Entrepreneurs lack the starting capital for the implementation of their projects. Therefore, it is difficult to implement new ideas. Banks and venture funds do not finance projects in the early stages because the risks of non-return of funds at such stages are high. There are three sources of funding: personally earned, FFF (family, fools, friends) and business angels. If the first two options are more or less all clear, then investing in small business, or as it is also called "angelic investment" remains a difficult topic. Some angel investors give money literally by "contract on a napkin," that is, without formal obligations, on pure human trust. This happens, of course, very rarely, but it happens. With others, you need to sign a heap of papers that oblige you to give away almost half of the business if the idea succeeds, which is also a threat to business, as the founders may lose interest in it. Because they want to "work for their uncle" ... How ...
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