The greatest difficulty of an entrepreneur who is starting his business is precisely the financial contribution so that his idea decole. Most resort to bank loans, and often ends up making your idea misunderstanding due to high interest rates. An alternative that you should resort to the search for investors for your project.
The problem, in this case, is: how to attract investors? In fact it is not an easy task, but with good planning it is possible. Thinking about it, we've listed a step by step how to fetch investors for your business.
Find out what types of investors
The first step is to understand what the different types of investors are. Are they:
Incubator: Main Investment Opportunity for Startups that are still "Born". The incubator, as the name itself suggests, is a way to germinate ideas and usually happens through universities and teaching organizations. The purpose of the incubators is to provide technical and training support so that the idea becomes transforming and growing, gaining space in the market;
Crowdfunding: Another alternative quite sought after by entrepreneurs who are at the beginning of their business. Crowdfunding is collective funding, the famous kitty, in which various investors can offer a financial contribution. It is a joint investment, with no fixed value required;
Accelerator: There are objectives similar to those of the incubator, but dedicated to companies and startups that have already started walking and present innovative ideas and with high possibility of rapid growth, helping them get new rounds of investment or even reach their equilibrium point. In addition to financial investment, they can offer technical training, consulting and structure in their growth process. Investments in accelerators revolve around R $ 50,000.00 to R $ 350,000.00, the average investment time is 6 months, end up staying with a company's participation between 5% to 20%. This type of company sometimes did not even leave the paper but can already receive investments.
Investor Angel: It is the most sought after investor type, because it focuses mainly on startups that are starting your journey. Generally angels investors are entrepreneurs, entrepreneurs or executives, who have already spent a successful career, accumulating sufficient resources to allocate a part of their equity in new business that believe they may come to thrive. In addition to the accurate financial resources, you can help young entrepreneurs with their experiences and relationship network, so they are known as Smart-Money. An angel investor usually invests between R $ 10,000.00 R $ 1,500,000.00 in a period of 3 to 6 years acquiring 1% to 10 %% of the company's capital and these usually have between 1 to 12 months of life.
Venture Capital: Venture Capital is a financing tool for companies and an investment vehicle for institutional and individual investors. The venture capital in other words, is a way for companies to receive short-term money and investors increase their long-term wealth. The companies of you would raise investor capital to create risk funds, which are used to buy capital in initial or late-phase companies, depending on the company's specialization (although some you are agnostics per phases). These investments are blocked up to a liquidity event, such as when the company is acquired or becomes public, when you carry out profits from your initial investment. Another important feature of venture capital is that most investments are in the long run. Startups often take 5 to 10 years to mature, and any money invested in a startup is difficult to rescue until Startup is sufficiently robust to attract buyers in mergers and acquisitions, secondary, or audiences. Capitalist Venture is the investor who seeks companies with some prestige in the market and with a minimum of billing already guaranteed. Capital venture look for investment options that demonstrate possibility of rapid growth, although they have a consolidated niche. There are Capital Early Stage Venture that usually invests between R $ 1,000,000 to R $ 9,000,000 in a period of 5 to 7 years acquiring 20 to 30% of the company's capital and these companies already have between 3 to 5 years of existence . The Capital Later Stage Venture that usually invests between R $ 7,000,000 to R $ 30,000,000 in a period of 5 to 7 years acquiring from 30 to 40% of the company's capital and these companies already have between 3 to 5 years of existence .
Private Equity: The Private Equity Fund is a collective investment scheme used for investment in various actions and debt instruments. They are usually managed by a company or by a limited liability company. The mandate (investment horizon) of such funds can be between 5-10 years with an annual extension option. A key feature of private holdings funds is that money that is commonplace for fund investment purposes is not traded on the scholarship and is not open to all individuals for subscription. Generally these funds invest values above R $ 30,000,000 in an average period of 2 to 7 acquiring more than 50% of the company's capital and generally the company has more than 5 years of existence.
Have a good business plan
No use choosing the ideal investor without a business plan in hand. This step is essential to convince the possible applicators to buy your idea. It is the business plan that will present the idea as an attractive and profitable business.
This document should describe all business information, which has already been realized and what still needs to be done, and should be included:
Estimates of products or services, values, prices;
Target Audience;
Fixed costs and variable costs;
Marketing and communication planning;
Analysis of strengths, weak, opportunities, threats and competition;
Mission, vision and values;
Product or service differential.
The business plan does not have a fixed structure, so the more information can be put, the better.
Be present
It is quite common to find events, workshops and symposia aimed at the segment of your business and, with the business plan in hand, this is an excellent chance of showing your idea to the market.
So whenever you can, check presence at these events, talk, exchange experiences, participate and enjoy to spread your business. The Network is fundamental for those seeking support and investments.
Do not give up
Whoever wants to undertake must be persistent. If an investor did not buy your business, do not give up and keep firm in your purpose. Understand that a refusal is not the end of the line, but rather a way to review strategic points and need to be improved. Take not as a further opportunity to highlight your idea.
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