Investment Support
We Invest in IT Projects
Our database contains information on approximately 500 potential sources of investment funding. These include domestic and foreign venture capital funds, investment bankers, and private investors specializing in internet projects. Thanks to our experience, we know which of them, how, and in what form to offer internet projects to receive funding. Our portfolio includes more than a dozen cases of successful fundraising for our own IT projects, and we will be happy to share this experience with you.
Technology for Obtaining Investments
As you know, to extract profit, it is not so important what kind of business you are engaged in, it is much more important to do it well. Professional investors know this, and due to the objective lack of opportunity to predict the success or failure of an innovative project, they invest in those whose management demonstrates the highest professionalism. Since professionalism in IT has little to do with eloquence, the assessment is carried out mainly on the level and scope of the preparatory work carried out. Considering the above and the fact that the minimum task for an investor is NOT to lose funds, other things being equal, money is invested in those projects that, at a minimum, will not be unprofitable due to the quality of implementation, rather than in something potentially super profitable, but poorly thought out and poorly prepared event. In other words, the investor’s task is not so much to increase funds as not to lose them. Based on the foregoing, we have developed and tested through multiple trial and error a scheme that allows us to obtain funding for almost any adequate project.
Investment financing can be almost guaranteed if the following conditions are met:
1. A full set of supporting documentation must be prepared for the project. Documents must be prepared at a high professional level, taking into account the criteria by which they will be evaluated. In this case, it is necessary to consider the following factors:
– For professional investors, it is not so much the amount of investment that is important, but their structure and the terms for which funds need to be provided.
– As a rule, it is possible to attract almost any amount of investment if the lion’s share of the funds is guaranteed to be returned. Good examples here are capitalisation to activate a license or an advertising budget, provided that the effectiveness of advertising can be assessed at the very beginning of the company and the funds can be withdrawn if it is insufficient.
– Risks, or in other words, non-refundable investments, such as salaries or the purchase of equipment, should be minimized, even at the expense of the production process. Here the principle of Sunk Cost operates – the main thing is that the investor is drawn into the process. Further financing becomes much easier.
2. Due to the fact that there is no other way to assess the confidence of developers in their own abilities, other than their eloquence, it is highly desirable to confirm confidence in the success of the event with your own investments. For example, you can invest in legal entities, prepare a documentary basis for owning the rights to a product, order research, the results of which will become the basis for a business plan, make other investments that, in the eyes of a potential investor, will look like confirmation of your confidence in success. For a significant part of investors, making their own investments by the applicant is the only criterion on the basis of which a decision is made to start a serious conversation. This is due to the fact that few analysts, upon initial acquaintance, seriously evaluate the intellectual investments of developers, while the clearly demonstrated financial investments in the case are immediately visible.
3. Further, in order to convince the investor that the funds will not be spent as economically as possible, it is necessary to demonstrate your competence in financial matters (mainly in terms of taxation). The best proof of your own ability to effectively manage a business will be either a self-prepared or outsourced plan to optimise the financial flows of the project being created. When ordering such a document from third-party developers, you can kill two birds with one stone and show the costs of the plan as your own investment.
4. For any investor, it is extremely important to ensure that their share is not diluted at the stage of a successful sale, when the project is already generating funds and the investor begins to “interfere”. Practically the only solution here is a well-developed mechanism for protecting the rights to the intellectual property being created, which should not move freely to legal entities other than the one in which the investor has a share. A transparent scheme is also needed here, which can also be ordered from a third-party contractor and even combined with the development of a financial plan.
5. In addition to the above-mentioned priority tasks that are necessary to start a serious dialogue, for successful fundraising, the project must also include an innovative component, the advantages of which must be communicated to the investor not as the applicant sees them, but through the prism of the interests of the wealthy class. This is explained by the fact that the final decision is made not by an analyst who is an employee, but by the investor himself. Obviously, the investor and the applicant for investments, as a rule, belong to different classes of society, as a result of which they evaluate the attractiveness of the same things differently. Two examples:
– A lot of businesses based on discount coupons live and prosper on the net. Discount coupons are obviously a useful thing from the point of view of the poor and middle-income people, but at the same time they are of little interest to the layer of rich people. Therefore, despite the fact that such a business can bring in millions, it is difficult for them to interest investors belonging to the upper class.
– Applicants often think that the lower the total cost of the project, the easier it is to get investment. This is partly true. But in reality, the difference in tens, hundreds, and even millions of dollars from the point of view of funds or investment bankers is much less significant than the ability to control the business later on. Many are willing to pay 10 times more, just to guarantee the safety of their share. Hence the conclusion: the amount of investment required is not important, moreover, if this amount is underestimated, for example, due to the applicant’s fear that “they won’t give so much,” then the opposite effect can be obtained. They will not give it precisely because they asked for little – it is not realistic.
Thus, we have a significant number of good projects in which many investors would gladly invest, but they do not do this because:
– there is no evidence of developer professionalism
– the developers’ words about their confidence in success are not supported by anything
– there is no confidence in the financial efficiency of management
– there is no understanding of how to ensure the safety of investments
– the presented innovation is not of interest
– due to poor documentation, the project does not even pass the initial filter of analysts
How We Help You Get Investments
In essence, we take your project and wrap it in very beautiful and attractive packaging and send it correctly to several hundred potential investors.
Our work includes:
– initial analysis of the project for the possibility of obtaining investments
– highlighting aspects of the project that are interesting from the point of view of investors and hypertrophying them in the descriptive part (the work of a full-time business psychologist)
– determination of mechanisms that protect the interests of investors both in case of success and in case of failure of the project
– preparation of a legal and tax structure that demonstrates the maturity of the developers and their understanding of existing business realities
– creation of the right legal entities for the safe and confidential entry of investors
– registration of rights to the developed product in conjunction with obligations NOT to conduct such a business independently, including mechanisms to guarantee the fulfillment of these obligations
– preparation / alteration of all other required documentation at a level acceptable for distribution to a database of potential investors
– reformatting the existing / writing a business plan, “sharpened” for passing the initial analytical filter
– preparation of the financial part, exclusion from it of “sharp corners” and figures taken “from the ceiling”, balancing the entire expenditure part under the “passing” figures
– search and adjustment of available open access research, inclusion of their results in the business plan as a justification for the figures used and argumentation for the future success of the project
– obtaining assurances from additional investors to enter the project in the event of the emergence of serious shoulder investors, or the achievement of the required development dynamics
– bulk mailing of prepared documentation to our database, which includes several hundred sources of funding
Investment Amounts
We have experience in obtaining investments of up to 500,000 euros. For projects that require more resources, we can also provide the above services, however, according to our assessment, the probability of attracting funding in this case will significantly decrease due to the fact that 90% of the contacts in our database specialize in investment projects with an expenditure side of no more than the specified amount.
Work order
1. You provide us with comprehensive information about your project and its features
2. We assess the realistic, from our point of view, the amount of investment that will be received and draw up a plan of preparatory work with costs
3. You pay 50% of the cost of work. The second 50% is paid upon receipt of funding
Our terms
A prerequisite for working under the 50% in advance, 50% upon completion scheme is the receipt of investments to the account of the company registered by us. In case of refusal from this method of control over the receipt of funds, the services must be paid immediately in full.
* The 50/50 payment scheme applies only to the services provided by our company.
