Successfully finding an investor for a business is a life-determining task for most start-up companies. Implementing it in modern conditions is much easier than a few years ago, thanks to the Internet and remote investment platforms. But in any case, an entrepreneur looking for funds for his own project should know several important rules and recommendations that will help solve this problem more successfully - we talk about them below.

Before you start looking for investors to implement your idea, you need to understand what it means this concept and how it differs, for example, from a sponsor or philanthropist. These terms are often confused with each other, although in reality they mean very different ways directions of financial resources.

The goal of any investor is to increase their own investments. Investors invest money only in projects that, after a certain period, will increase their capital or begin to generate regular profits in the form of dividends.

Investments are not charity. Unlike sponsors or philanthropists, investors give money to companies not with the goal of helping, but with the prospect of making money on it. Investments are needed for business development and ultimately benefit both parties: the entrepreneur gets the opportunity to realize his business idea, and the investor increases capital.

Unlike sponsors or philanthropists, investors give money to companies not with the goal of helping, but with the prospect of making money on it.

Who most often acts as investors?

In a situation where you need an investor to start a business from scratch, it is important to know who can play this role. Most often this is:

1. Banks. Financial institutions prefer to deal with existing, stable and promising companies, so for beginners, going to a bank is clearly not the best option.
2. Investment funds - carry out collective investments of their participants. The decision to allocate money is usually made on the basis of a business plan. They support both existing and start-up projects.
3. Independent private investors. These can be wealthy businessmen, owners of large capital, and even professional investors who make money from successful investments in many projects simultaneously.

What to do before attracting investments

If the query “I’m looking for an investor to start a business from scratch” is relevant to you, Before you start searching and negotiating, you need to prepare the following:

1. Detailed business plan for the project with calculations and payback period. The investor must see over what period his capital will increase. It is desirable that the plan describes the project for at least 1 year (but better for several years), is realistic, and does not contain inflated expectations.
2. The exact amount of financial resources required, possibly in several versions. For example, according to the minimum plan and according to the maximum plan.
3. A brief and vivid presentation of the project, which will describe all its prospects, strengths, innovativeness and expected profit. That is, this is a brief summary of why it is profitable for investors to invest in this business.

Attracting investment is quite a difficult task even for existing companies. For those entrepreneurs who raise funds to implement an idea from scratch, it becomes much more complicated. Particular attention should be paid to the business plan: it is on its basis that potential investors will judge the company’s prospects

What types of investment are there?

Investments for business come in two varieties:

1. Direct - in exchange for financial resources To implement the project, the investor receives a share in the management of the organization. The money is used to purchase means of production, raw materials, sales organization, and so on. This type includes only those investments after which the investor’s share in the company will be at least 10%.
2. Portfolio - the acquisition of an organization's securities (shares or bonds) for the purpose of owning them or reselling them at higher prices when their value increases. The investor who bought securities, usually does not participate in the operational management of the company and decision making. His goal is not the development of the company as such, but the increase in capital.

What investors like

To understand how to find money for your business idea, you need to know what attracts investors to start-up companies. You already know that experienced businessmen and owners of large capital who only intend to increase their profits most often act in this capacity.

Despite the generally risky nature of investing as a phenomenon, investors like guarantees. The more a business plan demonstrates the reality of payback and increased profitability, the more potential investors will like it.

Don't count on the "wow" effect- it does not play any role when investing. Transparency and realism of all calculations are also highly valued. In other words, the promise of profit should not be fabulous, but based on real numbers and calculations. Among the personal qualities attractive to investors are organization, enterprise, multitasking, the ability to control the situation, predict options and events.

What repels investors

The main thing that will not allow you to find investors to implement your own idea- this is the unrealism of the business plan, errors and overestimations in it, the futility of the project. Investors are looking for an opportunity to multiply their capital and for this reason will not participate in activities that are obviously unsuccessful.

How to find finance - features of finding funds for a project in different sources

Now it’s time to move on to the practical part of the issue and understand how to attract an investor to the project. To do this, we will consider the most popular options and the procedure in each case. An entrepreneur raising funds for his company should use several options at the same time, which will increase the likelihood of search success.

Applying to a bank for a loan

Many banks offer business lending services. True, a novice businessman has much less chance of receiving a large sum of money than an already existing organization. Giving funds to an unrealized project is too risky for financial institution, therefore, it is very likely that the amount will be reduced or the loan will be refused altogether.

However, if an entrepreneur is looking for where to find an investor for a small business and the amount he needs is really small, it is worth applying for a bank loan. In this case, it is also necessary to have a business plan, including calculations of the required amount. It is quite possible that the bank will require a guarantor or collateral, for example, in the form of the entrepreneur’s personal property.

An entrepreneur raising funds for his company must use several options simultaneously.

Raising capital through investment funds

It is convenient to search for investments and investors through investment funds. These institutions bring together a variety of investors and make mixed and collective investments in a wide variety of start-up projects. Due to the specifics of their activities, funds treat risks much more simply than banks.

Foundations can be state or non-state. Entrepreneurs whose company has any social or strategic significance for the region in which they plan to operate should contact government agencies. This could be, for example, an asphalt production business: it provides many new jobs (social value) and creates resources to improve the quality of streets and roads (strategic, local value).

If the project does not involve solving such problems, it is better to turn to non-state funds. The most famous in Russia are:"Finance-invest", "SotsAgroFinance", "Adfincom", " VTB Capital", "Sberbank Electric Power Industry", "Gazprombank Asset Management".

Raising funds for a business idea via the Internet

Above we looked at two traditional ways to obtain funds for the implementation of your own project: through a bank or through investment funds. However, now there are other options on how to attract investors using modern technologies.

The most popular and convenient option for raising money to implement a business idea is to use a variety of specialized online services and platforms. Now among them there are already quite a lot of popular and proven ones:

• angel.co;
• startup.network;
• napartner.ru;
• pitchbook.com;
• preqveca.ru;
• business-platform.ru;
• rb.ru/pipeline;
• towave.ru;
• startupnetwork.ru;
• azium.ru;
• shareinstock.com.

Each site for searching for investors invites entrepreneurs to register their project and indicate all the information important information about it - the amount of necessary investments, plans and prospects, payback period, significance, innovativeness.

The service will show this information to potential investors, looking for projects in a similar area of ​​business or having the necessary funds. Some platforms, providing investment assistance, send out new offers to their registered user base, notifying them of the emergence of promising companies.

To increase the likelihood of raising funds, use several services at the same time. Not all of them are Russian-speaking, but it is quite possible that a business plan, especially a technological one, will also be of interest to foreign investors. This option for raising capital is very convenient and promising, as it allows the entrepreneur and investor to interact directly with each other.

If an entrepreneur is looking for an investor in his business that is already operating and demonstrating success, you can try to find investors yourself.

Independently attracting an investor

If an entrepreneur is looking for an investor in his business that is already operating and demonstrating success, you can try to find investors yourself. For example, post information about the need to invest on your own website, write about it on your social media accounts.

Another option is to issue additional securities. Their implementation will help you find new shareholders (and with them new finances), as well as, possibly, new ideas and steps for the development of the enterprise. However, do not forget that even in this case you will need a business plan from which each investor will understand what benefits the investment will bring him.

How crowdfunding can help

Crowdfunding - that is, raising funds through voluntary donations - is not investing in the truest sense of the word. However, this type of search for money to start your own business is also very promising. When donating through crowdfunding, contributors do not acquire a stake in the company or its securities, but help to release the first batches of goods and get started.

To start collecting funds, the author of the project creates its description on the crowdfunding site and indicates the required amount. With such financing, the business plan is less important. Innovative, technological developments or socially significant, socially beneficial projects will have an advantage.

In Russia, crowdfunding is just beginning to develop. The most famous Russian-language platforms are “StartTrack” and “Boomstarter”. On each platform, you can study the experiences of successful companies that have raised funds in this way and see what ideas are currently collecting donations.

Summary

Find an investor even in new project- really. The basis for searching for finance to implement your own idea should be a high-quality business plan with accurate calculations. Investors are attracted to technologically advanced and promising projects that will help multiply their capital. The most effective way to find investment is to use specialized online services.

The issue of finding an investor may concern not only small businesses. Even large companies are not always able to invest their own money in a business project without losing the profitability of the main production. Business.ru tells you how and where to look for people who are ready to support your project morally and financially.

What do business investments provide?

Aspiring entrepreneurs need business investors for a number of reasons:

• Possibility of raising money necessary for the implementation of projects;
• Using the experience and knowledge of the proposed investor. If he is attracted to this project, most likely he already has a certain position and accumulated data in this area that can protect the new business from failure;
• Business connections of the future business investor are another important component of the agreement. He can involve his business partners, potential suppliers and consumers in the implementation of his plans;
• The subjective element of investing in business projects is the possible increase in the business reputation of the customer company if the business angel turns out to be a significant figure.

But it is necessary to understand that for an investor an investment Money into a new project is not an act of charity, but a reasonable allocation of capital. The ultimate goal of any investment is mutual partnership and achieving the planned result in terms of financial growth.

Who invests in business and how?

Today there are many different opportunities for finding investors:

• banks;
• business angels - bankers and private investors;
• venture funds;
• grandees;
• business sites;
• own suppliers.

Let's take a closer look at some of them.

Banks and financial organizations

These structures can act as business investors in one single way - by providing a loan.

This method is not bad for large companies that have expensive property and other fixed assets. They will easily provide the bank with collateral and repay the debt over time.

Credit institutions have very strict requirements for beginning businessmen who do not have significant assets. There are a lot of documents to collect just to get a loan. It is difficult for beginning businessmen to prepare an impeccable package of documents unless they use the services of outsourced specialists who professionally resolve all paperwork and routine issues.

Even if investments in small businesses in the form borrowed money can be obtained, often the amount is so insignificant that it does not allow the entrepreneur to successfully implement his project.

Perhaps the only option to start your own business from scratch with the help of a credit institution is to receive investment in a business project through franchising. The franchisor in this case is the bank’s partners, who offer budding entrepreneurs profitable project by franchise.

Large businessmen, business angels

If it is not possible to get a loan for business development, then you can try to contact those who are already established in business and are looking for opportunities to invest in new areas.

In this case, investments in business projects are provided according to two schemes:

• In the form of a private loan at interest with agreed terms and conditions for repayment of payments;
• As allocation of a share in a business project, that is, entering the business as a partner.

This scheme has several significant disadvantages. The main thing is that it can be very difficult to have a private conversation with such persons. Business angels do not walk the streets waiting for start-up entrepreneurs to approach them.

In addition, there is a risk that the business will not break even and you will have to pay the investor out of your own pocket. And if a businessman decides to take a share and become a full member of the project, this may also greatly reduce your rights.

State and regional funds

When a young entrepreneur wonders where to find an investor for a business from scratch, the first way to solve the problem seems to be turning to special organizations, for example, Small Business Development Funds.

But here there are many obstacles to the successful implementation of the idea:

• It is very difficult to obtain financing from specialized funds - you need to collect a lot of documents and invest in the project own funds. If you are still focused on receiving government support, we recommend that you pay attention to the GlavAccount Assistant service. Professional accountants will help you quickly and efficiently prepare all the necessary information for your business. Help from an accounting guru is a guarantee that you will quickly receive funding and not spend a lot of personal time and effort;
• The amounts provided by such funds are usually very limited;
• Most often, regional organizations allocate money only for strictly defined types of activities, and if the project of a novice businessman does not have the appropriate OKVED code, then it is simply not considered;
• State funds, like banks, give preference to successful and well-established companies, and if you need an investor to start a business from scratch, then this project will most likely not even be considered.

Investment sites

Many aspiring entrepreneurs are looking for an investor for their business, using personal connections, relatives, acquaintances, friends, and recommendations. Although the likelihood that among your friends there will be a fairly rich and moderately risky friend who is ready to share a business with you is negligible.

Much great opportunities provide special investment platforms or venture funds specifically designed to support small businesses.

On these resources, the customer posts his project and provides it at the request of a possible investor Required documents, calculations, business plans. After personal meetings and negotiations, an agreement can be concluded.

Such portals employ professionals who preliminarily evaluate applicants and their business projects, acting as a kind of guarantor of the transaction.

The advantage of such platforms is that projects become public and the possibility of attracting interested investors increases. In addition, several partners can invest money in one business project, which will reduce investment risks. And if the project is clearly attractive, then it is put up for auction. In this situation, several investors compete for the right to invest their finances, and the borrowing rate falls.

Possible investors on these portals are not bound by the charters of credit institutions and can act at their own peril and risk, without requiring guarantees and collateral from the applicant.

Another attractive point of such platforms is that a successful startup can simply be sold there.

Various business platforms, venture funds and investment platforms are the most modern tools in finding an investor for a business. We have compiled a table of the most famous and successful online platforms.

Site name	Description
	The portal mostly publishes startups. Registration of a project requires considerable time.
	In addition to posting business projects, the portal offers transaction support.
	In addition to proposals for finding investors, there is a large selection of articles on this topic.
	By accessing the “City of Money” site, you can find a loan, receive guarantees, place a project, and participate in mutual lending.
business-platform.ru	This portal publishes offers from investors, franchises, and sells ready-made businesses.
	This Internet service is one of the first crowdfunding platforms that attracts funding for social and entrepreneurial projects. Over the course of five years, the creators of the project managed to attract more than 700 million rubles in investment.
	Federal database of investment sites.
	An investment platform with many active applicants, looking for investors and investments.
	One of the most famous crowdinvesting platforms in Russia, created in 2013 by the Internet Initiatives Development Fund. A successful alternative to banks and funds.
	The online platform “Dilzhidal Stream” is an Alfa Bank tool designed to unite its clients for the purpose of investing capital and receiving investments.
	Crowdinvesting platform, the volume of attracted investments is 718 million rubles. Membership in the club is on a paid basis.
	An international platform that does not set a minimum investment volume, projects are selected by voting by users of the crowdinvesting platform. Loans are used fixed rate and investing at a percentage of profits.
	This is a new service for p2b lending, currently operating in test mode.

Portals for posting investor proposals

Among modern search tools financial resources There are other platforms for business projects - here investors themselves place proposals. For example, the “Business Platform” presents many different invitations to partnership - in the form of investments and loans in real sector projects, loans and financing offers, applications for purchasing a business and searching for interesting business projects.

Owners of investment sites usually have a small percentage of income from the sale of offers.

Grants as business investments

The search for investors to implement ideas can be carried out through obtaining grants, both private and government or even foreign.

Typically, in this case, the new direction must have a social aspect or successfully imitate it.

Foreign funds consider the targeted use of funds allocated for a business plan to be a priority. These are, for example, the Microsoft Seed Investment Fund led by Bill Gates, the Ford Foundation, and George Soros' Renaissance Foundation.

State grants are allocated on behalf of the Committees for the Development of Small and Medium Businesses, economic development, industrial policy and trade, some municipalities.

Examples of private grants in the field of scientific medicine, nuclear and space technologies can be the Skolkovo Foundation or, as private investments in business projects from a private investor, grants from the founder of Telegram and VKontakte Pavel Durov for young IT startups.

Own suppliers as investors in business projects

Even your own suppliers can act as investors to start a business. This scheme is possible, for example, when goods are delivered for sale without advance payment or in the case of renting premises with a deferred payment period.

Thus, you can find an investor to start a business not only by directly raising funds, but also through commodity credit, deferred payments and any other forms of natural loans. Finding such business angels is much easier and cheaper than attracting investments in business projects or convincing banks.

How to find an investor for a business

Finding investors for a business is not an easy task. Investors are looking for more profitable investment options than traditional instruments - deposits, mutual funds, etc. - can provide.

Therefore, young entrepreneurs must not only motivate investors to invest money. Ideally, when an experienced businessman becomes an ideological partner and strategic ally, then the alliance of ideas and finance will be mutually beneficial.

First of all, a novice businessman must prepare a detailed business plan, which will help present his idea clearly and easily. It must meet the following characteristics:

• be unique and in demand;
• reflect full amount required investments;
• stipulate the timing of the project;
• contain a comprehensive calculation of expected profit;
• in one way or another to guarantee a return on investment.

An example of a business plan for an investment project can be found.

Stages of concluding an investment agreement

When a novice businessman has found an investor for a small business, the following relationship scheme comes into force:

• it is necessary to negotiate with the investor and choose the optimal form of cooperation;
• conclude an investment agreement;
• receive funds and start implementing a business project.

Negotiations with a business investor

An aspiring entrepreneur should be well prepared for the first meeting with a potential investor, because the final result depends on the quality of the negotiations.

The applicant must be convincing and responsible for every word in the business plan; this is the only way to prove the prospects of the project. The applicant should prepare all the necessary documents for these important negotiations. It can be:

• the business plan itself;
• commercial proposals and draft contracts;
• draft investment agreement;
• constituent documents of the company.

Search and selection of the optimal form of cooperation

There are several forms of cooperation between the applicant and the investor. The latter can receive income in the form of:

• The full amount of interest received concurrently with the repayment of all investments received.
• Regular interest paid throughout the life of the project.
• Obtaining an agreed share in the business.

Conclusion of an investment agreement

If the negotiations were successful and a common opinion on the form of cooperation was reached, the next stage is the actual signing of the investment agreement.

This document is very important for further fruitful work. It would be great if you could involve a professional lawyer in drafting it.

The main points that must be recorded in the agreement:

• agreed terms of cooperation and the possibility of their extension;
• amounts and payment procedure financial investments to a business project;
• rights and obligations of both parties;
• guarantee of the intended use of funds;
• procedure for resolving disputes under this agreement.

Here you can find the investment agreement form for a business project and real estate investment.

Risks of investment agreements

When the question of how to find an investor to start a business has been decided, it is important to assess its risks before signing an agreement.

Of course, the biggest risk in signing the agreement and financing is borne by the investor. But experienced businessmen, as a rule, are able to competently assess financial risks, which are broadly divided into two types:

• market or systemic;
• non-market (non-systemic).

Market ones are precisely related to the level of inflation, the balance of power in the political arena, changes interest rates and currency quotes. These risks must be calculated before signing the agreement, since it is impossible to influence them.

Unsystematic risks are more subjective and inherent to a specific industry. They can be minimized and eliminated when changing the development strategy.

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Last update: 09/12/2019

Good afternoon, dear readers of the financial magazine “site”! Continuing the topic of investing, we will consider the issues of finding investments for a business, namely where and how to find an investor to start a business from scratch, what to do to get him to agree to finance a business project, and so on.

In this article we will cover:

• Why investors are needed and how to properly attract them to start a business;
• What steps should you take to find an investor from scratch;
• What rules should be followed when searching for an investor;
• Who can you turn to for help in finding investors?

You will also find answers to frequently asked questions at the end of the post.

The article will be useful to absolutely everyone: as aspiring businessmen, and for those who already have some experience in developing your own business. The article will also appeal to those interested in the theory of finance and investment.

To find useful information about attracting investors, read our article to the end.

Where and how to find an investor to start a business, what to look for when looking for investors for a small business from scratch - you will learn about all this and more later in the article

Regardless of the type of activity, a business needs cash. If you don't raise capital, even the most best project develop will not . This threatens that the business will die at the planning stage.

It should be understood that for the successful development of entrepreneurship it is important not to miss the moment. Therefore, businessmen, as a rule, do not have the opportunity to save money. There is a great risk that while it is possible to collect the required amount, the moment will be missed, and the proposed market will be attacked by faster and more enterprising competitors.

At the same time, novice businessmen should not be embarrassed by the fact that their capital is insufficient. Even successful ones large companies when we just started our activities, used borrowed funds.

Young companies with prospects for successful development most often feel a lack of funds. At the same time, they have a huge number of ideas that require implementation." Here and now ».

To date Finding investors has become much easier: created for this purpose a huge number of funds and companies who agree to transfer their funds to start-up businessmen.

But it should be understood that not everyone can receive funds from the funds. First of all, a businessman will need to convince investors to invest in his project. To do this, you will need not only to draw up a business plan, but also to prove that a particular business project is more interesting than that of competitors and also has better prospects.

Most professional investors have extensive investment experience. Therefore, they easily determine those projects in which it is best to invest in order to obtain maximum profit.

Businessmen must remember that how funds, so private investors do not give money to charity. They expect from the projects they invest in maximum and fastest return.

Thus, any sources of investment funds, be it banks, funds or other companies do not issue funds without the necessary confirmation. You can, of course, try to get a grant. However, the companies that issue them approach the selection of applicants even more strictly.

What to look for when attracting investors

2. How to attract investors - necessary conditions 📋

The goal of any investor is to increase the funds he has. Most of them know that income bank deposits barely covers the inflation rate. Therefore, such investments investors completely not satisfied .

Investors are striving for a level of income that will not only offset price increases, but also ensure a comfortable life.

All this explains why those who have significant amounts of money are looking for such companies in order to invest in them funds that will be able to provide them with sufficient income.

Beginning businessmen, when starting to search for a potential investor, should perceive him not as a creditor, but as a partner. It turns out that the businessman invests an idea into the project, and the investor invests his own money. Therefore, such a deal should be beneficial for both parties.

Most professionals agree that search for investors– the task is not that difficult. The main thing here is to be smart present your idea. You will also need to convince the owner of the funds that investing in the project will be quite promising and will bring significant income.

When telling an investor about a project, you should cover the following topics as fully as possible:

• uniqueness and demand for the product/service offered for production;
• the size of the required investments;
• in what timeframe it is planned to recoup the investment;
• expected level of profit;
• What is the return on investment guarantee?

If a businessman correctly characterizes each of these issues, the chances of convincing the investor that the project can really bring good profits are will increase significantly. As a result, the investor will decide to allocate funds for it.

3. How to find an investor from scratch - a step-by-step guide to finding an investor for a business 📝

When looking for an investor, it is important to act consistently in accordance with the recommendations developed by professionals. Thus You will be able to achieve success in finding investors faster.

In the process of searching for investment sources, it is important to take into account the interests of the owner of the funds. It is important to understand that investors are guided by their own commercial interests when making investments.

Potential investors not interested , how innovative the activity will be, and whether it will bring profit to the business owner. They are concerned about the increase, as well as the safety of their capital.

For some investors not important business ideas, as they are looking for passive income, tired of actively developing a business. They have already managed to earn initial capital, working hard. Now the only desire of such investors is for the available funds to make a profit, and at the same time they would not have to do anything.

At the same time, they are looking for investment options that will bring greater income than traditional investments - , mutual funds and similar financial instruments.

Step-by-step instructions on where and how to look for an investor to start a business

Therefore, when looking for an investor, it is important to convince him that they can get such an income. It is of great importance to follow the step-by-step instructions, which we will describe below. This will help increase the chances of quickly and efficiently finding the necessary funds.

Step #1. Drawing up a business plan

First of all, when choosing an investment property, investors pay attention to the business plan. It must be properly executed, otherwise the likelihood of receiving funds may disappear.

A properly drawn up business plan must contain the following information:

• project description;
• calculation of the required amount of money;
• analysis of the commercial benefits that the investor will receive;
• the payback period of the project, that is, after what period of time the first income will be received;
• what are the prospects for further development of the organization.

Everything should inspire confidence– from the quality of the paper on which the document is printed and the folder in which it is placed, to the use of professional graphic editors when preparing the necessary diagrams.

We wrote in more detail in a separate publication.

Step #2. Choosing a suitable form of cooperation

Cooperation between a business owner and an investor can take various forms. It is important to analyze in advance which of them may be most effective for a company seeking funds.

Investors agree to provide funds, receiving income in the following ways:

1. as a percentage of the invested amount;
2. as a percentage of profit during the entire duration of the project;
3. as a share in the business.

The business owner, having decided which option is more acceptable to him, must indicate it in the business plan. However, it is often difficult for a new businessman to find the necessary funds.

Therefore, if a potential investor categorically disagrees with the chosen model, wanting to use another option for cooperation, it should be assessed. Often It’s better to agree to the investor’s terms than being left without money.

Step #3. Enlist the help of experienced businessmen

Aspiring entrepreneurs can be sure: no one will understand them better than experienced businessmen who have been working successfully in the same field for a long time. Many of them willingly advise newcomers on how to proceed. This is especially true in cases where when mutually beneficial cooperation is possible between them in the future.

Often, experienced businessmen take newcomers under their wing: they can invest money in their ideas or recommend the project for investment to other investors. Even if this does not happen, it is quite possible that professionals will give advice and recommendations that will help in the future.

Step #4. Negotiation

Often a positive decision from investors to invest in a project determined by competent negotiations . Even those who easily get along with people should carefully prepare for the meeting.

It will be necessary not only to convince a potential investor of the prospects of the project, but also to answer all the questions he has. Therefore, it is advisable to think in advance about what a businessman might be asked and prepare reasonable answers.

From the first meeting, investors usually expect a competent presentation of the project, as well as a business plan.

It would be useful for a businessman to invite a specialist who participated in the development of the project to negotiations. It is quite possible that he will explain all the nuances of the project much more competently, as well as answer any questions that arise.

Step #5. Conclusion of an agreement

The final stage of negotiations, if an agreement is reached, is signing a cooperation or investment agreement. It is important to carefully study absolutely all the terms of the drawn up contract; it would be useful to involve a professional lawyer in this process.

It is important to ensure that the agreement stipulates:

• duration of cooperation;
• investment amount;
• rights, as well as obligations that are assigned to the parties.

In accordance with the agreement, funds are transferred to the businessman under certain conditions. Their essence is that money must be invested specifically in the implementation of the project .

It is important for the investor that the signed agreement excludes the possibility of using funds beyond the intended purpose, even part of the invested money should not go to needs not related to the implementation of the project.

Conclusion of an investment agreement - sample

An example of an investment agreement can be downloaded from the link below:

(example, sample)

Thus, it is important to maintain a certain consistency in attracting investor funds. A businessman should follow the step-by-step instructions described above. Then raising funds will be as effective as possible.

The main ways and where you can find investors

4. Where to find an investor - 6 options for attracting investment 🔎💸

We have already written about how important it is to draw up a competent business plan at the first stage of searching for an investor. However, not all businessmen know where to next look for someone who will agree to provide funds for the implementation of their project.

However, there are several options, and each of them deserves close attention from a businessman.

Option 1. Close people

Finding investors to finance a business – not an easy task. Therefore, it is advisable to involve as many relatives and friends as possible in this process. This option is ideal for those who are just starting their own business and have neither experience nor popularity. Moreover, loans from relatives and friends are less risky.

If the project does not require large initial investments, it can be offered to be financed by close people for a small percentage, which will be paid when the business becomes profitable.

Option 2. Businessmen

In all cities (especially large ones) there are a large number of businessmen who have already earned capital. Now they want to receive passive income by investing money in some profitable business.

It makes sense to turn to such businessmen to receive funds to develop their own business.

Most often, merchants issue money according to one of 2 (two) schemes:

• in the form of a loan with payment of interest;
• as a share in a new business project.

It should be understood that the second method leads to a significant restriction of the freedom of decision-making of a novice businessman. Therefore, you should think several times before choosing this option.

Option 3. Funds

Another way to find investors for a business is special funds - investment And assistance to small businesses. However, obtaining funds from such companies can be difficult.

You will have to prove that the new business project is viable enough. It should also be taken into account that a newcomer to the field of entrepreneurship must have his own funds, which he wants to invest in the project along with those attracted. Therefore, funds are more suitable for those who already have an existing business.

So that the decision to invest funds is positive , you will need to analyze the current activities of the company, as well as formulate a plan for its further development.

Those looking for an investor should also research the activities state funds. They often provide funds to the most promising business projects, organizing competitions for this purpose.

Option 4. Venture investment

This option is quite widespread in some developed countries. If you want to attract money to a business with the help of venture investment, you should keep in mind that such funds invest only in risky projects with great prospects.

In this case, business projects are most often financed innovation sphere , Sciences , and IT technologies .

Less often, but still, venture funds are invested in trade, as well as the service sector.

Details about venture investments, in particular which ones exist and what they do, we wrote in a separate article.

When investing in a business, venture funds want to receive regular income. For this purpose, they take over a share of the business. Moreover, they own part of the company for only a few years, after which they sell it to third parties.

Option 5. Business incubators

A business incubator is a special platform created for the purpose of implementing various business projects. To obtain investment funds through an incubator, it is important to draw up a competent business plan.

In addition, you will need to win a competition or successfully pass a special interview.

Option 6. Banks

If you can’t find an investor, you can try to apply for a bank account. However, getting a large enough amount is often difficult. Therefore, this method of searching for an investor is suitable when when needed small amount investments.

Credit institutions require potential borrowers enough high requirements. To receive money, you may need to provide property as collateral, guarantors, and collect a large list of various documents.

If a loan applicant cannot fulfill at least one requirement of the credit institution, he will not be able to receive a loan.

Thus, searching for an investor for business– it’s not an easy and rather lengthy matter. Therefore, a businessman will need a lot of patience. It is important to evaluate all possible options and analyze emerging risks. Then you can be sure that your search will be crowned with success.

There is an article on our website in which we talked about where and how to properly draw up a promissory note - we recommend reading it.

Basic rules for finding investors and their investments

5. 5 important rules for finding investors 📌

Every day a huge number of different business projects appear that require investment of funds. The owner of an idea does not always have the necessary capital. However, most ideas require quick start and development. In this regard, huge number of businessmen are looking for an investor to implement the project.

Often this process is delayed, and often completely ends in failure. To increase your chances of success, it is important to follow 5 (five) basic rules. They allow businessmen to be more confident in finding an investor, as well as approach the selection process wisely.

Rule #1. The search should begin as early as possible

Every businessman must understand that searching for an investor is a long process. A lot of time passes from the moment they start until the funds are received.

That's why start You should look for an investor as early as possible. Ideally, you should do this already when you have planned future activities, and it also became clear how best to present the benefits of the project to potential investors.

It's important to understand that the risk of the investor is higher than that of the project owner. It is the one who invests money in business who risks his capital, loss of time and reputation.

Therefore, he has the right to suspend investment of funds or even negotiations if he decides that the risk level is too high for him.

Moreover, investors usually carefully study the company in which they plan to invest money. They analyze the history of the company, its successes and failures, and prospects for further development. All this leads to the fact that it is better to start looking for an investor in the early stages.

Own funds invested in a business usually run out very quickly. As a result, a sharp rise at the beginning of the project may give way to a fall even before the start of investment receipts, and this situation may alienate most investors.

Rule #2. It is important to collect as much information as possible about a potential investor

When looking for an investor, it is not the best decision to cooperate with the first one who offers his capital. It is necessary to collect as much information as possible about the prospective investor.

In this case, you should find out:

• what areas does it usually invest in;
• possible volumes of invested funds;
• investor preferences regarding the method and principles of cooperation.

All collected data should be compared with the desires of the businessman himself. You should cooperate with the best investor. This means the most optimal, not the largest and most popular.

It's important to understand that any interaction with an investor should take place in the form of mutually beneficial cooperation.

At the same time, both the businessman and the investor themselves must imagine what stage of interaction they are at, as well as what will happen next.

A good investor, if he knows why, will provide significant assistance in the development of the project. A bad one will ruin even a great idea.

When assessing the investment amount, worth understanding, which, if necessary, 50-100 thousand dollars there is no point in turning to someone who traditionally invests millions. The same can be said in the opposite case: there is no point in going for big investments to someone who simply doesn’t have them.

A large amount of collected information can make it easier for a businessman to participate in the negotiation process with an investor. You can think through a rough plan of negotiations in advance, and also decide what questions you can ask the investor.

Moreover, if there is sufficient information can be predicted, what questions the owner of the funds will ask the businessman, and decide how to answer them. Information about an investor's previous investments can be very helpful during negotiations.

Even before meeting with an investor, a businessman must decide how he will behave during the negotiation process. The investor must believe that a businessman needs not just money, but mutually beneficial cooperation.

If high-quality contact is established between the parties, you can be sure that the interaction will be beneficial for both parties.

There are many examples in history that with good relationships between businessman and investor even if there were errors and small failures, they were still provided. Ultimately, success was achieved in the activity.

Rule #3. The amount of investment must be carefully planned

A businessman must remember that the investment amount must be indicated specifically in numbers, not a range. An investor will almost certainly refuse to invest if he is asked for an amount from 100 to 200 thousand dollars.

In this case, the owner of the funds may have a huge number of questions, which will almost certainly lead the negotiations to a dead end.

A businessman must tell the investor a specific amount , which should be reasonable. The size of the investment must take into account all possible scenarios that could cause the range to arise.

Rule #4. Focus on goals

When developing company development goals for which you need to raise funds, do not use them too much globalize.

Ideas that are too large, as well as the desire to cover a large number of issues, usually cause investors to doubt that it is possible to successfully implement them.

Therefore, the goals that a businessman sets should be as specific as possible . They must be limited by capabilities as well as needs. A businessman’s goals should be specified even before he finds an investor.

Even in cases where in the future it is planned to develop the project to a global scale, you should not immediately describe this idea globally. Such interpretations usually repel investors.

Those who have experience in investing, as well as developing business projects, agree with the opinion that with globalization, forces and resources are dispersed, but proper efficiency is not achieved.

Therefore, an investor should be sought under solving specific problems And business issues.

Rule #5. You should be as honest and open as possible

In the process of negotiating, and subsequently when drawing up reports, a businessman should not lie And keep back.

In the process of conducting business, it is quite normal to deviate from the original plan, but such facts cannot be hidden from the investor . He has the right to be aware of the current situation.

At the same time, it is important to explain to the investor the reasons for the deviation from the plan, what this may lead to, and how it is planned to proceed further.

Compliance with all the above rules increases the chances that a good investor will be found. And this is precisely the key to a successful start of any activity.

6. Providing professional assistance in finding investors 📎

Those who are unable to find an investor for their business on their own can turn to professional help.

There are special platforms on the Internet that help not only those who want to invest, but also those who are looking for capital to develop their activities.

The most famous Russian-language sites are 2 (two) sites:

1) EASTWESTGROUP

The resource's specialization is search for investments for investments both in operating and mothballed businesses. To use the services, just register and then contact those who provide the funds. The resource allows you to save not only time, but also energy.

Company specialists conduct business analysis, after which its strengths are determined. This is done absolutely free and helps attract investors. The resource has been investing for more than ten years.

By registering on the site, a businessman gets in touch with several dozen investors at once. This significantly increases the chances of receiving funds. The cost of the investor search service is calculated individually for each user. However, you do not need to pay anything until you receive the funds.

Using the site's services is very simple. Just go through a few steps:

• submit your application;
• get a free consultation from a company employee;
• sign an agreement with the company on the provision of intermediary services;
• the resource itself conducts negotiations with the investor;
• businessman enters into a mutually beneficial deal with an investor.

2) Start2Up

This resource is a kind of bulletin board on which they post investor proposals, entrepreneurs, startupers looking for business partners.

Thanks to the site, those who have funds can find where to invest them. At the same time, budding businessmen have the opportunity to enter into an agreement with investors who are ready to support their project.

All advertisements posted on the site are divided into groups depending on the region, as well as the field of activity.

The most popular business areas here are:

• Internet;
• IT technologies;
• education;
• art as well as culture;
• the science;
• real estate.

There are also others promising directions activities.

The site's users include hundreds of businessmen and investors. These are people not only from Russia, but also from Belarus, as well as a number of European countries. Therefore, the chances of those who register on the site to find an investor increase significantly.

The site contains several hundred offers buy out a startup, invest funds in different areas of business, and improve existing production facilities.

In addition, with the help of the project it is possible to purchase or sell the property of ready-made companies. You can follow the news of the portal using the Facebook group.

Thus, those who find it difficult to find an investor for their project can turn to popular Internet resources for help.

Don’t forget about the site’s crowdfunding as well. Thanks to (a type of crowdfunding), it is also possible to attract capital from interested platform participants for a share in a startup.

7. Answers to frequently asked questions 📑

The topic of finding investors is quite complex. Therefore, businessmen have a huge number of questions in this regard. The publication would not be complete if we did not answer the most frequently encountered questions.

Question 1. Where can I get money for my business?

Finding money to grow a business can be a daunting task for any aspiring entrepreneur. This especially concerns the formation and further startup development. Develop any business project without raising funds practically impossible. We wrote about what stages it should go through, how to attract money, etc., in a separate article.

Every aspiring entrepreneur is looking for his own options for finding an investor. That’s why it’s so important to reconsider how you can find funds.

Method 1. Accumulate

This option is the simplest. Having accumulated money, the entrepreneur will not become financially dependent on other people; he will be able to run the business completely independently, without reporting to anyone and without giving away part of the profit to anyone.

At the same time, to save money, you only need great desire, as well as financial self-discipline. It is enough to optimize your own expenses to start saving money. With due diligence, already for 6 -12 months you can raise a significant amount of money.

This option is suitable for those who know how to save. If you manage to save for a major purchase or vacation, this method of finding funds will probably suit you. Moreover, this option helps you learn an optimal attitude towards money, which will definitely come in handy in the future when implementing a business project.

Method 2. Take out a loan

Those businessmen who have a good understanding of the rules of financial discipline may well take Bank loan for the development of activities.

The danger of this method is that at the very beginning of business, companies almost always operate on the brink of loss. Therefore, there is a high probability that there will simply be nothing to pay off the loan.

This method is suitable only for those who are confident that the business will become profitable even before the loan payments begin. It is worth understanding that credit organizations startups rarely invest. Much more often they issue loans for the development of an existing business. However, the decision is always made individually.

A businessman should definitely take into account that interest in most cases is at least 15%. In addition, it is important to contact banks with a good reputation.

To simplify the task for businessmen, the table shows best banks for small and medium-sized businesses.

Method 3. Government subsidies

The state is trying actively support small businesses. Any aspiring entrepreneur can take part in competitions for subsidies.

If you wish, you can contact the Employment Center to receive a self-employment grant. The amount for this program varies by region, but on average it is 90-100 thousand rubles.

In addition, the country has created so-called incubators (most often on the basis of the largest higher education institutions educational institutions teaching the subject “Economics”).

Such structures are financed from the budget. The goal of such organizations is to create favorable conditions for business development.

Method 4. Close people

This option can be considered a last resort, since doing business with relatives and friends can be very difficult. Nobody likes to just give away their money, so even close people should be interested. You can offer them a share in the business.

There are also advantages to this method of raising funds. Firstly, it is easier to agree with loved ones on the timing of the return of money. Secondly, receiving funds is much faster, since you do not need to collect a large number of documents and also wait for a decision from third parties.

Method 5. Private investors

In some cases, there are simply no other options other than borrowing money from private investors. You can get funds from private investors quite easily quickly and without unnecessary problems.

Most large cities have Internet sites that post relevant advertisements. At the same time, to obtain a loan it is enough confirm your identity and write a receipt. Some private investors require mandatory notarization of this document.

Question 2. Where to start looking for an investor for a small business?

There are several basic steps that will help a novice investor navigate the process of finding an investor.

Step 1: Making a plan

A businessman must develop a high-quality business plan, which he will use as a presentation to people who invest money in the business. It is the plan that will help convince the investor that the businessman’s project is capable of generating significant profits.

Important so that the business plan contains not only a description of the company itself, but also a study of its position in the market, as well as further development prospects.

Step 2. Choose an investment scheme

There are several possible options raising funds. Investors can buy new equipment, by providing a loan at certain interest rates. Others invest, demanding in exchange for a share in the company .

In any case, a businessman should decide in advance which of the schemes is most suitable for him. It would be useful to indicate this in the business plan itself.

Step 3. Help from professionals

Experienced businessmen can provide valuable advice on both raising funds and running a business.

Step 4. Search for online resources on investing

There are sites on the Internet that allow you to present projects to business angels. After posting information about themselves on such resources, businessmen often note an increase in the number of offers from investors.

Question 3. I am looking for an investor to start a business from scratch/into an existing business. What portals/sites and forums should I look on?

Popular Internet resources (websites, forums, portals) for searching for investors

The development of Internet technologies has made it possible to significantly simplify the procedure for finding investors. There are quite a large number of Internet resources that help in this difficult task.

Here are the most popular ones:

1. Starttrack.ru is a popular investor search portal. There is an opportunity to post information about your business project. If it passes approval, the chances of attracting investors will increase significantly.
2. Ventureclub.ru– a resource that allows you to find fairly large investors.
3. Napartner.ru- is a regular bulletin board on which investors post information about themselves.
4. Mypio.ru– here you can place information about your business project. Advertisements on this portal are viewed daily by a large number of investors.
5. Startuppoint.ru– a project with a huge number of proposals from investors. If today there is no suitable option here, it is quite possible to post information about the project for viewing by potential investors.

Question 4. Where to look for an investor for a startup or how to find an investor to implement an idea?

A businessman must remember that the most suitable place to look for an investor is where the maximum number of them gathers. It can be various exhibitions, and presentation events. As part of such events, round tables of money owners are usually organized where you can get to know the future investor. This option is quite simple, however its effectiveness is highly questionable. Such events are held extremely rarely; meeting the right person also happens here not easy.

Another easy option– investing in a new business project by diverting funds from an old, already developed one. Naturally, this method is unacceptable for novice entrepreneurs.

You can find private investors on various Internet resources. You can find a large number of business investment proposals. But don't forget that areas of large accumulation of funds are infested with a huge number of scammers. Often, businessmen are offered to contribute a certain amount of money to start investing under various pretexts.

It is considered a good way to attract investment investment broker assistance. For a small commission, the businessman shifts the worries of finding an investor onto someone else's shoulders. In this case, you will have to pay only upon the issuance of funds.

The help of business angels is often considered effective.. However, today there are too few of them for a large number of applicants. In addition, they often demand a significant share in the business being created.

Incubators do not have the purpose of investing in projects. They are created to provide businesses with optimal conditions for development.

Question 5. How to search for foreign investors? Where to find foreign investors who will give money?

At the moment, there are several ways to find a foreign investor who is interested in your business:

1. Using the intermediary services of public or private commercial structures in searching for investment proposals;
2. By posting information about a project (startup, idea) on specialized sites (investment project databases);
3. Participating in various specialized exhibitions and fairs.

On investment market Many different agencies are successfully operating, providing professional services for finding foreign investors. It is important for potential foreign investors to see the prospects of your business project.

8. Conclusion + video on the topic 🎥

If you have read the publication to the end, rest assured that you have received enough information to attract an investor. It is important to remember that this process is not easy and requires high-quality preparation.

A businessman must remember that even if he finds sufficient funds, there is no guarantee that the project will be successful.

Finding an investor is just First stage, a small part of a long and difficult journey.

Having spent money, a businessman must make every effort to achieve the desired return from it.

In conclusion, we suggest watching a video about collective investments (crowdfunding) - what is it and how does it work:

And also an interesting webinar “How to attract investment in business” from the Chamber of Commerce and Industry of the Russian Federation

The site magazine team wishes you good luck and success in attracting a good investor and, of course, success in the further development of your business. If you have any comments or questions on the topic, please ask them in the comments below.

— subscription to underwear. If you are also thinking about developing your startup or launching something from scratch, then our experience will certainly be useful to you.

We spent some of our own money on the project to test the viability of the idea, but there were no longer enough funds to grow and test serious marketing hypotheses. Then we started looking for investment and found it.

“Trusbox” is not a pure technology service, but it definitely has the potential for development in the direction of IT, so this is exactly what we were looking for for investments. Technology projects often require lengthy and complex development, and the result is measured not only by the same metrics that we are accustomed to based on university economics lessons 10 years ago. So if you want to open a beauty salon or a car repair shop, then my advice, unfortunately, will not work for you. But if you come up with a program that makes the work of a car repair shop easier, you can find investments in the project, following our experience.

Anna Gorodetskaya

My documents: what needs to be prepared

At the first stage of a project, it is often recommended to draw up a lot of documents: a description of the concept, mission, necessary regulations - that is, materials without which new team members will have difficulty understanding what your project is about. It’s not a fact that you will definitely need all the files later in your work, but they will definitely come in handy when you draw up key documents for investors.

• Detailed presentation of the project
  You must have a ready document from which a person who has no idea about the scope of your project will understand what you are doing, for whom and how. The document answers the usual questions: what we do, for whom we do it, how we do it, who we are, what are our plans, who are our competitors. If you, like me, are put into a work stupor by open empty files, then use the presentation template on canva.com - they already have structured templates with a minimal design and icons that you can use to visualize processes and numbers.
• Project business plan
  Even if you haven't made a single sale yet, you should still have an idea of ​​where the money is in your project, even if it's small and not soon. But if your project, in principle, does not involve making money, then perhaps it belongs to the social or art sphere, and sponsors, rather than investors, will help you better.
• Road map
  A document that will describe what, when and with what forces you plan to achieve. It should consist of several milestones and describe the processes and resources that will help you get there.

LinkedIn Sales Navigator/Unsplash

Where am I: determine the stage of the project

To choose the right potential investor and project presentation strategy, you first need to decide what you have. There is a simple classification for projects in the first stages of development.

• Pre-seed— you have an idea, a team, a working prototype, hypotheses about the audience and sales channels, confirmed by small numbers. That is, you have a project in which there are some people, and the project is working confidently, albeit at low speed.
• Seed- you bypassed all the pitfalls of the previous stage, did not go crazy, did not leave for Nepal, and are now ready to grow sharply and strongly.

Your strategy for finding an investor will depend on what stage your project is at: some funds may specialize in projects at different stages. When you apply to a specific fund, you will need to indicate what your current project status is.

If your stage is a confident pre-seed and you have not yet released, in fact, anything, this does not mean that you will not be able to find an investor. The first option of finding an investor will not require you to have a finished product.

About the benefits of hackathons

If you have a team of developers, even a small one, then be sure to participate in thematic or corporate hackathons. A hackathon is a short-term event (most often held over a weekend) in which teams or individual developers solve one problem voiced by the organizer. In addition to possibly winning an impressive prize that can be used to develop the project, you will meet serious people in your industry.

Companies that hold hackathons are obviously interested in additional products; if they like your project, you have a serious chance of attracting hackathon organizers as investors, as was the case with three teams at once at the “Build a University” hackathon. You can view a list of upcoming hackathons.

If a hackathon is not suitable for you, then nothing prevents you from contacting the investor directly, because thanks to the documents that you have already prepared, you know how much investment you need (although this point will be discussed).

QIWI Universe/facebook

Where to look

1. Follow the trail
If your product can definitely be classified as “something tech” (medical technology, financial technology, etc.) and it solves some clear problem, then pay attention to large companies in your sector, many of them have their own investment decisions. For example, QIWI has a separate platform through which you can contact the company with a request for investment.

2. Spying on our neighbors
If you carefully and carefully prepared the presentation of your project, then you probably know all the competitive startups in your industry. Information about transactions is a major information feed that is very rarely hidden. You can check online to see if your competitors have received investments in the last year, and if so, from whom. Feel free to contact funds that have invested in projects similar to yours: this means that the fund is already working with your topic, understands something about it and will be able to evaluate your project for subsequent investment.

3. Contact directly
The simplest and most obvious advice, which for some reason no one uses: just write to investment funds. The Firrma website has a rating of the most active (that is, those who conducted the most transactions) venture funds in a year. There are both seed and new funds. The algorithm in this case is as follows: you need to go to the investment fund’s website, try to find a project presentation template there, fill it out and, together with cover letter send to the address indicated on the website. Investment funds actually read the letters they receive. They make money from investments and, of course, do not want to miss out on interesting options.

I strongly recommend finding a presentation template for a specific fund and working with it, because in any case you will be asked to provide information in a standard form, and you will simply lose time and some credibility if you do not use a document that is in the public domain.

cartierawards/instagram

One of the formats for reaching investments is startup competitions. Most often, they are united to organize them investment fund and some large company, and the winners receive prizes from both: in the form of investments, in the form of services from the company, or both. For example, the “First Height” competition is held jointly by the consulting giant McKinsey & Company and the large investment fund Winter Capital. But the most famous startup competition in Russia is GenerationS. In addition to the main competition, every year there are different nominations, the process of application and expert verification in them can be simpler, so check if there is a special nomination this year on the topic of your project, and if there is, then feel free to apply on the website (list of special nominations located below home page site).

Pay special attention to competitions that stimulate the development of women's entrepreneurship. Thus, the famous jewelry house Cartier has a competition program for women business leaders from all over the world.

By the way, separate women's acceleration and investment projects Not only Cartier has them. Read more about the special opportunities in IT for Pink women.

Investor's choice

An important and responsible matter. Because an investor gives you not only money - he gives you connections and the opportunity to make this money even more money.

In addition, investment money is not given for nothing - you can only receive it in exchange for a share in the company. That is, having allowed another participant into your project, whose interests will definitely be exclusively commercial, you must be prepared for the fact that your actions as a project manager must also take into account the possible benefits for the investor.

This is the main difference between investment and lending: the loan can simply be returned and forgotten, and the investor will remain with you until he leaves the project (sells his share). So if your project involves a relatively simple development cycle and does not require a lot of funds, then it will probably be easier and faster for you to take out a loan for business development, and only then attract more large investments to scale the project.

Whichever option you choose, I wish you good luck and courage: no matter the outcome of your investment hunt, the experience of communicating with funds and making presentations will remain with you forever.