You have decided - you will develop your own business. Alone or in a team of like-minded people, you are constantly improving your business idea, studying the market, looking at possible competitors. And inevitably there comes a moment when you realize what initial investment your project requires. Investments at the start may differ significantly, but in ninety-five percent of cases, a novice businessman does not have the necessary amount of free funds. The way out of this situation will be to find an investor for the business.

In this article we will talk about:

• what preparation should be done before bringing your project to the investment market;
• where to find an investor;
• how to interest an investor in your project;

• consider the forms of investment - cooperation;
• let's talk about the mandatory clauses of the investment agreement;
• let's be inspired by the experience of successful startups and look at their working ideas

So let's get started.

First, you must clearly understand your business idea and its accompanying business mission. If you yourself cannot formulate how exactly your future product or service differs from those existing on the market, do not expect an investor to be interested in your idea.

An example of a bad presentation of a business idea: opening a private kindergarten in one of the cities of the Moscow region.

An example of a good presentation of a business idea: opening a private kindergarten for 100 children in the village of Nakhabino, Moscow Region, in order to meet the increased demand for kindergartens in the absence of supply.

Answer your questions honestly, preferably in writing:

1. Why do I think that my future product / service is better than what is already on the market?
2. What target audience might be interested in it?
3. To what extent will my product/service be in demand?
4. How do I plan to organize the production of goods / indication of services? Here it would be appropriate to briefly describe the technological process.

At a meeting with you, the investor will ask these questions, so you must be 100% sure of the answers. Also, detailed answers to the questions described above will contain a business plan with which you will go to the investor for the presentation of the project.

Second, you need a well-written, working business plan. There is a lot of information on writing business plans both on the Internet and in specialized literature, you only need to study this issue and follow the recommended sections when writing. If you do not have the time or skills to write such documents, you can always turn to professionals for help. There is a huge selection of business plan writing services on the Internet. But!

A good business plan is not a beautifully written document, nor is it professionally presented market and product information. This is, first of all, a detailed description of your idea and proof that the idea will be profitable. By the way, we talked about how to write a business plan in one of.

Whether you write it yourself or delegate the writing of a business plan, you must know by heart and be confident in every proposal, and especially in the technological and financial part. Be prepared for the fact that each of your statements will be questioned by the investor.

Investors are primarily interested in:

1. The amount of investment for which you are applying, as well as what share the investment will take in the total amount of capital investments in the project.
2. Profitable interest rate on investments. The rate on risk-free and low-risk investments (deposits, bonds, reliable shares) tends to 14-15% per annum, so you should offer a higher rate.
3. The payback period is the period in months after which the profit from the business will cover the initial costs incurred.
4. Project risks. A startup is a leader among risky capital investments. Write honestly about all the risks, experienced investors are aware of them anyway.

Indicators that must be present on the title page of the business plan:

1. Amount of investment.
2. Income interest rate.
3. Payback period.

If the investor is not satisfied with the above indicators, he will not look at the rest of the information. Put yourself in his place. He gives away his hard-earned money. What is he waiting for? Innovation? Social importance? ARRIVED. Everything else interests him insofar as. So give him a profit.

The third point of preparation for a meeting with an investor will be the creation of a presentation of your business project. Whether it will be a full-fledged presentation in Power Point, an album printed using the printing method, or a set of sheets with key numbers, tables, images, you decide. It all depends on the scale of the spartan and the requirements of the investor you contact. The main thing is your ability to convincingly present the project with the help of prepared materials. Remember, the main thing is your prepared speech and charisma, and then a beautifully designed presentation. Interest the investor, give him a reason to think, "infect" him with your idea.

When the preparation is completed, you can start searching.

Where to find an investor?

Credit organizations

The most obvious solution for a budding businessman is to go to a bank. Many, many start-up entrepreneurs took out so-called business development loans or even consumer loans and successfully developed their business. But banks want to invest only in reliable projects and at the same time receive a good interest income.

If you choose this way of looking for investments, we recommend that you contact the bank where you have an account and/or a positive credit history. If there are none, contact large banks with a well-known name, avoid microfinance organizations.

The list of the most interesting proposals for business loans today is given in the table.

Table 1. Business loans in Russian banks

Bank	Name of loan	Sum	Term	Interest rate	Security
Intesa Bank	"Costs Down"	from 3 million rubles	1 year and 1 month-10 years	from 12.5%	required
Ural FD	"Business Mortgage"	500 thousand rubles - 14.5 million rubles	6 months-10 years	13-13,5%	real estate
Severgazbank	"Modernization"	500 thousand rubles - 5 million rubles	1-5 years	9,9-13,5%	required
Rosbank	"Commercial Mortgage"	1 million rubles - 100 million rubles	3 months-7 years	12,22-13,76%	required

A list of interesting consumer loans is shown in Table 2.

Table 2. Consumer loans that can be used as business investments.

Bank	Name of loan	Sum	Term	Interest rate	Security
Sberbank of Russia	Consumer secured real estate	up to 10 million rubles	up to 20 years	12,50%	required
VTB Bank of Moscow	Cash	up to 3 million rubles	up to 60 months	from 14.90%	Not required, proof of income required
Housing Finance Bank	Universal	up to 8 million rubles	up to 20 years	12,89%	required
Gazprombank	secured by real estate	up to 30 million rubles	up to 15 years	12,70%	required

Pros: high probability of receiving funds when all documents and collateral are provided, a transparent and proven scheme for raising funds.

Minuses: high interest rate, it is almost always necessary to secure and confirm income, guarantees from third parties or organizations.

Private investors, business angels, crowdinvesting

If the option of contacting the bank seems too “expensive” to you (and it is), or you do not want to provide the bank with your apartment as collateral, you should look at private investors and the so-called “business angels”. Private investors are most often people who have already earned enough money from their business. And now they invest in other businesses and receive passive income. Business angels, in addition to investments, provide expert support to young businesses, they can lead you into certain business circles, advise working business models, and suggest ways to optimize your business.

Type in the words “private investor”, “business angel” in the search engine and you will find more than a million offers from potential investors. Among the proposals will be investment exchanges, the most famous of which are:

• start2up
• EASTWESTGROUP
• investorsov.net
• business platform
• SBAR (community of business angels of Russia)

However, do not build vain illusions that by placing an ad with a description of your project, you will receive hundreds of offers from potential investors. You will have to write letters and call yourself, and more than once. By sending a hundred applications, you can get only three to five responses .

Beware of scammers, of which there are a sufficient number on the Internet. Never deposit money for anything, under any pretext. And read the contract carefully.

Register on forums for professional communication of TOP managers, such as E-xecutive and Up-pro. They communicate with respectable employees of large firms. They have free financial resources, but they don’t have time to develop their own business. A good opportunity for you to express yourself.

Another interesting subtype of private investment is crowdfunding and crowdinvesting projects.

