ASVC | Friendly investor

You have a startup and you are looking for investments?

First of all, you need to answer a question: "Do you need money or SMART investments?" Often, at the pre-seed stages, for the entrepreneur it is better to develop without an investor, because the company's valuation will be several times less. Here are some reasons:

As personal practice shows, an entrepreneur does not always understand why he needs investments. Initially, you simply need to set goals for the development of the company, and then calculate all the resources necessary to achieve them. And then goes the most important thing. You should understand that you need to attract cheap money or resources in the most efficient way at the moment of development of the company.

What are the options?
- Consumers
The cheapest investor for you is your client. Create this situation, when customers are paying you, perhaps with the help of standard mechanics or advance payment.
Do not forget that you can use crowdfunding — when you deliver a product or value to a customer with a significant discount but with a lag of 3–6 months (suitable for companies at the MVP stage or with the first version of the product). It is an obvious fact. You just need to understand that if a consumer isn't ready to pay for your product, an investor never will be.

- Investor
Investments should be taken only when you understand that the investor is the best long-term partner for your company. Imagine that he does not give you money. What's left in the balance? How will it help to accelerate the development of the company? Usually, the SMART of investor may be concluded in an industrial experience (a network with decision making people in a potential companies-customers (for B2B and B2G customers; assistance in raising capital in the next rounds, entering new markets, attracting the best staff (the weight and brand of the Fund/investor often gives the startup opportunity to attract top people). For example, Tomsk' startup (Russia) can't have a CEO from California, who works in a related industry or startup counterpart for over 7 years, but if you have a global venture capital Fund or investor with a good reputation, it will be much easier to do so.

The authorised capital or shares of a startup are its main asset. It needs to be managed wisely. The entrepreneur and the startup team in the early stages must always be prepared for fundraising much in advance, prescribing a comfortable environment. And even if they found a money in the quality of the investor, it's necessary to consider the investment and legal subtleties in the structuring of the transaction.
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