Do angel investors and VCs invest in benefit corporations? My startup is like an eBay for documents, where users can put out their professional documents, either for sale or for free.

Yes. VC firms do invest in b-corps provided that they have the potential to earn VC-level returns. In fact, an article on Huffington Post asserts that B-corps are attractive investments. If you do a quick Internet search on privately held b-corps with VC-funding, you’ll learn that several were able to raise millions in just months. So, yes, VCs do invest in them, but you’d want to target VCs that may have an interest in what you’re providing because they see a value to it. After all, you wouldn’t go to an auto parts store if you were interested in baking a cake. You’d go to a grocery store because your interest is in the ingredients. Choosing the right venture capital firms will be key (and the Huffington Post article I linked to lists several leading investors that have chosen to invest in B-corps).

One key consideration (as far as VCs are concerned) is to ensure that your business is positioned for sustainable growth. VCs may ultimately enjoy the fact that you’re a benefit corporation, but they’re also interested in growth and in return.

Yes, angel investors also look at B-corps. In fact, B Revolution Capital is an angel network for B-corps. Please note that this isn’t an endorsement. I am not affiliated with the company. I just happen to know that they exist. Again, though, the key will be to find angel investors who are interested in what you offer and who believe in it.

If you need assistance creating your B-corp, check out LawTrades. Our attorneys have helped thousands of startups complete the proper documentation for budget-friendly rates. We’d love to talk to you and help you too!