What is attraction of investments in business? What business projects (start-ups) are of interest to investors? How to invest in a small business or manufacturing?

Hello to everyone who visited the website of the HeatherBober online magazine! Denis Kuderin, an investment expert, is in touch with you.

The theme of the new publication is investment in business. The article will be of interest to both novice businessmen and those who have already tried their hand at entrepreneurship.

The long-term goal of any business is to receive a stable growing income and have continuous development.

Do you want to know how to achieve this? Then - go ahead!

1. Why is it worth investing in a business?

Competent investments in business are the key to a prosperous future. Successful investments create passive income- this type of earnings frees up your time and gives you financial independence.

The vast majority of Russians (as well as citizens of other states that were once part of the USSR) have a fundamentally wrong idea about long-term profitable investments.

Many believe that promising financial investments are available only to the rich, successful and talented. Others believe that owning a business is an unjustified risk, especially in the context of a permanent economic crisis.

With such views, people live their whole lives, unable to escape from the clutches of hard wage labor and the vicious circle of existence from paycheck to paycheck.

By changing our ideas about the essence and meaning of financial investments, we can change not only our own financial status, but also our destiny. Freedom (including financial freedom) is, first of all, an internal state, and only then - expensive restaurants, travel, yachts and luxury cars.

Everyone can achieve all this, if there is a desire. If you want to become free, change the vector of your thinking: get involved active economic activity - start working for yourself.

Investments in personal business- this is:

• earnings, which, as they develop, are less and less dependent on labor costs;
• confidence in the future;
• opportunity to implement the most daring ideas and plans.

Modern investment technologies allow you to start your own business with a minimum capital. Special knowledge is also not required - there are many areas of business that do not require the education of an economist.

2. Best Startup Investments – 5 Proven Options

Option 2. Production

Choosing to invest in finished production, investors should be guided by the level of profitability of the enterprise, its competitiveness and possible risks of losing funds.

It is important that the products of the company in which you invest are in stable demand in the market. The timing of capital turnover is also important.

Last update:  02/22/2020

Reading time: 12 min. | Views: 14639

Good afternoon, dear readers of the financial magazine "site"! In continuation of the topic of investing, we will consider the issues of finding investments for a business, namely where and how to find an investor to open a business from scratch, what to do so that he agrees to finance a business project, and so on.

In this article, we will cover:

• Why investors are needed and how to attract them correctly to start a business;
• What steps should be taken to find an investor from scratch;
• What rules should be observed in the process of searching for an investor;
• Who can you turn to for help in finding investors?

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

The article will be useful to absolutely everyone: as a business start-up, and those who already have some experience in business development. Also, the article will appeal to those who are interested in the theory of finance and investment.

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

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

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

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

At the same time, novice businessmen should not be ashamed of the fact that their capital is insufficient. Even successful large companies, when they first started their activities, used borrowed funds.

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

To date Finding investors just got easier: for this purpose, a a huge number of funds and companies who agree to transfer their money to novice businessmen.

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

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

Businessmen must remember that funds, and private investors Don't donate money to charity. From the projects they invest, they expect maximum and speedy return.

Thus, any source of investment funds, whether banks, funds or other companies do not issue funds without the necessary confirmation. You can, of course, try to get a grant. However, the companies that issue them are even more rigid in their selection of applicants.

What to look for when attracting investors

2. How to attract investors - necessary conditions 📋

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

Investors strive for a level of income that will not only cover the rise in prices, but also ensure a comfortable life.

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

Starting businessmen, starting the search for a potential investor, should perceive it not as a creditor but as a partner. It turns out that a businessman invests an idea in a project, while an investor puts his own money. Therefore, such a deal should be beneficial for both parties.

Most professionals agree that search for investors- the task is not so difficult. Here the main thing is competently present your idea. It will also be necessary to convince the owner of the funds that the investment in the project will be quite promising and will bring significant income.

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

• uniqueness and relevance of the product/service offered for production;
• the size of the required investments;
• in what terms it is planned to recoup the invested funds;
• expected level of profit;
• what is the return on investment guarantee.

