investors and investments - bad experience
Good night% username%
Recently, startups have written a lot about investments in the blog .
I want to share my bad experience with investors.
Without mentioning names and company names -
To begin with briefly about what I turned to investors.
What I needed from investors
Who was contacting
What happened as a result
Recently, startups have written a lot about investments in the blog .
I want to share my bad experience with investors.
Without mentioning names and company names -
let's look at my mistakes
Perhaps it will be useful to someone.To begin with briefly about what I turned to investors.
Project in the field of e-commerce.
The software part is 99% ready, a business plan, a small market research (already outdated), an understandable monetization scheme (not selling ads), and self-sufficiency throughout the year.
What I needed from investors
I think this paragraph could be omitted.
What do you need? of course money (or services).
usability, marketing, offline costs (zp employee, hardware, etc.)
Who was contacting
4 investment funds 1 business angel and 1 other entity of this market whom I would identify as a person who has money
What happened as a result
fund # 1 answered right away that they were not interested in this topic (and even briefly described why).
fund # 2 proposed such an investment scheme
they give a loan at 15% per annum with the ability to start the first payments on it in a year
for this they wanted a very large% of the project for $ 1 - such conditions seemed unfavorable to me.
fund # 3 became interested in the idea, asked for a more detailed description (it was done)
then there was a meeting at which investment options were negotiated (came to a mutually convenient scheme)
then for 2 weeks constant clarifications and clarifications were requested
after which the contact person (general producer) disappeared without any explanation either reasons.
fund # 4they immediately said that they want 51% and will be able to invest only 30% of the required amount - negotiations are ongoing.
The business angel showed interest, requested additional information and safely disappeared.
the subject with the money corresponded for a long time finding out the whole essence of the project, agreed on a meeting that he slept through ...
yes, I also couldn’t believe it, but on the other end of the phone said a sleepy voice that was not intelligible, after that he probably decided that it wasn’t worth talking at all and also disappeared .
I lost time, did not find money, spoke about my project to a large number of people who should not be told.
by the word gone I mean ignoring letters or calls. all the people (funds) whom I contacted are pretty well-known and large players. For my part, all the required materials were provided. I don’t understand the fact of how you can conduct your business in this way, but I was very surprised when I discovered that the spirit of dashing entrepreneurship of the 90s is still alive in the era of the web.