Where is the best place to get investment for business. Region
There are many practical ways that explain in detail how to find an investor for a novice entrepreneur. You should not rely on one of the options - it is impossible to predict the reaction of potential investors to a new project. The best way is to search in several directions at the same time.
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About investors
Any investor wants to increase the available material resources. It's no secret that interest on bank deposits can hardly cover the rate of inflation.
Few people are comfortable with this type of investment. A prudent investor seeks to achieve a level of income at which he will be able to continue a comfortable life.
Owners of significant amounts of money prefer to invest in enterprises that can provide them with a form of income. Starting entrepreneurs, trying to find an investor, make the mistake of seeing him not as a partner, but as a lender.
Each of them invests his own in a business project: one - money, the second - an idea. In the end, both should benefit - this is the only way to interest the investor.
Clear business plan
Competent design of the project plays an important role in the search for an investor.
The business plan should include the following items:
- Full description of the project;
- Estimated data on the required amount of funds;
- Analytical calculations on the benefits that the investor will receive;
- Approximate time of receipt of the first income;
- Prospects for further development of the company;
- Investment return guarantees.
Experts advise when drawing up a business plan to pay attention to even minor details. Investors pay attention not only to the schemes provided, but also to the quality of the paper on which it is printed.
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Idea
The decision to invest in the project depends on the correct negotiation. Regardless of charisma and natural charm, an entrepreneur must be fully prepared for the meeting.
The main purpose of the negotiations is to convince the potential investor of the prospects of the enterprise. An investor may have a large number of questions: they need to be answered in detail and as honestly as possible. People with money feel good about lies.
If an outsider took part in the development of the idea of \u200b\u200bthe new business, then you should invite him to the presentation. No matter how ideal the project may look in the eyes of the owner, it may not be completely clear to the investor.
The specialist will explain in detail the nuances, it is easy to cope with the questions that have arisen.
What is the purpose of an investor?
Any enterprise for development requires investment of funds. An ideal project will not develop if the entrepreneur cannot find an investor and will die at the formation stage.
When looking for a business partner, entrepreneurs mean sharing with him:
- amount of initial capital;
- subsequent income;
- risks.
The search for an investor also implies the division of possible risks: no one can guarantee that a new company will instantly take the expected place in the sales market, and will allow you to return the invested start-up capital as soon as possible.
About the presentation
The presentation of a new project refers to creative ideas, the incorrect presentation of which can scare off a potential investor.
- animation;
- large blocks of text material - this is not a school report on biology, excess text will not be perceived properly;
- design - if the future owner of the enterprise does not have a diploma in design art, then it is better not to make attempts to surprise the investor.
The key goal of any presentation is to push a potential partner to the idea of the success of the advertised project and the signing of a cooperation agreement.
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What investors want to see
Professional investors are interested in the following questions:
- the total amount of capital investment and the share of invested money in the project;
- interest rate on investments - the standard interest offered by financial institutions is 14-15% per annum, the investor is interested in high incomes;
- return time of invested money - the terms are measured in months-years, the calculation goes from the point when the profit completely covers the start-up capital;
- assumed risks - an honest description of all possible difficulties will increase the image of a novice entrepreneur in the eyes of an investor.
The title page of the business plan should contain the following information:
- Investment size;
- Interest rate on income;
- Maximum payback time.
If the proposed partner is not satisfied with the specified information, then he will not get acquainted with the rest of the project. Nothing but profit is of interest to the investor. Non-standard, social significance, the benefits for the life of penguins in the conditions of South Africa and other touching tinsel do not bother anyone. The basic rule for attracting investors: a logical description of his income with minimal costs.
Ways
There are many ways to attract investment in a startup business. You can find an investor both among familiar people and on business platforms.
Wealthy relative or friend
This option is used as a fallback when all other options are exhausted.
It is difficult to conduct a common business with relatives and friends: even they will have to be interested for a long time, show a business plan drawn up and explain the benefits of investments. You can attract attention with shares in a business.
The positive aspects of investing in an enterprise by acquaintances include:
- trouble-free agreement on the time of return of invested funds - the terms can be increased to the most distant;
- accelerated receipt of the missing amount - the entrepreneur does not have to collect packages of documents, wait for a positive decision from third parties.
Funds
You can find an investor through specialized investment funds designed to help small businesses. Getting financial assistance in them is sometimes quite difficult: responsible persons will have to prove that the new project is viable and pay off within the estimated time frame.
One of the requirements of the funds is that the start-up entrepreneur has own capital. The allocated money must be a certain part of the total amount of the starter package. Loans in them are more suitable for people who already have workable enterprises.
To obtain approval, it is necessary to draw up an analysis of the company's activities, form a detailed plan for its future development.
Of great interest to newcomers are state fund organizations that invest firms on a competitive basis.
Investor meetings
The purpose of attending such meetings is to announce the developed project to the general public, to attract the attention of potential sponsors, to receive a loan or a grant. This method has a visible advantage for a beginner:
- He receives information on the correct conduct of business;
- Establishes contacts with potential partners;
- Finds the official support of the right people.
Networking
It implies the gradual creation of trusting relationships with a certain circle of people whose help may be needed in the future. Specialists have released a large number of practical manuals, after studying which a novice entrepreneur will learn:
- find the right investment events;
- look for people associated with stock companies;
- convince them of the need to inject additional capital into their business projects.
The key rule of networking is the ability to persuade an investor who refused to take part in the opening of an enterprise, to provide contacts of people who will be interested in it.
Incubator
This refers to government organizations that support small businesses in the Russian Federation. The positive aspects of finding such an investor include large investments and significant discounts on office rent, while the negative aspects are large taxes that are designed to increase the payback of such incubators.
When looking for a suitable project, it is necessary to familiarize yourself with all the previous work of the business incubator. The indicator of cooperation reliability depends on the number of successful launches of enterprises and companies, their further work.
After stopping the choice on a certain investor, you should submit an application for consideration.
After receiving an invitation, you will have to prove the operability of the business project with the help of a well-designed plan to the employees of the incubator.
Forums
Communication on thematic websites dedicated to investments will help to find an investor for the project being implemented. After registering on the forum, the problem should be approached gradually:
- study the main "weather" among users;
- maintain a conversation with participants;
- communicate with potential contributors through personal correspondence.
Only after preparing the ground can one publicly declare one's idea and ways to implement it, and ask for financial assistance.
Venture investors
The variant has gained popularity in developed countries. Venture investment involves investing money in risky projects with good future prospects. Preference is given to:
- innovation sphere;
- scientific research;
- Internet technologies.
