Investors as Engines for A Strong Economy

How wealthy individuals can contribute to the overall economic growth cycle


Arleo Dordar

Arleo Dordar

Partner, LA


Every startup founder knows the value of investors and the funding they provide to maintain or expand a company’s operations. However, investors and their capital can also greatly contribute to the overall health of the U.S. (and global) economy. An investor’s dollar has significant butterfly effects, making it a powerful tool not just for boosting an investor’s portfolio but also for boosting the economy as a whole.

Investment as an Engine for Economic Growth
In the U.S., economic growth is primarily driven by consumer spending and capital investment. Put even more simply, economic growth is an expansion of the capacity to produce goods and services. However, for a small to mid-sized company, increasing its pool of capital available to invest in assets, operations, or other essential company inputs can be exceedingly difficult without outside investors. On average, it takes a new company two to three years to become profitable. That window of time is critical to a company’s later success, as it may represent the period of time when a product or service concept is still novel, or mean the difference between sinking or floating. Securing early outside investment is key to enabling a promising but cash-strapped new company to make the necessary hires, purchases, or investments to establish itself for long-term growth and profitability. Investments, in turn, propel economic growth cycles, which may be determined by factors such as gross domestic product (GDP), interest rates, total employment, and consumer spending. For instance, if an economy has spare capacity, the initial rise in investment increases economic growth, causing an increase in sales and profit. As a company’s profitability increases, it becomes willing to reinvest all or part of those profits, creating a further investment input.

Modes of Investing Investing can take several different forms, depending on how much money you’d like to invest, how long you want to remain invested (short term versus long term), the health of the market, and how much risk you’re comfortable with. The most common way to begin investing is to invest in equities like stocks, mutual funds of stocks, and Exchange Traded Funds (ETFs). You can also invest in bonds, which come in a variety of forms including government, package, savings, corporate, and municipal bonds. The key difference between stocks and bonds is that stocks give you partial ownership of the company whose stock you have purchased, while bonds operate as a loan from you to the entity whose bond you have purchased (whether that is the U.S. government, a private company, or another entity). They also generate profit differently. While stocks appreciate over time and can be sold for a profit at some time in the future, most bonds pay fixed interest over time.

Related Service

Investor Business Plans

April 4, 2023 | 10 min read

Recruiting Talents

Top Five Tips For Recruiting Talented Hires To Your Company

Top Five Tips For Recruiting Talented Hires To Your Company

Business owners, executives, recruitment managers and even employees themselves are rightly focused on attracting talented people to join their teams.

Clients take our work to drive change in their organizations

Another avenue for investment is through private equity, a kind of investment capital where money is pooled between private investors and then used to purchase ownership or interest in an entity that is not publicly listed or traded. This can include direct investments in startups (which may be a good fit if you are interested in investing early in a company you believe in) as well as more established private companies.

Another option is to invest with a Rule 506(b), (c) or (d) Regulation D investment. A Regulation D offering is intended to make access to the capital markets possible for small companies that could not otherwise bear the costs of a normal SEC registration. 506b regulation d investments. Rule 506 of Regulation D provides two distinct exemptions from registration for companies when they offer and sell securities. Companies relying on the Rule 506 exemptions can raise an unlimited amount of money. Or, work with Venture Plans’ dedicated and experienced investment consultants on investments through Regulation A+ crowd funding (an exemption which allows both accredited and non-accredited investors to buy shares from small companies), or Regulation S Offshore Offerings (which provides a safe harbor from the registration requirements of the Securities Act for offshore offers and sales of securities).

Every investment is subject to risk because financial markets can be volatile and company value can increase or decrease over time. However, a wise investment can yield a considerable return on investment (ROI). Investments of these kinds are one of the best ways to put your money to work and see (often rapid) appreciation. And, they often have the added benefit of being taxed more favorably as a “capital gain,” versus being taxed as “gross income,” which is accompanied by a higher tax rate. Whether you’re a retail, institutional, angel, credited, or venture capital investor, Venture Plans’ global consulting services can bring you a large deal flow from a variety of companies and industries. As investment/strategy firm Venture Plans also assists in transactions with relationship-based investors.