If a businessman correctly characterizes each of these issues, the chances of convincing an investor that the project can really bring good profit, will rise significantly. As a result, the investor will decide on the allocation of funds to him.

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

When looking for an investor, it is important to act consistently in accordance with the recommendations developed by professionals. In this way be able to quickly succeed in finding investors.

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

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

Some investors not important business ideas, as they are looking for passive income, tired of active business development. They have already earned initial capital working hard. Now the only desire of such investors is that the available funds bring profit, and at the same time it would not be necessary to do anything.

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

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

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

Step #1. Drawing up a business plan

First of all, when choosing an object for investment, investors pay attention to the business plan. It must be well-formed, otherwise the probability of receiving funds may come to naught.

A well-written business plan must contain the following information:

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

Trust must be everything- from the quality of the paper on which the document is printed and the folder in which it is enclosed, to the use of professional graphic editors when drawing up the necessary diagrams.

In more detail, we wrote in a separate publication.

Step #2. Choosing the right form of cooperation

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

Investors agree to provide funds by earning income in the following ways:

1. as a percentage of the invested amount;
2. as a percentage of profits throughout the life of the project;
3. as a share in the business.

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

Therefore, if a potential investor categorically disagrees with the chosen model, wishing to use another option for cooperation, should be assessed. Often it is better to agree to the conditions of the investor than to be left without money.

Step #3. Enlist the help of experienced businessmen

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

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

Step number 4. Negotiation

Often a positive decision of investors to invest in a project determined by good negotiation . Even those who easily find a language with people should carefully prepare for the meeting.

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

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

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

Step number 5. Conclusion of an agreement

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

It is important to note that the agreement should include:

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

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

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

Conclusion of an investment agreement - sample

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

(example, sample)

Thus, in attracting funds from investors, it is important to follow a certain sequence. A businessman should be guided by the step-by-step instructions described above. Then the attraction of funds will be most effective.

How and where to find investors

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

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

Nevertheless, there are several options, and each of them deserves close attention from the businessman.

Option 1. Close people

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

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

Option 2. Businessmen

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

It is to such businessmen that it makes sense to apply for obtaining funds for the development of their own business.

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

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

At the same time, it should be understood that the second method leads to a significant restriction of the freedom of decision-making by a novice businessman. Therefore, it is worth thinking several times before choosing this option.

Option 3. Funds

Another way to find investors for business are special funds - investment and promotion of small business. However , getting funds from such companies can be difficult .

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

For the investment decision to be positive , you will need to analyze the current activities of the company, as well as form a plan for its further development.

Those who are looking for an investor should also study the activities of public funds. They often give funds to the most promising business projects by organizing competitions for this purpose.

Option 4. Venture investment

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

At the same time, business projects are most often financed. innovation sphere , science , as well as IT technologies .

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

We wrote in detail about venture investments, in particular, what they exist and what they do in a separate article.

By investing in a business, venture funds want to receive a regular income. To this end, they draw up a share of the business. At the same time, they are the owners of a part of the company for only a few years, after which they sell it to third parties.

Option 5. Business incubators

A business incubator is a special platform created to implement various business projects. To receive investment funds through an incubator, it is important to draw up a competent business plan.

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

Option 6. Banks

If you can’t find an investor, you can try to get a bank account. However, getting enough a large amount is often not easy. Therefore, this method of searching for an investor is suitable when when you need a small investment.

Credit institutions present to potential borrowers enough high requirements. To receive money, it may be necessary to provide property as collateral, guarantors, and collect a large list of various documents.

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

In this way, search for an investor for business- It's not easy and it takes a long time. Therefore, a businessman will need a lot of patience. It is important to evaluate all possible options, analyze emerging risks. Then you can be sure that the search will be successful.

There is an article on our website in which we talked about where you can and how to properly issue an IOU - we recommend reading it.