The term " crowdfunding" comes from the English words "crowd" - crowd and "funding" - financing, provision. It is clear that we are talking about the collective collection of funds for a project. It can be both a commercial undertaking and a charity event. Crowdinvesting- this is also a collective fundraising, but spartans, commercial undertakings are already becoming an object of investment. Investors expect profit from such investments.

Crowdfunding is an interesting option for an interesting idea

Both types are relatively new in the world of investment and dynamically developing. True, in order to successfully search for a group of unrelated investors on the Internet, your project must be either very bright or very modern, trendy. The proposal should "catch" the eye. High technologies, IT, projects with a social load, with a creative component, and so on will do. And you are unlikely to receive large investments (more than 1 million rubles), since mainly young novice investors with a share of adventurism, but without large funds, register on such sites.

Take a look at Russian crowdfunding platforms:

• planeta.ru;
• Boom Starter;
• Simex;
• Crowdsourcing.ru.

It is worth noting that your relatives and friends may also be investors for your project. But you should not treat such investments carelessly. Conduct preliminary preparations for a meeting with a loved one in the same way as if you were presenting a project to an unfamiliar investor.

Pros: private investors require fewer documents and often give money without collateral, they can help businesses with experience and connections; for small, ambitious projects, investments are found quickly.

Minuses: the target income interest rate is often higher than in banks, there is a high risk of falling for scammers.

Video - Attracting investments

In this video, Oleg Karnaukh, the founder of the Smart Business project, says:

• at what stage do small businesses need investments,
• what arguments to enlist for a conversation with an investor
• how to be the owner of your business
• how to scale a business.

Investment venture funds

Let's move on to the most difficult, but also the most interesting ways to attract investment.

First, let's define what a "venture fund" is.

Venture fund comes from the English word "venture" - a gamble, a bold undertaking, a risky venture. Such funds invest money with a high degree of risk, but also with a large profit. 80% of investments of venture funds depreciate, but 20% bring such a profit that it is many times higher than the costs.

If your future business does not apply to:

• the high-tech sector
• IT and telecommunications,
• healthcare,
• internet and internet commerce,

You can safely skip this paragraph of the article and move on to the next one.

For the rest, we reveal the scheme of work of venture funds. The fund's team consists of experienced financiers who deal mainly with high-risk investments. All applications go through several stages of consideration.

Stage 1. Consideration of submitted applications. The business plan and other documents are checked for correctness of writing, compliance with the fund's policy, and profitability. 90% of applications do not pass this stage.

Stage 2. Conducting research in the field of competitiveness of a new product, financial efficiency of the future business, management competence. 9% of applications do not pass this stage.

Stage 3. Negotiating and concluding a contract. 1% of applicants become owners of the required amount for business development.

We recommend applying to venture funds and being actively interested in new venture projects. Even if your application is rejected at the first stage, this is not a reason to stop, but an opportunity to analyze your mistakes and submit documents again. In fact, this is a free master class on attracting investments from experienced investors.

Table 3 lists the largest venture capital funds operating in Russia.

Table 3. Large Russian venture funds

Fund name	Investment area	Average investment amounts	Expected share in the company
Runa Capital	IT, mobile technologies	$3 million	20 - 40%
ABRT	Technology projects, internet	From $1 million	30 - 35%
e.ventures	IT, Internet	Up to $10 million	30 - 35%
RVC (Seed Investment Fund)	Science and technology, precision technology	Not defined, investment only with a partner	25%
Russian Ventures	Internet, -services	$35 - 500 thousand	15-20%

You need to understand that if you want to make a profit from your project, then it should at least bring 40-45% profitability, because you will give 30-35% to the vendor. Are you ready for such a challenge?

Pros: the ability to find funds at the initial stage, without collateral; The very concept of venture capital implies that the investor may lose money if the project fails.

Minuses: not suitable for all projects, long and difficult competition for funds, high share of the investor in the company.

Video - Conference of the Fund for the Development of Innovation and Initiatives

After watching this video, you will learn how to bring an IT startup to the international venture capital market. And also how, where and at what rate to ask for money for innovation

Grants and subsidies

The most coveted type of investment for any novice businessman is, of course, a grant or subsidy. After all, you don't have to give them away! Or you need, but after a certain period and without interest. Therefore, those wishing to receive such financial assistance from outside are a dime a dozen. However, in order to qualify for a grant or subsidy, your business project must bring not only profit to you, but also benefit society. Only projects with a social impact receive the attention of non-profit foundations.

Funds that support new and small businesses are divided into state and non-state.

Target areas subsidized by state grants:

• Agriculture;
• Innovative technologies;
• Education;
• Advertising and marketing;
• Tourism;
• healthcare;
• Production of goods for export.

Non-state funds subsidize the following industries:

• Agriculture;
• Innovative production;
• IT and telecommunications;
• Internet trading;
• healthcare;
• Social business;
• Creation.

Let's look at the most interesting measures of state and non-state support for small and new businesses.

Pros: grants received do not need to be returned, subsidies are given either on an irrevocable basis or without interest.

Minuses: This type of financing is not available for all projects, and you will need to regularly report on the money received.

The investor invited you to a meeting. What's next?

Armed with a business plan and project presentation, you are in a hurry to negotiate. At this stage, the main task for you is to talk about your business idea as convincingly as possible. And sell it for the highest price.

Meeting with an investor is the most important step

Yes, it's not a typo. In negotiations, you sell your business idea and your efforts to implement it, and in exchange you receive money at a rate of return that suits both you and the investor.

Negotiations are by no means a friendly meeting, but a kind of battle with an investor for future profits, so remember a few important rules.

1. If possible, carefully study the bank, fund or person to whom you are applying for money. What businesses does he invest in? How does he feel about risk in investing? What goals does he pursue? Use the information received in negotiations
2. Always focus on the benefit for the investor, not your financial goals
3. Prepare a rough meeting structure, consider answers to possible questions
4. During negotiations, write down all the key points, otherwise important information may then simply fall out of your attention.
5. Be flexible, consider investor proposals
6. At the end of the meeting, write down all the agreements reached. Prepare supporting documents together.

One of the important topics of negotiations with the investor will be the choice of the form of investment. There are two such forms for small businesses: lending and buying out a share in a business. Consider in table 4 the comparative characteristics of the two forms and determine the pros and cons of each of them.

Table 4. Characteristics of different forms of investment

Indicators	Lending	Purchase of a share in a business
Return on investment	Need to return	No need to return
Revenue part	Interest on the amount of debt	Percentage of business profit
Own	You remain the owner of the business	Part of the business becomes the property of the investor
Making decisions	The lender does not influence your decision making	The investor influences decision-making, the level of influence is determined by the share of the investor in the business
Risks	In case of business insolvency, the lender bears no or minimal risks	The investor bears the risks together with you in proportion to the share in the business
pros	You remain the owner of your business and, having repaid the loan, you can take all the earned profit for yourself	You share the responsibility for the success of the business with the investor. No profit - no payments to the investor
Minuses	If the business experiences financial problems, the loan will need to be repaid first.	Any more or less important decision needs to be discussed with the investor

The final stage of negotiations with a potential investor will be the conclusion of an investment agreement. Most often, you will be offered an agreement developed by the investor, and, accordingly, focused on his interests.

Read all clauses of the contract carefully, ask clarifying questions. Feel free to make corrections. Better yet, show the contract to a lawyer to avoid "pitfalls".

Video - Master class on finding investments

See the secrets of finding a development investor from Sergey Gribov. At the master class, he tells the whole practice of obtaining investments, based on his fifteen years of experience in creating startups in countries such as Israel, America and Russia.

Who made it?

Yes, attracting investment in a young growing business is not easy. Yes, in return for the funds received, you will have to give away part of the future profits. But who will it stop?

See how inexperienced novice businessmen like you have achieved success. Do you see familiar companies among them?

Max Levchin, company founder PayPal, studied at Champaign College with a degree in data security. He did not even think about creating a world-famous online payment system, but while still in college, he became the founder of three companies in the field of information technology. However, none of them were successful. Then he had such a bright business idea that he dropped out of school and moved to Silicon Valley to implement it in the most suitable place for this.

PayPal is a well-known payment system that has evolved thanks to a well-formulated idea.

In the summer of 1998, he lived in a friend's apartment in Silicon Valley, without funds, without certain prospects. Once Levchin went to a lecture at Stanford University. Peter Thiel read it, and Levchin wanted to see the man he had heard so much about. After the speech, Max approached him to talk about his idea and ask for expert advice. Til listened with interest to the young man and invited him to a business breakfast.

Levchin described his idea to Til, who offered to implement it by investing some money. It turned out that Peter Thiel ran a hedge fund.

Yahoo! began as a site where two Stanford graduate students, David Philo and Jerry Yang, collected web links to papers on various topics. Captivated by their idea, the students added new links to the catalog every day, and soon the catalog site became popular. In late 1994, Young and Philo decided to create a commercial organization for their site and asked Tim Brady to write a business plan. Brady was in his senior year of study at the time, and so made Yahoo! graduation project.

In 1995, at the San Jose Electronics Show, Yahoo! set up a booth. There was not a single Internet project among the participants of the event, so the Yahoo! investors noticed. A few weeks after the exhibition, the students found funding for their company and moved into a real office (before that they had worked in a trailer on the campus of the institute). Venture fund Sequoia Capital acted as an investor, managed to receive $1 million as an initial investment

But this is America, you say. Such ideas are born there, such capitals are circulating there, you will say. And you will be wrong. Here are examples from Russian reality.

The founders of a large Internet job exchange, Denis Kutergin and Aleksey Gidirim, have been working without funding for a long time, seeking their own funds. The breakthrough came in December 2010 when YouDo got into the top ten Internet projects of the Web Ready competition. Within a few months after that, in the StartupIndex rating, the company was assigned an investment attractiveness index of "A". In 2013, she won a competition announced by the Pavel Durov and Yuri Milner Foundation and received $1 million for development.

In 2016, Alexey Moiseenkov, an employee of My.com (a subsidiary of the well-known company Mail.Ru Group) developed an application for smartphones Prisma, which allows ordinary users to create photographs in the style of Van Gogh, Munch, Marc Chagall and other famous artists. Alexey skillfully found funding for his project. He showed the idea to the Deputy General Director of Mail.Ru Group, who, becoming interested in the project, introduced Alexei to the founders of the Gagarin Capital fund and private investors. At the moment, Moiseenkov is a dollar millionaire. Prisma is far from the first startup of Alexey, before becoming a successful startup, he managed to fill himself with a lot of cones.

Prisma is an application for creating a picture from a photo using neural networks.

As you can see, it is quite possible to get investments, but it requires perseverance. And some luck.

Conclusion

In conclusion, we note that you do not have to concentrate on any one way to attract money to your business. You are a generator of business ideas, so be creative to the end! You can, for example, receive a business development subsidy from the state, become a resident of one of the business incubators, invest your funds and attract friends by making them business partners, and make up for the lack of funds with a bank loan. And this is just one of the options.

Keep going, don't give up and may the force be with you.

Often successful companies are created through the cooperation of several parties: one has an idea, the other has the resources to implement it. Thanks to the Internet, it has become easier for these parties to find each other. However, it is important not just to find a person with money, it is necessary to attract a good partner, cooperation with which will become the basis for a successful startup and further promotion of the business. Considering the proposals of investors, try to think over which of them will be interested in your business. To do this, formulate the stage of development of your business: whether it will be its origin, formation, growth, maturity, or sunset. Each company, which is at various stages, needs its own investor.

Features of the stages of company activity
At the stage of inception, as a rule, an entrepreneur has nothing, only an idea, and sometimes a registered patent. There are also problems with the formation of a managerial link, while business processes are not well established. Relatives and friends often act as outside investors, as well as private individuals with some experience in this area and willing to take risks. On our website you can find such offers of investors.

During its formation, the organization already has an established production of finished products, or already provides services, but its activities do not bring the desired income, and sometimes even unprofitable. This stage is distinguished by business processes that have not been worked out to the end, only the formation of a team of managers takes place. At this stage, it is necessary to pay attention to the financial and legal documentation of the company. The investor, whom she is interested in, should easily understand the corporate structure of the organization, its financial position. It is good that the company does not participate in litigation, disputes with government agencies, etc. At the stage of expansion of activities, the volume of operations performed increases, and profits become stable. As a result, the company begins to take a stable position. The stage is distinguished by well-established business processes, new markets and projects are opening up. At these stages, banks, funds and other serious investors are involved in financing.

Advantages of our business portal
The business portal site is designed to assist its visitors in developing their business and increasing their capital. In particular, various investor offers are presented on this page. We recommend that you read them carefully and do not make hasty decisions. Try to learn as much as possible about your partner, evaluate his reliability. When drawing up contracts, carefully read them, let there be as few understatements as possible, and all agreements are recorded in writing. On this page, you can both find an investor and become one yourself by posting an investor offer. Many of our visitors were able to find reliable business partners with whom they have been working for many years. Perhaps you will become one of them.

The article was written by an experienced entrepreneur who has experience in attracting investments in his own innovative projects and third-party startups, cooperating with companies such as Finam IC, SBAR, Private Capital, etc.

First, a small but very important introduction:

Finding an investor who wants to invest in a new business is both simple and difficult. How to find, I tell below, but first I want to ask you: "Why do you want to attract an investor in your own business"?

No, I do not reject such an important and useful institution for a start-up business as "Investor". In most cases, without an investor and the attraction of 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 a solid "chocolate" and manna from heaven? Are you wrong?

To better understand these difficult questions, I suggest that you first and without fail read these articles:

Where to start looking for an investor for a business?

Do you need an investor to start a business and 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: "You can find an investor anywhere to create a business." Everywhere. At every step. Even by stretching out 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 consider 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 for the search for a future investor.

For many years now, a story has been circulating on the Internet about how someone went into an elevator and literally in two minutes, talking about his project, received almost millions of dollars from an investor.

