In the modern world, more and more interesting business ideas are appearing that require implementation. But to promote any project you need money, which the author of the idea does not always have. Therefore, the question of finding investment to start a business is relevant. However, entrepreneurs and companies starting from scratch risk facing strong competitors in their chosen niche. And in order to implement the idea and find the necessary funds for this, you need to know all the tricks for attracting investors.
We will tell you how to make your project attractive to investors and what needs to be done to achieve this. The one who walks will master the road, but the business is the one who is ready for something new.
- 1 Where to look for investors
- 1.1 Classic ways to attract investment
- 2 Attracting investment through the mainstream
- 3 Platforms for finding investors
- 4 How to act. Basic rules for attracting investors
- 5 How to make a project attractive: what will an investor pay attention to?
- 6 How to prepare for communication with an investor: from pitch to conclusion of an agreement
- 7 How to properly prepare a presentation: 5 tips for investors
Where to look for investors
There are many more opportunities for finding investors than it might seem at first glance. And you can find money by resorting to both long-existing investment methods and modern ones that appeared with the advent of the Internet.
Classic ways to attract investment
You can get money for your business through investment funds, small business assistance funds. This is quite a difficult task. In addition to the fact that a beginning entrepreneur must find serious reasons for receiving investments, he must invest part of the funds himself, but not everyone has the opportunity to do this.
You can ask for help at venture funds, however, it must be taken into account that they provide funds for the development of projects that have prospects. First of all, in the field of innovation and IT technologies.
Another option is a special platform for investing in business projects, a business incubator. But to get money, you need to win the competition and pass an interview.
Successful people can also become potential investors businessmen who would like to have passive income. Finding investors and making them partners is the most acceptable and simple way. And for this you need to be able to present your project well, prove its worth and relevance.
Attracting investment through the mainstream
One of the most popular ways to attract investment is crowdfunding, which is the collection of funds for a business from ordinary people. There are crowdfunding platforms on the Internet designed to allow you to leave proposals to raise funds for a project, or to invest your own money in the project. But to resort to this method, you either need to be a famous person or be able to advertise your idea very well, which, unfortunately, is not done on crowdfunding sites.
You can also try attract investments through cryptocurrencies and electronic payment systems . It should be noted that some popular cryptocurrencies today, for example, Ethereum, were created with user money.
Platforms for finding investors
If you don’t know where to look for investors, then we offer you several large platforms for finding them.
business-platform.ru. Federal business platform. In addition to projects and proposals for the sale of ready-made businesses, you can find an investor base here. The main task of the platform is to connect investors and authors of business projects online.
beboss.ru. The resource provides an opportunity to search for investors for any industry, as well as a catalog of franchises, business plans and business ideas.
napartner.ru. The platform offers various services for startups and investors, such as transaction support. Beginning businessmen will need to describe the nuances of their project so that investors receive as much information as possible.
investclub.ru. The resource offers ample opportunities for finding investments and investors.
rusinvestproject.ru. A platform for searching for investors both in Russia and in the CIS countries.
How to act. Basic rules for attracting investors
There are many people who want to receive investments and the competition is quite strong, so before looking for an investor, you need to learn a few rules.
The more information you provide to investors, the more they will trust you.
If you know how much you can earn, how your project will develop, you can safely go to a conversation with an investor. Calculate exactly how much money you need and for what.
An example is the startup Talkdesk. Its authors proposed the development of cloud technologies that should be used in call centers. Before meeting with a representative of the Silicon Valley venture fund, from which the project team subsequently received $12,000,000, she already had investments from other investors in the amount of $4,000,000 and received $1,000,000 in profit. Investors were captivated by the team’s ability to save money and devote themselves entirely to work. They made all conclusions based on the information provided about the project.
The more you know about an investor, the more opportunities you have to interest him.
What is your preferred communication style? How is business going? How quickly does he make decisions? Any little thing can turn out to be important.
An example is receiving investment for the Glowforge project. Before applying for investments, the author of the project looked at the blogs of the fund’s partners. Studying them, he concluded that when making a presentation, you need to be based not on numbers, but on the product. In total, the project raised $9,000,000 for the production of laser 3-D printers from venture funds Foundry Group and True Ventures in 2015.
The project also set a crowdfunding record, as it was able to attract another $28,000,000 on sites. That is, the author of the project, Dan Shapiro, successfully used the second rule, but most importantly, the third rule.
The more confident you are in your success, the more others will believe in it.
Investors prefer competent and persistent people who know what they want and know how to justify their plans. Prove that you are capable of doing what you propose. Give up the words “I want” and “I wish”, say “I do” and “I act”. Focus on your goals. Correctly set goals will certainly lead to success.
How to make a project attractive: what an investor will pay attention to
According to statistics, out of ten projects only one receives investment. What needs to be done to make your project interesting to investors?
- You and your team
First of all, any investor will be interested in what kind of people he will have to work with. Both the personal qualities of the author of the project and his motivation and willingness to go to the end are interesting. You must prove that you can move forward despite the difficulties. It is important how you achieve your goal, since any investor values his time and money.
