May 22, 2007 at 23:35What does the investor want?
Recently, in the minds of most young startup managers, there is a sort of picture of a new freebie called an investor.
That an investor is such a “business angel" who gives money to the left and right to everyone.
In order for him to give this money, you just need to go up to him and say the magic words - “I am making Startup Web20 or a social network cooler than MyKrug”. For some reason, it is believed that any self-respecting investor should immediately get into his diplomat and give all the cash lying there. And together with the diplomat.
I advise everyone who believes in this not to read further, as they will face a great psychological shock.
Recently, I often meet people who consider the Internet as an object of promising investments.
So far, most of them are looking at the network, and basically these are consultation talks.
Therefore, I can safely say that no altruism drives them.
There are no business angels among them.
They want their money to work with ROI more than the
bank (> 12%) or their stable business (> 20-30-40%) can give .
ROI (Return On Investment) is the net profit divided by the amount of investment.
That is, by investing in a new project, they want to get ROI> 100, 200, 300% ...
At the same time, they absolutely do not care which industry or technology will give such a net profit.
They want to invest in the Internet only because the forecasts for the growth of the industry are very optimistic.
I
will give only 2 facts: - the implementation of the Internetization program for schools will giveInternet penetration in Russia by 2012 up to 50% ;
- According to the forecast of the Ministry of Information Technologies and Communications of the Russian Federation, by 2010 a tenfold increase in the ICT industry is expected .
I summarize - an investor is a person who wants to give you money on credit at very high interest rates with minimal risks for yourself.
That an investor is such a “business angel" who gives money to the left and right to everyone.
In order for him to give this money, you just need to go up to him and say the magic words - “I am making Startup Web20 or a social network cooler than MyKrug”. For some reason, it is believed that any self-respecting investor should immediately get into his diplomat and give all the cash lying there. And together with the diplomat.
I advise everyone who believes in this not to read further, as they will face a great psychological shock.
Recently, I often meet people who consider the Internet as an object of promising investments.
So far, most of them are looking at the network, and basically these are consultation talks.
Therefore, I can safely say that no altruism drives them.
There are no business angels among them.
They want their money to work with ROI more than the
bank (> 12%) or their stable business (> 20-30-40%) can give .
ROI (Return On Investment) is the net profit divided by the amount of investment.
That is, by investing in a new project, they want to get ROI> 100, 200, 300% ...
At the same time, they absolutely do not care which industry or technology will give such a net profit.
They want to invest in the Internet only because the forecasts for the growth of the industry are very optimistic.
I
will give only 2 facts: - the implementation of the Internetization program for schools will giveInternet penetration in Russia by 2012 up to 50% ;
- According to the forecast of the Ministry of Information Technologies and Communications of the Russian Federation, by 2010 a tenfold increase in the ICT industry is expected .
I summarize - an investor is a person who wants to give you money on credit at very high interest rates with minimal risks for yourself.