I can fully assume that this is a true story. You never know the sleazy and rich roam the world.

Perhaps someone has come across this. But in life, everything is much more complicated and it will not work to find an investor “with a tip”, without preparation.

To understand why, I will ask you: “Are you ready to give a stranger your hard-earned 25,000 rubles. simply because it 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 the project think that this money can be found without careful preparation?

In order to find serious money in 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 require such a business plan in order to secure his money as much as possible.

Having read on Wikipedia and understood what it is - a business angel, an investment seeker can prepare (by creating a business plan and presentation) and apply directly to 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 of all.

The fact is that several years ago I promoted one of my inventions through the SBAR.

Looking ahead, I want to say that my project did not receive the investments it needed.

But communication with representatives of the 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 as a whole.

Yes, I did not receive investments in the project with the help of SBAR, but the knowledge and experience that I received while promoting the project with their help helped me get investments for another project in a prompt and comfortable way. "Knowledge, like money, can never be much."

By the way, I also 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.

I wish you the same: do not lose heart if you refuse and continue to search for an investor.) In general, if you are refused once again, this does not mean at all that your project is bad. It may not be a breakthrough and will not turn the world upside down, but the more persistently you promote it, the more chances you have for success.

Where and how to get money for a startup

This video tells: 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 business on the Internet?

Now on the Internet you can often see ads like this: "I am looking for an investor in a small business." On message boards, special resources for start-up entrepreneurs and innovators.

You can also take advantage of this opportunity and submit your ad. Perhaps in 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 by addressing. This means that it is necessary to prepare, to collect a list of those Internet resources through which you can contact future and real investors.

Do you know why it is necessary to address the investor directly? I'll try to explain based on my own experience. A few years ago, I decided to create my own and extensive resource base, where you can advertise looking for investment in a very interesting project.

I approached the collection of data with all responsibility and in a month I collected everything that at that time could be found in Runet. Including foreign investment funds. Rowing, as they say, everything that caught your eye and barely “moved”.

What was the result after I sent 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.

Making a decision to buy a franchise is necessary with the professional recommendations of the section:

You can read about the latest news and trends in the franchise business

Do you know who I received "encouraging" responses and investment offers from? From those who provided paid services for finding investments. They say: "You have a wonderful project, with our help you will turn the world upside down with your idea, ... but first we need to pay the N-th amount of money." All clear?

Do not waste your time on such empty chores. No, I do not deny that on such message boards, forums, etc. you can find your investor. It's possible, but the chances are slim.

Most of the "investors" on such resources are those who do not have money, but there is a desire to stupidly swindle you for money. And they do breed. And how they breed!

What am I all about the sad!

Looking for money for a project on . In my opinion, today the best crowdfunding sites in Russia are the following resources:

• boomstarter.ru
• planeta.ru

If your business is based 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: and the project

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 investments?

Recently I got acquainted with the proposal from the creators of the City of Money service. City of Money is a platform for online loans for business and investment. I don’t want to give a link, I didn’t use it myself, search it, 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 the start-up business assistance program, for example, from Sberbank, or in the form of a consumer loan. Many aspiring entrepreneurs got started that way. They took money from the bank in the form of a consumer loan and started their own business. Many have succeeded.

The main thing is to find an investor

This video tells: An interview with Alexander Egorov, the creator of the legendary Ozone online store, 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

Announcements like: “I am looking for investors for business development in Moscow” or: “I am looking for an investor for 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 the basis of a breakthrough technology or idea is located, and in the second, it does not make sense to look for an investor in Ukraine in our time (well-known political events). Which of the serious investors will invest in a business operating in a country with a declining economy?

Let us dwell on the search for an investor in Moscow. I personally would not make a distinction in the geographical location of the investor, but if I did, I would turn to such resources as "Managers' Club - E-xecutive". Do you know why? Yes, because there, 90% of managers are shuffled from Moscow, and 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. The way out is to find an idea generator with a head, invest money in him, his team and his idea, and everyone will be in chocolate.

It's Informative: Strategy for Startups

This video tells: A very interesting and original speech by Yuri Lifshitz, which can be titled with humor: “Startup is not all life”. Yuri tells how to properly organize and build a startup strategy that will become 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 investments because the initiator of the business is to blame. His main fault lies in the fact that he either incorrectly emphasizes the business plan for the investor, or incorrectly creates a project presentation.

Here it is necessary 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;
• payback period of the project;
• project risks;
• and exit options.

The rest of the indicators the investor will read and consider only when he is interested in the points that I listed above. Many are still interested in the presence of a project team, but this is not such an important point in my opinion. Rather important, but then.

I will tell you how one of our projects was considered in IC "Finam". Looking ahead, I’ll say that we, when creating a presentation with a partner, cheated a little. Knowing in advance that we will send our presentation to Finam, we carefully prepared.

Having learned in which projects this fund, respected in Russia, invests, we found common “features” inherent in our project and those projects in which the fund has already invested. And these "features" and features were especially emphasized in their presentation.

You can study the numerous experience of other entrepreneurs who have created their own successful business with a franchise 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 the franchising program is presented

"Focus" passed, and we were invited for a conversation. Did we cheat the fund or not? No, of course not, we just made our presentation right. Did it help us in the end? No. Finam did not finance our project.

But on the other hand, we found investments elsewhere and from other investors, talking about the fact that our project received very good reviews in Finam.

Now about how to draw up a business plan, an example of which will satisfy everyone. Rather, about the small features of such a compilation. So to say: "Business plan for an investor, an example from my own life."

What you write like: “The project will earn up to 100 million dollars 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 treat the creation of items:

• what problems of people the project solves;
• project risks;
• options for the investor to exit the project.

When describing the risks of the project, it is necessary to clearly understand what risks your proposal may have during its implementation and in the future. Including both competitive risks and risks that are called force majeure.

Describing the options for the investor to exit the project, it is necessary to clearly write that you agree in building relationships with the investor. Here you need to understand the main thing - an investor who invests in a project wants to make a trite profit. Get profit. Explosive profit desirable.

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 can sell his share in the business being created.

Starting a business in many cases requires attracting significant investments. Appropriate capital can play a decisive role in bringing a startup to a promising market in a timely manner, improving its recognition in the segment, expanding its geography, and modernizing production. Where can you really find an investor? How to build a trusting relationship with him?

What is the purpose of looking for an investor?

Before asking the question of where to find investors, it is necessary to decide on the purpose for which the search for partners should be carried out. As a rule, this task is solved by the owner of a commercial enterprise. He needs the investor's assistance due to the presence of an insufficient amount of money at his personal disposal in order to fully implement the business project. An investor may also be interested in providing the necessary amount of financing in order to subsequently benefit from the growth of the company's turnover.

What are the mechanisms for building relationships with investors?

Also, before thinking about where to find investors, an entrepreneur needs to decide on the desired mechanisms for building relationships with a partner. There may be several of them.