- Correct calculations
Unfortunately, 95% of aspiring entrepreneurs looking for investors have little idea of what kind of income they can expect. The numbers they present at the presentation sometimes do not correspond to reality. Constantly growing sales and million-dollar profits offered by project authors often have nothing to do with the real state of affairs. Look for how to optimize costs, indicate what exactly you want to receive investments for.
- Project potential
One of the most important points in communicating with an investor is determining the potential of the project. The investor needs to know when the project will generate income, how you will identify potential clients, and finally, when the project will fully pay off. Preferably within a year, maximum three years.
To identify potential clients, it’s a good idea to run a crowdfunding campaign. If users are interested in your project, you will have a chance to attract interest from investors.
How to prepare to communicate with an investor: from pitch to conclusion of an agreement
There comes a time when the investor believes that he should choose your project. On average, it takes businessmen 3-9 months from meeting an investor to concluding an agreement. It is possible that you will have to prepare more than one version of a business plan and answer many questions for which you are not quite ready. Therefore, carefully prepare not only for the presentation, but even for a short meeting and telephone conversation. Each stage of communication requires its own preparation.
Stage 1. Getting to know each other
It can be either full-time or remote. The main thing here is to interest the investor in your project. To do this, you can use the following methods.
Elevator pitch or an elevator pitch. The short pitch was so named because businessmen and startups would catch potential investors in elevators and present their business idea to them in 30 seconds. Your mini-presentation must include:
- the problem you are solving;
- Product Description;
- monetization method.
The main thing is to attract attention, for which you can use interesting facts or figures. For example, SpaceX's presentation consisted of only three sentences: the cost of launch, which has not been reduced in decades, the possibility of reducing it by 90 percent, and the impressive amount that can be earned.
Elevator pitch can be used at large forums and business competitions.
Correspondence. It is quite possible to establish a connection by corresponding by e-mail. This method works best for individual requests. In addition to the appeal, the letter must include:
- description of the product or services;
- description of consumers;
- business model;
- basis for investment.
Stage 2. Business meeting
Presentation. If a potential investor is interested in an elevator pitch or your letter, he will invite you to a personal meeting, for which you also need to prepare. When going to a meeting, you need to decide what you specifically want from it. If you receive money, you need to say so. This call to action is quite applicable and works.
Now about the presentation itself. It should be short and bright. It's good to follow the 10/20/30 rule. Try not to dwell on the details and keep it to a 20-minute presentation, which consists of 10 slides and is typed in 30 font.
Appearance. The fate of your project will depend not only on a good presentation, but also on your behavior and appearance. That's why:
- don't be late;
- come in a business suit;
- follow the rules of etiquette.
Your ability to carry yourself confidently, your energy and charisma are very important.
Stage 3. Obtaining financing
Finance, finance and once again finance. For an investor, the main thing is making money. This must be remembered above all. Therefore, even if your project is supposed to “save the world”, but does not have a good business plan and financial plan, a potential investor will not be interested in it. A financial model is needed that can be adjusted by the investor himself. It's good to have:
- results of marketing research;
- letters from suppliers.
It is better to prepare three options at once: optimistic, pessimistic and basic. But, in any case, the model must be carefully verified. Only in this situation can we hope to conclude a deal. It is important to show that you know the market well and to convince them of the feasibility of introducing your product. The investor must believe that by investing in your idea, he can not only quickly recoup his investment, but also make good money.
How to prepare a presentation correctly: 5 tips for investors
Presentation is very important, on which the receipt of investment will largely depend. Many entrepreneurs, when preparing for a presentation, do not fully understand the interests of investors and do not know how to properly present their project. What points should the presentation contain?
- Problem Definition. If it exists, then it needs to be confirmed. Demand confirmation must be determined by real numbers.
- Solution to the problem. Your decision cannot be the only correct one. But it's your decision, and you need to convince the investor that it works, that people are willing to buy the product. It is best to come to investors already with certain results. To do this, you can take the following steps:
- do product testing;
- notify about changes to the project;
- present the available results.
- Search for opportunities to sell the product. Willingness to buy does not mean that the product will sell well. Even if a person buys a service or product once, there is no guarantee that he will contact you next time. Therefore, you need to take into account profit and loss per customer, the so-called unit economics, as well as ways to attract and retain customers.
- Searching for a market and determining a strategy for entering it. We need to look for those markets that are growing and not disappearing, such as the cell phone repair market.
If the presentation shows how your income will grow in 3-5 years, then your financial model will arouse the interest of investors.
- Determining the investment amount. At the last stage, you must tell the investor what you need the money for and how much you want, as well as how much you are willing to invest yourself.
The right choice of investor, serious preparation for a conversation with him, as well as a good presentation of the project will help you get a chance to invest in your project.
BeginThis section reflects requests from potential investors considering the opportunity participation in an investment project on the territory of the Moscow region.
You can do searching for investment projects by placing a corresponding request in free form in our investment projects database.
Entrepreneurs who are ready to offer their investment project for consideration will be able to find your request using keywords.
You can also familiarize yourself with those already proposed for implementation investment projects in the Moscow region, going to the section “I offer an investment project”.
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We know how to attract investment in your projects.
