Find an investor to start a business. Looking for an investment project

01Mar

Why do you need an investor?

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

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

  • To a suitable premises;
  • For the necessary equipment;
  • Looking for employees.

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

  • Additional software;
  • Repair of premises;
  • Purchase of consumables;
  • Etc.

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

But in addition to the initial costs, many companies feel a lack of funds for full and harmonious development. There are often cases when a young team has enormous prospects - their goods or services become truly in demand on the market, but due to lack of finance they miss out on the lion's share of profits.

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

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

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

How to find an investor for a business from scratch

Before moving on to the practical part of finding an investor, you should decide on a couple of theoretical points. Knowing the investor’s desires, you can understand how to look for him and what you need to give him.

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

Investing involves making a profit. Every businessman who wants to interest a potential investor in his business should keep this rule in mind. No one will be interested in an “innovative breakthrough,” “an original idea,” or “new technologies” if they do not promise tangible profits. All investors need to be spoken in the language of money and risk. Only then can they really be interested.

Based on this rule, the following can be distinguished:

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

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

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

What information may be of interest to investors?

Now, based on an understanding of why people invest in the first place, you can begin to answer questions about what might be of interest to a potential investor.

But before that you need to understand one simple thing:

There is no need to perceive an investor for a business as a lender. He voluntarily invests his funds, and if he fails, they will not be returned to him in any way. That is why for beginning entrepreneurs, an experienced investor will be a partner who can help in case of minor failures and share success.

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

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

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

What you need to tell him about the business:

  • The main idea of ​​the business;
  • Required amount of investment;
  • Estimated profitability;
  • Risks.

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

This is when you will have to reveal all the details: why your idea is better than your competitors; how are you going to spend the money and on what; when will the business expand, and to what extent; what guarantees can you give and other questions.

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

Return for investor

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

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

Let's summarize: The investor is primarily interested in the return on his own investments.

That is why the following parameters are analyzed before investing money:

  • Prospects of the idea;
  • Required amount of investment;
  • Risks and profitability.

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

Where to look for an investor for a business or startup

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

Close people, friends, acquaintances

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

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

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

Funds

There are two types of funds that can help you find investment for your business: small business funds and . Regardless of the type, obtaining funds from such funds will be extremely difficult.

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

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

In order to evaluate the prospects of its own investments, the fund will need time and as much information as you can provide. A group of analysts will analyze it, so the more information, the higher the chances of receiving funds.

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

Moreover, these investment funds often have less money at their disposal than several private investors who are also ready to invest their money in interesting ideas if only someone interests them. But you should understand that applying for investments in an investment fund is much easier than applying to a private investor, because for the first you just need to contact the company, and in the second case, you need to somehow find contact with a very famous and rich person.

Government funds are one of the profitable options for receiving funds if the idea is truly innovative. Competitions are held periodically, the winners of which can receive a grant, for which entrepreneurs can realize all their ideas. Enlisting government support, if possible, is the best option.

Successful businessmen

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

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

Cooperation usually takes place under two conditions:

  • In the form of a loan;
  • In the form of purchasing a share in a business.

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

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

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

Banks

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

Banks do not need maximum profitability. They are interested in stable receipt of funds and loan repayment. That is why credit institutions will study your business plan for stable income generation and, accordingly, return of funds. They are more interested in guarantees than profitability.

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

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

Venture investments

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

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

Venture funds can also finance ordinary entrepreneurs. But the main condition will be dynamic development and constant expansion.

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

Finding an investor: step-by-step instructions

Now we are publishing a detailed and step-by-step plan on how to find an investor to start a business:

Step 1. Drawing up a business plan.

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

What should be in a business plan:

  • Description of the idea;
  • Economic calculations;
  • Project payback period;
  • Development prospects;
  • Competitor analysis;
  • Other information.

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

The use of tables, graphs and other graphic materials is encouraged. They help to better perceive information and focus attention on the right points.

It would be a good idea to rehearse presenting your home business plan several times. Also be prepared for additional questions.

Step 2. Selecting a form of cooperation.

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

In total, there are 3 ways of cooperation:

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

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

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

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

Step 3. Finding an investor.

After all the preliminary work has been completed, it is necessary to begin the process of searching for an investor. You need to work in several directions at once, making contacts both in the field of entrepreneurs and investors, and asking your friends.

Working according to the list presented above, you can try various options for attracting investments, and if nothing works, then you should contact the bank.

