Private Equity and Venture Capital in Europe

14.6. Private Investor Motivation and Criteria

Private investors are motivated by:

1. Return on investment — Venture capitalists have building operations that allow a minimum ROI of 30%.
2. Improved self-image, self-esteem, and recognition — Private investors desire satisfactory economic returns from their investments as well as the opportunity to increase the value of their brand to guarantee a successful investment.
3. Alleviating concerns and helping others — This is especially seen in Business Angels. Because early stage financing seems like charity, Business Angels very often decide to invest money in business ideas connected with an emotional past experience (if a relative of the investor has died due to a cancer, the investor might finance ...