Private Investors – Angels
Business activities should be planned carefully. Even if there is still no real activity, the leader and his team have to figure out who their competitors are, what from their markets and how the business develops. Some people believe that innovation is the most important thing in the project, but a solid business model and the potential for growth is much more important in the eyes of investors.
When a company is looking to raise funds it has to convince the potential investors in the feasibility of the investment through a presentation, business plan, etc. They need to demonstration that the product has a future and that it will obtain a solid position in the market, shortly after its introduction. To raise an investment for a product, the entrepreneurs have to present a plan, according to which, investors can assess the economic feasibility and the prospects of the product to produce fast ROI.
The communication with investors is like an intricate dance, with a mass of unwritten rules which the entrepreneur gets to know only after breaking one of them. The result – missed opportunities, and sometimes even damage to its image.
Start-ups require active and intelligent leaders. There could be two leaders, but with a clear separation of responsibility areas. This requires a highly motivated team which knows where it is going. Most investors examine and evaluate the team, according to several criteria: motivation, personal opinion, experience and achievements.
Business model is implemented by the company in order to generate revenue and profit from the business operations. The model includes the components and functions of the business, as well as the revenue it generates and the expenses involved in the implementation of the model. To approach an investor there is a need in forming a solid business model upon which the business plan will be based on.
Unlike with venture capital funds, “niche projects” can raise money through private investors. For them, it is much more important to the investor that the product will capture a solid position in the market shortly after its introduction, even in relatively small markets. In any case, the investor would want to be presented with a market research that shows the business environment and the potential of that market.
Targo has a database of potential investors with whom it collaborates and presents the projects with a reasonable potential for investment. Investor’s requirements and size of investment of any investor vary from time to time, but most of the recruitment processes occur in the following order:
Sending a One-Pager: The goal of this paper is to initiate the dialogue process with the investor and the investment process in general.
Project Presentation: On the first meeting with the investor, it is customary to present the project activities in a short and timed business presentation.
Submitting a Business Plan: If the investor would like to examine in depth the potential of the project, he or she will ask for a complete business plan.
