Business is developing rapidly these days. Today there are many ideas on how you can implement your activities. But often beginning entrepreneurs experience an acute shortage of funds. There are either very few of them to start your own business, or none at all.

And here the question that is already pressing for many arises: how to choose a suitable investor for your business?

Types of Investors and Investments

Investors

Who is an investor? This is the person who can allocate financial resources for the implementation of a business, expecting some kind of return in the future. They can be either an individual or a legal entity. Its main task is to obtain maximum profit with minimal risks.

There are several types of investors:

• Banking. They can help out from inflation. This type of investment in Russia is popular and safe. If you have a large amount, it is better to put it at interest in the form of another currency.
• Briefcases. They expect maximum income when creating an investment portfolio. This term should be understood as the totality of all securities of value. Their value is determined on the basis of two main factors dependent on each other - income and risks. They can be divided into:
  • conservative – invests only if you are absolutely sure that there is no risk;
  • moderately conservative - can take risks, but will not sacrifice all means;
  • aggressive – always plays for high stakes and is not averse to risks;
  • experienced – have extensive experience in dealing with ordinary risks;
  • sophisticated - they strive to get maximum profit and are ready to sacrifice all means.
• Direct. They are called strategic because their participation implies gaining control over a company and becoming its owners. In this regard, the main objects in this case are ordinary shares. Moreover, the more shares he owns, the more influence he will be able to influence the organization itself.

In addition, we can highlight investors who mind their own business unprofessional(independent and not independent) and professionally(speculators and managers).

The former mainly manage their own funds, do not yet fully understand the intricacies of such a business, but make some small transactions. This is a kind of hobby for them. The latter are distinguished by a more conscious approach to work; they can deal not only with their own, but also with other people’s assets. In addition, they are very knowledgeable about investing. This is a source of income for them.

Investments

It is impossible to fully explain this definition in two words. It can be compared to art, because it is not enough to read smart literature, you also need practice. There is no specific path that guarantees 100% success. You need a creative approach and competent analysis of your actions.

Investment classification may be as follows:

• by risk:
  • no risk;
  • low risk;
  • average;
  • high;
  • speculative investments (obtaining maximum profit from dubious investment projects).
• by nature of participation:
  • direct (the investor invests the funds himself);
  • indirect (investment of funds is carried out by an intermediary).
• by period:
  • short-term (up to a year);
  • long-term (more than a year).
• by type of ownership:
  • private;
  • state
• by regional affiliation:
  • national;
  • foreign.

Search Options for Small Businesses

Finding a suitable investor is a difficult and necessary task that requires a lot of time, diligence and effort. Everything is complicated by the reluctance of banking and other government agencies to deal with small businesses. Therefore, it is important that the start-up capital be as large as possible and that all risks and possible expenses be taken into account.

Banks

You need some kind of collateral, a guarantor, a good reputation and other requirements. If this is not the case, then you should not count on the bank’s help.

Internet

The Internet is replete with various advertisements for searching for an investor, but in this case the chances of success are minimal, and there is a possibility of running into scammers. Therefore, in your searches you should not limit yourself only to the Internet. An alternative option is to use the help of friends and acquaintances. This minimizes all risks, and some of them may themselves act as a counterparty.

Otherwise, there are entrepreneurial communities, you can attend thematic exhibitions and conferences, take an interest in investment funds, business forums and clubs.

Technoparks

Many aspiring entrepreneurs should pay attention to technology parks in search of support. These structures are part of institutes or universities. Their actions are aimed at introducing high-tech technologies into widespread production. They are the link between large industrialists and small business representatives.

To gain access to a technology park, you need a properly thought-out business plan. Upon approval of the project, a contract is concluded with the entrepreneur for a period of up to 3 years with the provision of a production module for the purpose of implementing the business.

Maintenance of the technology park implies the provision of preferential prices for communication services, consultations from specialists in various fields. If necessary, assistance can be provided in obtaining a loan for necessary expenses during the implementation of a business project.

Business incubators

Business incubators are almost similar to technology parks, but they work somewhat differently. This structure was created specifically for small businesses. Any entrepreneur can apply, regardless of the type of activity. The work of selecting clients can be carried out by the administration or supervising government agencies.

A considerable number of such incubators are created by the state in empty spaces of industrial enterprises. This allows you to combine several buildings (warehouse, office, production premises) on an industrial territory. Stay in this structure is designed for 3 to 5 years, after which the right to benefits is lost.

Credit cooperatives

Contacting any credit cooperative will be the best alternative to banks. Such structures are created mainly by private individuals and can issue amounts ranging from 100 to 350 thousand rubles. At high interest rates, they do not have such strict requirements as banks. In addition, they have less time to consider the application.

In this regard, this option is suitable if the business is in extremely poor condition, or you want to borrow funds for a very short period of time.

State guarantee

A government organization can only act as a guarantor, since they do not have their own finances. This will allow you to receive almost any amount from the bank, since in extreme circumstances the state undertakes to return 40-50% of the loan to the bank.

Such government structures to support small businesses can be found in any large city.

Grant

This is the best option any businessman can hope for. The reason is quite clear - it does not need to be given away. These funds are allocated to small and medium-sized businesses only from the state budget. Funds will be allocated to those activities that are of most interest to any particular region of the state.

For example, a grant can be received for the production of new energy-saving technologies. A project aimed at improving the health and protection of nature will also be a priority over others.

In most cases, grants are provided for projects that are related to innovative technologies in the field of scientific development.

In some cases, it may be issued by a company that has an interest in introducing new technologies into production. In addition, the distribution of grants can occur through institutes and universities in the scientific field. You can also learn about them at ongoing industry exhibitions.

The number of grants in Russia is small. But in times of crisis, the state plans to actively develop this program. Perhaps this will lead to an increase in their number.

