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 -

    let's look at my mistakes

    Perhaps it will be useful to someone.
    image
    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    The software part is 99% ready, a business plan, a small market research (already outdated), an understandable monetization scheme (not selling ads), and self-sufficiency throughout the year.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.

    Also popular now: