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What is a venture capital - involvement of the investor

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<"highslide " "https://financentr.com/uploads/posts/2018-08/1535742142_1454280730_vc2-940x600.webp" target= " _ blank ">  For opening of own business to many businessmen lacks a class= with href= own means. In such cases they can apply to bank for the loan, ask for relatives or attract the investor. When opening business, especially if this production new, unique in own way, goods, then the businessman can not obtain the credit in bank what perspective would be no project.

Absence at the businessman of property which could be accepted as pledge calls into question a possibility of receiving the credit. How to be in such situation? If the project really standing, then it is possible to try to find investors who are ready to make the investments in business. The investors ready to make the investments in new projects are called venture, it is difficult to attract them, but it is quite possible, it is only necessary to know how to approach them.

of

  That represents a venture capital  

    
 
 

the Venture capital is means of private investors and different funds which make investments which are available for them not in development of own firm, not for crediting of other market participants, and for investment into development and projects of other businessmen for the purpose of receiving a part of profit or cost of this enterprise.

the Investors investing the money in new projects risk to lose them completely if the project is failed. At the same time if the project is successful, they will get profit which several times exceeds the amount of capital investments. High percent of profit and also low cost of projects attracts investors.

  How to attract the venture investor  

the Businessman who should attract the venture investor should not expect the venture-investor what that will give money for project implementation only because it seems to his creator unique and interesting. The investor always considers any given project not in terms of interest, and taking into account profit and risk.
For the investor the main thing to receive the investments back with good profit or that the project solved its own problems. It is much more difficult to receive means from the investor, than the credit in bank. If the startup wants to receive means from the investor it shall be ready not only explain any trifle concerning the enterprise but also that the investor will demand from it the permanent report on the performed work.

 the Competition in the market of a venture capital is very high. From 400 projects the money goes only for implementation of 1-2 projects. It is connected not so much to a lack of means how many with failing or unwillingness of businessmen to present the project so that it was clear to the investor what perspectives at the enterprise that he will receive in exchange in case of successful development of the project. 


the Majority of startups make in case of the appeal to venture investors the same errors. They replace the normal presentation of the project, the normal business plan, bring and show estimates of expenditures, at the same time not even without explaining with sense in what purpose of the project for whom the products which are turned out by them will be intended. Many startups do not even know features of the market in which they are going to sell it!

 to attract the venture investor needs to be down on to the business. Only after that it is possible to start development of the presentation. The following sections shall be included in the presentation:
 1.  What will be engaged in
in i the enterprise, what products to turn out and for whom. What problem of the buyer the businessman is going to solve;
 2.  Features sales markets, competition, level of demand;
 3.  How will extend sales market and at the expense of what;
 4.  What costs for production, where and as the means received from the investor will be spent;
 5.  What actions will be taken by a manual of the new company, in case of force majeur circumstances;
 6.  Expected profit on successful project implementation;
 7.  How the investor will gain income from invested funds. It can be percent from sales or the share of the company which in case of success will shall increase in value.
All presentation shall not take more than 15 minutes. Investors are very busy persons. For them time is money therefore the presentation or the business plan of the size of the book, they will not even consider. Be attentive to details, appreciate personal and others' time.
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