We help our clients solve the most pressing financial issues related to financing any business projects. Feel free to get in touch if you lack financial resources to implement your projects. A dedicated team is ready to provide investment solutions by connecting you with potential investors.
WhatsApp only: + 7-926-745-72-17
https://investconnect.populiser.com
Investment capital is available for projects in the real sector of the economy and trade (export-import), socially significant initiatives in the field of ecology and healthcare, culture, education, and tourism.
We have reliable connections with foreign financial organizations interested in projects in the Russian Federation and CIS countries, providing capital on favorable terms under a simplified procedure, both in the form of an investment loan and in the form of creating joint ventures with the share participation of a financial partner up to 100% of the cost project.
Capital is provided at a rate not exceeding global rates (3-4% per annum), with a moratorium for the period of development of investment capital (up to 3 years).
The time frame for organizing financing, depending on the degree of readiness of the project documentation, is 1.5-2 months.
Direct contacts with persons making decisions on the provision of capital reduce the time required for document flow and minimize the risks of refusal of financing.
We provide project support at all stages of the transaction, from placing an application for project financing to organizing and holding a working meeting to sign an investment contract.
Applications for the provision of services are accepted from new (created for the project) or existing companies that have objective grounds for receiving investment capital, have realistic plans for the implementation of the project, and have initial capital to cover the costs of the organizational period, at least USD / EUR 50-70,000.
Please send questions and suggestions to the following email address: [email protected], for negotiations skype: a.rishad1, mobile phone, WhatsApp, Viber + 79273369267
For a business that has existed for more than 2 years and has a stable turnover, we offer loans from private investors through investment platforms. Loan terms are up to 12 months, the approximate rate, taking into account platform commissions, is 32-35% per year. The loan amount is comparable to the monthly turnover (up to 10 million rubles); if equipment is pledged, the amount can be increased. For medium-sized businesses, unsecured loans can be issued through factoring, overdraft, bond loans (the amounts are limited only by the financial capabilities of your company). We work throughout Russia, except the Caucasus, Crimea and the Far East.
Large-scale modernization of production, development of the agro-industrial complex (pig farms, poultry farms, cattle complexes, recirculation systems), obtain the latest equipment and technologies of the 21st century, expand capacity, purchase equipment, build multi-storey buildings, new workshops or entire turnkey plants (from 5 million euros ).
The investment project itself can be considered as the main collateral for the loan.
We work in Russia and the CIS (except Ukraine).
Investments and loans in real sector projects
We are considering projects from the real sector: manufacturing, energy, agriculture, construction of transport and logistics complexes and others.
Mostly projects from 0.1 to 1.5 billion rubles are interesting. We can consider larger ones.
The project's profitability is from 20% per annum in rubles and above.
We provide assistance in attracting financing for business projects in the field of oil refining.
Funding volume from $100M - $20B+
Duration of the investment project: 5-15 years, depending on the investment program.
Return level >25% (IRR).
For the purposes of purity and openness of business, projects accepted for consideration of financing issues are preferably existing businesses, at least three years on the market, without mixing investments of several financial institutions. We also take on the functions of Project consulting & Credit broker & Financial provider. Financing of Start-Up projects is possible.
We invite initiators of large investment projects (manufacturing, high technology, pharmaceuticals, ecology, energy...) based on existing enterprises that need their financing, to strategic cooperation!
Loans up to 10 years from one of the largest Russian banks.
To start interacting:
-financial model, business plan. It is advisable to have outside income to repay the loan (not necessary. Each project is individual, there are no special conditions)
We are also ready to organize lending secured by commercial properties with an operating rental business
The bank analyzes the financial flows generated by commercial real estate. 30-40% discount on deposit.
Loan terms are up to 10 years. Rate 11-12.5% (currently)
Amounts from 300,000,000 rubles are considered
Terms of cooperation in personal correspondence with interested parties.
Please initially send your requests by email: [email protected]
Projects in any area of activity are accepted for consideration, incl. financing long-term commercial transactions.
Loan for a period of 5-10 years, at 4% per annum, moratorium on interest and loan payments for 12-24 months
The organizational period is 2-3 months, we provide consulting support on a paid basis.
Details when contacting the client.
Our company "Capital Plus" offers direct investments and preferential loans for business.
Among our partners are leading Russian and foreign investment companies, AAA-rated funds.
Basic financing conditions:
Projects from the real sector of the economy are being considered.
Security - the investor's entry into share capital for a period of 3 to 5 years. Exit from projects is carried out by selling a share to a strategic partner (initiator) or through an IPO.
Having a profitable and financially stable business with growth potential, a strong management team, and a transparent ownership structure. The company is at the "Development" or "Expansion" stage. The minimum transaction amount is 300 million rubles.
For start-ups and enterprises with low turnover, investment loans are possible, subject to the participation of the initiator or his financial partner in the project, with his own funds in the amount of at least 20% of the project cost.
The loan term is up to 10 years or more, the moratorium on loan payments is 1-1.5 years. The minimum amount is 100 million rubles. Any industries and segments are considered.
We also provide preferential leasing financing. As part of government subsidies - significant discounts on advance payment + manufacturer's discount.
