Quite often, you have to invest in ideas that are not legally registered, that is, there is no LLC or OJSC. Therefore, it is quite difficult to formalize this legally, so it is best to wait until the legal entity is created, and then invest money.
Naturally, the easiest thing to do at the first stage is to create an LLC. In Russia, few startups go public, so registering a joint-stock company does not make sense. Then there are three options:
A venture investor becomes a co-owner of a business by contributing funds to the authorized capital
the investment is issued as a loan (interest-bearing, interest-free, convertible),
The investments are formalized using a targeted investment agreement.
The last option conclude an agreement is the riskiest, since there is no sufficient legislative basis to protect the investor. It is best to contribute money to the LLC at the stage of its creation, or to arrange a convertible loan that can be exchanged for shares of the company if it is re-registered as a joint-stock company.
Step 4. We take an active part in the company’s activities.
Once all the formalities are whatsapp number list settled, it’s time to make efforts to make your investments successful. To do this, monitor all business processes, help with your knowledge, connections, etc.
Step 5. We receive profit
In an ideal situation, the company will start selling its shares on the stock exchange. Once the company has a stable profit, the shares can be sold. Most likely, the profit from the initial investment will be hundreds of percent or even more. Such shares will be gladly bought by investors who invest money in low-risk instruments.
If the venture afb directory conclude an discover what trade marketing is and the advantages of this strategy for companies agreement firm remains an LLC, then having a share in the business, you will, one way or another, receive income from your investments. A share in the company can also be sold if necessary.