Investors as Engines for A Strong Economy

Investors as Engines for A Strong Economy

How wealthy individuals can contribute to the overall economic growth cycle

Investments in Human and Asset-Based Capital As companies invest in their businesses in order to expand their products and services, they will hire more employees and increase salaries or wages. In turn, as households gain employment from the investment, they have more income to spend. This is called a multiplier effect. An investment of $2 million could result in a final increase in real GDP of $3 million (multiplier effect of 1.5). Investor dollars can also be used to provide a company’s employees with better job training, skill development, benefits, and wages, which fuels growth in human capital and improves the overall wellbeing of those living, working and spending in a given economy. Relatedly, additional capital made available by investors contributes to increased labor productivity, as companies can use it to purchase newer equipment, digital tools, or factories. These improved assets enable the company to create more goods or render services at a faster rate, raising the company’s overall productivity and efficiency. As labor becomes more efficient, this increased efficiency nationwide leads to economic growth for the entire country and a higher nationwide GDP.


The Importance of Cybersecurity & Data Encryption to U.S. Consumers

The Importance of Cybersecurity & Data Encryption to U.S. Consumers

The potential for serious cybersecurity breaches has grown.


See how we’ve helped our clients achieve their business goals.

Venture plans wrote an outstanding business plan creating an operation model, and marketing strategy on how to scale our multi chain coffee shop in Century City Los Angeles.

Jack K. - Boulon D' Amour

Working with Arleo has been an exciting journey! His driven mindset and passionate pursuit of a innovative fitness solution for trainers is second to none. Despite his life long experience in the sports training and fitness industry, he is always eager to learn and improve with everyone while maintaining constructive leadership.

Ashkan A. - CEO Bolts Marketing

They are experienced in cognitive computing, automation, ICO, big data, and artificial intelligence.

Gurvinder H

Investment’s Role in Market Decentralization and Competition One benefit of investor dollars that has been less frequently discussed is its role in ensuring marketplace competition through supporting early-stage companies that challenge well-established players. A decentralized economy in turn benefits consumers, as robust marketplace competition ensures that companies will not rest on their laurels or price-gouge but instead continue innovating. A competitive economy ensures consumers greater choice of products and services, lower price points, and higher wages as companies compete to staff up and provide competitive benefits and wages amidst high consumer demand. These innovative products and services in turn are desirable to people outside of the U.S., helping the U.S. remain competitive in a global economy. High-quality, novel products and services increase international trade and expand business opportunities abroad for U.S. companies and investors.

Investors as Change-Makers Finally, it would be remiss not to note that economies and societies around the world are undergoing great shifts, as remote work becomes commonplace and automation increases. Investors have a unique opportunity to invest their capital into companies and industries that they believe in and that are paving the way in this radically changing landscape. Investors can directly shape the next generation of businesses by choosing where to place their long-term investments. There has never been a more exciting time to invest. Companies are in many ways the building blocks of a healthy economy. For those with capital to spare, a well-placed investment in a small to mid-sized company contributes greatly to the economic growth cycle, thus generating value for both the investor and the economy as a whole. [LINK TO VENTURE PLANS PAGE FOR INVESTORS]


Are you interested in this service?

Click the buy a service button to proceed to check out and select the service you would like to purchase.

Trustworthy Investment Consulting Venture Plans offers investment portfolios and deals structured for a wide variety of investor classes. Whether you’re a retail, institutional, angel, credited, or venture capital investor, Venture Plans’ global consulting services can bring you a large deal flow from diverse industries. We have deep expertise in capital raising services such as private placements, private equity, Regulation D 506 (b), (c) and (d), Regulation A+ crowd funding, and Regulation S Offshore Offerings. In addition, Venture Plans founder Arleo Dordar has expertise in startups and can carefully guide investors down the exciting path to investing and igniting growth of emerging companies. His extensive experience includes helping to scale, structure, organize, and create sustainability plans for 4500+ companies in over 150 industries globally that have resulted in over $350 million in investments. Arleo has also worked with companies on restructuring strategy, project management plans, revenue growth implementation, execution, financing, automation, and digital transformation.

Contact Venture Plans today for an introductory meeting to discuss your many options for investment!

Contact Venture Plans today for an introductory meeting to discuss your many options for investment!

Discussion (20)

Very straight-to-point article. Really worth time reading. Thank you! But tools are just the instruments for the UX designers. The knowledge of the design tools are as important as the creation of the design strategy.

Much appreciated! Glad you liked it ☺️

The article covers the essentials, challenges, myths and stages the UX designer should consider while creating the design strategy.

Thanks for sharing this. I do came from the Backend development and explored some of the tools to design my Side Projects.

Ready to talk?

I want to talk to your experts in:

From diagnosis and planning to implementation, we help you take bold steps for your business.