In rare cases, you can get support to open a business in the service or trade sector. When obtaining approval, an entrepreneur must remember that venture investors want to receive a constant and stable income. They have been co-owners of the new enterprise for several years, after which the share is sold to interested third parties.
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Banks
The search for an investor leads newcomers to an attempt to obtain a bank loan to open a new enterprise. It is difficult to receive large sums from financial institutions; this method is preferable for small start-up capital.
Organizations that give loans impose serious requirements on potential borrowers:
- the presence of guarantors;
- a large list of supporting documentation;
- providing immovable or movable property as collateral.
Incomplete fulfillment of the requirements for refusal to issue a loan to the applicant.
Business platforms
There are special investment exchanges that, after reviewing the submitted projects, can sign a cooperation agreement. Notable projects include:
- start2up.ru;
- EASTWEST GROUP;
- investors.net and others.
Many beginners, having first come to these Internet sites, firmly believe that in order to receive help, it is enough for them to post a description of a business project. In reality, the search for an investor consists of lengthy correspondence, calls with potential investors. For every hundred applications, you can get five answers, among which there may be one positive.
Create a clear presentation
Booklets, information in PowerPoint, etc. can be used as material for a detailed explanation of the work of the future enterprise. Some investors prefer direct communication: they are interested in a prepared and colorful presentation, during the conversation they study the applicant, forming their opinion about the risks of trusting this person to help.
A potential investor should get a concrete idea of how the business works. A good example is the expansion of a confectionery business. Fresh and high-quality pastries are more likely to impress than colorfully decorated photographs. The basic principle of the presentation: word and deed, without data reinforcement by a material addition, any description will be perceived as intrusive advertising.
Short negotiation time
The total presentation time should not exceed 20 minutes. It is this time that the brain freely absorbs information without switching to foreign objects. When using a business plan in pictures, you should not get carried away with their number - 15 slides is the limit. When developing a business plan and training before negotiations, you need to learn how to invest in 15-20 minutes.
Recognition of investor experience
Investors, like everyone else, love to be asked for their opinion. A potential contributor needs time to think over the provided project, make a decision on investing his material resources in the business. The first meeting should take place under the auspices of studying the opponent, without a direct request for money, five minutes after the start of the acquaintance. Such assertiveness will cause denial.
A subtle allusion to the missing funds implies a veiled question: “At first it seemed to me that I would need about two million rubles to open a confectionery, but now it seems that the costs could be even more. Do not tell me what I could miss or don't know? The main thing is to hook certain strings in the soul of the investor, gently push him to the necessary decision.
Ultimate honesty
Business sharks easily recognize attempts to lie, even in small things. The investor will review the financial performance of the enterprise and instantly identify any misrepresentations of information. If a novice entrepreneur does not have answers to the questions asked, it is better to honestly admit this.
Outright lies will alert the opponent, the newcomer will get a bad reputation in certain financial circles. Do not think that investors do not communicate with each other - the rumor about a liar will spread around the nearest business platforms in a matter of days. After such advertising, the entrepreneur cannot count on outside help.
Optimism
Failure to find an investor should not make you lay down your arms. The absence of a large number of proposals or refusals after watching presentations is not a reason to abandon a business project. Financial institutions and individual businessmen often work in limited areas in which the proposed enterprise is not included. It is necessary to continue the search - sooner or later there will be interested persons.
Conclusion
Beginners must learn the basic rule of investment: money is not invested in the project, but in its creator. The investor is looking for an ideological person close to himself in spirit, with whom he wants to deal. If he does not like the applicant, then even an enterprise with multimillion-dollar income will not seduce the borrower in the future.
(votes: 3, average 4.7 out of 5)Freelancer, creative and business
In the modern world, there are more and more interesting business ideas that need to be implemented. But for the promotion of any project, money is needed, which the author of the idea does not always have. Therefore, the question of finding investments for starting a business is relevant. However, entrepreneurs and companies starting from scratch run the risk of facing strong competitors in their chosen niche. And in order to realize the idea and find the necessary funds for this, you need to know all the tricks for attracting investors.
We will tell you how to make your project attractive to investors and what you need to do for this. The road will be mastered by the walking one, and the business - by the one who is ready for the new.
- 1 Where to look for investors
- 1.1 Classic ways to attract investment
- 2 Attracting investments through the mainstream
- 3 Platforms for finding investors
- 4 How to proceed. Basic rules for attracting investors
- 5 How to make the project attractive: what the investor will pay attention to
- 6 How to prepare for communication with an investor: from a pitch to signing a contract
- 7 How to prepare a presentation: 5 chips for investors
Where to look for investors
Opportunities for finding investors are much more than it might seem at first glance. And you can find money by resorting to both long-existing methods of investing, and modern ones that have appeared with the advent of the Internet.
Classic ways to attract investment
You can get money for business through investment funds, small business assistance funds. This is quite a difficult task. In addition to the fact that a novice entrepreneur must find serious reasons for receiving investments, he must invest part of the funds himself, but not everyone has the opportunity to do this.
You can ask for help at venture funds However, it must be taken into account that they provide funds for the development of projects that have prospects. First of all - in the field of innovations and IT-technologies.
Another option is a special platform for investing in business projects, a business incubator. But in order to get money, you need to win the competition and pass an interview.
Successful investors can also become potential investors businessmen who would like to have passive income. Finding investors and making them partners is the most acceptable and easiest way. And for this you need to be able to present your project well, to prove its viability and relevance.
Attracting investments through the mainstream
One of the most popular ways to attract investment is crowdfunding, which is the collection of funds for a business from ordinary people. There are crowdfunding sites on the Internet designed so that you can leave offers to raise funds for a project or invest your money in a project. But in order to resort to this method, you either need to be a famous person or be able to advertise your idea very well, which, unfortunately, is not done on crowdfunding sites.
You can also try attract investments through cryptocurrencies and electronic payment systems . It should be noted that some cryptocurrencies popular today, for example, Ethereum, were created with the money of users.
Platforms for finding investors
If you do not know where to look for investors, then we offer you several large platforms for finding them.
business-platform.ru. Federal business platform. In addition to projects and proposals for the sale of a ready-made business, here you can find a base of investors. The main task of the platform is to connect investors and authors of business projects online.
beboss.ru. The resource provides an opportunity to search for investors for any industry, as well as a catalog of franchises, business plans and business ideas.
napartner.com. The platform offers various services for startups and investors, such as transaction support. Beginning businessmen will need to describe the nuances of their project so that investors receive as much information as possible.
investclub.ru The resource provides ample opportunities for finding investments and investors.
rusinvestproject.ru. A platform for searching for investors both in Russia and in the CIS countries.