First, an entrepreneur's relationship with a partner who is willing to provide financing may constitute direct investment. This mechanism involves the provision of funds to the company in exchange for the participation of a partner in the direct management of the organization, in determining the business development strategy.

Secondly, financing can be attracted on the terms of portfolio investment. This mechanism assumes that the partner, investing money in business development, simultaneously acquires a share in the ownership of the company. In the first case, the investor's benefit is to participate in the management of a potentially large enterprise and become an influential member of the business community. In the second case, the partner, in case of company growth, gets the opportunity to significantly increase his capital.

What are the investors

Another nuance that an entrepreneur needs to study before deciding where to find investors is to consider the specifics of the activities of partners who are ready to invest in other businesses. The subjects that become participants in the relevant legal relations can be represented by: individuals, organizations. Both, in turn, are classified into venture investors and those who are ready to invest in fundamental projects. Investors can also be Russian and foreign.

Another criterion for classifying entities involved in legal relations with businesses on financing issues is the degree of state participation. There are government agencies - most often funds that assist businesses in raising funds or provide them. There are completely private companies.

Crowdfunding

There is a special category of legal relations in the field of investment - crowdfunding. This term corresponds to the mechanism of business means on the part of a large number of people - individual social groups or representing society as a whole. As a rule, investors who provide funds to entrepreneurs as part of crowdfunding do not impose any obligations on them in terms of exchange for a share in the business or participation in the management of the company. This feature predetermines the great popularity of the relevant legal relations. Many entrepreneurs, thinking about where to find investors, first of all turn to crowdfunding.

What might be of interest to an investor?

Let us now consider a number of practical nuances that characterize the relationship between entrepreneurs and partners in terms of business financing. So, before thinking about where to find an investor for a project, you should pay attention to such an aspect as the attractiveness of a business project - those indicators that a potential partner will pay attention to when making a decision on investing money in a company. What exactly?

First of all, it is the presence of a sufficiently large market for the sale of goods and services that the company produces. The second indicator is the dynamics of the industry development. The investor is interested in the product produced by the company being in demand on the market for a long time. If the dynamics of development of the industry in which the enterprise operates is sufficiently high, then the partner must make sure that the entrepreneur can ensure the timely release of goods that is not inferior to the products of competing enterprises.

Actually, the level of competition is also an important indicator for an investor. At the same time, for some partners, high may be more preferable, while for others, low. In the first case, the investor and the entrepreneur can take advantage of the presence of a sufficiently stable demand for the manufactured product and counteract competitors due to the higher quality or lower price of the products supplied to the market. Low competition is attractive from the point of view of the firm's profitability. Of course, provided that there is a demand for goods manufactured by the company.

Another important criterion for an investor to make a positive decision regarding project financing is the validity of the business plan. The market may be in the most favorable conditions, there may be an optimal level of demand and competition, but if the entrepreneur does not provide a plan according to which the firm will enjoy these advantages, the investor may question the prospects for financing the company.

The next factor in making a positive decision on the project by the partner is the competence of the team with which the business owner works. Or his personal. The situation on the market may be optimal, the business plan worked out in detail, but the implementation will not be at the highest level for the reason that it will be carried out by unprepared people.

These are the main factors that an entrepreneur should consider before thinking about where to find an investor for a project. If he successfully solved this problem, you can proceed to consider specific mechanisms for finding a partner. Where to find an investor for a start-up of a medium or large enterprise in Russia?

How to find an investor for a startup?

Let's start with the specifics of finding partners for a startup founder. The main value of the corresponding type of business is a promising idea. As a rule, it is characterized by originality, dissimilarity with most other concepts. Another significant criterion for evaluating the prospects of a startup is the absence of existing businesses in the relevant segment throughout the country or a particular region.

It happens that an entrepreneur who solves the problem of where to find an investor in Moscow decides to switch to one of the markets in the constituent entities of the Russian Federation, since competitors can already operate in the Russian capital. While in the regions, similar businesses will not be too developed or even absent as business entities.

Above, we examined the main mechanisms for attracting investment. If the question is where to find an investor for a startup, then the optimal schemes in this case would be: attracting crowdfunding. The advantage of both mechanisms is the absence of big risks for the entrepreneur. True, in the case of venture projects, the business owner in most cases has to give a share in the ownership of the company - the type of financing in question belongs to the category of portfolio investments. However, in this case, the partner, as a rule, assumes the bulk of the costs necessary for crowdfunding. The advantages of crowdfunding are also obvious - this is the opportunity to attract a large amount of funds in the absence of obligations to investors in most cases.

Where can you find an investor who is ready to invest in a startup under one scheme or another?

If we talk about venture projects, then there are a large number of specialized funds that are actively involved in the relevant legal relations. They exist both in the Russian Federation and abroad, and are represented by both state and private structures. Sometimes it is enough just to find a suitable venture project or venture fund, and then get acquainted with the proposals of the relevant companies regarding the prospects for partnership with private organizations.

How to find investors and where to look for them when it comes to crowdfunding? This format of legal relations is almost completely online. There are a number of the largest - both Russian and foreign - Using them is quite simple, but it is important to write a competent description of a business project, to tell potential investors about its advantages.

How to find an investor for a small business?

Consider now where to find an investor for a small business. This format of the enterprise activity assumes that the company is not a start-up, but an already functioning business with more or less acceptable turnover. In this case, investments are sought in order to expand or modernize production, conduct a large-scale marketing campaign in order to increase brand awareness in the region, country or abroad. As a rule, small businesses are financed with the participation of investors who specialize in building fundamental partnerships with private firms.

Venture investments allow for a scenario in which the partner, in principle, will not be able to return his own investments, since the business will turn out to be unprofitable. In turn, the fundamental partnership assumes that the investor will be able to at least ensure zero profitability of his investments, and in the long term - to significantly increase capital due to the growth of the enterprise.

Where to find an investor for a small business? Such tasks, as a rule, are solved during personal meetings between entrepreneurs and potential partners who are ready to invest in the development of the company. They can be held as part of specialized events - business conferences, round tables, presentations. Communication between an entrepreneur and an investor is also possible in an informal setting, for example, at a corporate party to which they were invited. Fundamental investing is a common activity among financial funds. Information about them can also be found in search engines.

How to find an investor for a medium or large enterprise?

Where can I find an investor for a business that is a medium or large enterprise? It is noteworthy that a large-scale established company, at least classified as a medium-sized business, as a rule, is in itself a desirable investment object for an experienced financier, since it is an operating profitable business. Therefore, it is possible that it may not be necessary to look for a partner who is ready to invest in a company if it meets the criteria for a large enterprise.

However, another question may well be relevant - where to find a private investor who would be a reliable partner, ready to build a constructive dialogue on business development. It is allowed, as a rule, in non-public ways - through communication with major financiers through private channels. But in some cases it is realistic to find an investor at major events, especially when it comes to, for example, international exhibitions. The prospects for building relationships with partners largely depend on the business area.

