What does an investor want?

Recently, in the minds of most young start-up managers there has been a sort of picture of a new freebie called the investor.
That the investor is such a "business angel" who distributes money to the left and to the right to everyone.
In order to give this money, you just have to go to him and say magic words - “I make Startup Web20 or a social network better than MyKrug”. For some reason, it is believed that any self-respecting investor should immediately get into his diplomat and give all the cash lying there. And along with the diplomat.

I advise everyone who believes in it, not to read further, as they are waiting for a big psychological shock.

Recently, I often meet with people who see the Internet as an object of promising investments.
So far, most of them are looking at the network, and these are mostly conversations-consultations.
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Therefore, I can safely say - no altruism moves them.
There are no business angels among them.

They want their money to work with ROI more than it can give
bank (> 12%) or their stable business (> 20-30-40%).

ROI (Return On Investment) is net income divided by investment.

That is, investing in a new project, they want to get ROI> 100, 200, 300% ...

At the same time they do not care what industry or technology will give such a net profit.

They want to invest in the Internet only because the forecasts for the growth of the industry are very optimistic.

I will cite only 2 facts:
- the implementation of the school internetization program will give the penetration of the Internet in Russia by 2012 up to 50% ;
- According to the forecast of the Ministry of Information Technology and Communications of the Russian Federation, by 2010 a tenfold increase in the ICT industry is expected.

To summarize, an investor is a person who wants to lend you money at very high interest rates with minimal risks for himself.