Terraforming Blog

How to find a business investor?

New technologies and developments require a lot of time and sometimes a lot of money before they appear on the market. This often becomes a big problem, especially when the business component is not obvious to investors. However, do not rush to get upset! Here are a few options for those who are looking for ways to get funding.

  1. People's financing (crowdsourcing). This is the most democratic way to find money for the project. The main thing is a cool idea that will interest many. The money will most likely need to be collected for a reward, but it can be symbolic, for example, a simple thank you from the authors of the project, or participation in testing a new product or technology. Similar projects appear from time to time on the largest platforms, like Kickstarter or Boomstarter. Success is not guaranteed, but it is definitely easier than making economic models, especially if you generally do not expect a quick economic success of the enterprise. 
  2. Business angels. You can use one of the many Russian or foreign services to search for business angels, for example, "Business Angels of the Russian Federation", or search for organizations like the "National Association of Business Angels", "National Commonwealth of Business Angels", Smarthub, VentureClub, StartTrack, Skolkovo Club of Business Angels. As a rule, they invest their own funds in a particular project and therefore approach the choice very carefully, however, the personal interest of the investor can play into your hands. In addition, they are often interested in investing in the project at an early stage. In any case, you will need to prepare a description of the business indicators. 
  3. Venture funds. They also focus on working with startups and need a description of the project economy. Venture capital money is the most expensive, it makes sense to use it when they do not give a loan. As a rule, funds receive a share in the business and imply a clear understanding of achieving a sharp growth of the business (tenfold) in a relatively short term. 
  4. State funds and grants. Often, the state provides support free of charge if the project is of social or strategic importance. It is worth trying to participate in one of the programs for the distribution of grants and subsidies, for example, the Bortnik Foundation (aka the Fund for the Promotion of Small Forms of Enterprises in the Scientific and Technical Sphere), Skolkovo, federal and regional target programs. 
  5. Incubators. If you are only at the idea stage and you need resources to start working on your project, then this is a great option. Incubators are available at many universities and in all major cities, they provide basic services (workplace, Internet, accounting services) and allow you to reduce your costs at the beginning of the development of your own project.
  6. Accelerators. If you already have a finished product, even if it is still in its infancy, and you need the help of experts to grow, then this is the ideal solution. You will have to pay for the services as part of the business, but it's worth it. The most famous are: FRII, iDealMachine, Tolstoy Startup Camp "Yandex". 
  7. Investment platforms - the full register of investment platform operators that the Bank of Russia has issued a work permit for can be viewed http://www.cbr.ru/registries/infrastr/#a_108250
Remember that the investor must see the prospects of your idea, and also trust you (after all, it is not only about money, but also contacts and time). Do not forget about the risks that arise when you use someone else's money - as a rule, they are associated with the loss of control over the business and a different vision of the development of the project. 
There are also other options for finding money - for example, lending or selling a business. The latter are especially popular on the Russian market.

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