tech-company, business-plan, investors, business-capitalI am learning how to startup an IT company. I’d like to know what is the role of investors in a company? I don’t have any contacts or such guys who can help me for these.
Thanks in advance.
This is a really open ended question, but I will do my best to answer.
In short, investors give you money in exchange for a share in your company. In other words, they give the company money, and the company give them some amount of say in what the company does.
Some investors will give you advice on what you should do, and others will not. Try to look for investors that will actually be interested in the company and giving your company good advice and avoid the ones that just want the money.
What they are looking to do is for your company to grow so that they can take a portion of the profits or sell the shares for more money in the future.
Also, check out the answers to this question; I think they might give you a more broad idea.
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