For small businesses and individuals, we offer loans secured by any real estate (residential and commercial), as well as vehicles, special equipment, including secured by purchased real estate and equipment. The loan amount is from 2 to 30 million rubles.
Where to look for an investor? The key question for an entrepreneur who is launching a new business project. To make your search easier, we present to your attention 15 places where to find an investor.
Business angels
This is the name given to private investors who often unite in associations, clubs, communities, and invest their financial resources in promising projects (mainly startups). This option should be considered by those who are planning a grand enterprise and are looking for large private investments. Business angels rarely consider financing low-budget projects.
Internet
On the Internet you can find investors for large and small enterprises. However, you should be careful - there are many scammers here who require advance payment and contributions. Online search, on the one hand, is simple, but on the other hand, you need to devote several hours or days to contact a decent investor.
Bank
If a large amount of investment is required, a number of banks have business portfolios. This option requires a permanent income, collateral and surety. To start a small project, you can get a consumer loan without collateral and income certificate. The loan will not be an investment - it will have to be repaid with interest, even if the business idea fails.
Crowdfunding
Perfect for seeking investment in a startup, charity, or non-profit project. To find finance, the creator of an enterprise publishes his idea on a special website or in a thematic social network community. Anyone can take part in the project. The required amount is accumulated through contributions of different amounts of money.
Venture funds
Venture capital funds often invest financial resources in innovative technologies and finished products. They don't consider ideas without a plan. If you plan to create a new IT product, then a venture fund will probably agree to sponsor it.
Startup platform
If you need to find one investor with a specific name, then you should use startup platforms, where many people want to finance startups. In order for a potential investor to respond, it is necessary to describe the idea of the business project in detail and provide a plan. Which startup platforms are looking for investors:
- PitchBook;
- Network;
- StartupPoint;
- InvestGo24;
- Partner;
- AngelList;
- Wanted Venture Capital and others.
How to find an investor and money for a business, video:
State grant
The state budget may annually provide for expenses to support small and medium-sized businesses. Financial amounts are sent in the form of grants to the population. To become a grant participant, you must submit an application with an impressive package of documents. Depending on the area to which the business project will be attached, a special government body is selected to submit the application. Financial assistance from the state is targeted, so you will have to strictly account for the use of finances.
Business incubators and technology parks
For aspiring entrepreneurs, these organizations provide a favorable business environment. In incubators and technology parks, business develops rapidly and without painful stages. Where can you find such investors? Most of them are in megacities. The base points of technology parks are universities or scientific institutions.
Private equity market
A private equity firm can finance a business project for large sums - from tens of thousands to hundreds of millions of dollars. The goal of such a company is to sell its share a few years after the investment in order to profit from business development.
Social media
There are a number of social networks where you can find specialists in the field of interest who will provide assistance in financing your business. Well-known social networks with potential investors: LinkedIn, Plaxo, Xing, EFactor, Meetup, Cofoundr.
Accelerators
They are intensive educational programs that provide assistance to projects in the early stages. They support this business project until the first investment is received. A great way to find funding if you can’t find an investor on your own. Accelerators require 3-7% of company revenue to recoup their investment.
mass media
To find an investor, it is advisable to subscribe to thematic media, which publish their proposals in sections. Or “promote” your project so that the media directly contact the author. Over time, investors will respond to the PR campaign with the media.
Competitions
To gain valuable competition experience, gain the attention of investors, and receive a grant, it is recommended to take part in special competitions. They are provided in the format of educational programs, hackathons, and exhibitions for startups. If the project turns out to be promising, the investor will definitely offer his help.
Industry events
Successful businessmen in the field of various technologies present their projects here. Industry events also provide opportunities to meet potential investors, consultants and specialists. It is recommended to search for the main business industry events in your city on thematic online resources. They take place in the format of summits, forums, seminars, master classes, and conferences.
Relatives, friends and acquaintances
Perhaps the easiest way to find an investor and a business partner rolled into one. It is advisable that he specialize in the chosen field and have experience in running a successful business. For a successful start, it is important to create comfortable conditions for conducting the project for all participants.
How to find an investor for a project, video:
Where to find an investor to open a business and to develop an existing project, how to prepare for a meeting with potential partners - the answers to these and other questions are in the article. As well as samples of business plans that will be useful for finding an investor.
In this article you will learn:
Finding an investor in a bank
Where to find an investor for an existing business or for a new project? The first thing that comes to mind is a bank. Probably every second resident of our country regularly calls banks and happily informs them that they have been approved for a loan from 50 thousand to 50 million rubles. For example, a certain bank approved me a loan of 5 million at 11.8% per annum. However, upon closer examination, it turns out that the rate increases: without insurance - by 5.1%, without advance payment - by 2%, without collateral - by 2.1%, without online application - by 0.5%. From the date of loan issuance to the date of the first payment, the rate increases by 1.5% per month. The maximum total cost of the loan is 24.103%. No, thanks!
However, if you search in different banks, you can get a loan at about 11%.
In addition, you can involve your friends or subordinates in co-financing. They apply for a loan from a bank, you repay it, and you pay them a commission for using the loan. This scheme works, since few subordinates will dare to refuse the boss if they are confident in his enterprise.