Basic rules for finding investors and their investments

5. 5 important rules for finding investors 📌

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

Often, this process is delayed, and often not at all. ends in failure. To increase the chances of success, it is important to follow 5 (five) basic rules. They allow businessmen to be more confident in finding an investor, as well as be smart about the selection process.

Rule number 1. The search should start as early as possible.

Every businessman must understand that Finding an investor is a long process. From the moment they start to the receipt of funds, a lot of time passes.

That's why start look for an investor as soon as possible. Ideally, this should be done already when future activities are planned, and it has also become clear how best to present the project's benefits to potential investors.

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

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

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

Own funds invested in a business usually run out very quickly. As a result, a sharp rise at the beginning of the project can be replaced by a fall even before the start of investment flows, and this situation may alienate most investors.

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

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

In doing so, you should know:

• what areas he usually invests;
• possible volumes of invested funds;
• investor preferences regarding the method and principles of cooperation.

All collected data should be compared with the desires of the businessman himself. Collaborate with the best investor. It means the most optimal, and not large and popular.

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

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

A good investor, if he knows why, will greatly help in the development of the project. A bad one will spoil even a great idea.

Assessing the amount of investment worth understanding, which, if necessary, 50-100 thousand dollars it makes no sense to contact someone who traditionally invests millions. The same can be said in reverse: it makes no sense to go to someone who simply does not have them for large investments.

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

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

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

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

There are many examples in history that with good relations between a businessman and an investor even with the manifestation of errors and small failures, they were still provided. In the end, success was achieved in the activity.

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

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

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

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

Rule number 4. Goal Focus

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

Too big ideas, as well as a desire to cover a large number of issues, usually cause investors to doubt that it is possible to successfully implement them.

Therefore, the goals set by the businessman should be as specific as possible . They should be limited by the possibilities as well as the needs. The goals of a businessman should be specified even before he finds an investor.

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

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

Therefore, an investor should be sought under solving specific problems and business matters.

Rule number 5. Be as honest and open as possible

In the process of negotiating, and subsequently in the preparation of reports, a businessman should not lie and keep back.

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

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

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

6. Providing professional assistance in finding investors 📎

Those who cannot find an investor for their business on their own can turn to professional assistants.

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

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

1) EASTWESTGROUP

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

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

By registering on the site, a businessman gets in touch with several dozen investors at once. This greatly increases the chances of receiving funds. The cost of the investor search service is calculated individually for each user. However, no payment is required until the funds are received.

Using the site is very easy. It is enough to go through a few steps:

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

2) Start2Up

This resource is a kind of bulletin board, which hosts investor proposals, entrepreneurs, startuppers looking for business partners.

Thanks to the site, those who have funds can find where to invest. At the same time, novice entrepreneurs have the opportunity to conclude an agreement with investors who are ready to support their project.

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

The most popular business areas here are:

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

There are also other promising areas of activity.

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

There are hundreds of offers on the site. buy out a startup, invest in different lines of business, as well as improve existing production.

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

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

Don't forget about crowdfunding sites. Thanks to (a type of crowdfunding), it is also possible to attract capital from interested site participants for a share in a startup.

7. Answers to frequently asked questions 📑

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

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

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

Each aspiring entrepreneur is looking for his options for finding an investor. Therefore, it is so important to reconsider ways to raise funds.

Method 1. Accumulate

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

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

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

Method 2. Take a loan

Those businessmen who are well aware of the rules of financial discipline may well take Bank loan for the development of activities.

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

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

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

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

Method 3. Government subsidies

The state is trying actively support small businesses. Any novice entrepreneur can participate in competitions for subsidies.

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

In addition, so-called incubators have been created in the country (most often on the basis of the largest higher educational institutions teaching the subject "economics").

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

Method 4. Close people

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

There are also advantages to this method of raising funds. Firstly, it is easier to agree on the timing of a refund with loved ones. Secondly, the receipt of funds is much faster, since it will not be necessary to collect a large number of documents, and also wait for the decision of third parties.

Method 5. Private investors

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

Most major cities have Internet sites that host relevant ads. At the same time, it is enough to apply for a loan verify your identity and write a receipt. Some private investors require mandatory notarization of this document.