Thus, the solution of the question "where to find an investor for construction" may differ significantly from such a task as finding a partner in the field of information technology. The construction business and IT are areas with different profitability and development dynamics. Each of them requires special investor competencies in assessing the prospects for investing in a particular company. But, of course, there are financiers who are equally well versed in both construction and information technology. Thus, the investment search strategy largely depends on the size of the firm, as well as on the sector of the economy in which the company is present. For startups, one approach will be more justified, and for small businesses, medium and large firms, different strategies.

It will also be useful to consider a number of recommendations for entrepreneurs who decide to find an investor, as well as establish a trusting relationship with him. We will study those strategies that can be described as universal, sufficiently suitable for a business of any size - a start-up, small, medium or large enterprise.

How to find an investor and establish a relationship with him: recommendations

Actually, it is useful to search for an investor in those social environments in which people engaged in activities close to the company's profile communicate. Where finding a private investor for construction is not a problem, it can be quite difficult to establish an interaction with a person who might be interested in sales. Effective investment is largely the result of high competence, most often achieved within the narrow specialization of a financier.

Investment experts advise business owners to first tell potential partners about what other sources of funding are expected to be used, and what their actual availability is. This approach will allow the investor to understand his own role in the relationship with the business and assess his readiness to comply with it. So, if the company also uses credit funds, then its owner can make it clear to the partner that he can count on a smaller share in the business than if the investor financed the project alone.

Another important nuance is the discussion of the conditions for changing the initially reached agreements. As the project progresses, it may turn out that the project will show more or less profitability (or return on investment) than expected by the business owner or investor, as a result of which it may be preferable for them to change the way they participate in the company's activities.

An entrepreneur should discuss with a partner the procedure for reporting on certain business transactions, its composition. Some investors require only the appropriate type of accounting documentation, others prefer to receive these as well. It is useful to clarify these nuances at the earliest stages of the partnership.

It is important, therefore, not only where to find a business investor, but also how to establish a long-term partnership with him. A high level of competence in entrepreneurship is always appreciated. Therefore, the investor will also be interested in building an effective partnership. You need to be able to listen to him and take into account the interests he expresses.

Summary

So, we have considered the question of where to find a real private investor. Its successful resolution depends on the scope of the company, its scale, the level of competence of the entrepreneur and the specialists he attracts. An important role is played by other conditions for financing the company, as well as the willingness of its owner, if necessary, to revise the agreements reached with the investor in order to build long-term partnerships.

01Mar

What is an investor for?

We all understand perfectly well that at the initial stage it is very expensive to create a business.

Moreover, regardless of the field of activity, for the most part, the costs will be:

• to a suitable location;
• For the necessary equipment;
• Looking for employees.

Then, depending on the specifics of the business, there will be other costs:

• Additional software;
• Renovation of the premises;
• Purchase of consumables;
• Etc.

And in most cases, the initial costs are so high that it becomes very difficult to pull them alone, or even as a team.

But in addition to the initial costs, many companies feel a lack of funds for full and harmonious development. It is not uncommon for a young team to have great prospects - their products or services become really in demand on the market, but due to lack of finances they miss out on the lion's share of the profits.

For example, they cannot hire additional employees, or purchase more equipment, or expand the premises, and so on. That's when they need an investor in an existing business.

We draw a conclusion: companies need to search for investors at the initial stage of their development in order to cover the lion's share of the costs of implementing their business. This is the main and most important reason why many aspiring entrepreneurs are looking for free cash.

The second reason is the search for funds for the development, expansion and implementation of any new ideas. This is typical for those companies that have found free funds to start, but due to some reason do not have enough for development.

How to find an investor for a business from scratch

Before moving on to the practical part of the search for an investor, you should decide on a couple of theoretical points. Knowing the wishes of the investor, you can understand how to look for him, and what he needs to give.

When looking for an investor, it is important to remember one detail:

Investing means making a profit. This rule should be kept in mind by every businessman who wants to interest a potential investor in his business. No one will be interested in "innovative breakthrough", "original idea", "new technologies" if they do not promise tangible profit. With all investors, you need to speak the language of money and risks. Only then can they really be interested.

Based on this rule, the following can be distinguished:

• To get cash investments, you need to convince the investor that his investments will be profitable;
• You need to prove why your project is more interesting than those of direct competitors;
• Show what prospects you have for further development in the market.

Investors who do this professionally can literally determine in 10 minutes whether a project will be profitable or not. And when they invest in a business, they don't do charity work. The only motivation for investments is to get the fastest profit, which should be higher than not only the average bank deposit, but also the lion's share of competitors.

It follows from this that the main task is not to find a private investor, but to interest him, convincing him to invest his money in your project.

What information may be of interest to investors

Now, based on an understanding of why people generally invest, you can begin to answer questions that may be of interest to a potential investor.

But before that, you need to understand one simple thing:

It is not necessary to perceive an investor for a business as a creditor. He voluntarily invests his funds, and in case of failure, they will not return to him in any way. That is why for aspiring entrepreneurs, an experienced investor will be a partner who can help in case of small setbacks and share the success.

That is why you need to work not only for the benefit of yourself, but also for your business partner. You invest your ideas, effort, time, money (to a lesser extent), while the investor invests his money, participates in making important decisions for the company.

This is a kind of shareholder who has the right to vote, to whom they are obliged to listen, but not always follow their lead. Keeping a balance between the interests of the company and investors is very important.

So, you have found a person who is interested in investing in your company.

What does he need to tell about the business:

• The main idea of ​​the business;
• Required amount of investments;
• Estimated return;
• Risks.

This is all that an investor needs to know at the beginning of your cooperation. When he evaluates the volume of proposed investments, compares profitability and risks, and if he likes your idea, then the second stage will come - a detailed survey about the business.

That's when you have to reveal all the details: why your idea is better than the competition; How are you going to spend the money and on what? when will the business expand, and to what extent; what guarantees can you give and other questions.

It should be understood that laying out all the trump cards at the beginning is not the best idea. It is quite possible that a person will not be interested in business in this area, or he can implement this idea himself.

Profitability for the investor

In Russia, there is an excellent rate of return on bank deposits - the key rate of the Central Bank. By adding 2-3% to it, depending on the region, you can reach the average rate for deposits for individuals and legal entities with large amounts of money.

For an investor, this is the minimum rate of return that he can get by simply depositing his money into a bank account. Consequently, a businessman must show a profitability at a distance higher than a bank deposit by 1.5-2 times. This is typical for small and medium businesses. For a large one, income in the amount of a bank deposit is possible due to the scale and prospects for rapid expansion.

To summarize: Investors are primarily interested in the return on their own investments.

That is why before investing money, analyze the following parameters:

• Perspective of the idea;
• Required amount of investments;
• Risks and returns.

If both parties are satisfied with these points, then there is a further stage of negotiations, in which the investor tries to obtain the most detailed information about the business and evaluate its future prospects. A competent business plan is able to answer all the questions that may arise during negotiations, so its preparation is mandatory.

