How do inventors become aware of their invention
From invention to product: How to find investors
Find support from incubator networks
No money, but a helpful infrastructure and good contacts can be found at so-called Incubators. Mostly these are from the region subsidized centers, in which inventors and founders can rent rooms flexibly and cheaply and make use of services. In addition, they will be using Know-how supported. Start-ups that are set up within the framework of such networks can find useful contacts and help more quickly, also when looking for investors. This increases the chances of success.
Crowdinvesting: The Help of the Masses
One method of finding investors that is becoming increasingly important is crowdfunding. You present your pitch on a platform on the Internet and instead of a single investor you will find many who contribute smaller amounts. Some models work on donate-, others up Loan base. The most interesting form for companies is that of crowd investing, in which the contributors also on Profit of the company be involved. The risk for the individual investors remains clear. This model is particularly suitable for Ideas that are aimed at end users and can be easily presented in the media. The many investors are personally interested in success. So see them at the same time Ambassador of the project.
Find investors: start-up financing from the business angel
You may find the right financier in a business angel or angel investor. This is a wealthy private individual who is ready to help you investing private capital in a start-upwhich is still at an early stage. Either time and resources are required for the development of the invention (pre-seed) or you are just about to start production and sales. A Business angel supports not only financially, but also advises. This gives the start-up know-how and contacts that can be very helpful.
This funding takes place either as loan or as Participation, mostly sums between 50,000 and 200,000 euros. You can find potential business angels on lists and internet platforms. Before reaching out directly to those who seem most promising to you, do some research on what industry they are in and what they have supported so far.
Find investors: venture capital companies
You can find potential investors for larger sums in venture capital companies, too Venture capital- or called VC companies. Professional managers manage there Funds, that is, the money of strangers to increase. VC companies invest in young, not yet listed companies and advise them. Start-ups not only find investors, but also expert support on their way. Such societies, however, also secure themselves Control and participation rights.
The business model of venture capital companies is to sell the shares at a yield when the company has "made it" - to the company itself, to other financiers or on the stock exchange if an IPO has taken place in the meantime. VC companies are therefore dependent on finding promising projects for their investments. Start-ups are often bought up by the big players in the industry. Of course, the investor also benefits from this.
High return in case of success have to make up for the fact that there are always startups that fail and the sum invested is lost. You can find an overview of suitable VC companies in databases and online platforms today. With some you can also register as a start-up and thus attract investors' attention.
Convince investors: the pitch
Whether bank, business angel or VC: Why should these people give you money? The answer to that question is your pitch. What is your business idea about? What problem does your invention solve for the potential customers? Why should people buy your product of all places? What marketing strategy are you planning? And of course: How much money do you need and what can the investor expect for it? In the pitch deck, your presentation slides, you show the most important information and figures. Limit yourself to the most important things. Do you speak five minutes at most, possibly even shorter.
Find and test arguments
If you've worked a long time first on the invention and then long on the business idea, it can be difficult to feel like this to be brief. Put yourself in the shoes of the investor who doesn't know you, but who receives constant inquiries and has little time. He will assume that your project is no good if the benefits cannot be conveyed briefly. So make an effort to find the right words, and test your pitch beforehand to someone from whom you can expect honest feedback. Could you convince them? Would you give yourself the money? Investors are people too - they just have more money to spend.
Solid basis: the business plan
You must have done your homework beforehand so that you have convincing figures to hand when preparing the pitch and can also answer questions. In a business plan you put together everything that defines your start-up idea - from the market analysis to the marketing strategy, from the people behind it to the capital requirements and of course the expected income. It is worth investing time in drawing up a business plan and possibly using external help for this. Because this process is also one Opportunity for your team to review and optimize the entire idea from a commercial point of viewn.
Before a potential investor deals with your extensive business plan, he must first find the project interesting. For the first overview, stick toExecutive summary with the main numbers on two to four sheets of papern ready.
Starting a business successfully is teamwork
The path from an invention to a product with which you can earn an income is first laborious. Success depends on many factors, all of which you cannot influence. Important is, To find fellow campaigners or cooperation partners who complement your skills. A good inventor is not necessarily a good seller. With a patent, you can ensure that your development is the only one that will enter the market at first. And the right investor will help your idea off the ground. Don't let prophecies of doom discourage you: History shows that many inventors first had to listen to derogatory judgments from experts - and then succeeded.
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