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Many aspiring entrepreneurs do not know how to find an investor for a business from scratch. This is both a simple and difficult task. Its simplicity lies directly in finding an investor - finding one is easier than it seems. The difficulty is to persuade him to become a partner, to convince him of the prospects of the emerging business idea.

Is investment needed?

On the one hand, investments are, of course, an important and useful tool for attracting third-party money to a start-up business. On the other hand, attracting an investor with money means dooming yourself to many other problems:

1. The search for investment and investors itself can take quite a long time. Especially if the business project is innovative. It would drag on so much that over the years the required amount could be covered by oneself.
2. Raising other people's money is a huge responsibility. The investor will have to answer for every penny spent, for every step. And if a project fails, the consequences can be severe and long-lasting.
3. Despite the need for initial capital to start a business project, having money alone is not enough. You need knowledge, a team, a sales market and much more, without which no startup will take off.
4. Conflicts with investors are inevitable. And the number of these conflicts directly depends on the amount of investment.

It is for these reasons that all novice entrepreneurs should carefully find out: can they cope on their own? Perhaps your own or borrowed funds will be quite sufficient. In addition to bank loans, you can enlist the help of a state support program for small businesses and entrepreneurship support funds.

Start searching for an investor

The search for an investor should begin with careful preparation.

Not every wealthy person is ready to immediately shell out the required amount to the first person they meet who promises a “super-profitable” project.

The minimum required to find an investor is a good business plan and presentation of the project. Please note right away that this is far from the same thing. A business plan is a thorough planning of a business idea in the short, medium and long term. It is necessary so that a potential investor can familiarize himself with the project in all its details, consult with lawyers, financiers, economists and other assistants.

But a potential investor will only get acquainted with the business plan if he likes the presentation. If the presentation itself is very successful, the plan may not be useful. They can give money without familiarizing themselves with the details, but this also rarely happens.

First of all, relatives, friends and acquaintances can provide assistance in finding an investor. They themselves will be able to act as a source of investment, i.e. become investors yourself. This is very convenient if your business is small and you don’t need significant capital. Firstly, this category of people is the easiest to convince. Much easier than experienced investors. Secondly, they rarely try to delve into all the details of entrepreneurial activity, preferring to trust the startuper in everything. Thirdly, reaching an agreement with relatives and friends is zero problem.

Private investors

Private investors who are ready to invest their money in a start-up business are called business angels. There are also organizations that tell beginners how to find an investor for their project. Managers of these companies will help prepare the necessary documents for investment sessions in order to find the maximum number of potential business angels.

Thanks to the help of associations, the problem of how to find a private investor becomes less relevant. But it is not guaranteed to be solved. Therefore, even if you are refused to invest, you should not give up. In any case, everyone who contacts such an association is guaranteed to receive a lot of knowledge and experience, as well as an understanding of the investment business as a whole.

Internet resources

In the age of information technology, it is much easier to find an investor to implement an idea on the Internet. Pay attention to message boards and specialized sites for aspiring entrepreneurs. These simple and accessible platforms will tell you where to find an investor for a small business.

It is more effective to contact potential investors directly. But this is complicated by the fact that they prefer not to publish their data online. The websites of investment funds, communities, technology parks and centers, including foreign ones, can provide some assistance in the problem of “finding an investor to start a business.” But be careful: many resources offer paid services, but the results are not guaranteed! At the same time, the chance of finding an investor for your business for free is only slightly lower.

Collective investment services will allow you not to look for an investor for production, but to organize telecommunications fundraising for your project yourself. This may be an interesting solution to attract an investor. To organize innovative production, contact the Skolkovo Foundation or the Strogino Technopark. These are government agencies, and attracting the government to finance a business from scratch is not easy, but it is possible.

Who can be an investor?

In the process of searching for investors for a business, it is useful to know in advance who you will encounter. In the vast majority of cases, an investor is a person in a prestigious, highly paid job or government service, living in Moscow. These are people who have the means, opportunities, experience and desire to open their own business, but do not have the free time to do so. They are the ones who most often look for promising entrepreneurs, people with creative ideas and invest money in their projects and business ideas.

Preparing a presentation

Many investors turn down applicants due to the fact that they do not see what they would like in the projects. Therefore, it is important to know the specifics of considering applications in order to know how to attract an investor.

The project presentation should clearly answer a number of questions. First, what product or service is offered to what group of people and what needs does it satisfy? Secondly, the financial indicators of the future business, its payback period and risks are important. Thirdly, the issue of exiting the project.