Step 4. Negotiations with potential investors.

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

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

It is advisable to answer all questions that potential investors may have. This will ensure that you are really working on your business idea, and stupid mistakes will not occur during the implementation stage.

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

Step 5. Conclusion of an agreement.

After the negotiations have been successful, you will need to enter into an agreement with the investor. It is advisable that you take care of creating the agreement yourself and in advance. You should contact an experienced lawyer who can draw up a contract that is beneficial for both parties.

Important points that should be in the contract:

  • Term;
  • Investment amount;
  • Form of cooperation;
  • Rights and obligations.

Portals for finding an investor

Now there are various portal sites that act as intermediaries between investors and budding businessmen.

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

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

2. Start2up– a platform that brings together investors, startupers and people who want to do joint business. The service is more suitable for finding potential partners to start a business. The site also contains information about the sale of various commercial assets, which will also be useful for a novice entrepreneur.

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

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

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

9 rules to follow when looking for an investor

Rule #1. You need to start looking for an investor as early as possible.

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

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

Rule #2. Collect as much information as possible about the investor.

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

For the first one you will need to know:

  • What areas is the investor interested in?
  • Where does one usually invest money?
  • In what volumes?
  • What kind of profit is it claiming?

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

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

Rule #3. Plan your investments.

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

You also need to understand that you should not ask for more or less money. This will mark you as someone who hasn't thought through their business plan enough.

Rule #4. Voicing real goals.

You may have the most ambitious goals, but they will be of no use to an investor. Setting the goal of “entering the global market” for a company that hasn’t even existed for a month is at least very optimistic. It will be much more interesting for an investor to hear “entering the regional market and obtaining a 20-30% share in such and such an area.” But meanwhile, you will always have to justify the adoption of this or that goal.

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

It's hard to imagine Henry Ford being afraid to tell others about his ideas. On the contrary, he openly declared that he would create a device in which he could sit and drive down the street without additional traction. You need to do the same with your business ideas in negotiations.

Feel free to express your ideas, even if someone thinks that they are far from ideal and difficult to implement. Remember the presentation! The more confident you are, the better you are perceived.

Rule #6: Assembling a team is the best idea.

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

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

Rule #7: Think about the benefits of working with you.

Speak to the investor in his language. Promise him profit, then offer him prospects for growth and expansion. You should think carefully, even at the business planning stage, about the question “What will my project be good at?” Having answered it for yourself, ask the same question, but from the investor’s point of view.

Rule #8: Try to be as close to investors as possible.

Attend various meetings of potential investors - business forums, conferences, and other events on a nationwide scale. At one such conference you can talk with hundreds of different people who will be interested in investing in your business to one degree or another.

A little psychological trick: don't say you came looking for investment. Try to look like one of the investors - a person with money. Then you will be able to be one of everyone and they will begin to treat you with greater trust and sympathy.

Rule No. 9: Honesty is the best weapon.

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

More often than not, it is better to hear a realistic “I would like to sell the company in a year for several million dollars” than “I will concentrate on fulfilling the company’s goals and expanding it, and going global.” In the first case there is honesty and transparency, in the second there is nothing but floridity and avoidance of answer.

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

Conclusion

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

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

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

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

Investors can be both individuals with sufficient capital and companies interested in making a profit. In order to interest an investor, you must always talk about money and income. Only after this comes the prospects of the idea, risks and other factors.

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

— 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. Technological projects often require lengthy and complex development, and the result is measured not only by the kind of 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 is definitely something tech (medtech, fintech, etc.) and it solves a clear problem, then look to the big companies in your sector, many of them have their own investment solutions. 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 ranking of the most active (that is, those who conducted the most transactions) venture funds for the 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 send it, along with a covering letter, 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, an investment fund and a large company are combined to organize them, and the winners receive prizes from both: in the form of investments, in the form of the company’s services, 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 at the bottom of the main page of the 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, it’s not just Cartier that has separate women’s acceleration and investment projects. 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 larger 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.

Finding investors for a business: 4 basic steps for searching + 9 sources of start-up capital.

Finding investors for business with the presence of brilliant ideas, a lot of energy and a great desire to develop, it will not require much work.

It is carried out at the initial stage of implementation of a new business project, when the problem of a lack of funds arises.

In this article we will tell you in more detail which investors will help make your dream come true.

How to find an investor for a business and how to interest him?