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

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

Step 1. Making a plan

A businessman must develop a quality business plan that he will use as a presentation to individuals who invest in the business. It is the plan that will help convince the investor that the businessman's project is capable of generating significant profits.

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

Step 2. Choose an investment scheme

There are several options attraction of funds. Investors can buy new equipment, providing a loan at certain percentages. Others invest by demanding in exchange for a share in the company .

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

Step 3. Help from professionals

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

Step 4. Search for Internet resources for investing

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

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

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

The development of Internet technologies has greatly simplified the procedure for finding investors. There are a fairly large number of Internet resources that help in this difficult task.

Here are the most popular ones:

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

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

A businessman must remember that the most suitable place to look for an investor is where the maximum number of them gather. It can be various exhibitions, as well as presentation promotions. As part of such events, round tables of cash owners are usually organized where you can get to know the future investor. This option is quite simple, but its effectiveness is highly questionable.. Such events are extremely rare, it also happens here to meet the right person. not easy.

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

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

A good way to attract investment is considered assistance of investment brokers. For a small commission, a businessman shifts the worries about finding an investor to someone else's shoulders. In this case, you will need to pay only upon the fact of issuing funds.

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

Incubators are not intended to invest in projects. They are created to provide business with optimal conditions for development.

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

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

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

There are many different agencies successfully operating in the investment market that provide professional services in finding foreign investors. It is important for potential foreign investors to see the prospects of your business project.

8. Conclusion + related video 🎥

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

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

The search for an investor is only the initial stage, a small part of a long and difficult journey.

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

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

As well as an interesting webinar "How to attract investment in business" from the Chamber of Commerce and Industry of the Russian Federation

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

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 they are unlikely to undertake to sponsor projects that will not bring a lot of money - 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 borrowed money somewhat softer, although the percentage for using the loan will be higher than in a 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 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 (Synnergy Innovations, Ingria, the business incubator of the Academy National economy, API Moscow business accelerator, First city business incubator of St. Petersburg and others)
• Platforms for startups ( full list posted 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.

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

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

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

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

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

Who is the most common investor

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

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

What you need to do before attracting investments

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

1. Detailed business plan of the project with calculations and payback period. The investor must see after what period his capital will increase. It is desirable that the plan describes the project for at least 1 year (but preferably for several years), be realistic, and do not contain excessive expectations.
2. The exact amount of necessary financial resources, possibly in several ways. For example, according to the minimum plan and according to the maximum plan.
3. A short and bright presentation of the project, which will describe all its prospects, strengths, innovation and expected profit. That is, this is a brief summary of why it is beneficial for investors to invest in this business.

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

What are the types of investment

There are two types of business investments:

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

What investors like

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

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

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

What repels investors

The main thing that will not allow you to find contributors to implement your own idea- this is the unrealisticness of the business plan, errors and overstatements in it, the futility of the project. Investors are looking for an opportunity to multiply their capital many times over and for this reason they will not participate in obviously failed events.

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

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

Applying to a bank for a loan

Many banks offer business loans. True, a novice businessman has much less chances to receive a large amount of money than an already operating organization. The issuance of funds to an unrealized project is too risky for a financial institution, so it is very likely that the amount will be reduced or the loan will be refused altogether.

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

An entrepreneur raising funds for his company must use several options at the same time.

Raising capital through investment funds

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

Funds are state and non-state. Those entrepreneurs whose company has any social or strategic importance for the region in which they plan to work should contact the state ones. This can be, for example, an asphalt business: it provides many new jobs (social value) and creates resources to improve the quality of streets and roads (strategic, local value).

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

Raising funds for a business idea via the Internet

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

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

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

Each site for finding investors offers entrepreneurs to register their project and indicate all the most important information about it - the volume of necessary investments, plans and prospects, payback period, value, innovativeness.

The service will show this information to potential investors who are looking for projects in a similar business area or who have the necessary funds. Some platforms, assisting in investing, send out new offers to the base of registered users, notifying them of the emergence of promising companies.

