If you want to start a small business, you will need start-up capital. One option is to attract investors. In today's world, you will find many potential investors, but you need to determine who exactly will support your project, and then make a compelling presentation. At every stage of its life cycle, a business needs funding. No matter how good the idea is, it requires certain resources, both financial and material, to implement it. You need to think about how and where to look for investors. So, let's see what a small business needs to attract a reliable investor.

Where to get funding for your business?

At the initial stage, you can use the initial capital, which is provided by the startups themselves through crowdfunding. The initial capital is needed to fund the initial market research, business plan preparation, and product prototyping. At this stage, it is most difficult to find an investor for the business, since the initial investment is considered very risky. For this reason, business founders try to get the first investment from their own resources and start looking for investors when their business has taken a certain shape and already has something to “show”. Next, we will talk about how to find investors to start a business.

Myths about small business finance

Before we move on to the most viable business financing options, let's dispel some popular financing myths. It's better to deal with a reality that you can work with.

Myth #1: Venture capital is a growing opportunity for business financing. In fact, venture capital funding is very rare and almost does not provide sufficient growth. Venture capital is money that is allocated to create a new business that has the potential for both high growth and high risk.

These companies tend to focus on healthcare or new technologies, including things like software, the Internet, and networking. However, this kind of money is allocated only to a very few fast-growing companies with powerful management teams. Such financing is not suitable for small businesses.

Myth #2. Bank loans are the most likely option for financing a new business. In fact, banks do not finance business start-ups, since they cannot invest depositors' money in unjustified and risky ventures.

Myth #3: Business plans are sold to investors. Actually it is not. A well-written and compelling business plan presents your business to investors in detail, however they are investing in your business, not just the plan. You must create a team and develop a product, only after that you will have real chances to attract investors.

Nobody invests in ideas or plans. A rare exception is a special case when investors know the entrepreneur well and are ready to invest in him at an early stage of his development. In this case, they invest in the entrepreneur and not in the plan.

Why small businesses are looking for private investors

Securing small business funds in large banks is usually difficult. Even if you walk into a bank with a detailed plan, you are likely to walk away empty-handed because small businesses pose a risk to the bank. Small businesses earn less income than large corporations and are more likely to default on loans. The Small Business Loan Index reports that only 24.1% of small business financing requests were approved by major banks.

If the bank refuses you a loan, don't worry. There are alternative options for financing small businesses, including help from private investors. Private funding comes from non-banking individuals and firms. Private investors for starting a business offer several advantages over other small business financing strategies. Often, private lenders specialize in a particular area of ​​business. In addition to funding, they can give you their experience and recommendations.

How to find an investor for a small business from scratch

The fundraising process should be tailored to the needs of the business. Where you look for money and how you look for money depends on your company and what kind of money you need. There is a huge difference between a fast growing internet company and a local retail store just looking for help growing. Below we list a few steps to help you find potential investors. How to find an investor for a small business?

Step 1. Ask business people you know about investors. It is best to conduct a survey in the area where your future business is located. Meet other small business owners or visit your local chamber of commerce. Ask if they know investors for your business. Private equity is money invested by individuals and firms. In exchange for the funds, private equity investors receive their own stake in the business. The goal of a private investor is to sell his stake in the business after several years of investment in order to make a profit.

Step 2. Check out online crowdfunding. You can connect with investors around the world using an online crowdfunding site like Equity.net. These websites give you access to hundreds of investors who can help you complete your business plan and grow your business. However, over the past decade, the Internet has become a new source of funding.

Using crowdfunding sites such as Kickstarter, entrepreneurs, artists, charities and individuals can submit online cash requests. In 2013, for example, Hollywood screenwriter and producer Rob Thomas used Kickstarter to raise $5.7 million to fund a film project based on the cult series Veronica Mars. More than 90,000 people contributed small amounts of money towards Thomas's goal. By 2015, the Kickstarter platform had raised over $1.6 billion for over 200,000 individual projects, of which over 81,000 were successfully funded.