Trust but check

Regardless of which method is used when searching for an investor, this person or organization should be checked for honesty. This will require some additional time, but in this case the risk of fraud will be significantly reduced. To do this, you can do the following: start by searching for available information about the lender regarding his past experience, how many successful transactions he has had, and whether there are any failed ones. In the latter case, also study the reasons for the failure.

Reputation is an important factor. You need to find out what it is like in various business circles. It is equally important to know how the creditor behaves in difficult cases.

You can learn more about all search options from the following video:

Search options for startups

The search for an investor will be no less difficult for an entrepreneur who is starting his own business from scratch. But, before starting the search itself, it is necessary. It should take into account costs, payback, results of market analysis, risks and competition.

To attract a lender, it is important to indicate some points:

• The essence of business. Briefly describe the main idea, who it can attract and what benefits it promises.
• Team. Who exactly will take part in the implementation of the project, indicating the responsibilities of the participants.
• Competition. You need to indicate how your own project differs from others, and what the competition is.
• Price. Familiarize yourself with the project budget in detail.
• Term. Describe each stage.
• Marketing. Indicate options for attracting customers and ways to promote products on the market.

The main thing is to make it clear to the investor exactly what features make the project truly unique.

Some cities host special industry conferences where startups and investors can find each other. You can find out about this if you enter the corresponding query in any search engine. In addition, in Russia the state provides support to small and medium-sized businesses. That is, you can contact the administration of your city about the availability of financial assistance. It can be obtained in several ways and in some cases free of charge.

You can turn to investment brokers for help. This will significantly speed up the search, since such people have extensive experience in organizing proper investment. Brokers will require from 3 to 5% for their services.

Business angels

Any aspiring entrepreneur should contact various business communities. The most serious organization is “SBAR” (Community of Business Angels of Russia). If the project in question is approved, the entrepreneur will be assisted in creating a business plan and presenting it to creditors.

Who are these business angels? This is any private person who is ready to invest in the opening and development of a new business, even at the earliest stages.

In some cases, business angels can receive their share in the enterprise. They don't expect any immediate return. Only after several years, when great successes are observed in the business, and the share of the “angels” reaches its maximum, do they leave the business, taking their rightful share. This is the basic principle of their work. At the same time, everyone knows that they can simply lose all their funds, and takes such a step consciously.

Business angels can provide not only financial support, they have a wealth of experience and extensive business connections. Everything that a novice businessman so lacks.

Accelerators

This is a kind of mixture of such structures as a venture fund and a competition. The winner of such a tender receives not only solid financial support, but can also count on an office, business contacts with access to partners and sales channels. The accelerator has every right to its share in the business. As a rule, such organizations have government support.

For a business accelerator, the main thing is what value the project of a novice entrepreneur represents for the consumer market. This structure can be compared to an incubator, only it has its own characteristics. You should approach this with a fully equipped team.

Search options abroad

Sometimes there is a need to attract investment abroad. The main thing is that the chosen country is stable economically and politically.

The most ideal option is to search on the Internet. Where exactly? On social networks and specialized resources.

If you have good knowledge of foreign languages, you can register on foreign websites and make new business acquaintances. However, foreign companies can also be found on domestic resources, you just have to look hard.

What may be the investment conditions?

When considering the issue of possible conditions, do not forget that the main task is to obtain income in the amount and time frame in which it was planned. Some important conditions:

• availability of a business plan;
• presence of reputation of both the head and the business;
• exact data;
• conditions for the sale of capital and income;
• the right risk to return ratio.

Any investor pays close attention to a business plan. No person will invest in a business without having a clear idea about it.

If you have a good reputation, your chances of receiving funds for your business increase significantly. No one will provide financial support to unknown companies. In this regard, those leaders who enjoy well-deserved trust in certain business circles may deserve attention.

Business transparency is a prerequisite. It is impossible to gain the support of investors by hiding information regarding the conduct of the business. This includes everything related to tax services, as well as interaction with the media.

How exactly capital and profit are planned to be realized is of primary value to portfolio investors.

For any investor, it is important to correctly correlate the amount of planned income with the possible risk. Some people prefer not to take risks if they make a small profit. But there are also those who are not afraid of risks if the maximum return is at stake.

Often successful companies are created through the collaboration 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 whom will become the basis for a successful startup and further advancement of the business. When considering investor proposals, try to think about which of them will be interested in your business. To do this, formulate the stage of development of your business: will it be its origin, formation, growth, maturity, or decline. Every company that is at various stages needs its own investor.

Features of the stages of company activity
At the inception stage, as a rule, an entrepreneur has nothing, only an idea, and sometimes a registered patent. There are also problems with the formation of the management team; business processes are not established. External investors are often relatives and friends, or they can be private individuals who have some experience in this area and are willing to take risks. On our website you can find such investor offers.

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 are even unprofitable. This stage is characterized by business processes that have not been fully developed; only the formation of a management team occurs. At this stage, it is necessary to pay attention to the financial and legal documentation of the company. An investor who is interested in it should easily understand the corporate structure of the organization and its financial position. It is good that the company does not participate in litigation, disputes with government services, 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 occupy a stable position. The stage is characterized by well-established business processes, new markets and projects are opening. 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 capital. In particular, this page presents various investor proposals. We recommend that you read them carefully and do not make hasty decisions. Try to learn as much as possible about your partner and assess his reliability. When drawing up contracts, read them carefully, let there be as few understatements as possible, and let all agreements be recorded in writing. On this page you can both find an investor and become one yourself by posting an investor proposal. 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 their number.

Where to find an investor to open a business and to develop an existing project, how to prepare for a meeting with potential partners - the answers to these and other questions are in the article. As well as samples of business plans that will be useful for finding an investor.