How to act. Basic rules for attracting investors
There are many people who want to receive investments and the competition is quite high, so before looking for an investor, you need to learn a few rules.
The more information you provide to investors, the more you will be trusted.
If you know how much you can earn, how your project will develop, you can safely go to a conversation with an investor. Calculate exactly how much money you need and for what.
An example is the startup Talkdesk. Its authors proposed the development of cloud technologies to be used in call centers. Before meeting with a representative of the Silicon Valley venture capital fund, from which the project team subsequently received $12,000,000, it already had investments from other investors in the amount of $4,000,000 and received $1,000,000 in profit. Investors were captivated by the team's ability to save money and devote themselves entirely to work. They made all conclusions on the basis of the information provided about the project.
The more you know about an investor, the more opportunities you have to interest him.
What is your preferred communication style? How does he do business? How quickly does he make decisions? Every little thing can be important.
An example is receiving investments for the Glowforge project. Before applying for investments, the author of the project looked through the blogs of the fund's partners. Studying them, he concluded that when making a presentation, one should be based not on numbers, but on the product. In total, the project raised $9,000,000 for the production of laser 3-D printers from venture capital funds Foundry Group and True Ventures in 2015.
The project also set a crowdfunding record as it was able to raise another $28,000,000 on the platforms. That is, the author of the project, Dan Shapiro, successfully used the second rule, but most importantly, the third rule.
The more confident you are in your success, the more others will believe in it.
Investors prefer competent and persistent people who know what they want and who can justify their plans. Prove that you are capable of doing what you propose. Refuse the words “I want” and “I wish”, say “I do” and “I act”. Focus on goals. Properly set goals will certainly lead to success.
How to make a project attractive: what an investor will pay attention to
According to statistics, only one out of ten projects receives investments. What needs to be done to make your project interesting for investors?
- You and your team
First of all, any investor will be interested in what kind of people he will have to work with. Interesting as the personal qualities of the author of the project, and his motivation, willingness to go to the end. You must prove that you can move forward despite the difficulties. It is important how you achieve your goal, as any investor values his time and money.
- Correct calculations
Unfortunately, 95% of start-up entrepreneurs looking for investors have little idea of what income they can expect. The figures presented by them at the presentation sometimes do not correspond to reality. Constantly growing sales and millions of profits offered by project authors often have nothing to do with the real state of affairs. Look for how to optimize costs, indicate what exactly you want to receive investments.
- Project Potential
One of the most important moments in communication with an investor is to determine the potential of the project. The investor must know when the project will generate income, how you will identify potential customers, and finally, when the project will fully pay off. Preferably within a year, maximum three years.
To identify potential customers, it’s a good idea to run a crowdfunding campaign. In the event that users are interested in your project, you will have a chance to arouse interest among investors.
How to prepare for communication with an investor: from a pitch to signing an agreement
There comes a time when the investor believes that he should choose your project. On average, it takes businessmen 3-9 months from meeting an investor to concluding an agreement. You may have to prepare more than one version of the business plan and answer many questions that you are not quite ready for. Therefore, carefully prepare not only for the presentation, but even for a short meeting and a telephone conversation. Each stage of communication requires its own preparation.
Stage 1. Acquaintance
It can be both internal and external. The main thing here is to interest the investor in your project. To do this, you can use the following methods.
elevator pitch or a presentation in an elevator. The short presentation is so named because businessmen and startups “caught” potential investors in elevators and presented their business idea to them in 30 seconds. Your mini-presentation must include:
- the problem you are solving;
- Product Description;
- monetization method.
The main thing is to attract attention, for which you can use interesting facts or figures. For example, SpaceX's presentation consisted of only three proposals: launch costs that have not been reduced in decades, the possibility of reducing them by 90 percent, and an impressive amount that can be earned.
Elevator pitch can be used in large forums and business competitions.
Correspondence. It is quite possible to establish a connection by correspondence by e-mail. For individual calls, this method works best. The letter, in addition to the appeal, must include:
- a description of the product or service;
- description of consumers;
- business model;
- basis for investment.
Stage 2. Business meeting
Presentation. If a potential investor is interested in the elevator presentation or your letter, he will invite you to a personal meeting, for which you also need to prepare. When going to a meeting, you need to decide what you want from it specifically. If you get money, then you need to say so. Such a call to action is quite applicable and works.
Now about the presentation itself. It should be short and bright. It's good to follow the 10/20/30 rule. Try not to dwell on the details and keep within the 20-minute presentation, which consists of 10 slides and typed in 30 font.
Appearance. The fate of your project will depend not only on a good presentation, but also on your behavior and appearance. That's why:
- don't be late;
- come in a business suit;
- follow the rules of etiquette.
Your ability to keep yourself confident, your energy and charisma are very important.
Stage 3. Obtaining funding
Finance, finance and more finance. For an investor, the most important thing is making money. This must be remembered first of all. Therefore, even if your project is supposed to “save the world”, but does not have a good business plan and financial plan, it will not be of interest to a potential investor. A financial model is needed, which can be corrected by the investor himself. Good to have:
- marketing research results;
- letters from suppliers.
It is better to prepare three options at once: optimistic, pessimistic and basic. But, in any case, the model must be carefully verified. Only in this situation can we hope for a deal. It is important to show that you know the market well, to convince of the expediency of introducing your product. The investor must believe that by investing money in your idea, he will be able not only to quickly recoup the investment, but also to make good money.
How to prepare a presentation: 5 chips for investors
The presentation is very important, on which the receipt of investments will largely depend. Many entrepreneurs, when preparing for a presentation, do not fully understand the interests of investors and do not know how to properly present their project. What points should the presentation contain?
- Problem Definition. If it is, then it must be confirmed. Confirmation of demand should be determined by real numbers.
- Solution. Your decision cannot be the only correct one. But this is your decision, and you need to convince the investor that it works, that people are ready to buy the product. It is best to come to investors already with certain results. To do this, you can take the following steps:
- do product testing;
- notify of changes to the project;
- present the available results.
- Search for opportunities to implement the product. Willingness to buy does not mean that the product will sell well. Even if a person buys a service or product once, there is no certainty that he will contact you the next time. Therefore, you need to consider the profit and loss per customer, the so-called unit economy, as well as ways to attract and retain customers.