Potential entrepreneurs who are looking for funding on a crowdfunding platform need to understand the rules of the game. Some crowdfunding platforms hold funds raised until a specified goal is reached. If the goal is not achieved, the funds can be returned to donors. The platforms also take a portion of the money they raise to fund their own operations.

Many crowdfunding efforts have failed. ArsTechnica magazine reports that Canonical's 2013 attempt to raise $32 million to develop a high-end super-smartphone fell through after it raised just under half a million dollars on popular crowdfunding website Indiegogo. As a result, Canonical received no funds from its efforts.

To get the attention - and money - of individual donors, you need to have a good story. In addition, the business will likely have to promise donors something in exchange for their money - a free bonus like a T-shirt or product sample - to entice donors. It's a good idea to highlight your personal commitment to the business by highlighting the time, effort, and money you've invested yourself. Adding a video message often helps as well.

Step 3: Reach out to your family and friends. These are people who know they can invest in your business, especially since they see your determination. Remember to approach them the same way you would any other investor. Friends and family will want some return on their investment, just like other investors.

You can be more flexible in what you offer. For example, instead of making them private owners, you can give them free goods or services in return. You should also consider asking people you know for a loan rather than an investment. With a loan, you don't have to give up ownership in your business. Also, if your business fails, you can pay off the loan through bankruptcy.

Step 4. How to find an investor for a business? Get a business broker. These brokers have networks of potential investors they can contact. You can find a business broker online or talk to other companies that have used a broker.

Step 5. Consider if venture capital is right for you. Venture capital is available for fast growing startups. Typically, venture capitalists face higher risk in their investments. But investments often have the potential for high returns. Venture capital is a longer term investment than a traditional bank loan. Venture capital investors are actively following the business. They are involved in board decisions, marketing strategies and business structure. Venture capital is a term used to describe various investors, including private equity firms, venture capital firms, and investors. Although they are different, they have similarities:

1. They take on big risks for potential big financial rewards. Accordingly, venture capital typically invests in industries with great growth potential, such as technology or biomedicine. Very few businesses are eligible for venture capital funding.
2. They are actively involved in your business. For example, they are likely to demand space on your board in exchange for investment capital. However, they often have experience in your industry and can help you grow.
3. They have a longer investment horizon than other forms of financing.

The venture capital business is often misunderstood. Many entrepreneurs complain about venture capital companies for failing to invest in new or risky ventures. People talk about VCs as sharks because of their supposedly predatory business practices.

Venture capital is just business. The people we call venture capitalists are business people who invest other people's money. They have a professional responsibility to minimize risk as much as possible. They should not take on more risk than is absolutely necessary to achieve the risk/reward ratio that their sources of capital ask for.

Venture capital should not be considered a source of funding for any but a very few exceptional ventures. Venture capital cannot afford to invest in startups unless there is a rare combination of product opportunity, market opportunity, and proven management. Venture capital professionals look for companies that they believe can lead to a significant increase in business value in just a few years. They know that most of these ventures fail, so the winners must win big enough to pay for all the losers.

They target new products and markets that can reasonably predict sales to increase in huge quantities in a short period of time. They only try to work with proven management teams that have dealt with successful startups in the past. If you are a potential venture capitalist, you probably already know this. You have members of the management team who have already gone through this. You can convince yourself and a room full of smart people that your company can grow tenfold in three years.

If you are looking for an investor for a project and want to know if your project is suitable for venture financing, you can compare it with other projects. People in new high-growth industries, multimedia communications, biotech, or high-tech products are generally aware of the opportunities for venture capital and venture capital.

Step 6. Commercial Lenders

Banks are even less likely than venture capitalists to invest in businesses. However, they are the most likely source of funding for established small businesses. Aspiring entrepreneurs and small business owners are too quick to criticize banks and financial institutions for failing to fund new ventures. Banks are not required to invest in businesses and are severely restricted in this regard by federal banking laws.

The government does not allow banks to invest in businesses because society generally does not want banks to take savings from depositors and invest in risky business projects. Obviously, when (and if) these business ventures fail, bank depositors' money is at risk. Would you like your bank to invest in a new business (other than yours, of course)?

