get a distributor.  Yes, they don't sound like investors, but it helps to see them that way.  Why so?  A typical one will bear the costs in some way, and help sell the product.  These things are what a good investor would do.  Typically, with a new product, you can expect to get anywhere from 2 to 9 percent of the selling price, though this can vary.

Sell though a TV marketing company – you know the ones.  You see them on late night television, or on cable channels that sell goods.  And yes, they don't sound like investors, but it will help to look at them that way.  A typical one will help with the costs in come way, and perhaps even with the development and testing of the product.  These are things a good investor might do.  Typically, one might expect anywhere from 2 to 4 percent of the selling price.

Go to an investment club.  There are surprisingly many if you look.  Try online searches, and word-of-mouth if necessary.  Ask around, especially in local businesses, where the owner might well belong to such an investment club.  A good investor will take about 10 to 50 percent of your business, in exchange for investment money and possibly expertise.  A good investor will know how to help you succeed!

Press releases!  There are companies that do those.  The more press releases, the better.  Put up a web site so investors reading the press releases can find you.