- Searching for a market and defining a strategy for entering it. We need to look for those markets that are growing, not disappearing, such as the market for cell phone repair.
If the presentation shows how your income will grow in 3-5 years, then your financial model will arouse interest among investors.
- Determining the amount of investment. At the last stage, it is imperative to tell the investor what you need money for and how much you want, as well as how much you are ready to invest yourself.
The right choice of an investor, serious preparation for a conversation with him, as well as a good presentation of the project will help you get a chance to invest in your project.
Andrey Merkulov
Investor, founder of the Investment Territory project
The owner of a number of assets - a profitable house, profitable apartments, profitable websites
Entrepreneur, expert in traffic, business replication and business systems
It is difficult for a novice entrepreneur to organize his own business, since even a small business requires significant financial injections to start. Where to get this money? The fastest and most reasonable way is to attract an investor - a person who will contribute his capital in exchange for a part of the profits or shares. An investor can become a partner of the company, often an assistant in development, because he is no less interested in making the business profitable than the owner.
Where can a businessman get money to develop his business?
Until the business begins to generate income, not a single day will pass - all this time the entrepreneur spends money on rent, paperwork, paying wages, purchasing equipment, consumables, products and for other purposes. You can get start-up capital from several sources:
- Personal savings is a long, but the most reliable way, in which you need to set aside part of your income every month;
- A bank loan - they are reluctant to provide money to open their own business, requiring collateral, so more often entrepreneurs take consumer loans, but the amount is limited here;
- Borrowing money from relatives is a good way if you have a wealthy loved one who is ready to borrow a large amount;
- Search for an investor - a private individual, a company, an association of people, it can be business angels - specialists in investing in start-up entrepreneurs;
- Finding a partner - in this case, the business will have to be divided in proportion to the amount of injections, it is better to look for a financially literate person, and not a beginner;
- Starting a related business - for example, if you want to open a car service, you can start with a tire fitting, and when profit and experience appear, expand your business;
- Receiving a subsidy from the state - provided by the employment center, the district administration, the business support department, but the amount of injections is small, reporting is required;
- Crowdfunding is the collection of funds through a special platform from ordinary people, but for this you need to offer an unusual business idea, interest the audience, and conduct an advertising campaign.
Experts and experienced businessmen are sure: borrowing money or resorting to a loan is not the best idea for an entrepreneur. It is better to use your savings or attract investors by concluding a cooperation agreement with them.
Step-by-step instructions on how to attract an investor?
New entrepreneurs don't understand how to find an investor for a small business from scratch? To raise capital for the development of your business, you need to draw up a well-thought-out business plan, choose a convenient form of cooperation, find professionals, negotiate and conclude a cooperation agreement.
How to prepare a business project?
A business plan is a visiting card of an entrepreneur, it is this project that potential investors will study, assessing the attractiveness of financial injections. Keep in mind that the investor is not interested in how original the idea is, what prospects it promises you personally, he wants to know how much profit he can get. The business project must contain:
- a brief and detailed description of the idea, a plan for its implementation;
- calculation of starting capital;
- analysis of the real benefit for the investor - also with calculations and reasonable conclusions;
- the payback period during which the income will be received;
- investment prospects.
If a business plan is drawn up by a novice, he can make typical mistakes due to inexperience, which will scare off investors, sometimes it is better to invite specialists to prepare documents or ask for help from familiar businessmen.
How to choose the right form of cooperation?
The form of cooperation is chosen by the businessman together with the investor, but first it is worth calculating the benefits from each model, determining the most effective way of interaction. An investor can earn income in several ways:
- percentage of the deposited amount, as in lending;
- part of the profit from the implementation of the idea;
- share in the business - re-registration of property rights will be required;
- finished products or services - relevant for investors in a related industry, for example, if a businessman opens a company for the delivery of motor oils, and the investor has his own auto parts store.
In the process of negotiations, the investor may insist on a different scheme of cooperation, it is often more profitable for an entrepreneur to make concessions than to lose the opportunity to receive funds.
How to seek help from experienced businessmen?
It is difficult to develop your own business and look for investors without experience. It is better to ask for help from other businessmen who will provide assistance if cooperation is possible between you on favorable terms in the future. Who to contact? For example:
- if you produce food - to the owners of stores;
- if you plan to carry out transportation - to businessmen who rent cars or need regular delivery of goods;
- want to open a flower kiosk - to flower suppliers;
- are going to sell farm products - to the owners of household plots.
Experienced businessmen will advise on the presence of pitfalls, features of the chosen industry, help to study this issue more closely and prepare a detailed business project.
How to negotiate?
The first meeting with an investor is always a presentation of the project, presentation of a business plan and coverage of the main issues that may arise. You need to carefully prepare for the meeting so that the investor understands several points:
- you are financially literate;
- excellent knowledge of the topic;
- offer a fresh and interesting idea;
- the investor will be able to profitably invest;
- there is no doubt about the honesty of the businessman and the reality of the project;
- what are the risks in this industry.
During negotiations, the focus should not be on how new the business will be, but on outlining the benefits of investing.
How to conclude a cooperation agreement with an investor?
When an investor is found, the project is presented, consent is received, it remains only to prepare an agreement on capital investment. In this matter, it is better to involve a lawyer and check that the document indicates:
- terms of investment;
- payment method;
- the amount that the investor contributes;
- rights and obligations of the parties;
- procedure for violations.
The money received from the investor should be used only for business development - this is directly indicated in the contract.
How to get investors interested in a business plan?
- collect information about the investor, eliminating possible misunderstandings;
- carefully calculate the amount of investment that is needed;
- do not delay the implementation of the project;
- outline specific goals;
- analyze the market, competitors, the situation in the industry, so that the investor understands that you have worked out this topic well;
- do not hide important information and facts from the investor.
Of course, a businessman wants to present his project in the most favorable light, so the data is often embellished, and the calculations turn out to be overly optimistic. An experienced investor will definitely ask about the fate of the project in case of negative developments, you must be prepared for this question.
Finding an investor is not so easy, because the number of business projects created daily is only growing, and the level of competition for attracted funds is increasing. To find an investor, you need to competently approach the search, following the advice:
- Start the search as early as possible, as this process can take several months. You need to look for an investor already when you have calculated the business prospects, assessed the benefits from the implementation of the idea. The main mistake of newcomers: they use their funds for development, and when the capital runs out, the business goes into decline, they start looking for injections from outside, but such a project for investors most often turns out to be uninteresting;
- Reach out to someone who can really help. If the investor is large, it is not worth going to him, offering to invest in a small business, but if it is a small company, then it simply will not have enough capital to invest;
- Name the specific amount that you need - you should not indicate a range, for example, from 500 to 900 thousand rubles, the number should be accurate, and the spread should be minimal.