In addition, banks should not lend to start-ups for many of the same reasons. Federal regulators want banks to keep their money in very conservative loans backed by strong collateral. Start-ups are not safe enough for banking regulators and do not have sufficient collateral.

Why then do we say that banks are the most likely source of small business finance? Because small business owners take loans from banks. A business that has been around for several years generates enough stability and assets to serve as collateral. Banks typically provide loans to small businesses backed by company stocks or receivables. There are usually formulas that determine how much you can borrow based on how much is in inventory and in receivables. Much of the funding for shopping center businesses is through bank loans based on the personal collateral of the business owner, such as real estate ownership. Some would say that home equity is the biggest source of small business funding.

Making a presentation

If you need an investor to start a business, start by putting together the right presentation. The key to finding a good private investor is thorough preparation. Make sure you're prepared to take on the challenge of building additional small business capital before approaching investors. Small business investors want to see that you have an organized plan, growth potential, and healthy finances.

Step 1. You must know how much money you are looking for. If you need a small amount, you can easily find an investor to start a business. However, if you need an investor to start a business from scratch, you must calculate all the costs.

Calculate how much money you need for your small business. Also think about how much of your capital you are willing to give to investors after the successful development of the business. Investors for starting a business from scratch do not give loans. Instead, they receive a share of the property in exchange for money. You must accept the terms of the investor and play by their rules for the first time. For example, if your business will cost 1,000,000 rubles, and you want to invest 250,000 rubles, you will need to give about 25% of the company's capital.

Step 2: Update your business plan. Your investors will be interested in your business plan that you should have created. The plan will identify your market, competitors, and will include financial projections for five years. You should also summarize the summary with your plan. Investors often skip other parts but focus on the summary, so spend extra time on it. Make your business plan colorful and include graphics.

Step 3. Research the investor. Many investors only focus on certain industries, so you'll save time if you decide in advance on their focus.

• Look online to check which companies they have invested in.
• Look at their profile to see if you know people in common. If so, ask if an investor might be interested in your business.

Find out as much as you can about your potential investor. This works well for both investors and venture capitalists. Find out about your past investments, try to determine what their interests are, if possible, find out if they have previously invested in similar projects. Of course, some information may be confidential, but it will be worth the effort to be prepared to meet with your investor after learning from their experience. Also, it can give your meeting a positive start by showing a potential investor that you are serious about the matter.

Step 4. Specify meeting details. There is no single way to contact an investor. If someone has referred you to an investor, include the name of the referrer in your email or when you call. Alternatively, you can send your email to the referrer and they can then forward it to the investor.

• Be clear in your letter about what you do.
• Enter the age of your business. Are you a beginner? Have you been in business for ten years?
• Identify other investors you have worked with. For example, an investor could give you start-up capital five years ago.
• Indicate the dates when you are ready to meet. Try to be as flexible as possible.
• Check your email to make it look professional.
• Attach something to show the investor your business. For example, you can create a short video that shows your products or services.

Step 5. Know your history. Investors don't just invest in businesses. They also invest in a person - in you. Accordingly, they will want to know something about you. You should be able to explain the following:

• What from your past led you to want to start a business?
• How have you benefited from previous business experience? Be prepared to point out specific accomplishments.

Step 6 Prepare for general questions. You can't anticipate everything a potential investor will ask. However, there are some general questions you should consider:

• What is the biggest mistake you have made in your business?
• How do your competitors outperform you? What for?
• Is something working against your business like new regulations, demographic changes, etc.?
• Why are you looking for funding?
• What are your long term growth plans? How are you going to make your business prosper?

Reach out to a potential investor with a clear and reasonable description of what investment is needed and for how long. At the same time, present an honest and compelling picture of how far your startup has come and what you have already achieved. The investor must get an objective idea of ​​when his contribution can start to generate income. Write a detailed business plan outlining achievable goals and practical steps to achieve them.

Meeting with potential investors

Step 1. Create a clear presentation. You are likely to make an investor presentation, which can take many forms. For example, you can make a PowerPoint presentation or create an investor brochure. With other investors, you will just sit and talk. Whatever the form of your presentation, it's important to go beyond just repeating the content of your business plan.

