The main ways to attract investment

The methods vary broadly depending on the company's stage of development, its capital needs, and the level of risk that potential investors are willing to accept. It is important to understand the available options and their effectiveness in different situations. Each method has its own advantages, timeframes, requirements, and expected profitability.

Venture capital funds

VC funds are one of the most powerful tools for attracting investment for technology businesses with rapid growth potential. Such funds are interested in companies with the potential to scale up and capture significant market share, which can increase in value tenfold or even 100-fold.

The main characteristic of ventures is their interest in businesses in the early stages of growth, before they have achieved stable profits. The funds take on high risk, compensating for it with the possibility of obtaining substantial profits in the event of a successful exit.

Working with a venture fund can also provide access to a network of contacts, mentors, and partners. Often, it is the fund that helps form the right business model, strengthen financial discipline, and prepare the company for subsequent financing rounds.

However, it is important to consider that venture capital involves transferring a share of the business to investors. Therefore, founders must have a clear vision of the company's future and understand their long-term goals. They must also be ready for partnership. If your business has the potential for rapid growth, a venture capital fund can accelerate development and pave the way for large-scale success.

Business angels

Business angels are private investors who provide funding for startups and young companies in their early stages of development. Unlike venture capital funds, they act individually, invest more quickly, and base their decisions not only on financial forecasts, but also on intuition and personal experience. This is why such investors are often the first external backers in a startup.

Business angels are willing to invest in projects with a high degree of uncertainty when there is no established business model or financial indicators yet. They are interested in ideas with future value potential, as well as founders who demonstrate determination, market knowledge, and adaptability.

Business angels frequently contribute their experience, reputation and professional contacts to a project. This can be crucial for the development of a young company: the right investor can help find partners and first customers more quickly, form an effective sales strategy and avoid critical mistakes. In the field of venture capital, this type of support is known as 'smart money'.

However, partnering with them does have some peculiarities. Since business angels invest their own funds, they may become more emotionally involved in the process and expect regular communication. Additionally, business angels typically expect a share in the company, so structuring the deal correctly is important to maintain a balance of interests.

Crowdfunding and crowd investing

These relatively new phenomena offer the opportunity to obtain financing from hundreds or even thousands of people who believe in your product. These models are particularly valuable for entrepreneurs who want to test market demand while retaining control over their business.

Crowdfunding is primarily about supporting an idea. You present a product, prototype or concept, and people contribute to help bring the project to fruition. In return, backers receive rewards such as early access to the product, limited editions, symbolic gifts or other bonuses. This format helps test audience interest before production and reduces financial risks. If a campaign does not raise enough funds, this is a clear signal that the product needs further development.

Crowd investing works differently. These are real investments, not donations. Those who support the project receive a share in the company or future financial income. For entrepreneurs, this is an effective way to raise capital without having to turn to large funds or banks. However, crowdfunding requires a high level of transparency: you must provide financial data, clearly describe your business model and demonstrate potential profits. Investors want to understand how they will make money, and you need to inspire confidence in them.

Both options come with the bonus of building a community around the project. When people invest in a project, they often become ambassadors for it, promoting the product and helping to build trust in the brand.

Bringing in a business partner

Unlike loans or crowdfunding, a partner becomes part of your business, so this step requires a particularly careful approach.

First and foremost, consider the value that the partner will bring alongside their investment. This could be industry experience, market access, useful connections, management skills or technological expertise. The strongest partnerships are formed when the parties complement each other. This way, the business receives not only money but also the opportunity to grow faster and more confidently.

Another important element is the legal formalisation of the affair. A partnership requires clear agreements regarding who is responsible for what, how decisions are made, how profits are distributed and what happens if one of the partners leaves. Clear agreements help to avoid conflicts and establish transparent rules. It is worth hiring a lawyer to ensure that all provisions are accurate and take into account the interests of both parties.

Cultural and value compatibility is also influential. Even the most promising alliance can fall apart if the partners have different views on business management, ethics, or risk. Therefore, handle before agreeing on long-term goals, desired levels of participation, communication styles, and expectations of the collaboration.

Banks and investment loans

Bank and investment loans remain one of the most common ways for businesses to raise finance, particularly when they are seeking stability and predictability. Unlike venture capital funds or partnerships, a loan enables you to retain full control of your business, as the bank does not acquire a stake in the company or interfere in strategic decisions. However, this comes with an additional level of responsibility: the need to regularly repay the debt and interest, regardless of financial results.

The advantage of bank financing is its structured nature. A loan has clear terms, including the amount, term, interest rate and payment schedule. This creates a clear financial model for an entrepreneur and allows for cash flow planning. Banks usually offer various types of investment loans, such as those for equipment, real estate, technology, or production development.

In order to obtain a loan, it is necessary to demonstrate financial stability, present a high-quality business plan and show that you have the ability to repay the debt. Banks assess risk much more conservatively than venture investors, so they will carefully study your financial statements, indicators, and credit history. If the business is young or does not have a stable income, this can complicate the process.

However, investment loans can be a profitable solution for companies with an established business model looking to scale up, whether that be to expand production, enter new markets or modernise technology. In such cases, a loan enables development without diluting the owners' shareholding and preserves independence.

Competent debt management is equally important. A high interest rate or an unsuitable term can create additional financial pressure. Therefore, before finalising a deal, it is worth analysing and comparing various offers from banks.

How to attract foreign investment?

Which foreign investors work with Ukraine?

