Finding Private Investors

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Private investors are often recruited by a broker, or middle man, to bring money to a company that has a great idea. Discover how private investors provide the foundation for future investments with help from a registered financial consultant in this free video on investing and money management.

Part of the Video Series: Investment Basics
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Video Transcript

This is financial adviser Patrick Munro talking about finding private investors. Many times, business people will come up with a model to grow their investments and/or have a special project that they want funded. And normally, private investors -- people with money out there -- are looking for a superior rate of return for their money. What happens is the two don't know each other until they're brought together, and it is possible, through a middle man or a broker, to introduce these two parties to each other. The company with the idea, but no money, is introduced to the private investors with money and no place to put it. And if it's a win-win situation that the private investors are comfortable with the risk involved, they'll put up the money and with an appropriate period of time, they'll receive a return on their investment. This is a win-win situation and is easier said than done. But once done, it normally provides the foundation for future investments going forward. This is Patrick Munro, financial adviser, talking about finding private investors.

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