• An investor wants to understand your financials, so you have a handy business plan to pick up and read.
• Show the investor your product or service. If you are expanding your pastry business, have an assortment of baked goods with you. If you provide a service, you can create a short video that shows your business in action. You must give the investor a concrete idea of ​​what your business does.
• Remember that pictures are more memorable than words. If you're creating a PowerPoint, don't fill it with text.

Step 2. Be brief. Your presentation should not take more than 20 minutes. If you are using PowerPoint, then it should have no more than 15 slides. Practice your presentation until it reaches the correct length.

Step 3. Ask for advice at the first meeting. Don't ask for money right off the bat. A potential investor needs time to think about your business idea before they can decide if they want to invest. Accordingly, you should conduct the first meeting while studying the investor. However, you can subtly hint at the required amount. For example, you might say, “I thought I would need $500,000 to open a new store in this location, but I would like to hear from you if there are any hidden costs that I might not know about?”

Step 4. Be honest. The investor will not allocate money until he is sure of your sincerity. He will want to take a closer look at the financials of your business, and will reveal all your misrepresentations. Always be honest in your business plan and in your conversations with potential investors. Confess when you don't know the answer. The investor will appreciate your honesty. If you lie to one investor, then he will communicate with others in his community. You will earn a bad reputation and will not be able to find investors to develop the business.

It's natural to think that seducing investors with numbers is the most effective way to get funding for a new project. In fact, everything is the opposite. Nothing erodes investor confidence faster than projecting your business through rose-colored glasses. Careful or even negative forecasting shows investors that you are honest with them and that you can realistically assess the potential problems of your project. Underestimation is your best bet, and critically evaluating a project's strengths and weaknesses is critical.

Step 5. Show your attitude. Potential investors want to see that you believe in your business. Avoid impudence that shows that you are not sure. Instead, demonstrate confidence in the following relationships:

• Be attentive and learn to listen. Insecure people talk all the time and laugh awkwardly to fill the silence. Be prepared to listen and be silent.
• Stand straight. Pull your shoulders back as you sit and stand.
• Make eye contact when speaking and listening to someone.
• Avoid anxiety.

Step 6. Don't forget to ask questions to the investor. Any investor will get a stake in your business. Accordingly, you also need to check this. Ask the following questions before agreeing to work with someone:

• What other projects are they investing in? Check if they are similar to your business or if they are in different industries.
• When was their last investment? If an investor has not invested for some time, they may not be serious.
• How do they plan to add value to your company?
• What factors will you consider before making an investment decision?
• How active do they want to be in the business? Is the investor willing to take a seat on the board, handle day-to-day operations, etc.?

Step 7. Contact the investor. After the first meeting, thank the investor by sending him a letter. It is unlikely that they will agree to invest after only one meeting, so keep the channels of communication open. A short, professional thank you letter can help you make further contact. You can also keep the investor up to date on the development of your business. For example, if you are introducing a new product, let it know how it works.

Important: Remain professional if you are denied. It's hard to say why people choose not to invest in businesses. You may not have been the right fit, or they may have already decided to invest in a similar business. Regardless of the reason, you can control your reaction. Be professional and thank them for their time. Remember that you may run into an investor later when they want to invest in you. There is no reason to burn bridges now.

Step 8. In case of failure, continue your search. Avoid discouragement if you don't get many offers, or if every presentation you make results in a rejection. You may not have found the right investor yet. Keep looking because the perfect investor may still be around.

Step 9. Consolidation of the deal. Once you've established yourself as a reliable and trustworthy businessman, you won't have to go out of your way to attract investment. Take these steps ahead of time to increase your chances of closing a deal:

Prove it works. Once you have successfully built a business, even a small one, investors are more likely to believe in you. Build on the idea and make small strides to show that you have the incentive to get it right.

Create an atmosphere of trust. Every person you meet is a potential investor or contact. It is impossible to raise money if you don't like investors. Involve people and be friendly. Look fresh and radiate positivity.

