We all are well aware that any startup or a business need a lot of funds. That could prove to be a tough challenge for an individual to pay or invest from their own pocket. Moreover, depending upon the nature of the business you can find those different people from different parts of work love to invest in your ideas. The portion of the investment that is shared by the different individual investor help them to share profit or loss according to the status of your new startup or business depending on the market.
According to Ari Rastegar, the certain percentage that is invested by different entities (shareholder, stockholder and capital holders) provide you with ways in which you can collect funds for your business. And in terms of accounting and finance, these instruments have a special term to define known as equity or owner’s equity. To have a better understanding of equity , let’s take an example of any car owner who bought a car worth rupees 50000 but has a loan of 10000 outstanding for the loan for the car. Then the car equity will be 40000 rather than 50000, as equity is the difference of liabilities from the real assets.
In simple words, if you are expecting better profit each time apart from your regular business, then you can start seeking shareholder equity in different entities. This will help you to raise profit individually apart from your business and also help the startups and business entities to collect all their funds for a business that could ensure future benefits.
But these private companies try to charge from the investor in form of finder fee, who help them to provide the service of intimating them about different entities where to invest. On account of this in recent years a huge dip is recorded in past few years as an investor is against their will to the excessive fee. As in beginning also they are providing their service in from of funds to that startup and business who actually need funds.
This time Ariah Rastegar has tried to come up with some better investment plans that could ensure you with better returning apart from usual risk. Talking more about Ariah Rastegar who worked for Chelsea Hotels Chief Executive Ed Scheetz and real-estate investor Nate Paul. And had assured investment by its own, a fund from 250-500 million for real estate assets like self-storage faculties and discount retail locations practice.
On this charge only 1.2% of the management fee and would go for half of the total profit after coming to the investment hurdle of 8%. Moreover, the fund has a deviation with the standard one and there is no charging of commission and fee on acquisitions and add-on purchases, or for monitoring investments.