Where to look for an investor for a business or startup

We have sorted out the basic information about what you can tell the investor. Now about where you can find an investor.

Relatives, friends, acquaintances

One of the most controversial ways to raise money. Suitable for starting a small business by promising people you know a return on their investment when the business starts to generate income.

At the same time, among friends and acquaintances, you can really find like-minded people who may be interested in the idea, and create a whole team that will be able to share all financial losses and compensate for each other's shortcomings.

You can borrow money from relatives to open your own business if you need a small amount, and there are any guarantees of its return.

Funds

There are two types of funds that can help when looking for investments for a business: small business assistance funds and. Regardless of the type, it will be extremely difficult to receive funds in such funds.

You need to get managers interested in your business. And if in other cases an innovative idea, an advantage over competitors and a quick payback can beat an average or even low profitability, then in this case the return on investment comes first.

Investment funds are only interested in one thing - profitability. They are willing to invest their money at great risk in ventures that will bring them great returns. But if a businessman talks about a long-term investment, without guaranteeing a profit in the first few years, such a business is unlikely to be financed.

In order to assess the prospects for their own investments, the fund will need time and the maximum information that you can provide. A group of analysts will analyze, so the more information, the higher the chances of receiving funds.

Investment funds - an association of many investors who invest free cash in order to make a profit.

And often these investment funds have less money at their disposal than a few private investors who are also ready to invest their money in interesting ideas, if only someone will interest them. But it should be understood that it is much easier to apply for investments in an investment fund than to a private investor, because for the first one you just need to contact the company, and in the second case - somehow find contact with a very famous and rich person.

State funds are one of the most profitable options for obtaining funds if the idea is truly innovative. Competitions are held periodically, the winners of which can receive a grant for which entrepreneurs can implement all their ideas. Enlisting state support, if possible, is the best option.

Successful businessmen

One of the best and most profitable ways to find investments is to work with successful businessmen of the city or region. Regardless of the scale, in the region you can find many successful businessmen who have already gone down this path, have profitable enterprises and free cash. It will be enough to interest them in your idea and your personality, and then they will invest their money in an interesting project.

At the same time, one of the clear advantages of working with successful businessmen is that they can educate and explain some of the points that they themselves have gone through. Many entrepreneurs are happy to take under the patronage of beginners, explain to them how to cope with difficulties, minimize costs, and make a profit. Especially if cooperation can bring benefits to both parties in the long run.

Collaboration usually takes place under two conditions:

• in the form of a loan;
• In the form of buying a stake in a business.

The second option is preferable for both parties. It involves the participation of the investor in the development of the company, this makes it possible to avoid most mistakes and take advantage of the connections and relationships of a more influential person in order to improve their own.

If a businessman cannot help with finances, it is recommended to ask him which of the people he knows can help and be interested in the idea. Such a small psychological trick will allow you to learn about other businessmen, and with a recommendation from one of your colleagues, you can count on something more.

A method that is suitable only for, and not in all areas. – financing by individuals of interesting projects. Often this is for some kind of reward. Leading companies that are developing some interesting new products for retail and wholesale are looking for free cash.

Banks

If all of the above methods of attracting investors did not work, you need to apply for loans from banks. Different credit organizations have different requirements for potential borrowers, but their essence is as follows:

Banks don't want maximum returns. They are interested in stable receipt of funds and repayment of the loan. That is why credit organizations will study your business plan for stable income generation and, accordingly, return of funds. They are more interested in guarantees than profitability.

It is dangerous for an inexperienced entrepreneur to take a loan from a bank, especially if it is quite risky. If the idea does not work out, then the bank will by all means demand a return of funds, up to the sale of the borrower's property.

That is why it is worth taking loans for a small business, which will pay off in 4-5 months and then be able to generate income. And if it does not work out, then the financial blow will not be as strong as the loss of money for the implementation of a medium or large project.

Venture investments

One of the most popular and effective ways to raise funds for businesses in innovative areas. Venture investments are investments of funds (associations of investors).

The nature of venture investments is their high riskiness. They provide cash to many companies that can change the world with their innovative ideas.

Also, venture funds can finance ordinary entrepreneurs. But the main condition will be dynamic development and constant expansion.

Venture funds are a kind of motivation for the constant expansion of business, spheres of influence and products. The most striking example of a company that existed at the expense of venture capital funds is Apple.

Search for an investor: step by step instructions

Now we publish a detailed and step-by-step plan on how to find an investor to open a business:

Step 1. Drawing up a business plan.

As mentioned earlier, a good business plan for an investor will always bring several advantages to a businessman's piggy bank.

What should be in a business plan:

• Description of the idea;
• Economic calculations;
• Payback period of the project;
• Development prospects;
• Analysis of competitors;
• Other information.

With and subsequent presentation, you need to carefully concentrate on all the little things. You need to pay attention not only to all the information inside, but also to your appearance, presentation of material, confidence, etc.

The use of tables, graphs and other graphic materials is only welcome. They help to better perceive information, focus on the right moments.

It will be useful to rehearse the presentation of the business plan at home several times. Also, be prepared for additional questions.

Step 2. Choice of the form of cooperation.

Before you start looking for an investor, you need to decide on the proposed model of cooperation. Of course, you can completely rely on an experienced businessman who himself will offer an interesting way for him to interact with the business, but then you lose your dominant position. We must not forget that it is not the investor who dictates the conditions, but the businessman.

In total, there are 3 ways of cooperation:

• Receiving a percentage of the amount invested in the business;
• Receiving a percentage of profits for the duration of the entire business;
• Getting a share in a business.

Having chosen the method of cooperation that interests him, a novice businessman must indicate this method of cooperation in his business plan.

There are cases when investors do not agree with the chosen model of cooperation. You should analyze this situation and understand whether it is worth following the lead of a more experienced businessman, or whether it is better to insist on your own.

Sometimes it is better to give up your principles and receive funds for the implementation of the project, and sometimes refuse the offer and find another interested person.

Step 3. Search for an investor.

After all the preliminary work is completed, it is necessary to proceed to the very procedure of searching for an investor. You need to work in several directions at once, making acquaintances both in the field of entrepreneurs and investors, and asking your friends.

By working on the list above, you can try various options for attracting investments, and if nothing works, then you should contact the bank.

Step 4. Negotiations with potential investors.

It is advisable to find several interested persons who would be willing to invest free money in the development of your idea. Then you can negotiate from a position of strength and dictate terms. But newcomers rarely find more than 1-2 interested people, which is why you should approach the negotiation process very carefully.

To convince the investor that he will make a profit is the main task of these negotiations. At the same time, it is worth remembering that they will look not only at the prospects of your project, but also at you, so you should monitor your speech, appearance and manners.

It is desirable to answer all the questions that potential investors will have. This will ensure that you are really working on your business idea, and there will be no stupid mistakes during the implementation phase.

Negotiations are the most important part when looking for an investor.

Step 5. Conclusion of the contract.

