Metal Conduit Increase Monday

Speaking in Russian – people who are familiar with money, family and people who have no venture capital experience, but who want to finance your side business in a startup.Where to look for the first and second is clear without much explanation. The latter are more likely friends of friends and are difficult to recommend. In addition to their lack of experience, there is a risk of getting people who are far from your values ​​or understanding of the riskiness of venture capital investments as co-owners of the company.

We ourselves started the NappyClub project for nine million rubles, provided by our friends. This, of course, is a serious amount, and it allowed testing more strategies at the initial stage. In most cases, friends and acquaintances are ready to lend up to a million rubles. But often this is enough to form a minimum product (MVP) and test a business model.

The undoubted advantage is that this type of investor is initially more loyal and does not require complex procedures for processing transactions, prescribing KPIs, detailed reports and presentations. The main risks are to ruin relationships with loved ones if the startup does not take off. And it can be very painful for both you and them. To be on the safe side, it is important at the very start to outline very clearly what you plan to do with the money received and what scenarios for the development of events are possible up to a complete loss of money.