In this article you will learn:

Finding an investor in a bank

Where to find an investor for an existing business or for a new project? The first thing that comes to mind is a bank. Probably every second resident of our country regularly calls banks and happily informs them that they have been approved for a loan from 50 thousand to 50 million rubles. For example, a certain bank approved me a loan of 5 million at 11.8% per annum. However, upon closer examination, it turns out that the rate increases: without insurance - by 5.1%, without advance payment - by 2%, without collateral - by 2.1%, without online application - by 0.5%. From the date of loan issuance to the date of the first payment, the rate increases by 1.5% per month. The maximum total cost of the loan is 24.103%. No, thanks!

However, if you search in different banks, you can get a loan at about 11%.

In addition, you can involve your friends or subordinates in co-financing. They apply for a loan from a bank, you repay it, and you pay them a commission for using the loan. This scheme works, since few subordinates will dare to refuse the boss if they are confident in his enterprise.

This method also includes obtaining loans for small businesses from banks at 9.5% per annum secured by collateral (goods in circulation, equipment, transport, real estate, collateral of third parties, guarantee from the small business support fund). The only case when banks provide funds for opening a new business is franchise of famous brands(recipe for success).

To find an investor, you need a business plan!Download documents that will help you draw it up correctly, and sample business plans:

How to justify to a bank the effectiveness of an investment project using Excel

To prove to the bank that the company will be able to pay off its obligations, use a ready-made model in Excel to evaluate the effectiveness of investment activities as a whole or a separate investment project.

Funds and business angels

You can attract investor funds for a project from scratch or for its development in Russia directly, bypassing banks. For this, connections and acquaintances, recommendations, etc. are usually used. But there are more modern ways to attract attention - these are electronic investment platforms. For example, "City of Money".

The applicant places his proposal on this site: a brief description and financial calculations. Provides the necessary documents (founding documents, business plan, guarantees, if any, documents for the property that will be used as collateral. The portal’s specialists evaluate the borrower’s credit history, documents and the business itself: profitability, stability, equity, debts, etc. After this, they go to the site and evaluate everything live, since everything may be in order according to the papers. After this, they publish a proposal, which investors evaluate, usually within two weeks, ask clarifying questions and either finance the project or not. See . Also .

What is the advantage

Firstly, there can be many investors; accordingly, the possible losses of each of them are reduced, and they, unlike a bank, can take risks.

Secondly, they may evaluate the offer differently than the bank. If the project is attractive, then a reverse auction situation is created - when there are more people willing to invest money than necessary, then the interest rate on loans decreases. As a result, the loan is much cheaper than a bank loan. This is a better way to get investment for your business.

Third, investors, unlike a bank bound by rules, can take risks and provide funds without collateral. Here, the platform itself acts as a guarantor, which checks the borrower and his affairs. Therefore, through the platform, investors can allocate funds even to those who would not be allowed from the street even onto the threshold of their office.

And finally, fourthly, on the site you can place , without having any business yet, and if it seems attractive, they will “buy” it.

For its services, the platform takes a commission of 3%, and if we are talking about a startup, then a fixed payment is 4,000 rubles.

Investor proposals

There are also reverse platforms where investors themselves post their offers. For example, "Business platform" .

If you combine sentences from the first page, which indicate , then you get the following table:

Table 1. Investor proposals

Sum	Percent	Industry	Terms (information from the site)
		Know-how, production, energy, agriculture, pharmaceuticals, biotechnology, polymer processing	Feasibility study, business plan, team information
		Business financing through leaseback, real estate and shares, equipment, unfinished objects, or commercial real estate.	We invite partners to cooperate with projects for the reconstruction and development of existing businesses
		New technological projects and startups through ICO (Initial Coin Offering) - by issuing new cryptocurrencies.	The minimum participation with the customer’s own funds is from 20–30 thousand dollars, in this case you can remain 100% owner. The project must have a prototype, a working model, for an “idea” - we don’t work
		Construction	Unfinished objects
		Private American business angels invest in any IT and Internet startups with high development potential	Availability of a business plan in accordance with the UNIDO world standard: the project must provide a return on invested capital of at least 12% per annum; upon successful consideration, registration of the company in the United States and relocation of the head or one of the top officials of the company to permanent residence in the United States is required.
		Extraction and processing of raw materials, construction and real estate, any production and processing, any industry and energy, any services and trade	Business stage: from scratch and existing enterprises. Investment volume from 10 to 500 million rubles. into one project. Payback period: up to 60 months. Availability of a business plan and a ready-made team.
		Mechanical engineering and metalworking, polymer processing, waste processing, petrochemicals, new materials, HoReCa	A presentation containing general information about the team, analysis and forecasts of the market for a given product/service, key financial indicators, and a proposal to the investor. Financial model for the next 2–3 years.
		Any highly profitable projects	We are looking for specialists who are charged with the idea of ​​development, who do not have enough start-up capital and are ready to lead the direction. If the start is successful, the initiator receives the right to buy out the option after 3 years. Before this salary + % of profit
		Extraction and processing, agriculture, construction, manufacturing, trade, services and other industries	No collateral or security for the project is required from the initiator. The initiator's own financial resources are not required. 100% of financing is provided by the investor. The investor assumes all risks
		Working projects in the field of production, wholesale/retail trade, real estate, construction, Internet technology, agricultural sector, finance.	Investment schemes – equity participation in business (priority) or secured lending
		Medical industry (dentistry, diagnostics, MRI), accommodation, food services, tourism	If the start is successful, the initiator receives the right to buy out the option after 3 years. Before this salary + % of profit
		Investments to buy or open a store	Providing investments, sales assistance
		Manufacturing, service provision, trade, IT,	Details from the investor
		Any industries and areas of business	A clear business plan Brief information on the project initiator (education, work experience, contacts) and on the investment project (brief description indicating the main economic indicators)
		Automobiles, architecture, woodworking, industrial parks, engineering, investments / finance, information technology, mechanical engineering, medicine / pharmaceuticals, metalworking, real estate, oil refining / petrochemicals, know-how, transportation / transport / logistics, recreation, waste management, polymer processing, industry, robotics, crop production, agriculture, communications, construction, energy	Both individual trading companies and chain stores actively cooperate with us to obtain both short-term and long-term loans in order to increase working capital and increase commodity turnover.