These are key questions, after satisfying which a potential investor begins to consider the project more closely. If the presentation does not include any of these, then most likely the investor will not be interested.

Preparation of a business plan

Preparing a business plan is the second important component in determining where and how to find money for your production. When compiling it, you should not write that after some time the business will begin to generate high profits. No one is interested in this, if only because such statements are made in almost every new presentation.

For an investor, the same thing is important in a business plan as in a presentation. A clear idea of ​​what problems the business will solve, the risks of investing and ways to exit the deal. Only in a business plan should all these problems be described carefully and on the basis of feasibility studies.

In terms of describing possible risks, it is necessary to take into account not only possible problems during the implementation of the project, but also troubles that may occur in the future. Of particular interest to investors is the assessment of competitive risks and force majeure circumstances.

When developing ways to exit the project, determine as precisely as possible: when and how the investor will be able to sell his share of the business. These rules should suit not only the business initiator, but also the investor. To make sure they are satisfied with it as much as possible, always remember the main goal - to earn money.

Mistakes in finding investors

The most common mistake in searching for investments is the lack of development of business plans. Typically, everyone focuses on high profitability potential and good earnings forecasts. But, in addition to these indicators, potential investors are also interested in other factors: the overall functionality of the business, the performance of the business before the influx of investments, potential business problems and ways to solve them. You must be clear about your business in every detail.

Among investors there are many who are well versed in business methods and for whom it is important to see the picture of the future project in all details: production and sales, marketing and advertising, management and much more.

The project for a future business must be thought out even in the event that the initiator leaves the project for some reason. There must be an action plan for this eventuality. Such a mechanism so that the business does not stop making a profit. For the person investing money in the project, this is also important.

All investors are divided into two groups. The first gives money, then simply gets acquainted with general reports and makes a profit. The second, in exchange for investment, requires a full-fledged partnership: shares in property, a seat on the board of directors, and serious management control.

Another mistake novice entrepreneurs make is underestimating the costs of starting a business and overestimating profit forecasts. An experienced person can immediately see the underestimation of start-up costs, and he is also well aware of the consequences of this underestimation. Therefore, this project will not interest investors.

As already mentioned, 90% of investors are good business specialists. The remaining 10% consult with specialists in order to invest their money more reliably. Therefore, inflated forecasts of future profits will be a disadvantage for you.

The presence of know-how and innovation in a business project is a rather controversial issue. More “earthly” projects are considered reliable, guaranteeing a stable income. If the business being prepared is conceived as innovative, then its future leader should give the impression of a person capable of bringing the project to a profitable level. A person who understands all the necessary things, has team management skills and business experience.