This method also includes obtaining loans for small businesses from banks at 9.5% per annum secured by collateral (goods in circulation, equipment, transport, real estate, collateral of third parties, guarantee from the small business support fund). The only case when banks provide funds for opening a new business is franchise of famous brands(recipe for success).
To find an investor, you need a business plan!Download documents that will help you draw it up correctly, and sample business plans:
How to justify to a bank the effectiveness of an investment project using Excel
To prove to the bank that the company will be able to pay off its obligations, use a ready-made model in Excel to evaluate the effectiveness of investment activities as a whole or a separate investment project.
Funds and business angels
You can attract investor funds for a project from scratch or for its development in Russia directly, bypassing banks. For this, connections and acquaintances, recommendations, etc. are usually used. But there are more modern ways to attract attention - these are electronic investment platforms. For example, "City of Money".
The applicant places his proposal on this site: a brief description and financial calculations. Provides the necessary documents (founding documents, business plan, guarantees, if any, documents for the property that will be used as collateral. The portal’s specialists evaluate the borrower’s credit history, documents and the business itself: profitability, stability, equity, debts, etc. After this, they go to the site and evaluate everything live, since everything may be in order according to the papers. After this, they publish a proposal, which investors evaluate, usually within two weeks, ask clarifying questions and either finance the project or not. See . Also .
What is the advantage
Firstly, there can be many investors; accordingly, the possible losses of each of them are reduced, and they, unlike a bank, can take risks.
Secondly, they may evaluate the offer differently than the bank. If the project is attractive, then a reverse auction situation is created - when there are more people willing to invest money than necessary, then the interest rate on loans decreases. As a result, the loan is much cheaper than a bank loan. This is a better way to get investment for your business.
Third, investors, unlike a bank bound by rules, can take risks and provide funds without collateral. Here, the platform itself acts as a guarantor, which checks the borrower and his affairs. Therefore, through the platform, investors can allocate funds even to those who would not be allowed from the street even onto the threshold of their office.
And finally, fourthly, on the site you can place , without having any business yet, and if it seems attractive, they will “buy” it.
For its services, the platform takes a commission of 3%, and if we are talking about a startup, then a fixed payment is 4,000 rubles.
Investor proposals
There are also reverse platforms where investors themselves post their offers. For example, "Business platform" .
If you combine sentences from the first page, which indicate , then you get the following table:
Table 1. Investor proposals
|
Sum |
Percent |
Industry |
Terms (information from the site) |
|
Know-how, production, energy, agriculture, pharmaceuticals, biotechnology, polymer processing |
Feasibility study, business plan, team information |
||
|
Business financing through leaseback, real estate and shares, equipment, unfinished objects, or commercial real estate. |
We invite partners to cooperate with projects for the reconstruction and development of existing businesses |
||
|
New technological projects and startups through ICO (Initial Coin Offering) - by issuing new cryptocurrencies. |
The minimum participation with the customer’s own funds is from 20–30 thousand dollars, in this case you can remain 100% owner. The project must have a prototype, a working model, for an “idea” - we don’t work |
||
|
Construction |
Unfinished objects |
||
|
Private American business angels invest in any IT and Internet startups with high development potential |
Availability of a business plan in accordance with the UNIDO world standard:
|
||
|
Extraction and processing of raw materials, construction and real estate, any production and processing, any industry and energy, any services and trade |
Business stage: from scratch and existing enterprises. Investment volume from 10 to 500 million rubles. into one project. Payback period: up to 60 months. Availability of a business plan and a ready-made team. |
||
|
Mechanical engineering and metalworking, polymer processing, waste processing, petrochemicals, new materials, HoReCa |
A presentation containing general information about the team, analysis and forecasts of the market for a given product/service, key financial indicators, and a proposal to the investor. Financial model for the next 2–3 years. |
||
|
Any highly profitable projects |
We are looking for specialists who are charged with the idea of development, who do not have enough start-up capital and are ready to lead the direction. If the start is successful, the initiator receives the right to buy out the option after 3 years. Before this salary + % of profit |
||
|
Extraction and processing, agriculture, construction, manufacturing, trade, services and other industries |
No collateral or security for the project is required from the initiator. The initiator's own financial resources are not required. 100% of financing is provided by the investor. The investor assumes all risks |
||
|
Working projects in the field of production, wholesale/retail trade, real estate, construction, Internet technology, agricultural sector, finance. |
Investment schemes – equity participation in business (priority) or secured lending |
||
|
Medical industry (dentistry, diagnostics, MRI), accommodation, food services, tourism |
If the start is successful, the initiator receives the right to buy out the option after 3 years. Before this salary + % of profit |
||
|
Investments to buy or open a store |
Providing investments, sales assistance |
||
|
Manufacturing, service provision, trade, IT, |
Details from the investor |
||
|
Any industries and areas of business |
A clear business plan Brief information on the project initiator (education, work experience, contacts) and on the investment project (brief description indicating the main economic indicators) |
||
|
Automobiles, architecture, woodworking, industrial parks, engineering, investments / finance, information technology, mechanical engineering, medicine / pharmaceuticals, metalworking, real estate, oil refining / petrochemicals, know-how, transportation / transport / logistics, recreation, waste management, polymer processing, industry, robotics, crop production, agriculture, communications, construction, energy |
Both individual trading companies and chain stores actively cooperate with us to obtain both short-term and long-term loans in order to increase working capital and increase commodity turnover. |
The table shows that the minimum investment amount starts from 1 million rubles. As a rule, a deposit is not required, but it is necessary that the initiator himself develops his business, i.e., first of all, businessmen evaluate the business and personal qualities of the applicant himself. As for industries, the majority invest in innovative and IT technologies, or in classic business areas.
