At the same time and appropriate investors and startups in the normal form of a sandbox spat in disgust and become even more cautious in choosing strategic partners. As it happens actually on the market is more than enough literate, having good reputation of investors that have successfully more than one project. They usually have a clear legal scheme approved interaction with project owners, and are equally protected by both sides. Another issue is that they are rarely placed on message boards and forums on proposals such as “investor provides funding.” Occasionally Internet ad skips them and direct contact. But it is much more efficient to obtain information about potential investors from other sources. This news sites, press releases, analytical materials, the use of social networks (Facebook, Linkedin), off-line contacts.
How, in the main, work fine large investment companies? First, we consider only well-designed projects, which are without at least some material basis. Accordingly, there is a cut-off order of projects in the early stages (up to billing requirements consultancy, engineering, auditing and evaluation activities). Generally, projects truncated at their apparent lack of demand for the market, and burdened by the obligations of the applicant, violations of legal purity of asset ownership, and sometimes – the inadequacy of the initiators of the project. Of course, requires some costs of independent verification stage of the procedure (due diligence). But the complex technological, financial, legal due diligence is performed only on the fact of making strategic decisions about funding. In this case, the investor no goal ‘hack to death’ project at the validation stage, since even before the start of her he begins to put their money into job (analysts, financiers, lawyers, etc.).
The main purpose of the inspection – the optimization of the project. Accordingly, the startups have time for that to verify a potential investor for his history of completed projects, the availability of assets and other things. The contract to carry out such work, which is between the applicant and investor, there are certain mutual obligations. On the part of the applicant – no hidden factors that have not been made public during the early stages of studying investment proposals. From the side financier – the obligation not detected by the factors mentioned above to finance the project fully. And the compensation costs of the applicant with a further denial of funding. Of examination precedes the signing of the agreement, which is prescribed scheme and terms of financing, as well as mutual obligations. The principal obligation of the investor – to finance the project after receiving positive conclusion of an independent review. Denial of funding is possible if during the inspection it is found that the applicant intentionally misleading the investor on the project parameters have a significant impact on its prospects, or it is not feasible for obvious reasons. If it finds errors in the calculations, the possibility to improve the project and so on, all these issues are resolved through negotiations investor and the applicant. By mutual agreement, all adjustments made to the business plan, which is an integral part of the financing agreement. To learn how to: – from “naked idea” to create an investment project – to collect raw data – not look in the eyes of the investor’s asshole – look for the “right investors,” – to present his project – to agree on the allocation of shares in the project, topics for future articles.