An experienced investor knows that it is better to invest in projects with a balanced income and risk. The goals of the entrepreneur must be specific, and the idea itself must be relevant, allowing you to make a profit in the future.
How to find an investor - an overview of specialized sites
In the era of the development of the Internet, the search for investors cannot be imagined without the use of remote technologies. For this purpose, there are special platforms where businessmen can “meet” and negotiate with potential investors. In Russia, such platforms are popular as:
- Boomstarter is a crowdfunding platform focused on raising funds for the implementation of creative projects;
- Planeta.ru - allows you to find an investor and implement socially significant, creative ideas, about 800 thousand people are registered on the portal;
- Nachinanie.ru is a platform for collective financing of projects - religious, educational, socially significant;
- Eastwestgroup - here the investor search services are paid, but the business project is evaluated free of charge, the company has been professionally engaged in attracting investments for over 10 years;
- Start2Up is a bulletin board for investors and start-up entrepreneurs, projects in the field of the Internet, education, art, and culture are popular.
Finding an investor to develop your business is not an easy task, but a feasible task with a competent approach. The main thing is to offer a relevant idea, draw up a well-thought-out business plan, accurately calculate the benefits from investments. A potential investor will be interested in an honest project with low risks, sufficient income in the implementation process, and also with a financially literate owner.
Not a single enterprise can work without investments, and very often start-up entrepreneurs have a great idea, but there are no funds to implement it. In this article, we will talk about where to find an investor for a business and will analyze 14 important things that you should definitely know before starting your search for an investor.
We are looking for entrepreneurs in need of investment!
We are looking for entrepreneurs who want to open their own business and need investments! Our database includes more than 10,000 investors around the world who regularly invest in new projects.
All you have to do is describe your idea and leave contact details. We will send out a mailing list to our database of investors, and if someone is interested in your project, we will contact you in 2-3 days.
We have already found more than 800 investors for small businesses and this number continues to grow every day. Send us your ideas, regardless of whether you want to open an ordinary hairdressing salon or a technological IT startup.
It doesn't matter what stage your project is at. Even if it is too crude and is only in the concept stage, then write anyway, we will help you create a financial plan and find an investor.
Thank you for submitting your application!
If your idea is of interest to one of 10,000 investors, we will contact you as soon as possible.
14 Important Things to Help You Find an Investor
To get started, we want to break down the 14 most important things you need to know about in order to find an investor for your business. Without knowing these basics, any way to find third-party investments will not work for you, so be sure to familiarize yourself with them.
1. I have a brilliant idea and I will not tell anyone about it!
A very common mistake green entrepreneurs make is hiding their ideas. They think they have come up with a brilliant idea that will bring millions of rubles and do not tell anyone because they are afraid that someone will steal it and implement it faster.
There are situations that reach the point of absurdity, when, at a meeting with an investor, entrepreneurs do not fully talk about their idea, hiding some points and repeating only that it is brilliant and will bring a lot of money. Of course, investors will not work with such people.
Let's see where ideas come from and why they seem profitable to us.
By itself, a business idea appears in our head based on life experience. If you are a motorist, love your cars, spend all your free time in the garage, then most likely the idea will arise in your head to open a business related to cars, and not to create a coworking space. The same thing happens on the other side, 90% of people will consider your idea to be bad, because they have a different life experience, they will not be interested in your area, and the business plan will seem generally crazy.
By itself, a business idea is nothing of itself, no matter how ingenious it is. The implementation of this idea is important, because creating a business is much more difficult than just thinking it up in your head.
Do not hide your business idea and try to share it with everyone, because:
- 90% they won't steal it because they won't like it
- 9% will not steal it, because they will not be able to realize
- 1% wants to cooperate with you or invest money in your project
2. Everyone sees your business plan differently.
The problem that haunts almost all enthusiastic entrepreneurs is the wrong vision of their idea.
A simple example, you have some kind of idea, you briefly describe it, because you read a lot of useful tips that you need to attract the attention of an investor in 5 minutes, but you don’t have a detailed description of your business. As a result, you attract the attention of an investor, he understands that the idea is too raw, and everything else is in your head.
Understand that in the same idea you can see a potential multi-million dollar business and vice versa a project waiting for failure. If you see success in your project, your main task is to make sure that a potential investor sees it too.
That is why during, for example, the presentation of your project, all slides should be aimed at convincing the investor of the success of the business. There is no need to talk about what color the paint on the office walls will be. Roughly speaking, there is no need to focus on things that cannot convince the investor of the profitability of your project.
3. Why you really need an investor
Now we will not talk about all entrepreneurs, so you should not take the information received personally.
Some entrepreneurs are looking for a business partner and share with him the amount of initial investment, profit, work and another very important thing - risks. When you find someone who invests money with you in your business, you also share the risk. In other words, you shy away from responsibility and look for a person who will solve your problems.
If you were 100% sure of your business idea, you could find money on your own: sell a car, take out a loan, save up, sell an apartment, etc. But you are looking for an investor, which means that you yourself are not sure that your idea will work. And if a partner works with you, who also invests time and money in your business, then you will not be the only one to blame for the losses.
When entering the business of a partner, risks are always shared, but it is important that you have the most confidence in the project.
4. Investor Assistant
There are two options for working with an investor:
- The investor does not understand what you are doing and just invests money in you
- The investor understands the niche better than you
When you yourself do not yet have much experience in business, cooperation with an investor who will simply invest a few million in you is more likely to be a failure for both of you. The simplest example, a young businessman decided to open a business on the Internet and his investor was a person who has been engaged in car services and car sales all his life, he does not understand anything on the Internet at all and hardly recovers the password to Odnoklassniki. Of course, such cooperation will not be successful. A novice entrepreneur himself does not yet fully understand what to do and does many things for the first time, while an experienced one simply cannot suggest anything, because he understands little in the niche.
5. You need a business plan
Whether you are looking for an investor for an existing business or a start-up business, you will need a business plan. Many people are afraid of this word and it seems to them that a business plan is some kind of complicated thing that you are not able to do on your own.
