How to Find a Business Development Company to Invest in a Business

A Business Development Company invests in small companies in the initial stages of their development. A BDC must register with the US Securities and Exchange Commission under Section 54 of the Investment Company Act of 1940. BDCs allow small investors to invest in start-up companies. Find Business Development Companies publicly traded on the NYSE, AMEX, NASDAQ and through regular venture capital sources.

Instructions

Difficulty: Moderately Challenging

1. Visit the Wall Street website and access the chart listing Business Development Companies. Companies seeking investors are often seeking businesses to invest in. Visit the Business Development Companies listing on "Hoovers" or other financial websites to find current contact and financial information about the BDC.
2. Find Business Development Companies by visiting the BDC Journal's website. Read about the latest developments in the BDC investment arena.
3. Search the SEC registrations for companies who have registered under Section 54 of the Investment Company Act of 1940. Find BDCs that are actively seeking new investors by searching for N54C filings. Contact active Business Development Companies to invest in your business.
4. Look for Business Development Companies through traditional venture capital sources. Hire a broker who specialized in finding venture capital sources or visit websites such as the National Venture Capital Association's website to find sources of venture capital.
5. Qualify for funding under the Small Business Administration rules governing small business funding. Seek Business Development Companies who specialize in SBA qualifying companies. Ask your local Small Business Administration office or venture capital broker for referrals to Business Development Companies who specialize in your area of business.