Help and Support

At the initial stage of starting a small business, resources of a different type may be required - those that are in the form of support. A young business may need office space, technical devices, access to high-speed Internet, and there are solutions for this too.

coworking

Coworking space, which has rightfully earned the unofficial name of "space as a service", is a great solution for entrepreneurs who want to start a business without the increased costs. Despite the lack of funding and, conversely, charging for their services, coworking spaces help to significantly reduce the initial start-up costs. A coworking space will save you from the headaches when renting an office space, choosing office equipment, concluding an agreement with an Internet provider, organizing negotiations with potential clients and investors. Such facilities already exist throughout the country in sufficient quantities.

If you are planning to launch your business not only in Russia, then the WeWork service will come in handy. This global coworking network topping most coworking ratings describes their service as follows. "You focus on your business, and we take care of the rest." Indeed, you will find a comfortable space for your office with the necessary equipment and services, as well as conference rooms, cafes and recreation areas. The advantage of coworking spaces is that they charge a monthly fee, so there is no need for a long-term investment.

Business incubators

Unlike coworking, business incubators offer not only the means and tools for doing business, but also a whole range of research, consulting and training services. There you can get advice on various aspects of business management - financial, legal, intellectual property, human resources and much more. Incubators can bring you together with marketing experts to help you prepare your market research, management trainers. They will help you build a startup team, professional coaches who will tell you about the best practices of modern business.

Another big advantage of business incubators is that they can connect you with potential investors for your startup or arrange a bank loan if that is your preferred strategy. This will help if you still haven't found where to find a small business investor. Some business incubators operate only online, without providing co-working services and concentrating on consultation and assistance.

Essentially, the purpose of business incubators can be seen directly from the name - their goal is to help growing companies "incubate" their business ideas, grow them into a prototype to attract investors, and, in general, support start-up businesses before they spread their wings. Business incubators may be part of government-funded programs, while others are funded by venture capital or large corporations. An example of a business incubator is Idealab, an international service that looks for promising ideas and helps them become successful businesses.

Business Accelerators

They are one step ahead of business incubators as this is where small businesses can provide some initial investment. At the same time, business accelerators have some entry barriers and conditions that a business must meet in order to qualify for the initial investment from the accelerator:

• Accelerator programs are open to all applicants, however not all of them are selected. The percentage of acceptance of the most famous accelerators is not higher than 3%
• Accelerators are usually reluctant to accept individual candidates, favoring startup teams. The general approach is that a team is more likely to start a business than an individual entrepreneur.
• Startups accepted for accelerator programs usually receive a small investment in exchange for some capital in favor of the accelerator.

Accelerator programs have a specific schedule, plan, and deadline. During the program, start-ups are given intensive advice, assistance and training and should be able to present a demonstration by the end. The demonstration is shown to businessmen, media representatives and potential investors to make a decision on further investment in a specific project. Startups included in accelerator programs benefit not only from the mentorship they receive, but also from the single fact of choice. Thus, the team applying for the program must submit a truly outstanding application to convince the Board that their idea has real value.

Techstars is a US-headquartered global accelerator network operating in Russia, Israel, Germany, South Africa, Australia and other countries. In 2017, CEO and co-founder Dmitry Sushko participated in Techstars Boston as a technical officer helping startups prototype and automate business operations with the support of remote JavaScript developers from the DA-14 team. Techstars has some simple guidelines for startups hoping to adopt their programs:

• Apply for the board ahead of time to get to know the project and the team and follow their progress
• Show fast progress by updating the app with actual achievements
• Prepare a short but impressive video and a brief description of the project
• Provide links and describe your team's history and experience
• Demonstrate personality to show that people are behind the project

In fact, these recommendations can be useful for applicants for any accelerator program. They all show that you have a great idea and know how to bring it to life. There are many startup acceleration programs out there, so you can choose the one that suits you best.

Key factors for successful cooperation with an investor

Finding investments for a business is just as important as attracting investors. Here's what we advise aspiring entrepreneurs to look for in their investors:

Diversity. The more diverse your investment group, the better suited they will be to the challenges facing your company. Look for investors with different experience and knowledge.