Every person strives to replenish his “wallet” by any means possible, especially when it comes to an investor.

Who has almost all his finances in work, thereby regularly replenishing his owner’s bank account, provided that he does not have to do anything for this.

Typically, people use this type of saving and increasing funds after they are faced with the interest that banks give for keeping it on deposit.

After all, such income barely compensates for the level of inflation.

An investor should be treated as a full partner.

On the one hand, an idea is invested in cooperation, and on the other, money.

Therefore, such a process is mutually beneficial for everyone.

Experts say that a successful search for investors for a business depends on a professionally prepared and presented presentation that can convince the investor of the profitability of the investment.

There are several points to keep in mind for investors:

  • creativity and uniqueness of the future business;
  • deposit amount;
  • payback period for a new idea;
  • detailed calculation of income.

If weighty arguments are found according to the above criteria, then we can assume that the person will unconditionally agree to cooperate.

Finding an investor to invest in a business: 4 basic steps

Action #1: Develop a Plan

Develop a plan that will subsequently be presented to the investor.

The presented presentation must convince the potential investor of the profitability and quick payback of the project.

An example of information that a business plan for an investor should contain:

A business plan for this purpose is somewhat different from the standard one.

First of all, volume.

It is believed that a document longer than 15-20 pages will “work” much less effectively than its “brother.”

Also, the difference is that this is a guide, like a step-by-step instruction for the entrepreneur himself.

But the plan prepared for investors is a marketing tool.

It should not just describe the business, but present it attractively.

For this purpose, applications, graphs, plates, and diagrams are actively used.

It is better to entrust the creation of such a document to specialized intermediary companies.

Action #2: What type of investor is needed?

Decide what kind of investor is needed to develop the idea.

For example, you can find a depositor who will provide funds for the purchase of necessary equipment for a business or expansion of an enterprise at a specified interest rate.

Or find an investor who will sponsor the business and become a co-owner in the future.

You should determine the direction in finding a investor and the specifics of your cooperation.

Action No. 3: Help from experienced businessmen

“The main thing is not the effect, but the effectiveness of actions.”
Farhad Akhmedov

Seek advice and guidance from experienced businessmen who have been working in this direction for many years.

They will help point out possible risks or simply suggest how to find an investor for a business. .

Action #4: Specialized services

Post the project and a brief description on specialized startup databases and forums for searching for business investors.

After this, after some time, maybe you will receive a call from an investor about interest in investing money in a start-up business.

We present the most popular specialized services for posting an idea and finding an investor:

  1. https://www.investclub.ru/view.php?id=10639 – the site will help you find an investor for any type of business activity.

    2. https://starttrack.ru/ – StartTrack 725 helps to conclude deals between the founder and a person who is ready to invest money in the project being presented.

    To date, there are 800 investors on the site and 40 projects are on display.

    The portal contains 4,325 projects, of which 1,423 need investment.

    https://www.napartner.ru/ is the very first startup exchange on the Russian market.

    The innovative ideas website features 1,239 investors, 9,983 “innovators” and 500 business ideas.

    There is also a section where you can purchase an already completed business.

    https://www.askcap.ru/ is one of the largest investor search databases in the country.

    The website contains profiles of 6,512 ideas, the lion's share of which are available for consideration only after authorization on the portal.

    Technology parks, incubators, accelerators, and venture funds cooperate with Askcap.

    https://angel.co/ – this service is the progenitor of the above investor search sites.

    The portal contains 1,600 startups and 421 investors from the Russian Federation.

Where to look for investors for a business?

Before looking for an investor for a business, you need to contact specialists in the economic sector who will calculate and draw up a detailed action plan.

Friends and loved ones

Finding an investor for a business is not an easy task.

It would be wise to involve all relatives and friends in such a process.

This is the most advantageous method that will reduce the expected risks to a minimum.

In addition, if the implementation of an idea requires small investments, you can interest your comrades in the profitability of the project and offer to invest their hard-earned money in promoting the business.

Naturally, at a certain monthly percentage.

Businessmen with experience

It is either big, there are businessmen who are firmly on the trading “platform” and want the already earned finances not just to sit in the bank, but to generate additional income every month.

You should warm up the person to the new idea and offer to make a contribution on terms beneficial to both parties.

Or, if the investor wishes, make him a partner.

But the latter option can fetter and limit the actions of the business founder himself.

