The coronavirus pandemic did not hinder the development of the global startup market and even contributed to it. We know about what has changed in the market during 2021, how much has been invested, what new records can be expected and how successful the year has been. We also know that the investment interest in turnkey software solutions and digital platform development have increased significantly, compared to all previous years.
With what achievements the global startup industry came in 2021
The most complete and relevant study of the global venture market is usually published in March by the investment fund AVentures Capital. This document, entitled DealBook of all countries, provides basic information on the state of the industry, from the main recipients of investment to the analysis of each round and each stage of funding.
The data of the report for 2021 shows that the past year was more successful for the global startup segment than the previous 2020. For example, only for the Ukrainian market alone, more than $ 571 million was invested in startups in total, which is $ 27 million more than a year earlier. Another record for 2020 was early funding – more than $ 161 million was raised in the seed and A-rounds, more than three times the 2019 figure. At the same time, the number of transactions increased sixfold. The main funds invested in Ukrainian youth projects were AVentures Capital, Genesis Investments, ICU, Dragon Capatal, Horizon Capital.
2 options on how to find an investor for your project
- Submit request/application for an investment fund or venture
In almost all countries in the world, there are different types of an investment fund or venture funds divided by the size or interests of investors that you can turn to. The easiest way of course is to turn to venture funds in the country where you live or where at least you know how the business is operating. Among common ventures are:
- Tiger Global Management (USA-based);
- New Enterprise Associates (USA-based);
- DST Global (Canada-based);
- IDG Capital (Belgium-based);
- Index Ventures (located in the United Kingdom)
Before applying to a specific investment fund you should keep in mind that every investment company invests in a specific type of businesses (or startups) and the decision is always based on different criteria. So you should conduct your own research and choose the investment fund that will most likely accept your application. And this is step one.
When it comes to the step two (in this case your company have been already exepted by venture experts as a legit company to invest in), your focus should switch to presenting business value (in other words – value proposition) of your idea or digital product or startup and; monetisation model; KPIs (for example the number and revenue of the products sold on e-commerce website) and clear vision how to reach them.
In addition on one hand – focus on raising as much investment funds as possible. On the other hand – more investors means more money means higher KPIs and overall expectations. So you should be careful during this stage as well.
And a general tip: during all seed funding rounds it is important to cover all aspects of the business during presentation: explain technology and trends; be clear when it come to business processes on all levels; distribution channels, marketing and monetization; competition and market demand.
- Find a so called “Business Angel”
To find a reliable business angel is not that easy – it is easier to say than make it happen. But this is one of the best options if your idea or startup was already declined while applying for an investment fund or venture.
To find a reliable business angel we’d recommend to use a trusted online platform that offers a database of such type of investors. Among most common are following:
- Angellist
- Hyde Park Angel Network
- Tech Coast Angels
- SeedInvest
- Life Science Angels
- Wefunder
Despite ventures, business angels have personal interest in commercial business success, that is why they are not only investing but helping with business growth on different stages of its life cycle.
If you have chosen this way to find investments – it is very important to attend special events to be able to build connections with future investors and seek new opportunities. And the presentation skills will remain the same as during the fundraising rounds.