Confidence. Positive people can be the difference between project success and failure. No company can grow without problems. Finding people who remain confident during this time can increase your chances of success.

Investors matter much more than just providing cash. Depending on the arrangement, the right group can become an informal consulting firm or even help with day-to-day work. After an exhaustive search, you will definitely find an investor who is ready to invest in your business. Many of them with the skills needed to manage a large site and the capital needed to make improvements to your business. Of course, some investors prefer to stay at arm's length. Either way, your team of investors can jump-start your own business. Always approach potential investors with honesty and confidence, and remember to pick and choose the right people to work with.

be careful

Unfortunately, financing and private investment in small businesses is about money, and money breeds some predatory business practices, fraud, and the like. Here are a few reminders to help you avoid the pitfalls.

1. Don't take private placements, friends and family as good sources of investment capital just because they are featured here or taken seriously in some other source of information.
2. Some investors are a good source of capital and some are not. These less established sources of investment should be handled with extreme caution.
3. Never spend someone else's money without first doing the proper legal work. Get the documents ready by professionals and make sure they are signed.
4. Never spend money that was promised but not delivered. Often companies get investment commitments and negotiate costs, and then the investment falls through.
5. Keep in mind that it is not always a good idea to turn to friends and family for investments. The worst time you don't have the support of friends and family is when your business is in trouble. You risk losing friends, family and your business at the same time

Conclusion

If you are not already a millionaire, then co-financing to start a new business requires serious planning and effort. The diligent entrepreneur must weigh the advantages and disadvantages of the available financing options and determine which sources of funds provide the most flexibility at the lowest cost.

But you don't need to limit these options. Many small businesses start with money from various sources. Even if you get a significant bank loan, you may still need extra cash from friends and family or yourself to make your dream of a startup a reality. And there will always be unforeseen events and expenses. Fortunately, the emergence of new sources of funding, such as crowdfunding and peer-to-peer lending, means that would-be small business owners now have a wider range of funding options at their disposal than ever before.

And finally, finding an investor for a small business is a difficult path, where no one is immune from failure. However, if you are well prepared and set up, you will be able to find an investor for production. Then your launch success will be in your hands. Whether you choose a bank loan, a private investor, a government grant or a business incubator, each of these funding sources has its own advantages and disadvantages, as well as criteria for evaluating your business.

Good afternoon!
We are technologists and have developed technologies for fattening and keeping highly competitive cattle fattening. The technologies have been tested by us in industrial conditions and give the Russian livestock industry the opportunity to compete with foreign suppliers of similar products.
There is a desire to create a fattening complex for fattening cattle using our own technologies in the Krasnodar Territory (our place of residence). We want to start small, with 200 heads, with an annual increase in livestock approximately doubling and bringing it up to 1600 heads in 3-4 years (expected net profit of 53 million rubles).
I offer you a summary of the project for the climatic and other conditions of the Krasnodar Territory. You must hear Russia's problems in beef production and its competitiveness, so this is the case that can revive Russian beef production and have a long-term profitable business. The next step is full-scale production of our high performance feed for cattle and sheep.

PROJECT SUMMARY
"Highly competitive cattle fattening

Let's start small!
The project budget in the amount of 15,000,000.00 rubles. ($500,000.00.)
The fattening technology was invented in 1996-1999. The fattening technology has been repeatedly tested in industrial conditions, the safety of feed has been verified by the state. laboratory, the quality of meat is checked by the state. laboratory (there are relevant Acts). We have a patent for an invention for a feed component

It is planned to fatten 200 heads of cattle from 100 to 540 kg. fattening 365 days. Average daily gain in fattening = 1.2 kg. (for comparison: the average daily weight gain for fattening cattle in the Krasnodar Territory = 0.62 kg.)..