The table shows that the minimum investment amount starts from 1 million rubles. As a rule, a deposit is not required, but it is necessary that the initiator himself develops his business, i.e., first of all, businessmen evaluate the business and personal qualities of the applicant himself. As for industries, the majority invest in innovative and IT technologies, or in classic business areas.

If we look at the generalized diagram, we will see that the larger the loan amount, the higher the interest that the investor requires for it (see Figure 1). Although there are exceptions. For example, an American fund for 100 million rubles. asks for only 12% per annum, and our businessman-builder 100% for 224 million rubles. (see table above).

Drawing

Raising money through various funds (venture funds, small business support, etc.) can be attributed to the same method. You can come to these funds in person, you can find them through online platforms, through acquaintances, etc., but the essence does not change.

You can get investments for your business from your suppliers

Several years ago, an acquaintance of mine set up a café-bar without a single ruble in his pocket; moreover, he was saddled with a substantial debt. In paying the rent, he agreed with the owner of the premises on a two-month deferment, since he needed time to develop himself. He also received a two-week grace period from the beer suppliers who installed the taps on the condition that only their beer be poured at the bar. It’s the same story with coffee - a coffee machine was installed for him, subject to a certain volume of beans purchased per month with payment at the end of each month. The same goes for suppliers of beer snacks, cakes, etc. The staff, of course, gets paid at the very end.

Thus, his bar started working and in the first month he was able to close the current payments, and by the end of the second he was able to pay the rent.

In other words, investments for small businesses can include not only cash, but also trade credit, deferred payment and other forms of in-kind lending. The most important advantage of this type of collateral is that it is much easier to find suppliers willing to provide a trade loan under exclusive conditions and will cost less than professional investors or banks.

For example, when a university publishing house needed funds to publish academic literature, they granted one of the large stationery companies the exclusive right to sell stationery products in all buildings of St. Petersburg State University. And thus, we received the necessary funding.

Grants

Another way to obtain funding is to participate in competitions and receive government and private grants. To do this, a business must have a social component or pretend that it has one.

For example, in St. Petersburg for several years there was a network of public pharmacies selling medicines at reduced prices due to state subsidies. The pharmacy positioned itself as a social project and submitted a corresponding application to the state. help. In order to get it, she sold medicines to the population for six months at essentially wholesale prices. Due to low prices, the pharmacy gained popularity and made profits due to high turnover. As a result, the state the authorities had already heard about her, and she was easily able to win a grant for the social provision of medicines to the population.

This method seems specific, but in fact, any business can be presented as socially significant.

This category also includes numerous business incubators and small business assistance programs. Each specialized committee in government agencies has its own budget, which it needs to allocate in its own area: sports, youth, social affairs, healthcare, education, social housing, etc.

This also includes fundraising, crowdfunding, crowdsourcing and other methods of collecting donations from the public.

In general, finding money is quite difficult, but it is possible. The only question is that both the applicant himself and the investors are confident in the business being offered to him.

How to prepare for a meeting with investors

Before negotiations with potential partners:

• collect information about them;
• think about how to present data about the project;
• determine the forms of participation in the project;
• prepare documents for the meeting.

Pay attention to the scale and timing of past projects, forms and conditions of participation in them. Study the industry preferences of your potential partner. For example, venture capital companies are interested in innovative companies. Find out the minimum and maximum amounts of money invested, requirements for the level of profitability.

Determine what type of investors are strategic or financial investors. To draw conclusions, analyze information about the projects in which they have invested money. The former take part in the management of the company, the latter are only interested in income from investments. Using the information received, the financial director will assess in advance how much the company will interest potential investors and will place emphasis when preparing information.

What documents to prepare

Before meeting with investors, prepare the following documents:

• patents, licenses, documents confirming exclusive rights (if the project involves a high-tech or innovative product);
• commercial proposals or draft contracts for the purchase of equipment, real estate, and the creation of utilities. Describe the supplier, the reasons for choosing him and this equipment or real estate, cost, delivery conditions;
• loan agreements, if you have already attracted banks to finance the project. In the description, indicate the amount, interest rate, loan term, loan period, main covenants;
• draft agreement on participation in the project;
• loan agreement indicating the amount, interest rate, disbursement and repayment schedules. This is relevant if the investor participates with money;
• a constituent agreement, a share purchase and sale agreement, a share purchase and sale agreement or a prospectus for an additional issue (in case of equity participation). In such agreements, fix the amount of investor participation, the procedure for depositing funds, the procedure for assessing the contributed share with assets, the procedure for participation in the management of the company, and the rules for distributing profits.

How many profitable and beneficial companies for society never saw the light of day because their creators could not find sufficient start-up capital? Others, for the same reason, continue to remain at the level of artisanal production, despite the possibility of scaling and the enormous potential of the idea.

In such situations, information about where to find an investor for a small business from scratch can be vital for a budding entrepreneur. In addition, an investor must not only be found, but also convinced of the need to invest millions of rubles in an enterprise that, at first glance, is no different from hundreds of others.

However, the first question is not “where”, but “why”? Is the search for investors to implement an idea really so necessary, all available business resources have been exhausted, and are you ready to sacrifice personal freedom for the sake of investment? After all, an investor is not a benefactor or philanthropist: every ruble invested will be accompanied by careful control or even interference in the affairs of the enterprise on his part, and when the time comes to repay debts, he will not miss a penny of profit.

Attracting investors

If, after a comprehensive analysis, you have come to the conclusion that the benefits of attracting investors for a small business are more important than the possible inconveniences, try to imagine who exactly you are looking for and who might be interested in the company at the current stage of its development, including:

• Birth. At this moment, the enterprise exists only in the plans of a businessman and like-minded people. There is a basic idea, there is a product prototype - but there is no team, no management team, no sales channels. Only friends and relatives will invest money in such a business;
• Becoming. At this stage, the first business processes have been launched, an active search for personnel is underway, the first sales have appeared, but it has not yet reached profit. The company is beginning to be of interest to business angels and crowdfunding sites;
• Height. By this time, the company's position in the market and the consumer segment have been approximately determined, small profits have been made, and the team has been fundamentally formed. Places where it is realistic to find investors for a startup at this stage are venture funds and associations of private entrepreneurs;
• Extension. At this point, supply and sales channels have been formed, the company is receiving stable profits and is ready to develop new territories. Investors can be private and public funds, banks and other legal entities;
• Maturity. The company is a profitable, well-managed structure with a fairly large market share. Investments can be attracted by issuing shares that are interesting at this stage for banks, insurance companies, pension and mutual funds.

Preparation of documents

Working with an investor to open a business should begin with the preparation of two main documents - a project summary and an investment proposal (business plan). These materials are designed to present your project from a favorable point of view. Use economic indicators, a detailed description of the idea, market analysis data, resumes of project participants - everything that can convince the investor of the prospects and validity of the investment.

After that, collect information about where to look for investors to open a business in your industry, and make a test mailing. You should not send your resume to all known recipients at once: your task is to get feedback. So choose two or three of them and give them a week to consider the proposal. If you do not receive any response within ten days, make contact and inquire about the fate of your resume. The reasons for silence can be different:

• The proposal is unclear to the investor and contains many specific terms or redundant data that hide the main idea. Bring your resume to a state that an outsider can understand (use people you know as test subjects) and try again;
• The idea does not have sufficient prospects - after all, the main task of the investor is to obtain a profit that, if possible, is many times greater than the investment. For this reason, investors immediately reject 75% of received offers;
• Too little time has passed. Popular and active investors receive dozens of offers a day, so they simply haven’t gotten around to considering your resume yet;
• You chose the wrong investor. Each of them works in a fairly narrow area - agriculture, food production or the chemical industry, so you should check before sending.

Sending out resumes

Using the feedback received, make corrections to your proposal, refine your resume, or adjust the project concept. Strictly speaking, adjustments should be made whenever you receive new data. After that, select several places where it is easiest to find an investor for a business at your stage of company development, and start sending out proposals.

The mailing should not be too limited or too widespread. Some entrepreneurs send a single resume and wait months to no avail for a response, others send hundreds of them, causing investors to doubt whether they are serious about the business. Therefore, limit yourself to choosing 10–12 potential partners and send a personal proposal to each of them, and after a while call back and find out whether your project has attracted interest.

If you receive refusals, do not forget to revise your materials. But you also shouldn’t rush if you start receiving positive responses or offers to personally present the project. Investors are primarily interested not in the development of your business, but rather in the greatest benefit for themselves. Therefore, wait for all the answers and select the conditions that best suit your requirements.

Project presentation

You need to prepare for the presentation no less thoroughly. All means are good in persuading an investor: graphs, posters, videos, handouts. You can also invite a “support group” - several people from your company who are experts in their areas (production technology, economics, marketing).

At the time of the presentation, the investor evaluates not only the project, but also your team, its personal qualities and professional experience. As a businessman, he understands perfectly well that any brilliant idea is only half the success. The second is determined by the personal qualities of the entrepreneur, his ambition, energy, leadership abilities and authority in the team. Thus, a presentation is a kind of “selling” of a businessman’s personality, idea and team, which must be carried out in a positive way with enthusiasm and a certain amount of healthy aggressiveness.

Where to look?

The search for possible investors can begin simultaneously with the preparation of documents, resume and business plan. Don’t miss a single opportunity to talk about this topic with your friends - you can never predict in advance which thread will lead you to success. Perhaps more experienced entrepreneurs will tell you where to find an investor to open a business, or even want to act in a new role for themselves. At the initial stages of development, focus on business angels and venture funds, and later on banks, mutual funds and similar investment organizations, including government ones.

Independent search

In the business environment, public events are regularly held - startup fairs, exhibitions, forums and presentations. Among the participants you can meet both young companies wishing to make themselves known, as well as interested investors and representatives of big business. Moreover, some venture investment conferences are aimed specifically at organizing a meeting of investors and entrepreneurs declaring: “I am looking for an investor to open a business or implement a commercial project.”

Internet

Investors and businessmen communicate with each other not only within exhibitions. A lot of thematic forums are places where finding an investor for a business from scratch is quite realistic if you present your project in a favorable light. Even if your search for a partner is not successful, you will receive a lot of feedback about your idea (including negative ones, indicating weaknesses) and learn to find the right answers to uncomfortable questions. This experience will definitely be useful to you in the future.

In addition, on such forums you can meet other entrepreneurs who have not previously invested in someone else’s business, but are now collecting information on how to become an investor and where to start. It is possible that convincing them of the promise of your idea and the benefits of cooperation will be somewhat easier.

Familiar

Each of us has a fairly wide circle of acquaintances, among whom there are successful private entrepreneurs, top managers and simply wealthy people. Many of them periodically think about how to protect capital from inflation and make a profit. From their point of view, it is much easier to deal with acquaintances or relatives than with unknown businessmen. However, there is also a negative side to such financing: in case of failure, not only money will be lost, but also good relationships.

Crowdfunding

The possibility of collective investment is due to the widespread availability of the Internet - including for quite ordinary citizens interested in topics. Here it is not necessary to individually invest millions in the project, since each of them can have dozens of investors. On the other hand, an investor can also divide financial assistance between several applicants in the hope that one of them will be a successful startup and bring in hundreds of percent of profits. The popularity of crowdfunding platforms began with the kickstarter site, and in the Russian segment they are represented by the boomstarter and planeta sites.

Venture investing

High-risk projects are financed by both individuals and organizations. In the first case, these are business angels, and in the second, various funds to support entrepreneurship. Despite the fact that they put high demands on applicants, the risk is still present, and investors are aware of it. The investment plans of venture businessmen are based on the fact that on average one project out of ten shows growth of thousands of percent, thus covering the losses from the rest.

The main requirement of venture investors is a share in the business. They receive the status of a founder in an LLC or a block of shares, take part in the management of the enterprise, and in return provide financing. At the same time, startups are of interest to venture investors only in the first few years, during a period of intensive growth. They then sell their stake (at a profit, of course) either to the entrepreneur himself or to other strategic investors.

If you agree with the principles on which venture financing is based, pay attention to the Community of Business Angels of Russia (SBAR) and the Department of Entrepreneurship Development - the easiest places to find investors for a project or get information about them.

Credit communities

Microfinance organizations can hardly be called a business-friendly source of financing. Only those entrepreneurs who do not know what kind of investor they need, where to find one and how to prepare an investment proposal can apply here: you can get a loan from an MFO with a minimum package of documents and without collateral. You have to pay for this with a relatively small loan amount (100–400 thousand rubles) and a completely inadequate interest rate (55–70% per annum). You can resort to the services of such organizations only when you need money urgently, banks refuse a loan, and you can repay the loan in a maximum of a month and a half.

Bank loan

Banks are more willing to provide loans for business development secured by the assets of the enterprise. Moreover: if the recipient is listed in the register of recipients of assistance from the state, he can count on interest rate compensation, preferential lending or a government guarantee. For such entrepreneurs, the bank is one of the places where you can find an investor on fairly favorable terms. At the same time, you can only get money to open a business from a bank in the form of a regular consumer loan secured by property, which is not very profitable from an economic point of view.

Grants

The grant has an undoubted advantage compared to classic investments: it does not need to be repaid. However, there is also a drawback - the intended purpose of the funds. If you can spend the investments received from a business angel at your discretion, then every ruble of the grant must be spent in strict accordance with the business plan.

Obtaining a grant is no more difficult than funding from a venture fund, but the conditions for candidates are somewhat different: preference is given to projects that are either socially significant or aimed at development in areas declared priority by the state in certain regions. To consider the possibility of receiving a grant, you should contact the Department of Entrepreneurship Development, where they will help you find an investor in accordance with your needs and the industry of the enterprise.

Foreign investment

Foreign investors are interesting to entrepreneurs due to their scale: we are usually talking about several million or even tens of millions of dollars. However, for the same reason, small businesses, innovative projects and start-ups do not attract potential investors from abroad. Besides:

• Beginning entrepreneurs do not have assets that are of interest to investors;
• There are no mechanisms to influence the strategy of a small enterprise;
• For foreign investors, the procedure for exiting a project is not transparent due to the great distance, difference in the legislative framework and mentality;
• Covering losses in the event of failure will require the involvement of third-party organizations, experts, and an unreasonable amount of resources.

If the business turns out to be quite promising, then it is much easier for a foreign investor to buy it completely and appoint its own top managers than to waste time on joint management.

Video on the topic Video on the topic

However, you can contact various foreign funds, of which more than ten thousand are registered in Europe alone. The largest of them are TACIS, USAID, GTF, Soros and Rockefeller Foundations. In this case, we are not talking about full-fledged investments, but rather about receiving grants - provided that the company operates in an area of ​​interest to the owners of the fund.

In addition, on the AngelList and ProductHunt platforms, some startups manage to find foreign investors - both individuals and representatives of small venture funds. Of course, companies working in the field of information and Internet technologies have an advantage, since such business has no boundaries.

In conditions of an unstable economic situation, a constantly hectic world market for goods and services, regular increases and decreases in currencies, and with it prices, opening your own business, while counting on its successful development, may seem like a rather overwhelming task. You definitely need an investor, but how to find an investor in such a period?

How to find an investor for a small business, if even experienced and serious businessmen consider the search for an investor, in conditions of an economic crisis, to be a lost cause? How to find an investor for a business if you don’t even have start-up capital or any business experience at all, but only a brilliant idea and a burning desire to bring it to life? How to find an investor who is ready to risk their own funds in times of crisis and support a project that has no actual guarantees?

These questions seem rhetorical and lose-lose in advance, but in reality this is not the case at all.

Let's try to figure out how to get investment support without having a huge track record and a whole register of financially secure acquaintances.

How to attract investment in small business

Everyone knows the first questions that aspiring entrepreneurs have: “how to find an investor for my project,” “how to attract investment.” The answer to these questions lies in a simple fact: your potential investor can be almost any individual or legal entity, even to friends or relatives, or even random people who are interested in some aspect of your activity.

Finding an investor to start a business is actually very simple - much easier than finding a worthy project to invest in, because each person can transfer part of their funds to you at their own request.

So where to find an investor for a business? There can be many options:

The first steps in commercial activity are usually accompanied by not very high financial literacy and a lack of business acquaintances and contacts.

• Therefore, a very common solution for beginning businessmen is to attract personal funds from their own relatives and friends. In order to open your first business, it is not necessary to invest huge sums - it is enough to collect initial capital and use it correctly to realize your ideas.
• To attract your own acquaintances to business, it is enough to use personal influence and trust(these are generally the most important tools for attracting investments) - but you need to understand that if the business suddenly fails, then there is a possibility of losing the respect and trust of people important to you.

Bank loan

A classic and one of the most difficult (in our realities) ways of obtaining financial investments.

• Firstly, banks are not particularly charitable and issue loans only at very high interest rates.
• Secondly, in order to get a loan for a large amount for your startup, you must provide appropriate collateral and have reliable guarantors.
• Thirdly, loans are issued only to persons with an impeccable credit history.
• Thus, You should contact the bank only as a last resort– when all safer options for you to obtain investments and loans have been exhausted.

Individual investor

Another popular way is to attract experienced businessmen to your team - these are, as a rule, already established people who have accumulated a certain capital and have the opportunity to manage it for their own purposes, and not for the purpose of repaying loans, compensation payments, etc.

• People who are debt-free and have a stable source of income rarely refuse to participate in potentially profitable businesses, unless they are outright adventures. So this is the dream of every aspiring businessman - to find a private investor who gives out his own money.

These are organizations created and actively supported by the government to support aspiring entrepreneurs.

• Incubators are not direct investment instruments, but perform a similar role: they facilitate the development of a business project of a budding entrepreneur. Such organizations help realize an entrepreneur’s idea even at the inception stage, create jobs, provide premises and infrastructure for work.
• At the same time, such organizations do not require their own share, but help, one might say, for charitable purposes. This is due to the fact that the activities of most business incubators are sponsored by the state. The length of the “incubation period” varies among different business teams, but usually it does not exceed a year. However, some projects may be delayed for up to three years - no one will kick you out for no reason.

One of the most famous modern trends in the business environment is crowdfunding, which clearly illustrates the expression “everything from the world”.

• The concept is simple: your investors are random people who want to participate in promoting your business and are able to invest at least a small amount of money. Crowdfunding platforms are located on the global network, so the circle of potential investors is as wide as possible: it’s the whole world.
• The only difficulty is that the approach to the Internet audience is traditionally different from the approach to an individual entrepreneur. You will have to really interest people so that they want to sponsor you, and this, as a rule, requires either great luck or investment of certain funds in PR and other tools for attracting investment. But, if successful, the income from crowdfunding will significantly exceed the costs, because you are not subject to any formal obligations to your investors.
• Thus, questions like: “how to attract investment in small businesses in our time,” or “how to find an investor for your business if everyone has fled to the USA” are initially incorrectly worded, because the most important thing is not how to look for an investor , but how to convince him to invest his own finances in your project, thus becoming your business partner, bearing with you a certain responsibility for the further development of the project.

Attracting foreign investment

Some foreign organizations support certain categories of business, charitable, or political activities. This is accomplished through the allocation of cash grants.

• Attracting foreign investment is an “exotic” method of investment, since most international companies that finance foreign groups support only “socially important” activities - this applies to solving environmental problems, volunteer activities, anti-war and anti-government actions in some countries, etc. . Attracting foreign investment is almost impossible without evidence that you are the initiator or ideologist of this type of activity.
• Methods of attracting foreign investment, like any method of attracting investment in principle, are based on your personality as a project manager, as well as massive PR in any information environment. The most important thing is to get noticed, after which you can submit a proposal to raise funds for your project.

How to attract an investor to your business

Actually, who is an investor? This is an individual or legal entity that attracts its own material resources to the development of a project and expects a certain share of the profit from the project in which it invests. The investor expects from you, first of all, the speedy return of his own assets, and potentially their proportional increase.

That is, investing in a project is not a charity event, but the beginning of a mutually beneficial partnership, therefore any potential investor considers possible projects precisely from the point of view of investment attractiveness. The main conditions for attracting investments are guarantees that the money will be returned.

How to find an investor to implement an idea

According to the rules of market competition, the investor must be interested in promoting the project, because if it fails, he may lose more than the business owner. Therefore, in order to attract an investor to his project, a novice businessman needs to convince him that this project is quite promising and has high potential, and will not fall apart in a few months.

Finding an investor for a startup from scratch is considered an extremely difficult task and is always associated with many factors.

How to attract investment

Let's look at the main methods of attracting investment.

Remember that charisma and the ability to speak are important tools for attracting investment if you are dealing with individual entrepreneurs.

Other relevant tools for attracting investment are your solvency and the presence of a promising idea. Everything else is no longer so important.

• Your project should be compiled in the form of a presentation that simply and clearly presents the concept of your idea to a potential investor. The investor must fully understand the essence of the project, have a rough idea of ​​the niche that the project is applying for, as well as the competitive prospects of your business in this market. Thus, the project must be presented directly and quite concretely, without appealing to sense of taste, moral principles and other abstract or personal criteria.
• To convince an investor that your project will pay off, you should formulate a reasonable business plan that meets all relevant micro and macroeconomic factors - for this it is highly advisable to be familiar with market conditions and supply and demand factors in relation to the business that you are going to open, as well as the general economic climate in the country. Most investors are not very willing to invest in projects that are not currently in demand on the market, but there is always an opportunity to impress them with original and innovative ideas.
• Finally, in order for the investor to be confident about the appropriateness of his own investments, it is necessary to provide him with a plan for the targeted expenditure of the received financial resources: you must describe in detail each of your future steps in forming a business and clearly present all proposed acquisitions with the investor’s money. This should be a complete plan of events and possible acquisitions with the investor’s money

• When providing a potential investor with information about the project, try to avoid piling up unnecessary information. There is no need to tell what exactly prompted you to start this project, what feelings you experience and what you expect from further work (unless you have thoroughly planned the future of the project), and the like. However, you should always be prepared to answer additional investor questions, and the information provided should be complete and relevant.
• To make it easier for you to understand and take into account the criteria by which a potential investor evaluates your project, just imagine yourself in his place. Try to look at your own developments and the presented business plan with a sober, objective look: evaluate all possible risks and prospects for the investor; review the presentation plan of the project and analyze it point by point; find a compromise between your individual vision of the business project and the corrective wishes of the investor.

Attracting investment in a startup: a step-by-step guide

• where and how to find an investor for a startup (read about investing in a startup here -);
• how to attract an investor to yourself, and what kind of investors exist for business;
• what are the tools for attracting investments;
• How can experts help you find an investor?
• as well as other questions on the topic.

Stage one: identifying potential investors

First, you must find for yourself the appropriate circle of people who might be interested in the business projects planned by you. If you cannot find such people on your own, then you should contact consulting companies that provide professional investment advice.

