Startups or examples of attracting investment in IT
Lack of money is not an obstacle. Lack of ideas is an obstacle (Ken Hakuta, American inventor).
No matter how right K. Hakut is that the idea is the starting point for creating something, for enthusiasts who have decided on the goals and ways to achieve them, the main issue is attracting capital to implement their ideas. In the presence of a clearly formulated idea, the main goal is the promotion of the company or start-up (Eng. Start-up).
The term startup is common in the field of IT and Internet projects, which became especially popular in 2000. In general, there are three stages of startup development:
– preliminary stage;
– stage of project launch;
– the final stage.
At the same time, people who seek to realize their projects, depending on the stage of its implementation, are divided into two types:
– those who are “fired up” with an idea and are ready to start implementing it, but for this there is not a certain amount of money;
– those who have already begun work on the project, and who also need to raise capital to complete or enter a new stage of development.
Before proceeding with the search for investors, it is recommended to conduct market research, analyze competitors, their strengths and weaknesses in relation to them, opportunities and threats at various stages of the project development, and evaluate the results of the project. In other words, to draw up a business plan and presentation that will interest a potential investor. This is done at the preliminary stage of the development of the stratap.
There is no one way to interest an investor. This includes speaking at events such as specialized conferences, a personal meeting with the so-called business angel, and the use of collective project financing platforms. An example of specialized conferences in Ukraine and Russia are StartupPoint, RIF + CIB. To attract capital, they use “express methods”. An example of this in Russia is iLift: about two minutes — it is during this time that the elevator rises from one floor to another — the author has an idea to interest the investor in it. An example of a collective financing platform is S-miru-po-nitke.ru, KickStarter.com, on which everyone can publish their project, laying out the necessary descriptions and justifications. Those who are interested in the project can donate a certain amount of money to the author.
It seems impossible to draw attention to your project without showing the investor a financial plan or at least approximate calculations of future benefits, even in the short time allotted for communication. However, there is a real example of this – Google Incorporated. After all, you never know what qualities in people and characteristics in projects are valued by the one who is called a business angel.
The history of Google began with the idea of two doctoral students at the Department of Computer Technology at Stanford University, Sergey Brin and Lawrence Edward Page, “download the entire Internet to your computer” . In 1996, Page and Brin started loading and analyzing web pages with links in order to determine the role of cross-links in finding information. As a result of the analysis, Page came to the conclusion that by counting the number of links to a specific website, one can evaluate the degree of its popularity, and, consequently, the value for the user of the search engine of the information that is presented on the site. He also concluded that links have varying degrees of significance. Sites to which more links lead are more significant. Based on the findings, Page created the PageRank program, which became the basis of an internal search engine for finding information on the Internet, which produced results in descending order of their relevance. PageRank advantage over other search engines was the arrangement of search results in a logical sequence, while other search engines returned results in descending order of the number of searched words in the text presented on web pages. In 1997, Brin and Page decided to rename the created search engine. So, as a result of a brainstorming, the name “Googleplex” was coined, shortened for convenience to “Google”, which in translation should have meant a large number, in particular, a unit with a hundred zeros. The fact that the word chosen as the name of the company, from the point of view of grammar is spelled incorrectly, the creators of the email system learned after registering Google.com.
The circle of users of the search engine Brin and Page steadily grew and for the development of the project doctoral students needed new computers. To get development money, Bryn and Page tried to sell the patented PageRank: AltaVista, which at that time refused to accept innovations from the side, Excite and Yahoo !, which also refused to purchase, despite the obvious advantages of a Google search. Venture firms also did not want to invest in a “search”, considering investments in commerce and advertising more attractive.