Choose a franchise business

	Investments: From RUB 320,000. up to 2,500,000 rub. The federal chain of stores and bars “Foam Guild” dates back to its first own store, built in 2014 in Moscow. On October 1, 2017, the trademark was registered and the franchise was launched - we began to share our experience in running the beer business and build turnkey stores for everyone throughout Russia. In not so long...
	Investments: Investments 3,350,000 - 5,500,000 ₽ New Chicken is a new project of the BCA restaurant holding, which has experience opening more than 150 establishments in 8 countries around the world. The company is actively growing, developing new directions and knows what consumers need tomorrow. The company promotes a network of establishments using a franchising model. Franchise description The franchise package includes: production/trade/assembly equipment, furniture. The New Chicken franchise has…
	Investments: Investments 2,200,000 - 5,000,000 ₽ The first and only personal security service in Russia available on your smartphone. Personal Security ARMADA We met with the co-owner of the Armada.Vip company Alexander Aliev to find out why it is important to be able to call a bodyguard within an hour, in what situations he may be needed and how the market for such services is developing in Russia. Why did you decide to start a business related to...
	Investments: Investments 450,000 - 600,000 ₽ URAL-STROY has been operating in the construction services market since 2008. The company is engaged in private housing construction. Ural-Stroy adheres to the strategy of “Quality and openness to the client”, thanks to which it is a leader in the cottage construction market. We build modern, comfortable turnkey houses. Our Goal: To become the No. 1 developer in the Russian Federation in the low-rise construction segment. Join us and together we can develop...
	Investments: Investments 550,000 - 1,000,000 ₽ COMPANY DESCRIPTION The network of laser hair removal studios Laser Love was founded in 2018 in Novosibirsk. The company group has a distribution company responsible for supplying equipment directly from the manufacturer. The company has all quality certificates for equipment - certificate of conformity and the European Union. Our own line of equipment under the DF-Laser brand guarantees the quality of the procedure from the first visit. Own marketing agency in…
	Investments: Investments 3,800,000 - 5,000,000 ₽ G.Bar is the largest chain of beauty bars in the world, serving more than 60 thousand clients and providing more than 140 thousand services annually. The G.Bar network includes 6 own beauty bars (Kyiv, Moscow) and 21 franchised ones in the world, including Russia, Ukraine, Poland, Kazakhstan, Kyrgyzstan, Slovakia, Cyprus, and the USA. The company was founded in 2015 and provides…
	Investment: Investment 100,000 ₽ AWS - provides self-storage warehouses for private and corporate clients. Warehouse terminals are located in all districts of Moscow and the region. AWS is an investment proposition with franchise elements. AWS franchise description - provides self-storage warehouses for private clients and businesses. Concept: Minimum risk, profitable business while saving resources and time on creating service standards,… Investments: Investments 370,000 - 1,000,000 ₽ Pyrolysis boilers Tundra - An alternative to gas! You will be a manufacturer and not a middleman. Our pyrolysis boilers replace gas. This is the most profitable way to heat a room after mains gas. 1st place in cheapness is occupied by main gas (0.5 kopecks per kW) 2nd place pyrolysis boilers (0.8 kopecks per kW) 3rd place waste oil (1.83 kopecks per kW) 4...
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How to find an investor for a small business from scratch? This question is often asked by young and aspiring entrepreneurs who have their own project and idea, but do not have money. Asking for help in getting money is a difficult step, however, you can find your investor by setting yourself the goal of implementing your project. How to attract investors to small business?

Searching for investors to implement an idea in a small business

How to get investment for a small business? When searching for sources of financing for a project, consider the following rules:

• do not delay deadlines;
• collect as much information as possible about the potential investor to avoid misunderstandings in the future;
• carefully calculate the amount of investment required;
• focus on specific goals;
• in the process of negotiations with an investor, be honest and open, do not hide important facts.

Useful video on the topic:

How to get investments for small businesses from the state?

Today, the Russian government offers a wide range of ways to promote the development of small businesses:

• allocation of state subsidies for the purchase of premises and fixed assets in the amount of up to 60 thousand rubles;
• grants for beginning businessmen in the amount of up to 60,000 rubles;
• compensation for previously received bank loans for business development;
• subsidy from the Employment Center up to 25 thousand rubles;
• assistance from Small Business Support Funds;
• subsidy for entrepreneurs aimed at developing innovative technologies (maximum 60 thousand rubles).

You can learn more about state support programs on the Russian Government portal (http://government.ru/).

How to find a private investor to borrow money?

How to find a private investor to borrow money to create and develop a business? To obtain financing, there are online platforms specializing in business lending:

• Fundico - shared lending service;
• Nimfamoney is a closed platform for investors and startups (loan amount from 100,000 to 1 million rubles);
• business.potok.digital - lending to entrepreneurs by private individuals.;
• vdolg.ru - deposits up to 500 thousand rubles to a bank card;
• loanberry.ru - online loan service for up to half a million rubles;
• townmoney.ru is a P2P lending service that unites the interests of borrowers and investors.

How to find an investor for a business from scratch in Russia: 7 ways

How to find an investor to finance a business created from scratch in Russia?

I offer 7 options:

1. Contact your family and friends– this is the option for financing your own business that is most often used by start-ups. And here the essence of the matter is not to borrow money against a receipt or interest - the essence of the matter is to turn a friend or relative into your partner and boss, and start earning money together. This investment option is optimal if the diet involves a small amount - many friends and relatives will not have a lot of money for your project, free amounts on hand. The main thing is to convince them of the profitability of your idea and the opportunity to receive their share of passive income.
2. We are looking for a business agent. Today in the service market there are many agents - intermediaries between a startup and an investor who are ready to help you find a potential sponsor for a certain percentage or amount of money. Agents often unite in various associations and clubs - their coordinates can be easily found on the Internet and already on the spot have a more substantive business conversation. This option of finding an investor for your own project will be of interest to those who are planning to bring something grandiose and large-scale to life. Most often, agents have access and contacts with very wealthy investors, and if they like your project and it is approved, the matter will not be about finances. But they are unlikely to sponsor projects that will not bring in a lot of money - this is not their level, and here it is worth going and choosing a different option for finding investment.
3. Crowdfunding. If we talk about this type of search for an investor, then this phenomenon means the help of the crowd or public funding, built on the principle of mutual aid funds. This phenomenon has been gaining a lot of momentum in recent years - this option of searching for an investor has gained attention and is therefore worth taking into account. The essence of this method of finding an investor and financing one’s own project is that a person publishes his own idea on one or another specialized website, his own project, and on social networks dedicated to this area, having written down the conditions for participation in the project - those under which he intends to attract financial activists. Anyone can take part in the project, and by contributing their part of the money as a percentage or a fixed amount, you can collect the amount necessary for the implementation of the startup. Most often, this method of searching and attracting investors is used in such areas and areas as charity in the field of medicine, financing non-profit projects - recording amateur music and holding festivals, creating films and holding exhibitions.
4. Bank loan. An option for finding an investor is to contact the bank with your own developed business project, all the necessary calculations of investments and profits, and the payback period. But this option is possible if you have stable and official earnings and can make a certain deposit in the form of real estate or a car. This option is relevant if there is a need for a large amount of money, if the initial investment in your project does not require large financial investments - you can resort to financial sponsorship from microfinance organizations, where the conditions for issuing borrowed funds are somewhat softer, although the interest rate for using the loan will be higher than in jar.
5. Platforms for attracting business investment. If you don’t want to resort to the help of a bank or microfinance organization, you can visit specialized platforms for startups. It is on such specialized platforms that the necessary information for a beginner is posted - research and statistics, practical advice and assistance in launching new projects, plus data on investors, the ability to find their coordinates and contacts, investment conditions. In search of your own investor, you can visit online lending platforms. This is a kind of MFO or bank lending format. More specifically, such a platform could be Startups.co, which can act as a proven and reliable channel for finding a potential investor. As statistics show, more than 13.9 million potential users and investors have already been registered on the presented platform, who can act as both a consultant and a sponsor. Another proven platform that is popular among startups and investors is Gust.com - with its support, about 1.8 million dollars have been invested in many projects in recent years.
6. Social networks of professionals– these are groups of potential investors that can be easily found on the Internet. Professional investor networks are a currently developed area where you can meet a potential sponsor working in one direction or another. Most of the sites presented on the network work with foreign investors who are ready to directly join the international, global business space.
7. Business angels, private equity funds. If you need to find a reliable investor for your own project, you can contact a private investment company that specializes in this type of financial investment. What’s most important is that you can get approval for a variety of amounts, ranging from several thousand to several million dollars. What is the interest of the investors themselves - after a few years, to sell their own part a few years after the start of the startup. An example is the private equity fund Zunder Invest. But even if you were refused a loan of money, you were refused by a bank or an MFO, an investor - do not despair. Perhaps your investor has not yet met your path, or your project does not meet all the requirements of a potential sponsor.

Where to find an investor for a business from scratch: 5 options

To find investments, you can use the following tools and resources:

• Social networks for professionals (LinkedIn, EFactor, Xing, Plaxo, Startup Nation, Cofoundr and Meetup)
• Business incubators and accelerators (The best include Synergy Innovations, Ingria, the business incubator of the Academy of National Economy, the API Moscow business accelerator, the First City Business Incubator of St. Petersburg and others)
• Platforms for startups (the full list is below)
• Small business support funds and employment centers
• Investment club “Business Youth” (molodost.bz/investfund_OLD)
• Investor forums (investory.biz, investorov.net/forum, investtalk.ru/forum/)

Websites for finding investors in Russia and abroad: top 20

The most popular platforms for finding investors today are:

How to attract investment in business: ideas and platforms for startups

How to attract an investor to a startup is the first most difficult task that a novice investor who wants to implement his business idea will have to solve.

Where to find investment for a startup? To finance your project, you can use specialized online platforms for searching for private investors, the help of business angels, business accelerators and incubators, government support programs, and crowdinvesting platforms.

How to get investment for a startup? To obtain funding, the startuper must convince the investor of the viability and profitability of the project. To do this, you will need to cover the following topics in your business plan in as much detail and reasoning as possible:

• uniqueness and prospects of the project;
• demand for a product or service on the market;
• investment size;
• payback period of investments;
• projected level of profitability;
• guarantees for return of invested funds.