After the negotiations were successful, you will need to conclude an agreement with the investor. It is advisable that you attend to the creation of the contract yourself and in advance. You should contact an experienced lawyer who can draw up an agreement that is beneficial for both parties.

Important points that should be in the contract:

• Term;
• The amount of investment;
• Form of cooperation;
• Rights and obligations.

Investor search portals

Now there are various portal sites that are intermediaries between investors and novice businessmen.

We present you a list of 5 sites where you can find investments:

1. Venture Club is a real treasure for investors and startups. Anyone who wants to find investment in their project can apply to the site, and after a thorough interview, submit a project. Investors who are interested in the offer will be able to evaluate the idea, financial prospects, and discuss the details. It is attractive for businessmen because there are many investors on the portal and the company directs all its efforts to attract additional people to the ranks of investors.

2. start2up is a platform that brings together investors, startups and people who want to do business together. The service is more suitable for finding potential partners to open a business. The site also contains information on the sale of various commercial assets, which will also be useful for a novice entrepreneur.

3. Napartner– a platform for finding investors in projects in various fields. If you take a closer look, you will notice that many startups have questionable ideas and ways to implement them. Accordingly, good projects here are worth their weight in gold and find investments in a short time. At the same time, the number of investors in relation to the number of start-ups does not cause optimism - there are 10 times fewer people willing to invest money than projects. Suitable as one of the ways to attract a potential investor.

4. Starttrack is the best service for serious companies. Despite the fact that the number of companies that have received investment in this system is small - only 36, but nevertheless they are still functioning, generating income. Starttrack is a community of investors that promotes the idea of ​​investing as one of the types of earnings. At the same time, we can safely say that any community of investors is an excellent search for a partner to create a business. It should be understood that you can access this service only if the project is serious and the idea is attractive.

5. Boomstarter is the most popular crowdfunding platform in Russia and the CIS. For a startup in the IT, Gaming or original field, this is an ideal opportunity to find an initial investment. In most cases, the main idea is presented as a product/service. Users, by making a contribution, should receive a reward that would interest them.

9 rules to follow when looking for an investor

Rule number 1. The search for an investor should be done as early as possible.

In order to find an investor who will agree to invest their money in the project, it will take a lot of time. You need to look for new business acquaintances, talk with interested people at the stage of developing a business plan. This will greatly reduce time costs and simple ideas.

It should also be understood that many investors need time to assess the real prospects for the development of a particular company. And when interacting with banks or investment funds, the time to analyze all aspects of a potential client's business activities will be quite large.

Rule number 2. Collect the maximum amount of information about the investor.

Collecting as much information as possible can help in two directions at once: screening out candidates and conducting better negotiations.

For the first you need to know:

• What areas are the investor interested in;
• Where do you usually invest money?
• In what volumes;
• What profit is he claiming?

It is important to understand that it is not worth asking for a small amount of money from a person who usually invests millions in a project. He just won't be interested in your offer.

To negotiate, you may need everything you can find out about a potential investor. After all, in fact, it will be the process of selling some share in the business (to one degree or another). And for sales, it is always important to find the client's pain points and put pressure on them, pushing the fact that it is you and the investment in your business that can allow him to solve all his problems.

Rule number 3. Plan your investments.

It is necessary to name a specific amount that will be required from a potential investor. You can not operate with ranges, only in extreme cases, when you are not sure about the stability of the price in a certain period of time.

You also need to understand that you should not ask for more or less money. This will characterize you as a person who did not think enough about his business plan.

Rule number 4. Sounding realistic goals.

You may have the most ambitious goals, but the investor will not need them. To set the goal of “entering the world market” of a company that hasn’t been around for a month is at least very optimistic. It will be much more interesting for an investor to hear "entering the regional market and obtaining a 20-30% share in such and such an area." But in the meantime, you will always have to justify the adoption of a particular goal.

Rule #5: Don't be shy about your idea.

It is hard to imagine that Henry Ford was afraid to tell others about his ideas. On the contrary, he openly stated that he would create such a device in which he could sit down and drive down the street without additional traction. You also need to deal with your business ideas in negotiations.

Feel free to express your ideas, even if it seems to someone that they are far from ideal and difficult to implement. Remember to submit! The more confidently you speak, the better you are perceived.

Rule #6: Putting together a team is the best idea.

All promising projects began in the head of one person. But it can be difficult to realize all the ideas alone, and this is a generally recognized fact. It is best for novice businessmen to find a team of 3-5 people who would at the initial stage be engaged in various matters of the company, solving each of their issues, and becoming professionals in their field.

It is important to assemble a team of like-minded people who will burn with one common idea and spend all their energy on implementation. Those who hack have no place in such a team.

Rule #7: Consider the benefits of working with you.

Speak to the investor in his language. Promise him a profit, then operate with the prospects of growth and expansion. At the stage of business planning, you should carefully think about the question “What will my project be good for?”. Having answered it for yourself, ask the same question, but from the point of view of an investor.

Rule number 8. Try to be as close as possible to investors.

Attend various meetings of potential investors - business forums, conferences, and other events of an all-Russian scale. At one such conference, you can talk with a hundred different people who, in one way or another, will be interested in investing in your business.

A little psychological trick: don't say you came looking for an investment. Try to look like one of the investors - a person with money. Then you can be one of all and you will be treated with great trust and sympathy.

Rule number 9. Honesty is the best weapon.

When looking for a potential investor, you need to understand that you will be mutually beneficial partners. That is why you should always provide the most complete and honest information about the company's affairs, its prospects and your plans.

More often than not, it's better to hear the real "I'd like to sell the company in a year for a few million dollars" rather than "I'll be concentrating on meeting the company's goals and expanding it and going global." In the first case, honesty and transparency, in the second, nothing but ornateness and avoidance of an answer.

Following these tips is simple enough, but following them will help you gain an advantage in negotiations over other similar seekers of free finance and interested investors.

Conclusion

In Russia, the culture of investing one's own money is just beginning to take shape. This is confirmed by numerous surveys among ordinary citizens. Many people still prefer to invest their money in low-yielding and illiquid real estate, rather than buying shares in some young and growing company. But investors are of great importance for the development of business within the country.

What do we have in Russia now: a large amount of free cash from large businessmen, the desire of banks to finance only stable companies, and the development of investment funds that are interested in interesting and profitable ideas.

What does it mean: Russia has a large amount of free cash that investors would like to invest in some interesting projects. Also, the new policy of the Central Bank, which directly says that banks should also switch to an investment model of the economy, inspires confidence and optimism among investors.

Finding an investor is one of the key steps in creating a business from scratch. Raising funds will allow not only to create a business, but also to develop, reaching a new level.

Both individuals with sufficient capital and companies interested in making a profit can act as investors. In order to interest an investor, you must always talk about money and income. Only after that follows the prospects of the idea, risks and other factors.

Drawing up a competent business plan and planning negotiations with an 80% probability will tip the scales in your favor. That is why you should not only understand your own idea, but also be able to correctly present yourself.