Money is needed for:
1. Acquisition of an empty farm of 40 hectares (ownership of land), Krasnodar Territory. Art. Bryukhovetskaya, near the Krasnodar-Eysk highway (70 km from Krasnodar) - 4.7 million rubles. ($156,667)
2. purchase of 200 heads of cattle - 2.0 million rubles. ($66,667)
3. equipment. - 3.0 million ($100,000)
4. costs (feed, wages, taxes) - 3.0 million rubles. ($100,000)
5. initial other expenses - 2.3 million rubles. ($76,666)
TOTAL \u003d 15 million rubles. ($500,000)

It is desirable to defer payment for 1.5 years. Loan for 5-6 years.
Estimated income - 9.6 million rubles. ($320,000) (delivery price of live cattle - 90.0 rubles per 1.0 kg. 80 rub.+10 rub. grants)
The expected net profit from fattening cattle is 4.6 million rubles. ($153,333)
Additional profit from the production of dry organic fertilizers enriched with mineral additives and nitrogen - 1.2 million rubles. ($40,000).
Total net profit - 5.8 million rubles. ($193,333)

The profitability of fattening is 92.4%. The cost of 1 kg of live beef is 46.8 rubles. (high competitiveness)
The pledge is the future property of the business.

The fattening technology is 100% environmentally friendly, low energy consumption, feed and feed additives are only of our own production. Land for agricultural purposes is not required, feed components are purchased from farmers at market prices.
The share of the investor in the business is up to 51%, depending on the terms of financing.

Sincerely
Dolgushin Vladimir Markovich
Russia
Timashevsk
Krasnodar region
Mob. 8-918-3132090 MTS

01Mar

What is an investor for?

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

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

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

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

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

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

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

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

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

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

How to find an investor for a business from scratch

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

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

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

Based on this rule, the following can be distinguished:

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

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

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

What information may be of interest to investors

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

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

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

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

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

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

What does he need to tell about the business:

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

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

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

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

Profitability for the investor

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

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

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

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

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

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

Where to look for an investor for a business or startup

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

Relatives, friends, acquaintances

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

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

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

Funds

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

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

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

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

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

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

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

Successful businessmen

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

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

Collaboration usually takes place under two conditions:

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

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

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

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

Banks

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

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

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

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

Venture investments

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

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

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

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

Search for an investor: step by step instructions

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

Step 1. Drawing up a business plan.

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

What should be in a business plan:

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

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

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

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

Step 2. Choice of the form of cooperation.

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

In total, there are 3 ways of cooperation:

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

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

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

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

Step 3. Search for an investor.

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

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

Step 4. Negotiations with potential investors.

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

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

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

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

Step 5. Conclusion of the contract.

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

Important points that should be in the contract:

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

Investor search portals

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

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

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

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

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

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

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

9 rules to follow when looking for an investor

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

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

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

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

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

For the first you need to know:

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

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

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

Rule number 3. Plan your investments.

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

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

Rule number 4. Sounding realistic goals.

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

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

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

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

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

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

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

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

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

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

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

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

Rule number 9. Honesty is the best weapon.

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

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

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

Conclusion

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

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

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

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

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

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

This section is for those who are either ready to invest and are looking for an object for profitable investments, or, on the contrary, are interested in attracting Russian or foreign capital. Here are both announcements of private investors who are ready to invest in business, and investment programs of investor companies, which offer, among other things, project financing. Direct and venture capital funds, the largest regional and industrial investors are invited to fill in the section. A wide range of investment opportunities will be found here for both small and large businesses.

It does not 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 are a private equity investor and 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: about 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 in attracting investments. Just customize the search form according to the criteria you are interested in and regularly receive investment requests in your mailbox. Do you want to search for investment objects more actively? Then refer to the section "Investment projects".

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 obtaining 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?

