Why invest in seed funds - a bad idea for investors and why investing with friends - the only way out

1. Venture in Russia. Western strategy to sell the business for billions - piece-work, is rare and, in general, not about Russia. If you or your partner have not yet done, you do not, do not fantasize.

2. Sell expensive company in Russia no one. Strategists take conservatively 3-4 last annual income plus assets minus debts (Dada, the method of “the truth,” the harsh and ruthless, and I warned). Private owners are not subject to your complex company did not give a fuck, especially for the millions of funds unit. In addition, if the business you really trample, the easier you overcome than buying. Train your eggs and make friends among the big men.

Shorter or dividends, or strategies for the price of dividends for the next couple of years. Well, ok, so dividends. There are two options:

1. Give the money to the management. Sounds cool, until you start to count numbers.

a) to support a team of managers, the fund can not be less than $ 25 million. In any way at all. If less money or fund starts to eat the main investment capital in excess of, or lose in quality. Pull microfoundations, where half of the money went to the food you can, but it will take more than 5 years, and 10.

b) the economy of the process to receive dividends is that attributed to earn money in the crop is almost unreal.

If I want to make as the manager of the profit of $ 500 thousand dollars for 5 years and did not bother to operating income, then I need to collect fund for $ 1.67 million dollars to invest in 20 companies and dividends from there to get $ 4.1 million to cover the costs fund investment and show 20% yield in dollars annually for 5 years. In addition, each of the 20 companies must have an annual income before transaction 5 million rubles, evaluate yourself in 3 annual profit for the year and then grow by 5 times and the next 5 years to allocate 50% of profit on dividends.

Taking into account the losses on investments and growth dynamics, I have to shoot from the portfolio of 2-4 projects to grow without blurring hundreds of times, which is almost unreal. Operationally I earn as much as $ 500 a month.

Do you believe that such a scheme manager is going to do 5 years without a salary? That’s it.

2. Invest in yourself. Investments - this is not a hobby. This is the daily hard work on the training that takes years and money. Investing blindly, you are guaranteed to lose the first 10-15 investments, it’s statistics.

Conclusion - the only sensible option - to invest with a friend who provided operational, and has experience working for a share of the profits. Miracles do not expect the average yield will be slightly above the deposit, but will be fun and informative.

(There should be inset from the Jumble - Param-param-pam-piiiiu)

P.S. This is the start of a cycle mikrostatey Sapfir Capital on how to actually arranged the investment market of the CIS. Regularly do not promise, but we will.

29 January 2015

In the Novgorod region has begun construction of a factory IKEA
Russian banks in Ukraine fund “ATO” and trying to build a business

• Alisher Usmanov, the investor proved the most expensive in the world of startups »»»
Investholding USM businessman Alisher Usmanov and his partners invested tens of millions of dollars a popular mobile service taxi Uber.
• Leaders on Foreign Investment in Russia: Cyprus, the Netherlands and Luxembourg. All of these countries - offshore »»»
At the end of March this year, Russia has accumulated foreign investment in the 323.
• Russia sharply reduced investment in U.S. debt »»»
Russia in January 2010 drastically reduced its investments in U.S.
• Top managers and HR-director of the Urals discussed investment in human capital »»»
In Yekaterinburg completed Business Forum "Investment in human capital as a guarantee of success in the market," organized by ANCOR personnel holding in partnership with "3M Russia.
• Russian internet startups per year received $ 1 billion investment »»»
Investors invested in 2011 in the beginning the Russian Internet company about $ 1 billion they were twice as more generous than the previous year.