How to attract investment
If you are interested in how to attract investments, then you should initially decide on the type of investor that will fully meet the interests of your company. To this end, it is necessary to understand the differences between foreign and Russian, institutional and private, strategic and financial investors, as well as to analyze their financial capabilities.
Determination of your place
It is advisable to start searching for an investor only when you relate the requirements for investors to your goals and opportunities, and also when you determine the most preferred type of investment for your business.
The very first mistake made by applicants is that they have no understanding of which type of investment is most suitable for successful business development. So, starting the search for investors, most applicants do not even think about this issue. In the process of communication with the investor, this error affects the most negative way.
Note! Often the applicant himself mistakenly gives the investor those qualities that are not at all peculiar to him. So, let’s say, you cannot expect strategic investments from financial investors.
The chances of small and medium businesses
For financial investors from abroad, as practice shows, a large proportion of Russian investment projects (up to 90-95 percent) does not represent any interest at all. Almost zero chances of startups, innovation and venture projects, and it is not difficult to guess why.
Note! Startups could be of interest to investors, but they are not secured by assets, so their initiators should rely solely on their own strength, and at best – on state programs.
As for the innovative business, it does not attract interest from foreign investors for the following reasons:
Because of its spatial distance, the financial investor is deprived of real levers of control over the business.
The assets related to the technology business are characterized by extremely low liquidity.
The main assets in the innovation business are technologies, the intelligence of highly skilled employees and licenses. Therefore, in the eyes of a financial investor, this all looks rather ephemeral.
Note! For an investor, it is always important to have a well-developed strategy for getting out of this business area and the opportunity to realize released assets as soon as possible.
In this regard, the most appropriate solution for small businesses will be only one option – lending to Russian banks. In the case of medium-sized businesses, the prospects for obtaining investments are more promising, and success in this matter depends on a number of points. If the project has set itself the goal of expansion, and in the near future it is planned to move into the sphere of large business, then the applicant, with the right approach, has every chance to get the desired investment.
Among the main problems of applicants belonging to this category, first of all, it is impossible not to note the lack of funds to cover the costs associated with the payment of services of qualified financial consultants, and the low level of development of project documents. If you are thinking about how to attract investments, pay attention to these aspects, and then investors’ responses will not take long to wait.
Attracting investment in big business
A large number of programs proposed by foreign financial investors are designed specifically for the sphere of large Russian entrepreneurship. Therefore, the likelihood of receiving investments is highest in large business, and this is why:
big business is fairly transparent;
it has a structured management system;
Initiated projects in this category are really profitable and promising;
property that is provided as collateral for collateral is characterized by high liquidity.
Thus, the investor, despite the fact that he is far enough away from the place where his own money is invested, has the opportunity, through effective levers of control, to influence the business invested by him.
However, in order for large business to achieve foreign investment, it is required to submit a project that must meet a variety of requirements. At the same time, most investment projects, as practice shows, also have a low level of development. Therefore, in a timely manner prepare a really worthwhile project that will be able to interest investors and convince them of its return.