What to offer the investor?

It is important to offer investors attractive conditions that will allow them to see growth prospects and return on invested funds. Here are some key suggestions you can make:

1. Share in the company (Equity)

Offer investors a stake in the company. This may be one of the most popular models:

• Providing a stake in the business depending on the amount of investment (for example, 10% of the company for $500,000).
• A company's valuation should be reasonable, based on current financial performance and potential growth opportunities.

Example : “We are offering a 10% stake in a company for $500,000, based on a company valuation of $5 million. With the involvement of these funds, we plan to double the client base in a year, which will allow us to achieve new financial goals."

2. Future Share Agreement (SAFE or Convertible Note)

For the early stages of startups, the form of investment through SAFE (Simple Agreement for Future Equity) or Convertible Note is often used:

• SAFE : The investor puts money into the company now, and the share will be settled later when the next round of investment takes place or the company reaches a certain valuation.
• Convertible Note : Debt that converts into equity at a future date when the company's next investment round or valuation is reached.

Example : "We are offering $500,000 through SAFE with a 20% discount on the next round of funding."

3. Profitability through revenue sharing (Revenue Share)

Investors can be offered a profit distribution model:

• They will receive a percentage of the company's income until their investment is returned with a certain rate of return.
• This is especially attractive for investors who are not ready to wait for a long time to enter the market with an IPO or sale of the company.

Example : "By investing $300,000, you will receive 5% of the company's revenue for the next 3 years, until you receive an income of 2 times the amount invested."

4. Specific privileges or benefits

In addition to financial benefits, additional privileges can be offered:

• Advisory participation : Investors can join the board of directors or advisory board to assist in the strategic development of the company.
• Special conditions : For example, the right to first purchase additional shares in subsequent rounds or discounts on company services if the investor represents a large business.

5. Strategic exit (Exit Strategy)

Investors always want to understand how they can get a return on their investment:

• Selling the company : One of the big players in the market may be interested in acquiring Instadoc, which would bring a significant return on investment.
• IPO (public offering of shares) : The possibility of going public in the future.
• Bringing in subsequent rounds of investment : Bringing in larger investors or funds at later stages of growth can allow early investors to exit with a profit.

Example : "We plan to raise venture capital funds in the next round in 18 months and offer an exit strategy for early investors through a partial buyout."

6. Financial and marketing metrics

It is also important for investors to see specific indicators that will demonstrate the return on investment:

• LTV (Lifetime Value) and CAC (Customer Acquisition Cost) : Show that the cost of acquiring a customer is lower than their lifetime value.
• Revenue and Profit Projections : Demonstrate how raising capital will increase revenue, scale product and enter new markets.

Thus, investors need to be offered not only favorable financial conditions, but also to show the strategic prospects of the company, a clear development plan and ways of exiting the investment with profit.

Templates that may be useful:

- Contract of purchase and sale of corporate rights (Ukrainian) ;

- Contract of purchase and sale of corporate rights (Ukrainian-English) ;

- Corporate agreement ;

- Contract with the director (Ukrainian) ;

- Contract with the director (Ukrainian-English) ;

- Preliminary contract of purchase and sale of corporate rights ;

- Shareholders' decision on the payment of dividends (English) ;