In fact, everything is much simpler, the business plan, in its idea, resembles a regular term paper that we wrote at the university, and it should include the following paragraphs:
- Business Overview
- Trial description of the idea
- Detailed description of the service or product
- Market analysis
- Production plan
- Sales plan
- Financial plan
- Business sensitivity
- Regulatory information
Nothing else is required. By drawing up a business plan on your own, you will delve even more into the niche and, perhaps, this will lead to some positive consequences.
Most importantly, do not lie even a little, for example, in the volume of the market. Firstly, the investor may notice that you are embellishing everything, and secondly, real figures will not agree with reality already in the work. Both the first and second situations will not lead to anything good.
6. Your experience
A very important thing that all investors look at is your experience. There are 3 types of experience:
- In life- the probability that someone will invest in a person who has just graduated from school is extremely small. Of course, there are situations when an 18-year-old guy finds investors and by the age of 25 becomes a millionaire, when others are just taking their first steps. Let's be realistic, this option is extremely rare, and if you are 18 years old, we recommend that you go further to get an education and at the same time try to create your own business.
- in a niche- a good option would be if you have some experience in the niche in which you want to open a business. For example, you worked as a dance teacher for 10 years and decided to open your own dance school. You are well versed in the niche and this is a big advantage.
- In business- if you have already tried to create your own business, then this is very good. Some hide their previous projects because they were unsuccessful. Should not be doing that. A good investor is well aware that the more failures you have, the more experience you have and the more likely the new project will be successful.
7. Start a business from scratch
It is much easier to find an investor in an existing business than it is to get someone to invest in your business plan, so try to start your own.
It is not necessary to provide a large number of services or products. It is important to make sure that the company does not work in the red. Of course, starting from scratch is quite difficult, but if you think about it, you can do it in any niche.
For example, in the case of a hairdressing salon, you can rent an office for several hours, hire one employee and share profits with him, and look for clients via the Internet.
Another plus will be that by opening a business with minimal investment, in the future you will be able to find ways to develop without an investor.
8. Equal values
We highly recommend not to cooperate with investors whose life values are very different from yours. In the early stages of work, it is quite possible that everything will be fine for you, but in the long run this will lead to trouble.
Since you look at life too differently, you will solve problems in business in different ways. Problems in business appear every day, and if you constantly argue about how to solve it correctly, this will lead to a loss in speed, which is very bad for any business. It will be a complete collapse if at the very start you divide everything 50/50 and do not decide who will make the final decision in disputes.
Therefore, in order to save your time and nerves, we recommend looking for such investors who look in the same direction with you.
9. 31, 62 or 93 meetings per month
Finding an investor for your business is difficult, and even more difficult to do it while sitting at home on the couch in front of the TV. This point is perhaps the most important - you must systematize the search for an investor.
Set your goals right. Finding an investor is not the right goal. Having 186 meetings in 3 months is the right goal.
You can start simple. Hold 4 meetings with a potential investor per month, and then gradually increase this number.
Understand the following thing, the more meetings you have, the more likely it is that one of them will be successful and you will finally find an investor.
If you think that after 10-30 meetings you will find a partner, then we are in a hurry to upset you with the realities of life. Only after 100-400 meetings you will find an investor, this number can be even higher. Also, do not forget that finding a person who agrees to meet with you and discuss your business idea is also not so easy, but we will talk about where to look for investors a little later.
10. What should be the presentation?
Presentations are creative. When creating them, there is such a thing as “do not overdo it” and many do not understand it at all, so below is a list of things that you do not need to do at all:
- Animation
- Large blocks of text- this is not a presentation for school work, so there should not be a large amount of text at all.
- Design- if you are not a professional designer, then just forget about the design and make the presentation convenient.
The main goal of the presentation is to prove that your business will become successful, so each of its slides should be aimed at this in the first place. If a slide simply describes some point of your business, but does not contribute to a positive investor decision, then we refuse it. Everything should be directed towards one goal - getting money from the investor.
11. What questions do all investors ask?
Showing up to a meeting unprepared is like not showing up at all. Therefore, we recommend that you prepare for questions so that you do not get stuck at an unexpected moment.
The most frequently asked questions of investors at the meeting:
- Who believes in your success?
- Who inspires you?
- What tools do you use to track the market?
- Can you tell us the history of using your product?
- Is it possible to cut costs?
- What are the main features of your target audience?
- What will the market look like in 5 years?
- What were your failures and what did they teach you?
- Have you ever been fired?
We got our questions answered, great! But the investor can issue the following phrases:
- I forgot what you do- some people are offended by this phrase, the investor came to the meeting unprepared, and as a result, the dialogue goes in the wrong direction. Take it easy, such people have a huge number of meetings, letters, messages, etc. every day. He really could forget what you're doing.
- I don't understand what the idea is- try to chew and explain the idea as simply as possible. At the first stages, it is not at all worthwhile to overload a person with some extra terms, which you should learn about a little later.
- You are not solving the real problems of the population- the investor considers your project unsuccessful, you need to convince him by describing the large volume of the market, the number of potential buyers and the approximate revenue.
- Not sure if you can handle it- make sure that you have experience, a team and with a 100% probability you will cope with the tasks.
- I doubt I can afford it— investors say this phrase with a measure of regret. He likes your project, but at the moment he or his money is busy working on another one.
12. Think over the terms of cooperation in advance
You need money for business - this is understandable, but do not forget that you will receive it on some specific conditions. Think in advance what conditions will be categorically unacceptable, satisfactory and best for you.
Below are options for working with a partner.
Format of cooperation | Investments | Profit |
Equal contribution to work on the business | 50/50 | 50/50 |
The first partner has more experience or works more | 40/60 or 50/50 | 50/50 or 60/40 |
The first one works harder and has more experience | 35/65 or 50/50 | 50/50 or 65/35 |
The same experience, but the first works more than the second | 70/30 | 70/30 |
The first has less experience, but works more | 70/30 | 60/40 |
The first one has little experience, but works a lot. The second one has a lot of experience | 80/20 | 60/40 |
In addition, you need to think about the moment of exit from the business. For example, some niches simply cannot work without a partner, so if one leaves the business, they sell the entire enterprise and share the profits. There can be many situations, but the moment of exit must be considered.
13. Who will the investor never cooperate with?
There is a list of people with whom a potential investor would never want to do business, and it does not include people with an old suit who has already seen more than one meeting. It will be more about your qualities than about your appearance.
Who do investors dislike?
- Unsure- if you yourself are not 100% sure of your idea, then this will definitely lead to failure.
- Slow- speed in business is a very important thing, if you are slow, stop being so.
- inexperienced- this point is not the most important, but still, the more experience you have, the better.
