Investors & funding
Investors & funding

Rely on a firm that has successfully provided financial solutions worldwide since 2003.

The Bao Lyon Group, LLCInvestors & Funding

Investors: Concept and types

An investor is an individual or entity who allocates capital with the primary goal of generating a future financial return. The landscape of investors is diverse, encompassing institutions like banks and venture capitalists, as well as individuals such as angel investors and peer-to-peer lenders. Each type of investor, along with the specific investment opportunity and individual circumstances, dictates unique requirements, investment amounts, and funding processes.

Banks as Investors

Securing a bank loan for startup costs can be vital for small businesses, though the process has evolved since the 2008 USA mortgage crisis. Lenders now often require applicants to provide significant collateral, like a home equity loan, and demonstrate strong cash reserves to qualify for funding. A well-structured business plan is essential for demonstrating viability and capacity to repay. This typically includes:

  • A comprehensive overview of your business, products, and services.
  • Realistic financial projections.
  • Details on your management team's expertise.
  • Strategic planning for achieving business objectives.

Venture Capitalists*

The United States venture capital ecosystem is home to thousands of firms, with over 3,400 active at the end of 2023.

During 2024, U.S. VC firms invested approximately $215.4 billion across 14,320 deals. Despite this significant capital, venture capitalists are highly selective, with most investing in only a tiny fraction of the deals they review.

Their process is thorough, with extensive due diligence often taking several months.
Venture capitalists invest significant capital in a company in exchange for equity. Their investment strategy is based on the expectation that the company's value will increase over time, providing a substantial return on their initial investment.

VCs typically partner with companies that have a robust business plan and have already demonstrated early success.

Securing this type of funding requires presenting a solid plan that clearly projects high-profit returns. Unlike angel investors, venture capitalists are highly selective and rarely invest in companies they perceive as high-risk
When securing venture capital, business owners must weigh the benefits against the significant trade-offs. The key considerations include:

  • Equity: You will be giving up partial ownership of your company in exchange for the investment.
  • Control: Some venture capitalists will require influence over management decisions, impacting your operational autonomy.
  • Cost: The cost of venture capital often exceeds that of a traditional bank loan. Instead of interest, you provide a return on investment (ROI) that reflects the higher risk and potential for growth.

Peer-to-peer lending

Peer-to-peer (P2P) lending platforms empower startups and entrepreneurs to connect directly with investors online.

To utilize these services, you'll create a profile highlighting your project and funding needs. Be prepared for potential lenders to review your credit history, as this is a key part of their assessment, and some may require you to improve your credit score before proceeding.

Once approved, you'll negotiate the loan's interest rate and terms directly with the lender, who may be a private individual or an institution. A thorough understanding of the loan agreement is vital, and consistent, on-time payments are essential to maintain a positive financial standing.

While P2P lending can offer flexible terms and potentially lower interest rates for well-qualified borrowers, it's crucial to be aware of platform-specific fees and the unsecured nature of many P2P loans.

Angel Investors*

Angel investors can be a game-changer for startups, often offering more flexible terms than traditional lenders.

This is largely because they invest in you, the entrepreneur, as much as in the business concept itself. These 'business angels' are affluent individuals who provide crucial seed capital in exchange for ownership equity or convertible debt.

With approximately 268,100 active angel investors in the U.S. deploying an estimated $20 billion into 60,000 companies each year, a vast network exists to support emerging ventures. Many angels are successful entrepreneurs or corporate leaders passionate about fostering new businesses, particularly those facing challenges securing conventional financing.

While some angel investments are high-risk, the potential for a significant return, especially upon acquisition or IPO, makes these partnerships attractive, often flourishing in stable economic climates.

All loan terms are precisely detailed in a promissory note. For larger capital needs, angel groups enable investors to pool resources, making more substantial investments possible. Let us help you navigate this unique funding landscape. Contact us for a tailored assessment and expert guidance.

Personal Investors

Approaching friends and family for startup capital, while perhaps unconventional for some, is a remarkably common and significant funding source. In fact, personal investors represent a larger portion of the funding landscape than any other type, collectively investing over $66 billion annually.

This approach is particularly well-suited for initial seed funding to launch a new company.

However, the existing relationship and affinity can also open doors to potential long-term investments. To mitigate the inherent risks of mixing business with personal relationships, all personal investments should be governed by a formal contract.

