What is an Investment Network?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 23 February 2020
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Investment networks are organized groups of investors and entrepreneurs who are mutually interested in launching a new venture or restructuring an existing business operation with an eye of generating a significant profit. Sometimes referred to as an angel network, this forum for communication allows people with money to connect with people who have ideas and expertise. An investment network may be open to a number of different types of ventures or focus on a particular kind of business venture, such as real estate.

While an investment network may take on several forms, the core purpose remains the same. Investors look for entrepreneurs who have viable ideas for launching a new business or a business venture that is likely to make a great deal of money within a given time frame. At the same time, entrepreneurs are looking for investors to underwrite the costs of starting up the venture and continuing to support the operation until the project begins to generate enough profit to function on its own.


Both parties benefit from the investment network arrangement. Investors usually make some type of return on the investment, either in the form of cash or acquiring stock issues before the new company begins to trade on a stock market. Entrepreneurs are freed from financial concerns since funding is now secure and can focus on refining the project and guiding it to success. As a result of the creation of this financial investment network, everyone stands to gain a great deal.

Financial investment networks or alliances of this type can focus on just about any kind of money making strategy. An investment network may focus on real estate investments, including the purchase, repair, and resale of properties in order to make a profit. The network may also focus on infusing a struggling company with needed cash to get on its feet, find a customer base, and become profitable.

An investment network may also target the development of new businesses by backing an entrepreneur and ensuring the new business venture has the financial resources to launch the business and stay afloat long enough to cultivate a customer base. In all instances, the ultimate goal is to generate profits for everyone involved and possibly create a revenue source that will benefit investors and business owners for many years to come.



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