- irresponsible- there is nothing to describe here. If you want to open a business, you must be prepared for a huge responsibility.
- Satisfied- we are talking about people who do not strive for a good life, but are content with what they have.
- aching- if every five minutes you talk about problems, about how bad everything is in his life, in the country, in the world, then they are unlikely to want to work with you.
14. An investor does not invest in a business!
This moment is one of the most important. Understand, an investor does not invest his money in a business, he invests it in people. If he sees in you an accepted interlocutor, close in spirit, with whom he would like to have a common business, then he will be more likely to invest in your startup.
Even if they come to him with a brilliant idea for investment and in the future it will bring millions of dollars, the investor will still not work with a person who he does not like.
Therefore, if you want to find an investor, then in addition to working on your business idea, you also need to work on the art of communicating with people.
18 ways to find investors
Finally, we have come to the most interesting part and will analyze 18 ideas on where to find an investor for a business. When using these methods, keep in mind the 14 things that were covered earlier.
Method 1: igotmoney service
The first thing we want to recommend to you is He will help you find an investor for a small business. We have a database of more than 10,000 investors from Russia and many foreign countries. All you need to do is describe your business idea and leave contacts. Then we will send out a mailing list to our database and connect you with investors who are interested in your project.
At the moment, we have already managed to find more than 800 investors for start-up entrepreneurs, and this figure continues to grow rapidly.
The service is absolutely free!
Method 2: Incubators
Business incubators are government organizations that support small businesses in Russia. The upside is that you can get big investments, big discounts on office rent, and the downside is the big taxes that pay for the work of such incubators.
After you choose a particular incubator, you must send your application there, and then prove the viability of your idea with the help of a business plan.
Method 3: Crowdfunding
Crowdfunding platforms will help you find an investor for your startup, especially if it is unusual and interesting.
The bottom line here is that you describe your idea in detail, record a video and announce the required amount. If people like you, they will send you money, and in return you can give them some small favor.
Such platforms allow you to collect millions of rubles in a matter of days, but you should understand that you will not collect a penny here to open a cafe. Another thing is if your project is original, for example, a video game about the life of ants.
Method 4: Friends and relatives
The most popular way of investing among businessmen is through friends and relatives. Working with a close circle of people has a huge plus. You do not have to conclude any agreements, think over the division of shares, etc. Just borrow money.
Of course, not everyone has Bill Gates as a friend, from whom you can borrow a couple of million to start your own business, but you can go further and find distant relatives or familiar acquaintances. Even if they do not want to lend you money for free, you can work with them as with full-fledged investors.
Method 5: Loan
Some entrepreneurs are afraid of loans like fire and are not ready to take them even for business. Of course, in the future you will have to pay interest rates and in the end you will give back more than you took, but do not forget that by working with an investor you will give even more money and will give it back until you close or sell the business.
Therefore, in financial terms, it is much more profitable to take a loan than to work with an investor. Another thing, it is possible that without experience or the help of an investor, you will not be able to succeed in business at all.
Therefore, if you are confident in your abilities, then take a loan. If you need more than just financial help, find an investor.
Method 6: Social networks
In the digital age, we can connect with anyone on the planet using social networks. Investors are also people, so it is quite possible to find them, for example, on VKontakte and just write to them.
The problem is that often investors do not write on their pages on social networks that they are investing in a business, so it is very difficult to identify them from a stream of other people.
In other words, first you need to understand who has the funds to invest, and only then you should look for them on social networks. For example, you want to open a car service, find at least the names of car service owners using the Internet, and then find and write to them on social networks.
Method 7: Communities of Entrepreneurs and Investors
Many entrepreneurs and investors are divided into different communities. Some have paid access, and some just have an open chat, for example in Telegram, which anyone can join.
You must find such a community and ideally join it. If access to it is paid, then you need to find at least one person from this community, tell him about your idea and maybe he will help you find an investor for you.
Such communities regularly organize gatherings or events where they discuss various problems and, most importantly, help you find a real investor in your project.
Method 8: Bulletin Boards
The easiest and laziest way to find an investor in your business in Russia is through message boards. For example Avito. You simply place an ad in the business category that you are looking for an investor for your project and wait for some investor to be interested in you.
Labor costs in this method are minimal, it is definitely worth a try, but you do not need to have any high hopes. There are a huge number of people like you, so your ad may be lost among thousands of the same, especially if the business niche is not very original.
Method 9: Activities
Think about where investors go and go there. Very often they attend various events and there you can easily find an investor without any deception. For example, investment conferences. Come to them, meet investors, briefly talk about your idea and exchange phone numbers.
It is important not to make a mistake with the event. The conference "Tips on starting a business from scratch" can be very interesting, but there will be very few potential investors who are able to invest in your idea. But the conference “What niches are relevant this year” will attract much more investors, because they need to constantly refresh their knowledge in order to understand where to invest money and where not to.
Method 10: Operating business
Many entrepreneurs dream that their business works without them, develops and makes a profit. Usually, such a desire arises closer to the age of 30-40, when you want to devote more time to rest and family.
Your task is to find such businessmen and invite them to invest in your business. Searching for them is extremely simple, go through the successful businesses in your city, get to know their owner and offer your idea.
Be prepared for rejection and don't take it to heart, because along the way to finding the right person, you can meet hundreds of people who will tell you "NO!"
Method 11: Western investors
As we all know, there is much more money spinning in the Western economy, and for foreign investors, the size of Russian investments seems insignificant, so they may want to invest in your business.
Perspectives are important here. If you need 3,000,000 rubles to open a business and the maximum that you will earn is 300,000 rubles, then you are unlikely to lure Western financiers with such prospects.
Another thing is if you make a presentation as follows: “In the future, you can earn 3,000,000 rubles a month, for this you need to open 30 restaurants, to open one you need only 3,000,000 rubles. You can start with one and if the indicators are good, then gradually open new ones. This approach will be of much greater interest to Western investors.
Method 12: Expanding someone else's business
The essence of this method is much easier to demonstrate with an example. Let's say you want to open the production of artificial stone countertops. Find home remodeling companies that routinely buy countertops from outside firms and invite their owners to set up a business together. The benefit for the owner of a construction company will be the following: he really needs countertops, and if they are produced at his enterprise, it will be much more profitable, it is profitable for him to invest in some kind of business.
It is important that the business you want to open is profitable for a potential investor, as in the example above.
Method 13: Marketing
One of the most controversial ways in which you have to spend some money.
First, you'll need a beautiful website detailing your idea.
Secondly, you must purchase advertising in order to attract visitors to the site.
