Has anyone drawn up an agreement on venture investment in their projects? What are the risks for an investor and a startup receiving investment?

Question

Startups

Good afternoon to all site visitors.
Tell me if anyone is familiar with this topic. There is little interpretation on this topic. Venture investments.
What do they mean?
What is the interest of the investor?
And what are the risks for an investor and a startup accepting funding?
I read a lot of information and it all comes down to the fact that if a startup fails, then the investor can only receive the remainder of the funds from his investment.
It would also be interesting to read such an agreement.
If anyone has a sample "contract" agreement between a venture investor and startups, I would be grateful.

Answer 1

www.rusventure.ru/ru/programm/analytics/docs/20131...
See page 28

Answer 2

usually money is given as they are -> there is some kind of project, for example, they are building houses, they were built 100 years before you, and they will be built after you. everything is clear there, invested 100 rubles, built 3 squares with this money, you sold them, received 200 rubles.
when it comes to startups and innovations -> we are talking about projects that no one has done before you, where it is not clear what you can count on after the project is implemented. accordingly, everything revolves around these risks (it is unclear what the investor will eventually get and where the project will go), in fact, the investor agrees that he fits into an incomprehensible topic, and is ready for unexpected results, and has no complaints about this.
such an unexpected result does not have to be negative, it can be, on the contrary, a very successful exit model, which gives 1 million rubles of return per 100 rubles invested.
the interest of the investor himself can also be different:
to build a model of earnings precisely on investing in projects that shoot out sounds a little utopian, because for this you need to at least be able to predict the future, and if you know how, then it’s easier then to earn money on the stock exchange and not wait until any project will take off.
many investors can simply reduce their costs for testing their ideas by others, it costs much less, and besides, the developments from this testing may be useful to the investor.
investors can also attract other investors to their fund themselves, and earn money on this, regardless of the performance of investments.
well, if you have a lot of easy money, the interests may no longer be only in the money itself.

Answer 3

It's simple - an investor is a co-owner or 100% owner.
Co-founders who work hard on the project are also investors by and large, only they invest their time or their time + their money.
The net investor invests with money and their connections/advice, not time.
Investments. Just an investment. In relations with a specific project, the investor's venture does not affect anything. Well, except perhaps for the fact that he is ready to invest in more risky projects than ordinary investors who need more guarantees of success. 1. The investor wants to either sell the project for a high price (this is typical in the USA, and only in the USA). 2. Or the investor can make money on the project itself (this is typical all over the world, except for the USA).
Venture - has nothing to do with a specific pair of investor and invested project.
Venture - this means that the investor finances a million projects, being morally (and financially) ready that most of them will simply close.
But one or two will skyrocket and cover all losses.
1. The project wants to get a quick kick to the sky. If the project burns out, then what remains (though corny furniture) is miserable remnants. Of course, these balances go (sold) to investors or investors and founders (as agreed). Understand: 1. No one gives all the money at once. Even if we agreed on a lot. They are given in parts, as they are spent on the development of the project. 2. You can only spend money on the project itself. Everything else is a scam. Which automatically means a permanent investor ban for you if they find out about it. And even judicial harassment with an incomprehensible outcome. I recommend reading Moreinis. This is such an investor in the Russian Federation. He does a lot of explanatory work about the essence of investment. darkside.vc
2. For some projects without a huge financial pendel, you can immediately dry the oars.
For the investee, the risks are very different and not obvious.
For example, an excess of money in the project can mean the death of the project. It seems illogical. Money is good. But it also happens that an overabundance = death.
and a lot of articles, interviews with him on other sites.

Answer 4

Investors can stop financing at any time when you are already counting on it and request additional gestures from your side - these are risks.
They can take the business (if the terms of the agreements allow).