German venture capital investments in clean technology have dramatically increased in recent years and haven’t shown any signs of slowing down.
Just recently two German state funds of funds, the ERP-EIF Fund of Funds and the LfA-EIF Fund of Funds, have joined U.K based WHEB ventures by investing £21m between them and expanding its offices to Munich. Funds of funds, also known as FoF - are investment funds that use a diversified portfolio in their strategy, rather than investing directly in one type of fund, such as shares, bonds or other securities. This type of investing is often referred to as multi-manager investment.
The industry’s limitless growth potential means an influx of new businesses that provide numerous jobs not only domestically, but also worldwide. This means a new wave of German entrepreneurs equipped with world class education credentials will be presenting their ideas with hopes of starting their own company.
However, due to tighter credit markets and slow economic growth abroad, loans are harder to come by and public programs have been cut back. As generating capital has become more difficult, it presents a unique challenge to entrepreneurs who as bright as they may be, lack the experience of navigating through a challenged market. As a result, some of the basic rules of entrepreneurial business still apply, and the factor of “who you know” still comes greatly into play.
With the German branch of the Angel Investment Network though, it is easier than ever to find investors with the kind of capital that can allow young entrepreneurs take their new ideas to the next level. Angel investors know the challenges that lie ahead for people with all the tools necessary to succeed but lack the experience; most likely they were once new entrepreneurs at one time too. Not only can entrepreneurs generate the capital that they need, but they also gain knowledge of the way the market works in up and down times and establish international contacts that can allow a small business to become a global enterprise.
For more information, go to http://www.angelinvestmentnetz.de/
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The Angel Investment Network currently includes a wide range of International investors looking for investment opportunities, along with entrepreneurs looking to get their business off the ground.