Three actions to help attract investors
I'll start with a little background. Last week we took part in Polar Bear Pitching 2016 (held in the north of Finland, in Oulu). This is a global investment event that gathers investors (Microsoft, Superhero Capital, Startup Catapult, CAP A, Inventure, Invesdor, Karma Ventures, Vision +, RSM International Ltd., Butterfly Ventures), media (Forbes, Bloomberg Business Week, TechCrunch, ArcticStartup, Computer Weekly, Good News from Finland, Kaleva, Nordic Startup Pitch, The Next Web, TEK Magazine, VentureBeat, ZDNet) and the top 20 startups - finalists from around the world in one place.
The involvement of participants in the event was high. Every unfamiliar person to whom we started talking about his product already knew about it - this is really valuable. However, when we turned to questions of cooperation, a number of limitations emerged. We have identified the three most important aspects and we hope that they will save you time and money, and will also be useful in attracting an investor. This works under the conditions that you already have a working prototype and the project is scalable.
So, here is what you need to do.
1. Register a company abroad. In addition to economic instability, in Russia protection of investments is lame on both legs, therefore, investing in Russian companies, the investor takes great risks. Personally, we have several cases when investors said that they like the product, but they only work in the markets of Europe, the USA, ..., not in Russia. (if you are interested in how to register a company abroad - write in the comments what country you are interested in - we will try to tell).
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2. Show a stable growth of the company: the number of customers must constantly grow. In the battle is a report with detailed analytics on the product, which includes cohort analysis and metrics on the number and behavior of users.
3. Show what product to buy. The likelihood of attracting investment increases greatly if monetization has already begun and the economy converges. For example, you have a mobile application that you distribute by subscription $ 3 per year, user involvement costs $ 1, monthly expenses (salary, rent, taxes) are $ 3000 per month, then to reach the break-even point your advertising budget should be $ 1500 month. Suppose you have it. Just at this stage investments are needed for multiple growth.
Performing these items reduces investment risks. And this increases your chances of attracting the right investor for you. And do not forget that, in addition to investments, you have a partner, whose opinion should be considered. But that's another topic.
Share in the comments your opinions, cases and life hacking.
The involvement of participants in the event was high. Every unfamiliar person to whom we started talking about his product already knew about it - this is really valuable. However, when we turned to questions of cooperation, a number of limitations emerged. We have identified the three most important aspects and we hope that they will save you time and money, and will also be useful in attracting an investor. This works under the conditions that you already have a working prototype and the project is scalable.
So, here is what you need to do.
1. Register a company abroad. In addition to economic instability, in Russia protection of investments is lame on both legs, therefore, investing in Russian companies, the investor takes great risks. Personally, we have several cases when investors said that they like the product, but they only work in the markets of Europe, the USA, ..., not in Russia. (if you are interested in how to register a company abroad - write in the comments what country you are interested in - we will try to tell).
')
2. Show a stable growth of the company: the number of customers must constantly grow. In the battle is a report with detailed analytics on the product, which includes cohort analysis and metrics on the number and behavior of users.
3. Show what product to buy. The likelihood of attracting investment increases greatly if monetization has already begun and the economy converges. For example, you have a mobile application that you distribute by subscription $ 3 per year, user involvement costs $ 1, monthly expenses (salary, rent, taxes) are $ 3000 per month, then to reach the break-even point your advertising budget should be $ 1500 month. Suppose you have it. Just at this stage investments are needed for multiple growth.
Performing these items reduces investment risks. And this increases your chances of attracting the right investor for you. And do not forget that, in addition to investments, you have a partner, whose opinion should be considered. But that's another topic.
Share in the comments your opinions, cases and life hacking.
Source: https://habr.com/ru/post/298820/
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