much of the financing coming in the form of a fixed-rate loan.
In getting others to invest, look for these types of investors:
Angels. Private investors who back your company right from the beginning. The amount of control angels want varies. Some are very hands-on, others are not.
Initial public offerings (IPOs). Selling shares of your company to the public in the form of stock. An initial public offering entails intense scrutiny by official regulators before it can be made and opens your operation up to public scrutiny afterward.
Private placements. As a small business owner, you can sell shares in your company (equity) to select individuals.
Small Business Investment Companies (SBICs). Affiliated with the Small Business Administration, SBICs channel private investors’ money, sometimes combined with government funding or loan guarantees, to small, fast-growing companies.
Venture capitalists. A venture capitalist or venture-capital company is looking to invest in highly profitable, fast-growing firms that are in the early to mid stages of development.
Broadcast Capital Inc.
1700 K St. NW, Suite 403
Washington, DC 20006
This SBIC, licensed with the SBA, targets women- and minority-owned radio and television stations and invests in start-ups and expansions. Average investment: $200,000 to $500,000.
Business Consortium Fund (BCF)
305 Seventh Ave., 20th Fl.
New York, NY 10001
Funding Sources for Women and Minorities
Here are some organizations that have special programs for providing loans or venture capital to women and minority businesses.
The BCF provides financing for a specific transaction when a minority-owned firm-certified by the National Minority Supplier Development Council-has a contract or purchase order and needs working capital. Maximum investment: loan cannot exceed 75% of total borrowed, or no more than $375,000.
Capital Across America
414 Union St., Suite 2025
Nashville, TN 37219
615-254-1515, ext. 214
Targets profitable women- and minority-owned small companies with a three-year track record that manufacture or distribute products. Also invests in businesses offering services such as human resources, insurance or printing. Average investment: $250,000 to $1.5 million.
Inroads Capital Partners
1603 Orrington Ave., Suite 2050
Evanston, IL 60201
Targets well-established firms owned or led by women and/or minorities that generate annual revenue of $1 million up to $100 million and need capital to expand rapidly over five years. Average investment: $3 million to $5 million.
Telecommunications Development Fund
2020 K St. NW, Suite 375
Washington, DC 20006
These fund managers attempt to find small telecommunications businesses owned by women and/or minorities. They invest in young companies that have developed products relevant to the industry. Average investment: $250,000 to $1 million.
TSG Capital Group
177 Broad St., 12th Fl.
Stamford, CT 06901
Invests in media and communications, specialty retail, and the consumer goods and services industries. It looks for companies that target black, Hispanic or Asian consumers and are expanding through acquisitions or internal growth. Investment range: $10 million to $100 million.
220 Montgomery St., Suite 946
San Francisco, CA 94104
Targets young, technology-based companies that were founded or co-founded by women, are led by women or sell products and services targeted primarily to women. Invests in companies in the information technology and healthcare industries. Average investment: $500,000 to $2 million.
Wells Fargo Bank National Business Banking Center
P.O. Box 340214
Sacramento, CA 95834-0214