This step should only be taken in extreme cases.

Funds

One way to find an investor for a business is through investment funds or funds founded to support start-up entrepreneurs.

But to do this, you need to provide compelling arguments that your project is vital to society.

You should know that often when contacting this organization, a businessman must already have some initial capital and be willing to invest in his business.

That is, this method is more suitable for existing enterprises that want to expand their trading area and product range.

To receive assistance, you must also provide a plan and analysis of the existing company.

Do not forget to monitor the work of investment funds, which may hold competitions and select promising works.

Who knows, maybe you'll be lucky.

Let's look at the most popular funds that have helped many budding entrepreneurs:

    https://www.runacap.com/

    The founder of the fund is Russian businessman Sergei Belousov.

    He introduced brands such as Rolsen to the world and is the creator of Parallels (a platform for hosting cloud services).

    If you manage to cooperate with this company, then there is no doubt about its profitability.

    After moving from Murmansk to Moscow, Igor Matsanyuk founded a foundation specialized in games, services and applications for phones.

    If an entrepreneur has a creative idea related to computer technology, then this fund is just for him.

  1. https://www.kiteventures.com/ is another fund for business development.

Business incubators


There are already more than a hundred business incubators in the Russian Federation.

These are structures that are created to help start-up companies get started.

Business incubators offer their residents:

  • renting premises at a reduced price (and in some cases – free of charge);
  • meeting rooms;
  • support in establishing contact with investors and buyers;
  • consultations in consulting and information matters.

The key difference between a business incubator and other forms of investor assistance is the participation of people who mentor aspiring entrepreneurs.

They function not just as “finance providers”, but also as development partners and business mentors.

If you need support from experienced businessmen, contact the following business incubators:

  • https://www.osp.ru/news/2010/0913/13003512/
  • https://inc.hse.ru/
  • https://www.inmsu.ru/ru/
  • https://www.rea.ru/ru/org/managements/orgnirupr/Pages/bi.aspx
  • https://www.ranepa.ru/kto-ya-2/student-bakalavriata/studencheskaya-zhizn-v-akademii/biznes-inkubator
  • https://rb.ru/incubator/incube/
  • https://theoryandpractice.ru/organizations/3940-biznes-inkubator-incube-ankh

Bank as an investor


When there is not even the slightest idea or all of the above options have been considered, then a bank loan is one of the options for obtaining the desired amount.

But getting it is not so easy.

Banks often make excessive demands on the borrower, which the latter cannot always cope with.

To apply for a loan, the bank provides:

  • guarantor
  • deposit amount,
  • package of relevant documents.

If bank requirements are not met, then you can be left without a business, and even with a huge debt.

A bank loan is ideal for starting a small business that does not require major capital investments.

Finding investors for a business is quite a labor-intensive task that requires enormous patience and perseverance.

It is necessary to carefully consider each of the available options and calculate possible financial losses.

If all this is done, then there is a huge chance of finding a profitable investor.

Investors among foreign businessmen




If all possible methods have been tried, but you still can’t find an investor, then you should turn to foreign entrepreneurs for help.

In the case of foreign investors, you can forget about your previous triumphs.

Such people look exclusively at real achievements in business.

Also, only those projects that can bring multi-million dollar profits (preferably in US currency) are usually considered.

A business idea does not necessarily have to be in a technological direction.

Any ideas that multiply the investor’s capital many times over are considered.

Foreign investors will never invest their capital in a project based only on the ambitions of the creator of the idea.

Exclusively the numbers and facts from the prepared business plan will be strong arguments for concluding cooperation.

You can look for foreign investors for your business idea on the following sites:

  • https://investgo24.com/ is an international portal that will help you find investments for your idea.
  • https://start2up.ru/ - will help you find a person who is ready to invest money in a business, not only in the regions of Russia, but also abroad.
  • https://www.magnat.su/ – using this site you can find not only foreign partners, but also put your own business up for sale.

By franchise


Finding investors for a business using this method guarantees rapid development and a start to enter the market platform under the auspices of a well-known brand.

Banks are happy to provide finance for the development of a franchise business.

This is one of the few cases when the latter without any problems provides the necessary funds to open a company.

And that's not all: a deferred payment period of six months is provided.

With the help of this, a novice businessman will be able to direct his strength and energy to promoting his brainchild.

Thereby speeding up the process of repaying the debt to the bank.