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

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

Independent attraction of an investor

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

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

How crowdfunding can help

Crowdfunding - that is, raising funds through voluntary donations - is not an investment in the truest sense of the word. However, this type of search for money for the implementation of one's own business is also very promising. With donations through crowdfunding, contributors do not acquire a stake in the company or its securities, but help to release the first batches of goods and get to work.

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

In Russia, crowdfunding is just beginning to develop. The most famous Russian-speaking sites are StartTrack and Boomstarter. On each platform, you can learn from successful companies that have raised funds in this way and see what ideas are currently fundraising.

Summary

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

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

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

Trusbox is not a purely technological service, but it definitely has the potential for development towards IT, so we were looking for investments like that. Technological projects often require long and complex development, and the result is measured not only by such metrics as we are accustomed to based on university economics lessons 10 years ago. So if you want to open a beauty salon or a car repair shop, then my advice, alas, will not work for you. But if you came up with a program that facilitates the work of a car repair shop, you can find investments in the project, following our experience.

Anna Gorodetskaya

My documents: what to prepare

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

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

LinkedIn Sales Navigator/Unsplash

Where am I: determine the stage of the project

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

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

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

If your stage is a confident pre-seed and you have not released, in fact, nothing, then this does not mean that you will not be able to find an investor. The first option for finding an investor will not require you to have a finished product.

About the benefits of hackathons

If you have a development team, even a small one, be sure to participate in thematic or corporate hackathons. A hackathon is a short-term event (most often they are held on weekends) where teams or individual developers solve one problem voiced by the organizer. In addition to the possible winning of an impressive prize that can be spent on the development of the project, you will meet serious people in your industry.

Companies that host hackathons are obviously interested in additional products, if they like your project, you have a serious chance to attract the organizers of the hackathon as an investor, as was the case with three teams at the hackathon "Assemble the University" . A list of upcoming hackathons can be viewed.

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

QIWI Universe/facebook

Where to looking for

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

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

3. Contact directly
The simplest and most obvious advice, which for some reason no one uses: just write to investment funds. The Firrma website has a ranking of the most active (that is, those who made the most deals) venture capital funds for the year. There are both seed and new funds. The algorithm in this case is as follows: you need to go to the investment fund website, try to find a project presentation template there, fill it out and send it along with a cover letter to the address indicated on the website. Investment funds really read the letters that come to them. They make money from investments and certainly don't want to miss out on exciting options.

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

cartierawards/instagram

One of the formats for accessing investments is startup competitions. Most often for their organization are combined investment fund and some large firm, and the winners receive prizes from both: in the form of investments, in the form of services from the firm, or both. For example, the First Height contest is held jointly by the consulting giant McKinsey & Company and the large investment fund Winter Capital. But the most famous startup competition in Russia is GenerationS. In addition to the main competition, it has different nominations every year, the application process and expert verification in them can be easier, so check if there is a special nomination on the subject of your project this year, and if so, feel free to apply on the website (list of special nominations located at the bottom of the home page).

Separately, pay attention to competitions that stimulate the development of women's entrepreneurship. So, the famous jewelry house Cartier has a competition program for women - business leaders from around the world.

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

Investor's Choice

Important and responsible business. Because the investor gives you not only money - he gives you connections and opportunities to make this money even more money.

In addition, investment money is not given just like that - you can only get it in exchange for a share in the company. That is, by letting another participant into your project, whose interests will already be exclusively commercial, you should be prepared for the fact that your actions as a project manager should also take into account the possible benefit for the investor.

This is the main difference between investments and lending: you can simply return the loan and forget it, and the investor will stay with you until he leaves the project (sells his share). So if your project involves a relatively simple development cycle and does not require so many funds, then it will probably be easier and faster for you to take a loan for business development, and only then attract larger investments to scale the project.

Whichever option you choose, I wish you good luck and courage: regardless of the outcome of your hunt for investments, the experience of communicating with funds and making presentations will remain with you forever.