Does anyone have practical experience in dealing with investors?

cat_crash2012-06-21 11:28:12

Startups

cat_crash, 2012-06-21 11:28:12

Good day.

There was such a situation that the investor is interested in our project and team. In practice, no one from the team has previously encountered the nuances of negotiations with investors, and the team is more technical than managerial.
Actually the question is - where can I read practical tips for communicating with potential investors? Blogs like how we attracted investments are a bit different because there is no practical side of negotiations, options for the distribution of shares, legal entities, responsibilities, business valuation, etc.

Ideally, I'm looking for a person - a consultant who could pay for a chocolate :) to help build the right dialogue with the investor in order to cover the maximum number of "narrow" moments with the maximum benefit for himself (team)

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7 answer(s)

lalaki, 2012-06-21
@cat_crash

1. Infa: First of all, read Venture Deals - the best book for an entrepreneur to communicate with investors. It also works for us (with a reservation for specific subtleties of implementation, but the conditions and agreements themselves work almost identically)
2. Help: I can advise - confidentially, free of charge, as long as people are good. I work as a senior analyst in an investment fund (Softline Venture Partners), I know such questions in practice.

s0rr0w, 2012-06-21
@s0rr0w

Practical advice can be of little help, since negotiations are conducted in a different direction each time.
However, there are a number of points that are informative in nature, but they are worth considering.
1. The investor is interested in something, your task is to try to figure out what exactly he is interested in. Understanding your true intentions will make your life easier and can save you from making bad decisions
2. Many people think that investors will give you a suitcase of money that you can spend anywhere. No, with money comes strict control and responsibility. You need to understand that you can inadvertently lose everything, both the team and the project, and still be left without money, and moreover, you should remain. Therefore, do not draw a Maybach for yourself in the yard, dreams will lead you to debt.
3. You need to be psychologically prepared for the fact that the investor does not buy you with giblets, but only gives you resources that you must return with a certain percentage. You do not need an investor who behaves like a slave owner, run away from him and without looking back
4. Investment can be of two types - buying shares and co-founding with subsequent pumping of money. Shares are of two types - those that give the right to manage the company, and those that do not give such a right. If an investor gets control of your company, then you will have to put up with his way of doing business. Having money in hand does not mean control.
5. You should always have a back-up plan.

Arthur Koch, 2012-06-21
@dudeonthehorse

There was a lot of similar information on habré

Maxim Shishkin, 2012-06-21
@lsoul

Here you need a competent lawyer who will guide you. A few useful tips will not make the weather.

cencio, 2012-06-21
@cencio

Did you find him yourself, or did he find you? If the latter option, then first you need to figure out - "do we need an investor, at this stage." If you need it, then calculate exactly what amount you need (so that you can effectively master it, and not eat it up), make a plan, how much and what you will spend on, estimate when and how the project can pay off, in general, be more specific, and not just "give money"

dDoom, 2012-06-21
@dDoom

Since there are a lot of different nuances, I advise you to go to the startupseminar.ru/ seminar for a better understanding, they talked well there, about everything, including the negotiation side, what you can sacrifice, what to offer in return to improve the condition, it was at the negotiations that helped us .

lalaki, 2012-06-21
@lalaki

1. Infa: First of all, read Venture Deals - the best book for an entrepreneur to communicate with investors. It also works for us (with a reservation for specific subtleties of implementation, but the conditions and agreements themselves work almost identically)
2. Help: I can advise - confidentially, free of charge. I work as a senior analyst in an investment fund (Softline Venture Partners), I know such questions in practice.