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How to find an investor for a startup

In general, a startup can be described as a stage of business development (beginning) or a newly created business. Thus, any new company can be called a startup. However, a startup is often called an IT project.

Often a person can come up with an excellent IT-project, knows how much money is needed to create and promote it. Perhaps there is even a team of experts who are ready to engage in the implementation of such a project. However, the idea remains unrealized, since a person cannot find money for this. In this case, you should think about how to find an investor for a startup.

What ideas are interesting for investing
Not every project will be of interest to investors. Just “fun, funny” ideas are not at all interesting for investors. You need absolute clarity about the product or service that will be sold. It is necessary to clearly define how the project will bring money. Proposals like “make money on advertising” immediately swept aside. Thus, only obviously commercial projects will be interesting.

The project should be available not at the level of an abstract idea, but already take some form, a prototype. Invest in the “paper” no one will.

And of course, professionalism and adequacy of those who will be involved in the implementation of the project is important. It is important that the team includes not only designers and programmers, but also advertising and marketing specialists, as well as a person who is able to coordinate the actions of everyone else.

It is difficult to talk about the focus of the project, since successful initiatives are possible in many areas. But the new useful mobile applications will definitely be interesting, as well as social networks that can meet the specific needs of groups of people.

It is worth starting with lighting your idea on the Internet. Today there are special Internet sites where people describe their IT projects. However, this should be done when you are already quite well aware of the concept of a startup. On such sites it is possible to communicate directly with potential investors. You can also view other start-up ideas and many other useful information.

Note! In no case fully disclose the concept of a startup. Describe everything quite concisely. You should wait for comments from other startups and potential investors to check the success of the idea.
If any investor is interested in your project, he will ask you at least a business plan. You need to be ready for this. If you are confident in the success of the idea, it is better to register a business in advance and draw up a business plan. Without this investment you can hardly get it.

Sample project description
Here is what you need to specify in the project description:

The essence of a startup. Briefly about what constitutes a project, to what audience it is directed. What benefits the startup target audience will bring. You also need to specify the development phase.
Description of the startup team. In detail, indicating the functional responsibilities.
Definition of similar products. Describe what competitors are possible and how your startup is different.
The approximate cost of a startup with a detailed description of what money will be spent on.
The timing of the full launch of the project with a description of the development stages
Ways to advertise and attract users.
The most important part is to talk about why you think that the project will pay off and approximately at what time. How profit will be obtained from a startup.

Often, startups make mistakes that prevent them from getting investment for the project. Here are some of them:

The lack of a full-fledged concept;
Failure to understand exactly which benefits the project will have for users;
Attempt to create a complete clone of an existing project;
The absence of a commercial side, as well as the marketing part;
Too big miscalculations in costs;
Lack of a full-fledged team of professionals;
Providing false information to potential investors.

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