project selection criteria required documents services

1. What proportion of a project's value should its initiator invest with own capital?

Answer
There is no specification regarding initiator's participation in investments. In each case this decision is made through negotiation. Participation in investments implies having a stake in statutory fund and, consequently, participation in company's management and future income. Thus, an initiator is interested in increasing his or her stake, based on the individual financial strength. The major point is that project initiator and investors share financial risks.

2. What if a business idea were so valuable that even its short description allowed project implementation without the initiator?

Answer
Projects (and mainly, project teams) that are of interest for our investment company possess a unique combination of qualities that gives them a considerable advantage over other entrepreneurs who compete for the implementation of the same business idea. Such a team is not afraid of losing the idea by presenting it (or even business plan) to a potential investor. A project without the above-mentioned unique advantages is of no interest for investment. Also one should not overestimate the value of the idea separate from people (initiators and project teams). Success of a project depends to a great extent on people's energy combined with financing. If we were "to steal" an idea we would either have to implement it ourselves (and concentrate on two or three projects - our human resource capacity) or look for talented people able to implement the "stolen" idea (talented people able of inventing something new are difficult to find).

3. Does the investment company guarantee that the project offered for consideration will not be implemented without an initiator's participation?

Answer
Yes, upon a project initiator's request it is possible to sign in our office a confidentiality agreement reserving initiator's rights. However, we require that an initiator submits a summary of a project or a short description of a business idea before signing an agreement.

4. Does a project initiator have to invest his/her capital?

Answer
Yes, this is crucial.

5. How do project initiator and financial investor share stakes?

Answer
Stakes are shared between all partners in proportion to participation (any form of contribution) in investments.

6. Can project initiator invest know-how, invention or brand in project's statutory fund?

Answer
Yes. The possibility of investing other intangible assets is also open for consideration. Though intellectual properly should be alienable and like any other contribution it becomes company's property upon its investment into the statutory fund. We do not consider start-up projects without initiator's financial participation in investment, independent of intangible assets value.