If we look at the generalized diagram, we will see that the larger the loan amount, the higher the interest that the investor requires for it (see Figure 1). Although there are exceptions. For example, an American fund for 100 million rubles. asks for only 12% per annum, and our businessman-builder 100% for 224 million rubles. (see table above).
Drawing
Raising money through various funds (venture funds, small business support, etc.) can be attributed to the same method. You can come to these funds in person, you can find them through online platforms, through acquaintances, etc., but the essence does not change.
You can get investments for your business from your suppliers
Several years ago, an acquaintance of mine set up a café-bar without a single ruble in his pocket; moreover, he was saddled with a substantial debt. In paying the rent, he agreed with the owner of the premises on a two-month deferment, since he needed time to develop himself. He also received a two-week grace period from the beer suppliers who installed the taps on the condition that only their beer be poured at the bar. It’s the same story with coffee - a coffee machine was installed for him, subject to a certain volume of beans purchased per month with payment at the end of each month. The same goes for suppliers of beer snacks, cakes, etc. The staff, of course, gets paid at the very end.
Thus, his bar started working and in the first month he was able to close the current payments, and by the end of the second he was able to pay the rent.
In other words, investments for small businesses can include not only cash, but also trade credit, deferred payment and other forms of in-kind lending. The most important advantage of this type of collateral is that it is much easier to find suppliers willing to provide a trade loan under exclusive conditions and will cost less than professional investors or banks.
For example, when a university publishing house needed funds to publish academic literature, they granted one of the large stationery companies the exclusive right to sell stationery products in all buildings of St. Petersburg State University. And thus, we received the necessary funding.
Grants
Another way to obtain funding is to participate in competitions and receive government and private grants. To do this, a business must have a social component or pretend that it has one.
For example, in St. Petersburg for several years there was a network of public pharmacies selling medicines at reduced prices due to state subsidies. The pharmacy positioned itself as a social project and submitted a corresponding application to the state. help. In order to get it, she sold medicines to the population for six months at essentially wholesale prices. Due to low prices, the pharmacy gained popularity and made profits due to high turnover. As a result, the state the authorities had already heard about her, and she was easily able to win a grant for the social provision of medicines to the population.
This method seems specific, but in fact, any business can be presented as socially significant.
This category also includes numerous business incubators and small business assistance programs. Each specialized committee in government agencies has its own budget, which it needs to allocate in its own area: sports, youth, social affairs, healthcare, education, social housing, etc.
This also includes fundraising, crowdfunding, crowdsourcing and other methods of collecting donations from the public.
In general, finding money is quite difficult, but it is possible. The only question is that both the applicant himself and the investors are confident in the business being offered to him.
How to prepare for a meeting with investors
Before negotiations with potential partners:
- collect information about them;
- think about how to present data about the project;
- determine the forms of participation in the project;
- prepare documents for the meeting.
Pay attention to the scale and timing of past projects, forms and conditions of participation in them. Study the industry preferences of your potential partner. For example, venture capital companies are interested in innovative companies. Find out the minimum and maximum amounts of money invested, requirements for the level of profitability.
Determine what type of investors are strategic or financial investors. To draw conclusions, analyze information about the projects in which they have invested money. The former take part in the management of the company, the latter are only interested in income from investments. Using the information received, the financial director will assess in advance how much the company will interest potential investors and will place emphasis when preparing information.
What documents to prepare
Before meeting with investors, prepare the following documents:
- patents, licenses, documents confirming exclusive rights (if the project involves a high-tech or innovative product);
- commercial proposals or draft contracts for the purchase of equipment, real estate, and the creation of utilities. Describe the supplier, the reasons for choosing him and this equipment or real estate, cost, delivery conditions;
- loan agreements, if you have already attracted banks to finance the project. In the description, indicate the amount, interest rate, loan term, loan period, main covenants;
- draft agreement on participation in the project;
- loan agreement indicating the amount, interest rate, disbursement and repayment schedules. This is relevant if the investor participates with money;
- a constituent agreement, a share purchase and sale agreement, a share purchase and sale agreement or a prospectus for an additional issue (in case of equity participation). In such agreements, fix the amount of investor participation, the procedure for depositing funds, the procedure for assessing the contributed share with assets, the procedure for participation in the management of the company, and the rules for distributing profits.
The article was written by an experienced entrepreneur who has experience in attracting investments in his own innovative projects and third-party startups, collaborating with companies such as IC Finam, SBAR, Private Capital, etc.
First, a small but very important introduction:
Finding an investor willing to invest money in a new business is both simple and difficult. I’ll tell you how to find it below, but first I want to ask you: “Why do you want to attract an investor to your own business?”
