Report on INTRODUCTION of STARTUP INVESTMENT MANAGEMENT

Times have changed for startup businesses and investors. Investors today have gained access to a broader range of investment opportunities. Specifically speaking, more investors are investing their money in startups with a promising future.

To commence with investor plays a vital role in a startup, although they too get their benefits depending on the successful functioning of a startup. They support as a backbone to the entrepreneur. Issues which an investor would help to resolve are as follows:

·       they will provide capital to start the business;

·       they assist in business-plan for a startup;

·       they are profit oriented hence they will ensure that capital is invested in the correct way;

·       they aim at long term benefits and attempt to create goodwill of the company in the market which would further attract more investor to invest and thereby, increasing the capital inflow;

·       they help in earning maximum profit with least damages and losses (basically risk management) thereby generating surplus and revenue for the socio- economic development of a country.

Getting investors to work with new startup is just the beginning of the entrepreneur/investor relationship. Investors want to see a lot of things, but they don’t want to startup team lose their money. They have a vested interest in the development and progress of startup if they invested in it.

Entrepreneurs should know that investors are looking for startup owners who are organized, responsible and transparent. In addition - who are clear, concise and consistent. A telecommunications relay service (TRS) also known as IP-relay or relay service is very attractive for investors in many countries.

TRS aids in communication of people with speech and hearing impairment to other people through communication assistance. It offers voice carry-over and hearing carry-over which is through the communication assistant (CA) to allow the impaired communicant to relay and receive messages through the standard telephone.

The first relay service was established in 1974 by Converse Communications of Connecticut. By now days TRS market seems to expand due to the increased number of hearing and talking impairment in the globe. Therefore, the development of development of the concept of attracting investors to finance Startup Business in TRS sphere and tools for its practical implementation is relevant, which led to the choice of topic, its purpose and objectives.

The goal of research is to provide a theoretical substantiation and development of the concept of attracting investors to finance Startup Business and tools for its practical implementation.

The tasks of research are as follows:

·       Investing in startups explored as a management object;

·       Features and problems of Startup Investment Management investigated;

·       The concept of attracting investors to finance Startup Business developed;

·       The entrepreneurial ecosystem in Ukraine analyzed;

·       The project target market assessed;

·       The needs in real investments for project promotion to the market forecasted;

·       Startup project scheduled;

·       Startup team formed;

·       Project Business Model developed;

·       Writing a Business Plan and Executive Summary investigated;

·       The Professional Presentation for attracting investors to finance Startup Created.

·       The pitching essentials improved.

The object of research is processes of Investing Management in Startup

The subject of research is an innovative project of improving the Telecommunication Relay Service

Methods of research [1]

General and special methods are used in the work: empirical and statistical methods - to study the process of promotion of innovative products market in dynamics; abstraction, logic, experimental and theoretical research methods - to determine the features of managing the process of promotion of innovative products to the market of Ukraine.

This chapter has as a goal to clarify the methodological selection for the direction of the thesis. Here will be explained design of the research and method used during the thesis. 

Further, how the data were collected will be described, also limitations of this thesis will be set. One of the focal points in the methodology is the correct selection, collection and usage of the right resources, in other words research philosophy.

Into practice from the exploratory research. But the exploratory research may be practical for more areas, such as identification of the best practices or innovative production. Explanatory research usually takes the form of qualitative research method.

On the other side, as mainly qualitative resources are used, they can lead to biased results. Moreover, findings of the research should not be generalized or applied to a broader public, so for example what can be beneficial for the Ukraine start-ups in telecommunication.

The case study research tries to comprehend complex social phenomena, at this   case the challenges for the Ukraine start-ups within the concept of the Industry.

Furthermore, the single case study approach was selected as the most appropriate as the single case studies refer to unique or rare cases that should be described or analyzed.

However, few features (such as graphs, statistics, etc.) of quantitative research    are used in order to strengthen the importance of the thesis topic.

Results of research

The new important for the economy of Ukraine scientific task of synthesis of organizational-economic mechanism of managing process of promotion of innovative products to the market is solved in thesis.

The concept of organizational-economic mechanism of managing process of promotion of innovative products to the market is based on the marketing-oriented, situational, target and process approaches to the management. It provides an opportunity to increase the volume of innovative products sales on the market and to obtain profit by its manufacturer in the short and long term.

The method of developing a strategy for managing the process of promotion of innovative products to the market has been improved in collecting, formalizing and interpreting information from potential customers regarding the possibility of solving their problems with the innovative products. This allows manufacturers systematically, predictably and guaranteed to initiate the development and promotion of innovative products to the market which will be of value to customers.

 An approach to the formation of a potential market for innovative products is based on office and field marketing research methods. It is developed in terms of identifying potential customers of innovative products, assessing market positions of competitors and choosing methods for attracting potential consumers.

This contributes to reducing the cost of marketing research, increasing the number of actual consumers of innovative products and increasing manufacturer' profits.

The methods of simulation and project management, on which the planning of process of promotion of innovative products to the market is based, helps to identify the legal entities of the promotion and the ways of their integration.

In addition, the scheduling and selecting the methods of innovation products' promotion to the market accelerates the rate of innovative products diffusion on the market.

To form the budget of the promotion process, the volumes and timing of the initial financial flows were determined. In addition, graph of incoming financial flows and optimize the structure of sources of their financing at each stage of the process of promotion are developed. This will reduce costs for promotion process and reduce the promotion process.

The feature of the method of assessing the competitiveness of innovative products is considering the interests of customers and manufacturers of innovative products. This will be useful for identifying existing and generating new competitive advantages of innovative products faster than competitors.

The practical significance of the results obtained

The proposed concepts, methods and approaches have a high level of versatility and can be applied in attracting investors to finance Startup Business. The main scientific results, conceptual provisions and practical recommendations based on the results of the study were used in the practical activity of project “Telecommunication Relay Service”.

Approbation of research' results

The main content and results of the Thesis have been published in 5 scientific papers.

Approbation of the results of research about investment in startup business is discussion about the investment in IPO’s which could be risky. The research is about the investment in business which is conducted from various scientific papers. These are approximately 5 scientific papers which are used in this research. The information in this research is based on the compulsory elements which introduced the product of the business according to the standards of the investment in the newly start business. The purpose of the research is to attract the investors so they could learn about the benefits of the investment in IPO’s and could make investment. There are scientific research which is based on empirical and statistical method to promote the business to the new investors in the market. The findings of the research should not be generalized or applied to a broader public, so for example what can be beneficial for the Ukraine start-ups in telecommunication. The scientific paper shows results about the promotion of the business in the market. The scientific paper discussed about the strategy for managing the process of promotion of innovative products to the market has been improved in collecting, formalizing and interpreting information from potential customers regarding the possibility of solving their problems with the innovative products. The innovation in the research and business methodology also could be find with the help of research from scientific papers such as useful for identification of existing and generating new competitive advantages of innovative products faster than competitors. The research is collected from different resources which are helpful to describe the solution of the problem which is related to investment in IPO’s (Bezrukova, Sibiryatkina, Ryzhkov, & Bryantseva., 2015).