Search for investors to implement an idea in a small business

How to get investments for a small business? When looking for funding sources for a project, keep the following rules in mind:

• do not delay the deadlines;
• collect as much information as possible about a potential investor in order to avoid misunderstandings in the future;
• carefully calculate the amount of necessary investments;
• focus on specific goals;
• in the process of negotiations with the 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 state of the Russian Federation offers a wide range of ways to promote the development of small business:

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

You can learn more about state support programs on the portal of the Government of Russia (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 - joint lending service;
• Nimfamoney - a closed platform for investors and startups (loan amount from 100,000 to 1 million rubles);
• business.potok.digital - lending to entrepreneurs by individuals.;
• vdolg.ru - loans up to 500 thousand rubles to a bank card;
• loanberry.ru is an 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. Reach out to family and friends- this is the option of financing your own business most often practiced 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 make a friend or relative of your partner and boss, start earning together. This investment option is optimal if the diets are about 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 get your share of passive income.
2. Looking for a business agent. Today, there are many agents in the service market - intermediaries between a startup and an investor who are ready to help you find a potential sponsor for a certain percentage, 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 to conduct a business conversation in more detail. This option of finding an investor for your own project will be of interest to those who have decided to bring to life something grandiose and large-scale. Most often, agents have access and contacts with very wealthy investors, and if they like your project and it is approved, the finances will not stand up. But to sponsor projects that do not bring a lot of money, they are unlikely to undertake - this is not their level, and here you should go and choose 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 for finding an investor has been completed with attention and therefore it should be adopted. The essence of this method of finding an investor and financing your own project is that a person publishes his own idea on one or another specialized website, his own project and in social networks dedicated to this area, prescribing the conditions for participation in the project - those on which he intends to attract financial activists. Everyone 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 needed to implement the startup. Most often, this method of finding and attracting an investor is used in such areas and areas as charity in the field of medicine, financing non-profit projects - recording amateur music and holding festivals, making films and holding exhibitions.
4. Bank loan. As an option to search for an investor - contacting the bank with your own developed business project, all the necessary calculations of investments and profits, its payback period. But this option is possible if you have stable and official earnings, you 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 of IFIs, where the conditions for issuing loans are somewhat softer, although the percentage for using the loan will be higher than in bank.
5. Business investment attraction platforms. If you do not want to resort to the help of a bank or an MFI, you can visit specialized startup platforms. 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 information about 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 MFI format or bank lending. More specifically, such a platform can 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 registered on the presented platform, who can act both as a consultant and a sponsor. Another proven platform that is popular among startups and investors is Gust.com – since its submission, 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, which can be easily found on the Internet. Professional networks of investors are currently a developed area where you can cross paths with a potential sponsor working in one direction or another. Most of the sites presented in the network work with foreign investors who are ready to directly join the international, global in scale business space.
7. Business angels, private equity funds. There is a need to find a reliable investor for your own project - you can contact a private investment company that specializes in this kind of financial injections. Most importantly, 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 in a few years from the start of a 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 MFI, an investor - do not despair. Perhaps your very investor has not yet met on your way, 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 ones include Synnergy Innovations, Ingria, the business incubator of the Academy of the National Economy, the API Moscow business accelerator, the First City Business Incubator of St. Petersburg and others)
• Platforms for startups (full list below)
• Small Business Support Funds and Employment Centers
• Investment Club "Business Youth" (molodost.bz/investfund_OLD)
• Investor forums (investory.biz, investors.net/forum, investtalk.ru/forum/)

Sites for finding investors in Russia and abroad: top 20

The following platforms for finding investors are the most popular today:

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 realize his business idea has to solve.

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

How to get investments for a startup? In order to receive financing, the startupper will have to convince the investor of the viability and profitability of the project. To do this, you will need to consecrate the following topics in your business plan in the most detailed and reasoned way:

• uniqueness and prospects of the project;
• demand for a product or service in the market;
• the size of the investment;
• payback period of investments;
• projected level of profitability;
• money back guarantees.

How to attract investors to the project quickly and without unnecessary problems? You can search for investments and investors using specialized online platforms:

• Boomstarter is a crowdfunding Russian platform.
• Planeta.ru is a platform that allows you to attract from 20,000 to 15 million rubles for the implementation of any creative idea.
• nachinanie.ru - a 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 summary of the business project should contain the following points:

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

How to calculate return on investment (ROI)? To calculate, you must use the following formula: ROI \u003d NP / I * 100%, where NP is net profit for a certain period of time (this indicator is calculated as the difference between total profit and cost); And investment.