To obtain this type of loan, you must appoint one guarantor, and the bank is guaranteed to approve the application.

How does this method work?

Let's say a novice businessman has a promising and creative idea related to the engineering industry.

The founder contacts the authorized company (eg Porsche).

He demonstrates a presentation of his idea to its representative.

And if a company is interested in this innovation, it can give its patronage to the project in the form of financial assistance or allow the use of the official logo of the company.

When a new firm has such a patron behind it, banks consider it reliable enough to provide the necessary loan.

You will also learn from the video who an investor is and how to look for one:

Finding an investor for a business- this is not an easy matter.

Of course, you can do without outside help if you save the necessary amount and open a small grocery store.

But if the founder has a different task, then the search should be carried out in all possible places with the involvement of a large number of people.

You can also shift this task onto someone else’s shoulders and contact a specialized company that can find an investor to implement the project.

Useful article? Don't miss new ones!
Enter your email and receive new articles by email

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

For what purpose are they looking for an investor?

Before asking the question of where to find investors, you need to decide for what purpose the search for partners should be carried out. As a rule, this problem is solved by the owner of a commercial enterprise. He requires the assistance of the investor due to the availability of insufficient funds at his personal disposal in order to fully implement the business project. An investor may also be interested in providing the required amount of financing in order to subsequently benefit from the growth of the company’s turnover.

What are the mechanisms for building relationships with investors?

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

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

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

What types of investors are there?

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

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

Crowdfunding

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

What might interest an investor?

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

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

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

Another important criterion for an investor to make a positive decision regarding project financing is the validity of the business plan. The market may have the most favorable conditions, optimal levels of demand and competition, but if the entrepreneur does not provide a plan in accordance with which the company will take advantage of these advantages, the investor may question the prospects for financing the company.

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

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

How to find an investor for a startup?

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

It happens that an entrepreneur who is solving the problem of where to find an investor in Moscow nevertheless decides to switch to one of the markets in the constituent entities of the Russian Federation, since competitors may already be operating in the Russian capital. While in the regions similar businesses will not be very developed or will be completely absent as economic entities.

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

Where can you find an investor who is ready to invest in a startup within the framework of one scheme or another?

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

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

How to look for an investor for a small business?

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

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

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

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

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

However, another question may well be relevant - where to find a private investor who would be a reliable partner, ready to build a constructive dialogue on business development issues. It is resolved, as a rule, in non-public ways - through communication with major financiers within private channels. But in some cases, it is possible to find an investor at large events, especially if we are talking, for example, about international exhibitions. The prospects for building relationships with partners largely depend on the area of ​​business.

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

It will also be useful to consider a number of recommendations for entrepreneurs who decide to find an investor and establish a trusting relationship with him. Let's study those strategies that can be characterized as universal, sufficiently suitable for a business of any size - startup, small, medium or large enterprise.

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

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

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

Another important nuance is the discussion of the conditions for changing the initially reached agreements. It may turn out that during the course of development the project will begin to show greater or less profitability (or dynamics of return on investment) than expected by the business owner or investor, as a result of which it may be preferable for them to change the order of their own participation in the company’s activities.

An entrepreneur should discuss with his partner the reporting procedure for certain business transactions and its composition. Some investors require the preparation of only accounting documentation of the appropriate type, while others prefer to also receive these nuances. It is useful to clarify these nuances at the very early stages of the partnership.

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

Summary

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

This section is for those who are either ready to invest and are looking for an object for profitable investment, or, on the contrary, are interested in attracting Russian or foreign capital. Here you can find advertisements from private investors who are ready to invest money in business, as well as investment programs of investor companies offering, among other things, project financing. Direct and venture investment funds, major regional and industrial investors are invited to contribute to this section. Both small and large businesses will find a wide range of investment opportunities here.

It doesn’t matter who you are: a private equity fund, a venture fund, a private investor, a business angel, an investment bank or a management company, if you make direct investments and are ready to provide project financing, then this portal will be useful to you.

If you are interested in diversifying your investment portfolio, looking for new and profitable objects for investment, post information about yourself: investment priorities, volumes and directions of investment, principles for selecting investment projects and companies, ways to exit an investment project.

You can not only post information about yourself, but also subscribe to receive applications to attract investments. Just customize the search form in accordance with the criteria you are interested in and regularly receive investment applications in your mailbox. Do you want to be more active in your search for investment targets? Then refer to the section "Investment projects".