How to attract investors to a project quickly and without unnecessary problems? The search for investments and investors can be carried out using specialized online platforms:

• Boomstarter is a Russian crowdfunding platform.
• Planeta.ru is a platform that allows you to raise from 20,000 to 15 million rubles for the implementation of any creative idea.
• nachinanie.ru - service for collective financing of new projects
• Startups.co is an international platform for startups that allows you to solve the problem of how to find an investor for a project.

How to write a business plan for an investor: key points of the project

How to draw up a project for an investor? The business project summary should contain the following points:

• description of the essence of the business idea;
• market analysis;
• portrait of the target audience;
• how and with the help of what tools the idea will be monetized;
• analysis of competitors (their strengths and weaknesses);
• the team involved in the project implementation;
• project benefits;
• investment project performance indicators (payback period (DPP), MIRR, IRR (internal rate of return), ARR (return on investment ratio));
• how much money has already been invested in the project at the start;
• investment use plan;
• what the investor will receive as a result and in what time frame.

How to calculate return on investment (ROI)? To calculate, you must use the following formula: ROI = PE / I * 100%, where PE is the net profit for a certain period of time (this indicator is calculated as the difference between the total profit and the cost); And - investments.

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

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.

Anna Sokolova

Step-by-step instructions and pitfalls

We have already made detailed selections about where to go for a startup with a bare idea and where to get money for business in various niches, but this did not stop the flow of questions from newcomers. This time we have combined Rusbase training materials into a single logical chain to guide even beginners.

Where to start looking for investments? People who ask us this question are usually at the idea stage. To attract investment, they will have to go through a long and labor-intensive journey: thoroughly develop an idea, study competitors, assemble a team, create a working prototype of a product, make a competent presentation, register in online services to find an investor, upgrade to an accelerator, participate in competitions, make acquaintances at events, find potential investors and write them a lot of letters, read the specialized press and try to get on its pages.

Some points here are optional, some people do without them, but the general algorithm is as follows. Passing it in itself does not guarantee attracting investments - it all depends on you and your product. But without a presentation and understanding of the investment market, you definitely won’t see it.

What to do with the idea?

Work it out! Your brilliant idea is worthless until it starts attracting an audience and making money. Without a working prototype and a team, investors won’t even listen to you - unless, of course, you are already known in the market as a successful serial entrepreneur. By investing in an idea, an investor risks not only money, but also his reputation. To prove your ability to run a business, you need to independently find at least the minimum resources to create a product.

Often, startupers are afraid to tell experts about their brilliant idea, thinking that it will be stolen. In fact, an idea is worthless until it is implemented. This simple truth is reflected in the fifth paragraph of Article 1259 of the Civil Code of the Russian Federation: copyright does not apply to ideas, concepts, principles, methods, processes, systems, methods, solutions to technical, organizational or other problems, discoveries, facts, programming languages. You can secure intellectual rights only for technology, unique design and software. Learn more about your copyright protection options.

Moreover, the idea almost always turns out to be not new if you thoroughly study the market. Even if the product is unique, you can usually find substitute products, albeit with different properties. An investor will never believe that you have no competitors at all. He will think that you haven’t probed the waters well and that you shouldn’t be given money.

Before you approach venture capitalists, you need to understand the difference between a startup and a small business. In the public consciousness, the word “startup” often means the initial stage of business development. In fact, this is a special type of enterprise that implies product innovation, global ambitions and rapid growth. If you want to open a traditional business (for example, an atelier or a flower stall), then you will have different investors and a different strategy. Venture investors still prefer projects related to IT and innovation.

Where to look for a team?

To get even a fraction of an investor's attention, you need a working prototype and a team. It’s difficult to create a product alone, so you need to try to infect someone else with your idea.

Experienced entrepreneurs advise attracting like-minded people at startup events. Especially at hackathons, where you can see a person in action. You can search for competent co-founders using special services - for example, on the website CoFoundIt.ru, which recently launched IIDF (the base is formed from accelerator graduates). You can also always make inquiries from friends or call out on social networks, but in this case there is less chance of snagging an experienced specialist.

More information about team formation can be found here:

If you already have an MVP

A working prototype is not a landing page with empty forms. At the investment search stage, it should already be tested by potential clients. You also need to come up with and be able to clearly explain a business model - how you will earn money per unit of product.

If theoretical knowledge did not help you understand the idea, MVP and monetization strategy, you can turn to product development specialists. For example, this is done by the company Create, whose services will cost you from 150 thousand to 1 million rubles, depending on the amount of work.

