What Are Corporate Investors?

A corporate investor is a company that invests in a small business and acquires control over the business through holding the majority of shares.

How To Find Corporate Investors?

Corporate inventors can be contacted through social networking such as LinkedIn. However, prior to contacting potential investors, businesses need to have a clear goal to raise and an attractive business plan that shows revenue and cash flow for at least one year.

Benefits of Corporate Investors

Corporate investors can offer working capital to small businesses in exchange for shares of the company. Larger corporations also have access to resources and finances that small businesses may not have.

Drawbacks of Corporate Investors

When selling shares of a company to corporate investors, some business owners will end up giving up control of the company.