In a remote meeting organized by the Asharqia Chamber,
A consultant stresses the need to attract investors and bold capital to support the pilot project
The consultant specializing in the affairs of small and medium enterprises Osama Al-Salloum stressed the importance of attracting investors with the aim of supporting the entrepreneur through partnership in his project, as an important option for the continuation of emerging entrepreneurial projects, displaying a set of conditions that achieve this purpose, and include its results ... referring to the importance of communication with family Friends, angel investors, and bold venture capital institutions.
This came during the meeting organized by the Asharqia Chamber represented by the Center for Small and Medium Enterprises Development on Wednesday (10 / June / 2020), titled: (How to Attract Investors), as Salloum mentioned that the entrepreneur is the one who "has a solution to an existing problem, in an innovative way, and achieves benefit Materialism, "and thus the pilot project is the one who has the solution to a specific problem through an innovative implementation process, of the scalable project.
Through this, this entrepreneur may be able to persuade other parties to invest with him, or to share in his investment process, or to support his entrepreneurial project, but this is done according to several conditions, the most prominent of which is to persuade them, and this is only possible if he is aware of himself (experiences, Certificates, sources of strength) as well as the status of his company, its age and the size of the market in which it operates, provided that all this is presented in numbers, which are indicative of self-awareness, so these are the first steps in developing a pioneering project to persuade investors.
As for the second step, it is to know the other investor who "believes in you or your project, and then decides to risk you with your financial support, in exchange for a share of the ownership of the project." It is not easy for any investor to be persuaded to work with you, without knowing or standing on a solid land who knows his share of The process, and most investors of this kind taking this step in exchange for a specific stake in the project. Noting that there is a big difference between a supporter of the project and his financier, and after a certain period of time, he requests that the support funds return, and whoever enters into the project and the risk with him, the former is called "funded", while the second is a partner in exchange for a share.
Consequently, an entrepreneur who wants to attract investors must submit an offer that guarantees their persuasion of the feasibility of entering into this project, so this offer must include the problem that the project adopts and seeks to solve in the market while touching on the current situation, and its image is that the company made to achieve a quick profit, Or to postpone the increase in profits for the sake of expansion, and this offer must have a look at the size and value of the market in which it operates, and the task that the project achieves, "and all of this should be in numbers ... stressing the importance of realism and honesty in this regard, and that it be The numbers are documented from certified sources.
Then Salloum moved on to talk about the segments of the investors, and he turned to what he termed as the "angelic investor", the person whose mission is to invest in startups, has financial support capabilities, and experience in the field of work that he aspires to support, and extensive relationships that help any company that supports them to expand Perhaps the advantage of this person is that his decision is in his hand, which is often not clear and unknown, but by entering into any activity you find from this sample those who wish to support and enter into investment in activities that they can support, and have experience in its field, and therefore they are waiting for a return, as a result, this support.
And the second sample of investors is "family and friends", who should be dealt with accurately, far from any different names and away from investment, so the entrepreneur must set his goal, write a contract, and explain the risks honestly and transparently.
The third sample, which the lecturer emphasizes the necessity of communicating with is "bold capital", which means certain companies that exercise their role in investing in emerging entrepreneurial companies, so they may be at the beginning of projects, or in the final stages of them, so the entrepreneur must know the sector that can Through it, support is obtained, and this is done through reviewing the companies that attracted the bold capital, and the way they deal with them, and it is not prohibited to consult those with expertise in this regard. In this regard, the lecturer provided a number of points that he deems important in this regard, including: " Not relinquishing more than 20% of the project to any investment round, merging more than one party into the investment process, personal entry by placing part of the amount, linking the investment to a business contract or a joint venture, and reducing the value of the project.
At the end of the lecture, he stressed the non-surrender in the event of the investor's refusal, controlling performance, and not being afraid of the judgment of others.