No, I do not reject such an important and useful institute for a start-up business as “Investor”. In most cases, without an investor and attracting third-party money, a business simply cannot be created and launched.
I'm asking about something else:
“Are all your resources exhausted?”
“Does your business need an investor at all?”
Are you sure your project needs it? Do you think that an investor is pure “chocolate” and manna from heaven? Are you wrong?
To better understand these difficult issues, I suggest that you first and without fail read these articles:
Article: “Does a startup always need an investor with money?”
Article: “Investing in a startup, what problems might there be?”
Article: “Finding an investor for a startup or why does the investor say “no”?
Where to start looking for an investor for a business?
Do you need an investor to start a business, but you don’t know where to find one? Let's start with this.
First of all, I want to say the most correct and most banal thing: “To create a business, an investor can be found anywhere.” Everywhere. At every step. Even by extending your hand, you can feel the “strong shoulder of a friend” who can become an investor in your new project.
Therefore, for those who are looking for an investor for a start-up business, it is more important to understand not where to look, but how to look and, most importantly, how to convince a person or group of people to invest in your business.
Finding an investor is not a problem, the problem is making him a partner.
Below we will look at most of the possible “places” where you can and should look for an investor, and now I will try to focus your attention on one of the most important points - preparing to search for a future investor.
For many years now, there has been a story circulating on the Internet about how someone walked into an elevator and literally in two minutes, talking about his project, received almost millions of dollars from an investor.
I can fully admit that this is a true story. You never know how many poor and rich people wander around the world.
Perhaps someone fell for this. But in life everything is much more complicated and you won’t be able to find an investor “out of the box” without preparation.
To understand why, I will ask you: “Are you ready to give your hard-earned 25,000 rubles to a stranger. simply because he promises mountains of gold”? I think no.
You will study the offer, promises, etc. Why then do many of those who are looking for money for a project think that this money can be found without careful preparation?
In order to find serious money for a serious project, the minimum that you should have on hand is a business plan for the future project and its presentation with provisions on the benefits received by a possible investor.
A business plan can be replaced with a feasibility study (feasibility study), but it is better to have a full-fledged business plan. All the same, then the right investor will demand such a business plan in order to protect their money as much as possible.
Having read on Wikipedia and understood what a business angel is, an investment applicant can prepare (by creating a business plan and presentation) and contact directly the most serious organization in Russia that helps attract money from private investors to business - “SBAR” (Community of Business Angels of Russia) . There are other similar communities, but I advise you to contact them first.
The fact is that several years ago I promoted one of my inventions through SBAR.
Looking ahead, I want to say that my project never received the investments it needed.
But communication with representatives of SBAR, its managers preparing projects for the investment session and with those investors who were found with their help, “forever” cleared my brain regarding my innovation.
And understanding of innovative business in general.
Yes, I did not receive investment in the project with the help of SBAR, but the knowledge and experience that I gained by promoting the project with their help helped me get investment for another project quickly and comfortably. “There is no such thing as too much knowledge, just like money.”
By the way, I proposed my project to the National Network of Business Angels “Private Capital” in Moscow. There my project was immediately rejected. But I was not upset and continued the search.
This is what I wish for you: do not lose heart when rejected and continue searching for an investor.) In general, if you are rejected again, this does not mean that your project is bad. It may not be groundbreaking and won't change the world, but the harder you push it, the more likely you are to succeed.
Where and how to get money for a startup
This video explains: The legendary Russian Internet entrepreneur Anton Nosik shares his thoughts and best practices on how and where to look for your investors and how not to make a mistake.
Where to find investors for an online business?
Nowadays on the Internet you can often see advertisements like this: “Looking for an investor in a small business.” On message boards, special resources for aspiring entrepreneurs and innovators.
You can also take advantage of this opportunity and submit your ad. Perhaps this way you will find your investor, but the chances of success will be minimal. It is best to contact investors directly.
What do I mean when I say: targeted. This means that you need to prepare, collect a list of those Internet resources through which you can contact future and real investors.
Do you know why it is necessary to contact investors directly? I'll try to explain based on my own experience. Several years ago I decided to create my own extensive resource base where I could advertise for investment in a very interesting project.
I approached data collection with all responsibility and within a month I collected everything that could be found on the RuNet at that time. Including foreign investment funds. Rowing, as they say, everything that caught the eye and barely “moved.”
What was the result after I sent out my proposal to all these funds, communities, centers, technology parks, etc.?
Zero! Pure and virgin!
Russia and Ukraine is the first step to starting a successful business with an easy and simple start.
When making a decision to purchase a franchise, you need to consult the professional recommendations in this section:
You can read about the latest news and trends in franchise business
Do you know who I received “encouraging” replies and offers of investment from? From those who provided paid services for finding investments. Like: “You have a wonderful project, with our help you will change the world with your idea... but first we need to pay the Nth amount of money.” All clear?
Don't waste your time on such empty hassles. No, I do not deny that on such message boards, forums, etc. you can find your investor. This is possible, but the chances are slim.
Most of the “investors” on such resources are those who have no money, but want to foolishly scam you out of money. And they're getting scammed. And how they cheat!