Stage two: designing a business plan

- this is the main strategic course of your business, which you will adhere to in the future. So it goes without saying that the person funding your project should be most interested in this document.

• You must develop and clearly, consistently outline (in writing) a business model that you will follow if you receive appropriate funding.
• The business plan is drawn up as much as possible “for the investor,” every detail should indicate to him that following this particular plan will bring him the greatest profit. Thus, the document should methodically present the following information:

1. The very concept of a business project, formulated in a brief but information-rich form;
2. Approximate amounts of financial support (minimum and maximum) you are counting on;
3. Data on possible income and losses in case of success or failure;
4. An approximate calculation of the benefit for the investor, localized from the total amount of income (also approximate);
5. Predicted payback period for a business project;
6. Plans for the future of the project, with realistic consideration of possible failures.

Stage three: consulting

An important aspect when forming your own commercial business is consulting issues.

Most beginning businessmen, without real entrepreneurial experience, make the most banal and common mistakes even in the first stages, hoping to “push through” everywhere on their own and correct all the shortcomings as they go along. Such self-confidence usually ends in the collapse of the business and loss of investment.

That is why any newcomer to business is recommended to turn to more experienced colleagues for advice in those areas in which he encounters problems or misunderstandings.

• At the same time, you should be aware that even the most benevolent entrepreneur is your potential competitor, and he, in turn, evaluates you in the same way, and it is not profitable for him to give you valuable advice that will help oust him from the market. So, for really interesting advice, turn to people working in a niche that is far from, or at least infrequently intersected with, your own.
• You can also pay attention to professional consulting organizations dealing with investment and financial issues who know the current market conditions like the back of their hand. They will have to familiarize you with the current indicators of supply and demand, give you personal recommendations: where exactly should you start and how to continue your business, how to attract an investor, how to attract investments, where to invest money without risk, etc. But be prepared Also, the services of such companies are not cheap.

Stage four: choosing a form of partnership

It is very important to determine and agree in advance on the method of cooperation that the business owner and his investor will follow in the future.

Here are the main forms of attracting investment:

Industrial cooperation

This type of commercial relationship implies an equal distribution of individual financial obligations among all participants in the commercial association. That is, all profit received from joint efforts is divided in proportion to the contribution of each individual participant to the common cause.

Due to the emergence of natural difficulties in objectively determining the volume of work or investments of one or another participant in a common cause, as well as in converting these efforts into real material profit, monetary disputes often arise in this form of commercial association.

So, before carrying out industrial cooperation as a type of trade relationship, all participants should draw up a legally binding cooperation agreement, which includes all the criteria for future payments to all participants of the association, based on joint commercial activities.

Leasing

Another type of investment, but very limited. De facto, this is simply a rental of working equipment, premises with all the infrastructure, production materials, etc. In a business relationship, such a landlord is not just the holder of your loan, but also your partner.

Leasing is divided into several subtypes:

1. Pure leasing: the investor transfers all relevant materials for use to a partner without expecting compensation for their cost. At the same time, he takes on most of the expenses himself, and expects from his partner exclusively profit from the operation of the transferred funds;
2. Leasing with partial compensation: the lessee pays part of the cost of the materials leased, while the investor receives a share of the enterprise’s profit;
3. Leasing with full compensation: the recipient is obliged to pay over time the entire cost of the materials received, the investor, on top of this, also receives a portion of the profit;
4. Joint leasing: an exclusively commercial form of leasing, in which the recipients are several organizations united by a common contract with the lessor;

Project financing

One of the types of business-investment relations, in which the funds received from the implementation of the project are used to pay off investment costs. This type of financial relationship belongs to the sphere of long-term relationships and depends on how the enterprise will develop.

• Therefore, project financing can be dangerous for the investor, and he must approach the choice of trading partners with special responsibility.

Licensing

It implies a partial transfer of any rights (to a brand, to a mark, to ownership of property, etc.) to a licensee, who will actually carry out administrative functions, transferring part of the profit to the owner of the licensing rights.

• This form of investment is common in large franchise networks - in this way, the owners of the organizations provide themselves with access to new markets, and the licensee receives the formal right of ownership of a large company.

Stage five: negotiations

The negotiation stage is the most important on your entire path to the long-awaited investment. This is where you must prove yourself to a potential partner, present your project in a favorable light and prove that working with you is the most profitable.

• If you do not have special rhetorical skills, then it is recommended to prepare for the meeting in advance and write a text for negotiations, taking into account all possible tricky questions. You should prepare for detailed questions about you as an investment object: about your personal characteristics that could contribute to the development of the business: about your organizational and administrative abilities, about experience in business, or generally in the field in which you are opening a business, about your relationship with the law, your criminal record, loans you have taken, and the like.
• It is necessary to answer all the questions asked, as well as formulate your own ideas and explain the assigned tasks with high clarity and knowledge of the matter. At the same time, try to get rid of excessive anxiety - investors are rarely attracted to insecure and nervous people.
• The most important personal qualities that potential investors evaluate at a meeting are your own knowledge of the production sector, confidence, creativity, knowledge of special terms, etc. Thus, investors are attracted to competent and responsible leaders, preferably professionally versed in their business.

Stage six: drawing up a contract

The final stage is compliance with formalities and a legal agreement on your partnership with the investor.

• The contract contains all the data on cooperation, including the total amount of investments, specific terms of the contract, conditions for attracting investments, as well as the rights and obligations of each party.
• The contract must be drawn up in the presence of a lawyer to avoid cases of fraud, and must be mutually signed. After this, your partnership with the investor officially comes into force.

In conclusion, I would like to wish you good luck and give you the most important advice: an experienced investor is attracted not only by immediate benefits, but also by possible prospects. An experienced investor always calculates the situation several moves ahead. So, at the first presentation, try to fully reveal the potential of your project and show that you are not just competitive, but can “blow up” the market with your product.