Well, if you have a working prototype, you can start looking for an investor. To do this, you will need a thoughtful, compelling presentation that will become the basis for your pitch.

But before you dive into the intricacies of creating perfect slides, you should think hard: do you really need an investor? It is important to understand that investment is not a panacea. Business is not built on them, but on customers and sales. If this is not the case, then no investor will help you. It is best to attract investments to increase sales, because the essence of a startup is rapid growth. If you develop well, investors will come to you themselves, you’ll see.

So sometimes you just don't need an investor. Some startupers generally manage to develop a company only with their own money - this is called bootstrapping, which translates from English as belt-tightening. And this approach has a lot of advantages - for example, complete freedom of decision-making and serious development of entrepreneurial skills.

In addition, there are hundreds of free or cheap services on the Internet that will save you money, effort and time when solving various business problems.

How to make a presentation for a startup?

Investors are doomed to watch hundreds of presentations a year - respect their time. The presentation should be concise and well-structured, that is, contain visual information about the team, product, market, audience, business model and capitalization.

Read about the rules for creating a successful presentation here:

If you still can't combine these tips and our free templates into a high-quality presentation, you can.

But beautiful and clear slides alone are not enough for investors - they want to hear about money and their profits. To prepare for tricky questions in advance, first read these materials:

Search for investments through startup databases

When you already have a product and clear outlines of the project (which are outlined in the presentation), you can register with online investment search services. Investors are looking for projects there in the niches they need. Posting in startup databases is usually free, but projects undergo moderation, the severity of which depends on the resource’s policy.

• Rusbase Pipeline adds startups only if there is a working prototype and signs of demand (we currently have about 350 projects in our database), investors - only if they are ready to invest at least $50 thousand in one project (their list exceeds 200 names).
• StartTrack is a crowdinvesting platform from IIDF that helps investors enter into joint deals. A startup needs to pay a commission to attract investments. There are currently 725 investors and 37 projects in the StartTrack database. This ratio hints that the site’s requirements for startups are quite high.
• Spark is a service for finding an investor who has retrained as a technology project crowd (similar to Habr), where you can share experiences and post vacancies. There are 4249 projects in the database, 1329 of which are seeking investment.
• Napartner is one of the first startup exchanges on the Russian market. As indicated on the website, there are 1,139 registered investors, 9,892 “innovators” and 456 projects seeking investment. There is also a section for selling ready-made businesses and a vacancies section.
• Askcap is perhaps the largest Russian startup database. According to the project’s own information, the site contains profiles of 5,410 projects, most of which are available only to authorized users. 163 partners work with Askcap - venture funds, incubators, accelerators and technology parks.
• AngelList is the world's leading service for finding startups and investments, which has spawned many clones (ours are listed above). Its database includes 1,589 startups and 378 investors from Russia. AngelList provides opportunities for co-investment in projects, posting vacancies and resumes.

Participation in competitions and other events

Competitions help to gain valuable competitive experience, and if you win, a grant and the attention of investors (including through reporting publications in the media). In Russia and abroad, competitions, hackathons and free educational programs for startupers are regularly organized - it is convenient to follow this flow of opportunities with our tag.

It can also be helpful to go to industry events, especially if you're new to the venture scene. There you can listen to successful technology entrepreneurs, meet potential investors, catch the main trends, talk about your project and get feedback. Of course, moderation is needed in everything - connections and parties alone cannot promote a project. We collect the main events of the startup industry in the “Entrepreneur Calendar” section.

Active search for an investor

If you haven’t found an investor at events, you can try writing to venture funds. Try it - because cold and warm contacts do not work well in such matters, the most effective means has always been and will be personal acquaintance.

Before writing a letter to an investor, it is critical to make sure that your project matches their preferences. Funds usually indicate on their websites what niches and stages of startups they are interested in. If not, then you can still guess about it from the list of portfolio companies (which should be studied in any case). To compile a list of funds to which you can send your project for consideration, you can use our database of investors - there are convenient filters by niche and stage.

What to write to an investor? Before you sit down to write, you need to carefully study the foundation’s website. Fan mailings to investors never worked. Also, under no circumstances should you write from someone else’s mailbox. In order not to be left without an answer, you need to accurately formulate the subject of the letter, adequately introduce yourself and the project (and yes, ask a literate friend to proofread the text for errors) and explain why your startup is relevant to the fund (for example, it is similar to or complements one of the portfolio projects). If the letter consists only of a link to the attached presentation, it simply will not be opened.

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.