Why am I talking all about sad things!
Look for money for a project on collective investment services. In my opinion, today the best crowdfunding platforms in Russia are the following resources:
- boomstarter.ru
- planeta.ru
If your business is created on an innovative idea, then I advise you to contact the Skolkovo Foundation https://community.sk.ru/news/ or Technopark "Strogino". These are state or near state structures, it is not easy to get into them, but it is possible.
An example of such a “hit” can be: Project Corteos and project "On Veliki".
Works productively in Russia Russian Startup Tour. This is the longest tour of the regions by leading experts from Russian development institutions with the participation of venture funds and major corporations. Perhaps your business or your innovation will be of interest to a large corporation, and it will provide it with investment?
I recently came across an offer from the creators of the City of Money service. City of Money is an online platform for loans for business and investment. I don’t want to give a link, I haven’t used it myself, find it and google it, but as stated on their website, this is a platform where investors and borrowers can contact each other directly, without intermediaries.
Well, the most likely thing is to take money from the bank. Either under a start-up business assistance program, for example from Sberbank, or in the form of a consumer loan. Many aspiring entrepreneurs started this way. They took money from the bank in the form of a consumer loan and started their own business. Many people succeeded.
The main thing is to find an investor
This video explains: An interview with the creator of the legendary Ozon online store, Alexander Egorov, in which he talks about the difficulties of finding investments and difficult relationships with investors that led to the sale of the business.
Investors for business in Moscow
Advertisements like: “Looking for investors to develop a business in Moscow” or: “Looking for an investor for a business in Ukraine”, in my opinion, are incorrect.
In the first case, it is not particularly important for the investor where the business created on a breakthrough technology or idea is located, and in the second, it makes no sense to look for an investor in Ukraine in our time (known political events). Which serious investor would invest money in a business operating in a country with a declining economy?
Let's focus on finding an investor in Moscow. I personally would not make any distinction in the geographic location of the investor, but if I did, I would turn to such resources as "Managers Club - E-executive." Do you know why? Yes, because 90% of the people shuffling there are managers from Moscow who have money.
Moreover, there are many managers with money who are already “ripe” for their own business. Do you understand? There is money, there is a desire to create a business, there is experience, but there is no time to fully devote oneself to a new business.
Not everyone is ready to leave the post of general manager of some oil company, even for the sake of their own business. Exit: find a head-first idea generator, invest money in him, his team and his idea, and everyone will be in chocolate.
This is educational: Strategy for startups
This video explains: A very interesting and original speech by Yuri Lifshits, which can be titled with humor: “A startup is not the whole life.” Yuri tells how to properly organize and build a startup strategy that will be key to your success.
An investor is looking for business projects and... does not find a suitable one
90% of new business creation projects do not receive investment because the business initiator is to blame. His main fault is that he either incorrectly emphasizes the business plan for the investor, or incorrectly creates the presentation of the project.
Here you need to understand the most important thing - how the investor considers applications.
In 95 cases out of 100, the investor sees only the main indicators provided by the project initiator:
- whether he is satisfied with the financial performance of the project;
- project payback period;
- project risks;
- and options for exiting the project.
The investor will read and consider the remaining indicators only when he is interested in the points that I listed above. Many people are still interested in having a project team, but this is not such an important point in my opinion. Or rather important, but later.
I will tell you how one of our projects was considered in IC "Finam". Looking ahead, I’ll say that my partner and I cheated a little when creating the presentation. Knowing in advance that we would be sending our presentation to Finam, we carefully prepared.
Having found out what projects this fund, respected in Russia, invests in, we found common “features” inherent in our project and those projects in which the fund has already invested. And these “traits” and features were especially emphasized in their presentation.
You can study the numerous experiences of other entrepreneurs who have created their own successful franchise business in the section of our website:
The most successful and informative case, according to the editors of the Russtarup portal:
An interesting experience of creating a business under a franchising program is presented
“Focus” passed, and we were invited to a conversation. Did we deceive the fund or not? No, of course not, we just did our presentation correctly. Did this help us in the end? No. Finam did not finance our project.
But we found investments elsewhere and from other investors, saying that our project received very good reviews in Finam.
Now let’s talk about how to draw up a business plan, an example of which will satisfy everyone. Or rather, about the small features of such a composition. So to speak: “A business plan for an investor, an example from my own life.”
What you write like: “The project will earn up to $100 million a year in two years” is of no particular interest to anyone. In my practice, any applications of this type are checked very quickly.
The main thing that needs to be emphasized in a business plan is to carefully and responsibly approach the creation of points:
- what problems do the project solve for people?
- project risks;
- options for investor exit from the project.
When describing the risks of the project, you must clearly understand what risks your proposal may encounter during its implementation and in the future. Including competitive risks and risks called force majeure.
When describing options for an investor to exit a project, you must clearly write what you agree to in building a relationship with the investor. Here you need to understand the main thing - an investor investing in a project wants to make money. Make a profit. Explosive profits are desired.
All other motives that are important to you personally, for example, to create a unique business, to be the first in the industry, to prove something to your wife... the investor does not care at all.
Therefore, he must clearly understand how and when he will be able to sell his share in the business being created.
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