Another thing is that in any case you will need money to attract investors through marketing, and this method is more suitable for existing businesses.
Method 14: Public Figure
Become a public figure! By this phrase, we do not mean millions of views on Youtube and a huge number of subscribers on Instagram, but something else. Become a public figure in your field.
For example, you are into yoga, you understand it and you want to open a small yoga studio. Start a blog on Yandex Zen, on Youtube, or just make an interesting website. Then people will know you, you will have feedback, tell your subscribers that you want to open your own studio. Many will want to help you, someone may invest money. Well, if the blog itself did not attract an investor, then in any case it will be an excellent portfolio for your future business.
Method 15: Your employees
If you can’t find real investors, then you can take absolutely crazy measures - make your employees investors. This method has proven itself well in the West and so far has not taken root very well in Russia (and it is unlikely to take root in the near future). Its essence lies in the fact that you recruit a team of employees and report that everyone should invest some amount in the project, in the future the profit will be divided into shares.
This option, in our opinion, is not at all realistic in Russia in its simplest form, but there is an exception. It can only work when all the employees in your business want to be businessmen rather than employees. They invest money in your project, they will work and perform the functions of an employee, and when the project reaches a good profit, they simply hire an employee at the expense of their share.
Method 16: Networking
Networking in simple words is the creation of trusting relationships with people who can bring some benefit in the future. This is a whole science and you should study it if you want to learn how to find investors in your projects.
There are tons of books out there to help you find the right events, find the right people in them, and convince them.
An important networking rule to learn when a potential investor says “No” to you is to try to convince him to give you the contacts of a person who, in the future, can say “Yes”.
Method 17: State
We should not forget about the country in which we live. The government can help small businesses. It especially supports agricultural businesses.
The won tender can be an excellent start for the development of your business. The only question is that the competition here is too big and the number of people who want to receive assistance or investments from the state is simply huge.
Method 18: Forums
The last way will be quite simple - these are forums. Look for forums somehow related to business, investments, money, and so on.
Don't burst into a forum with the only message that you are looking for money for your business. First, chat with people for a while, remember them, try to communicate with potential investors in private messages, and only then tell the entire forum that you need money for your brilliant idea.
RESULTS
Profit per month:
Payback.
First, you still need to understand what exactly you intend to open: a business or a startup. Because the difference between them is huge, although many people do not realize it. Let's figure it out. So here it is
Startup is temporary organization used for searchrepeatable and scalable business model, and operating in a huge uncertainty
Every word in bold is important.
Temporality means that the goal of a startup is to stop being a startup (!), but grow into a large and successful business, or fail and move on to other opportunities.
Search means that there is a good chance that you are not the first to come up with this idea. If you don't take the time to research, then you run the risk of wasting much more time developing a crude idea that doesn't work.
Repeatability means that you are not just making a one-time sale, like selling one technology that you created, but you are generating recurring sales.
Scalability means that the startup is ready for rapid growth, and its ultimate goal is global/national scale.
Uncertainty means that in the process of implementing your idea, you will encounter uncertainty quantitatively and qualitatively exceeding the uncertainty when starting a business. According to statistics, 32% of small businesses close within the first 3 years of existence, while for start-ups this figure is 92%.
If you are still not sure that you can distinguish a business from a startup, I advise you to take a look at this table:
So, we figured out the initial terms. And although there is still a huge layer of knowledge between the idea itself and financing, I will not dwell on it and will answer specifically about financing. Generally speaking, funding sources vary depending on the stage of your project. If you have an idea to open a business (some hairdressing salon or a bakery), then money is usually taken from a bank on a loan. At the same time, be prepared that under this loan you will most likely be asked for material support, a registered legal entity, an understandable business model and a business plan. At the same time, there are a huge number (!) Of various subsidies provided by the state. For example, for start-up entrepreneurs there are subsidies in the amount of 500 thousand rubles (individual entrepreneurs for no more than 2 years), there are subsidies for reimbursement of lease payments (up to 5 million rubles, but<30% стоимости), субсидии на возмещение процентов по кредиту (также до 5 млн. рублей), на участие в выставках (до 300 тыс. рублей, но не более 70%). В общем, не поленитесь и сходите на сайт тех структур, которые занимаются поддержкой малого бизнеса в вашем регионе (в Москве это ГБУ Малый Бизнес Москвы: mbm.ru). Но надо понимать, что эти субсидии, во избежании кражи и нецелевого расходования, всегда предоставляются постфактум - на возврат потраченного вами. Важным критерием их предоставления будет прозрачность вашей компании. Помимо субсидий, как бизнесмен вы можете получить от государства поручительства, обучение, юридическую поддержку. Все это очень важно и полезно, но, к сожалению, не все пользуются этими возможностями.
If you want to finance a startup, then in addition to the above subsidies, there are also grants and competitions that support startups.
Competitions (if you know other competitions, then write in the comments, I will add to the text):
Prizes in these contests can be both money (up to about 1 million rubles) and various non-monetary bonuses.
- Startup Tour: startup-tour.ru
- Imagine Cup: imaginecup.com imaginecup.com
Grants (if you know other grants, then write in the comments, I will add to the text):
It usually makes sense to apply for grants if you are doing something science-intensive or something that can improve society (social impact).
- Innovation Promotion Foundation (Bortnik Foundation): fasie.ru
- Expir: xpir.ru
- Eureka: kpi-eureka.ru
- Russian Foundation for Basic Research: rfbr.ru
- Awesome Foundation Moscow: awesomefoundation.org
- Skolkovo grant: sk.ru
Crowdfunding
The advantages of crowdfunding are:
The first clients who immediately invest in you with a ruble
Opportunity to technically implement your idea
A good opportunity to talk about your project
If the project "does not take off", then the platform will distribute money back to the backers (sponsors)
All the previous options did not assume that you would have to allocate a stake in your company to someone. Now let's talk about investors- they hope that by giving you money and getting a part of your company in return, they will later be able to capitalize on this investment.
The project has different stages, and at each stage a certain type of investors invests. The "stage - investor" correspondence can be seen in the following graph:
I will not analyze all the stages, I will analyze only the very initial
FFF(or more 3F) is Friends, Family, Fools, or Friends, Family, Fools. They are the ones who are ready to invest in the project at the initial stage.
Business angels can also invest in you at the initial stage . Their investment amounts can vary greatly, ranging from $100 to $300,000. Business angels can be both top managers and founders of their own companies. There are also serial angels who have invested in more than a dozen different startups.