Do you have a business idea that will blow up the market, but there is no money to implement it? The search for an investor for a startup again ends in failure? Learn how to present your project so that it will receive funding and how to avoid the main mistakes.
Where to find money and an investor for your startup
So, you have assembled a team, developed a product, and plan to promote it to the market. Where to find money and an investor for a startup? The writing service where you can find an interesting paper on endomembrane system will share its tips.
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- Contact the investment funds and personal connections of friends and other acquaintances. There can’t be such a thing as too many contacts.
- Show persistence. Treat your project as an already running business, the issue of survival of which you decide. You could not get into the investment fund directly, try to do it through one of the employees. Do not settle down until you talk to someone who decides. Do not accept refusals from secretaries.
- If you haven’t received an answer to your letter, don’t think that you were refused. Sending a letter is an attempt to convince yourself that you have done your best. Do not be fooled. While you did not talk to a person tete-a-tete, you did not do everything possible to get an investment for your start-up.
- Are you looking for external sources of financing small business? Don’t stop and don’t lose faith. Sometimes luck is just one step away from you.
Investments in startups: how to argument it?
You were invited to a meeting. Imagine your idea so that you believe in it.
- Tell about the potential of the project to the investor, look for the investment opportunities online. It is important for an investor to understand when a project will begin to generate revenue. Investments on the internet will show that there is an interest to you. Ideally, if your startup pays off within the next 1–3 years. Do not forget to mention who your customers are. Conduct market research and indicate where you see your place.
- Very good help in assessing the interest of potential customers can be provided by a crowdfunding campaign conducted on the internet. Perhaps the investments recruited there will not be enough to finance the project, but if your startup causes interest among users, it will be an excellent trump card in negotiations with an investment fund or a private investor.
- Talk about what the investor is interested in and get the project financing. Describe the benefits he will get from the cooperation with you. Money is always an argument. But find something else to get project financing. It is important to understand what kind of investor is in front of you, what projects interest him, and what he does. After evaluating all this information, show that your startup will be a good investment in the portfolio of its projects. If your invention is innovative and interesting, aimed at improving the quality of life of society, it will certainly attract the attention of the press. And the investor will receive not only profit, but also good PR.
- Gather a team ready to work. Very often investors are ready to invest not in the idea, but in people in the capacity of which they believed. Show that you want to work and develop, and you will get funding for your project.
- Choose the investor as a business partner. After all, this is not only a person who will provide financing for your project, he can also help you with an administrative resource, involving your experts and analysts in working on your idea. If you see that such cooperation will not work, think about looking for another investor. Money is fine, but sometimes the lack of partnership can slow down the development of your project.
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How to make the investor invest money into your project
When preparing for negotiations with an investor, think not only about what to say, but also about how to do it. Here are some tips to help you avoid the typical mistakes in preparing a presentation and convince an investor to invest in a startup.
- Follow the rule of 10/20/30. It was created by Guy Kawasaki, managing director of the venture company Garage Technology Ventures, specializing in high-tech start-ups in Silicon Valley. Submit your idea briefly and capaciously. Do not try to fit all the details on the slides at once. Specify the main thing, keeping within the 20-minute presentation, consisting of 10 slides, written in the 30th font. This will show the seriousness of your intentions and convince the investor to invest in your startup money.
- Create at least three presentations taking into account different time for the conversation with the investor. For example, for a short discussion there will be enough text for 30–40 seconds, supported by 3–5 slides shown on the tablet. If the investor wants to know the details, open the second presentation for 5–10 minutes. If the idea of his interest, you can send him a long version with all the details on the mail.
- Composing the speech for Elevator Pitch, forget about the elevator. Just make a brief description of your idea, which will interest the investor.
- Be natural and positive. Do not forget to carefully prepare for the performance the day before. You may not be an excellent speaker and a speechwriter, but if you rehearse your speech 10–30 times before a mirror, then you will perform better than half of other speakers because you have prepared. And your efforts will definitely be noticed.
Do not be afraid to ask for advice from friends and acquaintances. Many keep their thoughts to themselves, fearing that their idea will be stolen. However, the chances of such an outcome are relatively small. But the critical questions and remarks made by people who first heard about your project will certainly help you change it for the better.