"Excess money can kill a startup"

Sergey Gribov, managing partner of Startup Access and Director of Minerva Capital partners, held a master class at the HSE entitled "the investment search Process: how much money and where to look".

In the West, it is customary to find one or two venture capitalists and go to them not for money, but in order to get a certain feedback: how good is your idea? This whole story is like the Olympic system: you meet an investor, you have one minute to tell the investor about your project. If you are interested in it – you have passed to the next round, if you are not interested – it is lost for you. In the next round, you make a presentation and have to go into more detail about what you are doing – if you can prove that your idea is good, you go through to the next round again. Perhaps later he will show you to his partners in the Fund, and you will have to make a presentation for them. When you finally agree with them, you get a term sheet-a short contract that specifies the terms of the transaction. Not exactly a legal document, since, by and large, it does not oblige much. The point of it is to sign a paper that you will not talk to any other investor until they decide whether they are ready to invest in your company. If they like your idea and believe that you are able to implement it, then the next stage is due diligence: you start to be considered in detail, check the company: accounting calculations, market research, patent situation and everything that may be relevant to the transaction. This process takes at least a couple of months, if everything is normal-signing papers and receiving money. Naturally, there are a large number of variants of this sequence.