This includes signing a promissory note detailing loan terms and a separate partnership agreement if applicable. Contact us for a tailored analysis of your situation and specific needs.
(*) Contractual services
Stacks Image 385

Other Services we can provide

Expertise / Compliance / Support
Project Handling
Providing effective management for domestic or international projects. Assistance is offered through every phase, from planning to execution, with the use of monitoring tools to aid in achieving project goals. The Bao Lyon Group, LLC also offers support for market expansion, with knowledge of relevant rules, standards, and regulations.
Stacks Image 777
International Receivables Support
Growing your company internationally is a complex endeavor. We act as your expert partner, providing the deep market analysis necessary to understand risks and inform your investment in new markets. Our international experience becomes your competitive advantage. Schedule a free accounts assessment to see how we can help.
Stacks Image 784
Import / Export Management
Your international growth partner for end-to-end commercialization. For manufacturers seeking to commercialize their products internationally, we offer expert brokerage to secure new markets, clients, and supply chain partners. We facilitate the export/import process and provide ongoing transaction monitoring to ensure timely payment, protecting your investment and optimizing cash flow. We are here to support your expansion.
Stacks Image 791
Mergers & Acquisitions / Mining & Exploration
Tailored Solutions: The Bao Lyon Group, LLC can assist your team through the merger process, whether it's a small, medium, or large scale transaction. We develop options specifically suited to your needs.
Specialized Expertise: For companies in the Mining and Exploration sector, we offer a specialized Research & Development team.
Call for Details: Contact us to discuss your plans and learn how we can help achieve your M&A goals.
Stacks Image 798
Responsiveness & Professionalism
Letters Rogatory
Letters rogatory, also known as letters of request, are formal requests from a court in one country to a court in another country seeking judicial assistance. The most common forms of assistance sought through letters rogatory are:
  • Service of process: This involves the official notification of legal documents to individuals or entities in the foreign country.
  • Taking of evidence: This refers to gathering testimony or documents from witnesses located in the foreign country for use in legal proceedings in the requesting country.
In cases where direct transmission between courts is not possible, letters rogatory may require the involvement of diplomatic or consular channels for transmittal.
This method is generally used when there are no treaties or agreements between the two countries to facilitate the requested judicial assistance. It is important to note that executing these requests can be a lengthy process due to the involvement of diplomatic channels and the need to follow the judicial procedures of the requested country.
Stacks Image 807
Service by Agent
A process server is a neutral, third-party professional tasked with delivering legal documents to defendants, witnesses, or other parties named in a legal action. This delivery, or "service of process," is a crucial component of due process, as it formally notifies individuals of legal proceedings and their obligation to respond.

Role and function
  • Deliver legal documents: Process servers deliver a range of documents, including summonses, complaints, subpoenas, writs, and eviction notices.
  • Verify proper service: They must ensure that documents are served in accordance with the laws of the relevant jurisdiction. Different states and countries have distinct rules governing who can be served, and when and where delivery can occur.
  • Provide proof of service: After successful delivery, the process server completes an affidavit of service, which is filed with the court as evidence that the documents were served correctly.
Domestic and international service
Process-serving can be complex, especially when legal matters cross borders.
  • Domestic service: The server must comply with the specific rules and regulations of the local jurisdiction.
  • International service: This requires navigating treaties like the Hague Service Convention or using Letters Rogatory, depending on the country. It often involves different government channels and translation requirements.
Stacks Image 814
Translation & Authentication Services
Leveraging our global network of service providers, we offer high-quality document translation services in over 75 languages. For documents requiring legal recognition, our partners are qualified to handle all authentication requirements, ensuring your translated documents are accurate and legally compliant.
Stacks Image 821
PRODUCTS
INDUSTRIES
ABOUT
RESOURCES
CONTACT
Phone: 520.382.0300 Main
Fax: 520.382.0401
information@expertrecover.com

Mailing:
12090 N Thornydale Rd.,
Suite 110 # 209
Marana, AZ 85658
United States of America
Stacks Image 714

The Bao Lyon Group, LLC does not use cookies on its site. We do not collect information about how you interact with our website, products, or services through the use of cookies, pixel tags, and similar technologies. We do not track your moves through our website or your browsing habits. We will not collect any information from you unless you choose to contact us via email. Your email address and any other information you send us may be used to reply to you, to answer your queries, questions, or to provide services you have requested from us. By proceeding to browse our site or by selecting continue, you consent that you have reviewed our Privacy Policies and you are in agreement with the Terms & Conditions of our website.