No matter how fresh, interesting and useful your investment project is, it will not move from the starting line without monetary investments. If you do not have start-up capital, the best option is to find an investor who will support you, not only at the initial stage of the project but also in the future.
It is not for nothing that investors are called business angels - a reliable partner will provide your young organization with not just financial, but also expert support and own entrepreneurship experience.
Investments in startups: who needs them and why?
With a competent team, any business can attract financing even if the project does not promise great returns - sometimes it can be of interest to the investor from a strategic point of view. In addition to funds for development, investors can provide useful insights and valuable advice.
Advantages of working with an investor:
An investor can help you develop your business as he or she has a direct interest in its success.
Fundraising is in itself a motivation and provides moral support, even if communication with the investor is kept to a minimum.
If a company attracts investment, it has a positive impact on its image. Your clients and other potential business investors will always feel more comfortable working with an enterprise that is already "proven" by investors.
So where to start looking for investors?
To attract funding for your project, you need to interest potential partners. There is already an advantage for those entrepreneurs whose startup promises or already provides sustainable competitive advantages. This is often in a business related to IT, ecology, import substitution or energy saving.
However, there are also great chances for non-profit organizations whose activities are related to the human rights sector, education, and art.
The search for an investor is more likely to be successful if you have a team of specialists who can turn your plans into reality. Another plus is project documentation written in clear and concise language. After all, the investor does not have to be an expert in your field. Avoid using a large number of technical and narrow terms in the project description, which makes it unclear what the project is all about.
Keep in mind that an investor is an entrepreneur in the first place. Focus on expected profit, sales market, method of attracting clients, risks, and other similar issues.
Think about the competitiveness of your project. What is your difference, what is your "ace in the hole". You have to prove to the investor that you are quite capable of achieving success!
Do not spread yourself too thin by trying to interest an investor in dozens of your projects from different fields. It looks unprofessional and causes distrust. Focus on one, the most promising project.
Remember that the investor also needs to be checked just as thoroughly as a potential backer would investigate one of your projects. Make sure the potential investor has experience doing business in your field so that they do not offer ineffective, if not outright harmful advice. If you have a unique, new idea, sign a confidentiality agreement so that your idea is not stolen.
Where to find an investor
To find an investor you should constantly expand your network. A professional online network of contacts at bepartner.com.ua and community meetings can help you. We are waiting for you to visit every last Saturday of the month in Kyiv.
You can write ads "looking for an investor" or "looking for a partner," but only bepartner makes finding a business partner almost as easy as shopping at an online store.