Where to get money for a startup, where you shouldn’t invest and how to defeat laziness: advice of Mykola Davydov

15.06.2020

What do investors ask when they can ask a question – a question and answer session by the founder of the Gagarin Capital fund Mykola Davydov for subscribers in Instagram.

Davydov invited subscribers to ask what they would be interested to know about – and answered questions about investment, career and personal life. Selected multiple answers.

Where to get the money for your startup?

You can earn, borrow, borrow in exchange for a share, win at a casino, receive as a gift, find or steal. But still the first three options are better. Better yet, learn how to do a startup without money.

Who should I contact for investments – friends or entrepreneurs?

If this is your first investment, it is better for those who know you. Early investors are more likely to invest in people than in any particular business plan.

Where can I find a good example of a business plan that has everything that an investor wants to see?

https://blog.ycombinator.com/intro-to-the-yc-seed-deck/

Are there funds that do not invest in IT, but the real sector?

Of course, there are many more than those who focus on IT.

This are BVCP, Elbrus, Da Vinci, Finam, Letter One. The entire spectrum from Venture to MBO / LBO and various shades of Private Equity.

What is the minimum acceptable share of profit from investors?

Hurdle rate (the minimum yield of the fund, until which managers do not receive bonuses) should not be too high and should reflect the market in which the fund operates, the stage and its size.

If you put a hurdle of 10% on a billion-dollar fund, then managers will earn on management fees instead of trying to do something at all. Normal hurdle for IT vc – 2-5%.

What type of activity does not invest?

Gagarin is an ethical investor, that is, we have the described rules, which we do not invest in, and I completely separate them. We do not invest in alcohol, drugs, gambling, weapons and microloans. We always choose what can benefit humanity for the long term..

At what stage can founders pay their salaries?

As soon as there is something to pay. If you are on full time in a startup, then you should not need to think about how to eat tomorrow.

But the salary should be modest. Usually, founders pay themselves the same salary as engineers in their startup, but many employees can get more founders.

When and how to say no?

As quickly and preferably as possible directly and honestly. The longer you wait, the worse.

Wrong example: no, your idea is bad, leave me alone.

Correct example: thanks for offering to do this, but I don’t think I would like to participate in this now.

Where can I go with ideas for WhatsApp?

I don’t know, I would try to prototype and, perhaps, even somehow test and send WhatsApp products with a proposal to hire you. I know a few people who got into “unicorns” on interesting projects.

How to defeat laziness and stop suffering procrastination?

How to constantly be productive?

No way. Or there will be a burnout.

We must learn to use the recessions in productivity in order to have a cool rest and gain energy, and not try to rush forward. It’s better to plan your vacation in advance, the main thing is to relax, and not to procrastinate.

How to do everything?

Google Calendar and columns.me for listings. But I don’t have time anyway.

How to maintain the focus of attention?

I only do what is interesting.

How to get involved with interesting people?

First of all, I try to be interesting myself. When someone is interesting to me, I try to understand what he needs and how I could be useful or interesting. Sometimes you can just chat.

The best books?