Development of investment proposal for the innovation project
Student: Buly`cheva Ekaterina
Supervisor: Nadezhda Nikolaevna Butryumova
Faculty: Faculty of Management (Nizhny Novgorod)
Educational Programme: Bachelor
Year of Graduation: 2014
<p>Currently innovations are recognized as indicators of economic growth and sustainable development . But the problem is that the constant technological innovation especially in today's world requires a sufficient number of market professionals with competencies for the development of innovative projects , as well as raising capital for their continued funding.</p><p>Experiencing difficulties in financing innovative companies at the stage of "seed" and "start" , which is usually not enough own funds for further development. There are several ways to obtain funding in the initial stages :</p><p>• Preparation of bank loans</p><p>• State support</p><p>• Receipt of funds from venture capital funds</p><p>• Receipt of funds from investment funds</p><p>• Receipt of funds from corporate venture capital investors</p><p>• Support for business angels</p><p>Government grants are available , but often they are not enough for further development of start-up companies . It should be noted that difficulties also arise because of bureaucratic system for obtaining investment duration of their production and strict reporting forms .</p><p>Investors of venture fund invest projects that are in the stages of growth. For the venture capitalist it is important that investments become liquid within a short period of time , that the company in the early stages often can not provide .</p><p>Banks and investment funds do not fund ideas and innovations . The fact that the start-up companies or projects have a high degree of risk, and do not provide a guarantee that will bring income.</p><p> The most attractive financing instrument for innovative projects in the early stages of development is to obtain funds from business angels - private investors. Business angels are experiencing considerable risk by investing in a new project , as there is no guarantee that the investor's funds will not be lost . Feature of this investment is that business angels can provide not only cash but also to share their experiences in the project management plan , to attract professional managers and skilled professionals to take responsibility for organizing the production and commercialization of research.</p><p>In order to receive funding from a business angel , it must be of interest to the project. Investors have different priorities, strategies and characteristics of the projects. One way to attract investors is the development of an investment proposal for the project or start-up company . Therefore the aim of the work is the development of investment proposals for innovative projects .</p><p>The object of this paper is an innovative project .</p><p>Subject - an investment proposal for an innovative project .</p><p>Objectives:</p><p>1. Consider particularly innovative projects in the early stages of development.</p><p>2 . Examine requirements for investment proposals from various investors , considering the early stages of development projects</p><p>3 . Determine the structure and key elements of the investment proposal for the private investor</p><p>4 . Develop an investment proposal for the project «inTouch».</p><p>Investment proposal is a document provided by the author of the project for consideration investor containing justification for the proposed investment and disclose the terms of the transaction , defining performance indicators investment in the project and feasibility of its implementation.</p><p>Investment proposal has the following structure :</p><p>• Project Summary</p><p>• Details of team</p><p>• Product Description</p><p>• Market and Industry</p><p>• The project</p><p>• Development Strategy</p><p>• Stage of readiness of the product</p><p>• Intellectual property</p><p>• Financial plan</p><p>• The structure of the transaction</p><p>According to the expert survey conducted by the Association of Business Angels "Startovie Investicii" business angels insist on the following projects in the initial stages :</p><p>• Description of the product.</p><p>• Financial performance - sales revenue , expenses , EBITDA, net income , the discount rate , NPV, IRR.</p><p>• Availability of market entry strategies , market analysis and industry.</p><p>• Clear view of the authors of the project that will be made upon receipt of the investment.</p><p>Structurally work presented as two parts. The first part contains the theoretical aspects related to the implementation of the innovative features of the project. The issues of attracting funding , types of investors and financing principles .</p><p>The second part provides an investment proposal for an innovative project «inTouch», the essence of which is to provide a flexible platform for collecting feedback from customers using tablets and cloud service . The project was launched in April 2014 at a test site in Nizhny Novgorod.</p>
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