Financial modeling is a term widely used but rarely understood as a whole. Everyone just knows that it is “important for business,” but a few know what makes a financial model and what are its characteristics.Read more
Today’s technology has contributed to better funding models in all spheres of business, and the numerous startups that grow increasingly are no exception. Startup founders finally have the opportunity to focus on their business development instead of how to survive until the next month how to pay their next loan instalment to the bank that more often employ a high interest rate which overburdens the borrowers. Nowadays, angel investments (financing by individuals) has become the major trend among FX startup companies.
Still, investors will only invest if they believe that the business stands a chance, and they often consult with advisers to make a choice which company and idea to support. Forex businesses are especially ranked high when it comes to securing funds since the industry’s turnovers are mind-blowing and everyone wants to be part of it.
Sometimes, individuals who want to start their own company fail to consider all aspects of business, and eventually, that prevents them from becoming successful. There are so many individual talented employees who are outstanding at their job that they soon get carried away by the idea to star their own company. But, being good in your job, does not make you a businessman. Angel investments make it possible for individuals to try, and many use the opportunity, but this solely does not mean that the business will succeed.
The Harmony Between Angel Investors and Startups
It seems that angel investments and startup founders mutually encourage each other. Startup founders seem to be braver now, willing to try to make it on their own and they turn to angel funding. On the other hand, angel investments give the needed possibility to startups to carry out their ideas in practice.
Technology and the FX business are the most targeted areas given that they both seem to have a promising future. If we take the risk ratio between startup founder and investor, we have to say that the investors take on the higher risk. They are the ones who could lose their money if the investment does not prove to return profits.
Forex has become a great deal with the outbreak of the Internet, and it is the most liquid market in the world. Nowadays, the bitcoin sector seems to draw great attention of investors as we can see from its rapid development. According to many financial specialists, the bitcoin industry is riskier today than Forex was ten years ago. When investors considered Forex startups a decade ago, Forex was a well-established institutionalized business in banking, so it was easier to assess and to monitor than the bitcoin sector today. At the same time, this does not mean that Forex startups could get large sums to start with; investors were still careful.
Forex companies are now able to secure more than $100 million of investment since the industry developed and investors are familiar with the concept and the profitability. Ten years ago, no one would give that kind of money for a Forex company.
Forex startups have actually a good chance to secure investments since it has become the proven recipe if one knows how to approach the industry and how to manage the business.