The country cooperates with a wide range of investors, including international funds, institutional organisations, and private companies. Despite geopolitical risks, the country remains attractive thanks to its strong IT sector, agribusiness, energy sector and significant innovative potential.

The first group consists of international financial organisations. The EBRD, the World Bank and the International Finance Corporation (IFC) systematically invest in large-scale infrastructure projects, the energy sector, agriculture and innovative companies. These organisations not only invest funds, but also provide technical support, auditing and corporate governance standards.

The second group comprises European venture capital funds. Following the development of the Ukrainian technology sector, many funds from Poland, Estonia, Germany, and Sweden have identified Ukrainian startups as promising. They invest in FinTech, AI, HealthTech and DeepTech, seeking out teams with a global mindset.

The third group comprises private investors and corporate venture funds of international companies. Such investors usually look for innovative solutions that can be integrated into their own business operations. Popular sectors with them include IT, cybersecurity, and agrotechnology.

The fourth group consists of private equity (PE) funds that work with more established businesses. They invest in manufacturing, logistics, processing, and energy companies.

What is important to foreign investors?

The key factor for their success is trust, which is built through transparency, compliance with legislation, and high-quality due diligence.

• Financial clarity. Investors want to understand the business's true financial position. A company must maintain accounting records in accordance with international standards and have a clean financial history, as well as clear reports on expenses, income, and debt obligations.

• Legal compliance. Foreign investors assess whether the company complies with labour legislation, tax requirements, personal data protection rules and environmental and industry standards. Particular attention is paid to the corporate structure and the presence of any risky liabilities or legal disputes.

• Technical and operational audit. Investors are interested in how internal processes are organised, whether data is sufficiently protected and how developed the product strategy and technological base are.

• Reputation. Foreign investors not only check the company, but also the team, looking at past projects, professionalism, management ethics and the absence of corruption risks. A high level of trust significantly speeds up the investment decision.

Export support programmes and foreign funds

These are helpful tools for Ukrainian companies seeking to enter global markets or attract foreign capital. As well as providing financing, they offer consultancy services, educational programmes, technical assistance and access to international partners.

One of the key institutions is the Export Credit Agency of Ukraine (ECA), which insures export risks and helps companies to conclude agreements with foreign partners. This is particularly valuable in countries where Ukrainian companies may encounter unfamiliar legal or reputational barriers.

Programmes such as EU4Business, Horizon Europe and EBRD Advice for Small Businesses, funded by the European Union, also play a significant role. They provide grants, advice and acceleration programmes, as well as funding for innovation development. For technology companies, this is also an opportunity to gain international expertise.

Some funds focus specifically on supporting developing countries. For instance, GIZ, the Nordic Environment Finance Corporation and other organisations invest in sustainable development, energy, education, digitalisation, and entrepreneurship.

Startups should pay attention to international accelerators such as Startup Wise Guys, Techstars and Y Combinator. Some of these accelerators work with Ukrainian teams, helping them progress from MVP to the global market.

How should you negotiate with investors?

What should you include in your presentation?

Your presentation is your tool for influencing. Your pitch deck should be concise, informative, and structured in such a way that the investor can grasp the entire logic of your business in 10–12 slides. The goal is not to impress with design, but to demonstrate your complete understanding of the product, market and financial model.

The key elements of the presentation are as follows:

• Clearly articulate the problem that your product solves and how many people potentially face it and would be willing to pay for a solution.
• Explain what makes your solution innovative and how it outperforms competitors.
• Show the size of the market, its growth dynamics and your possible market share. Investors need to see the potential for expansion, as they are generally not interested in local products.
• Present your unit economics and business model, i.e. how you intend to generate revenue and achieve profitability.
• Describe your go-to-market strategy, detailing how and through which channels you plan to conquer the market.
• Describe the team, its experience and competencies.
• Indicate the desired investment amount, its purpose, and the expected runway.

Common mistakes during project presentations

The biggest mistake founders make is trying to impress investors rather than convince them.

• Don’t be overly emotional and focus on the idea. Investors don't need romance.
• Lack of figures or manipulative forecasts. If you don't know the exact metrics (CAC, LTV, churn and unit economics), investors will assume that you are either incompetent or hiding something.
• Juggling complex terms and unverified theses. Avoid phrases such as 'we have no competitors' or 'the market is unlimited'. These are classic red flags for any fund.
• Ignoring risks suggests inexperience. Instead, demonstrate your understanding and the plan to minimise them.
• Inability to clearly articulate the need for investment is also a problem. Investors are interested in more than just the figures; they also want to know what the investment will be used for.
• Too much text on the slides reduces the likelihood that investors will read the entire presentation.

Answers to typical investor questions

During negotiations, investors will ask questions to gain an understanding of both the business and your ability to analyse, forecast and make decisions. Preparing for these questions is a critical part of the fundraising process.

‘Why is your team capable of winning?’

Investors want to see that the team is experienced, competent and motivated. It is worth emphasising previous results, expertise and specific skills.

‘What is your real market?’

Be prepared to explain not only the figures but also the calculation methodology, where the data come from, why this particular segment was chosen, and the growth forecast.

‘What are your key risks?’

The investor is testing your maturity. Name a few major risks and demonstrate your mitigation strategy.

‘How will you scale up?’

Talk about sales channels, marketing tools, hiring a team, and forming partnerships.

‘What will the money be used for?’

Explain your budget structure, including product, marketing, team, operations and additional funds.

‘Why invest now?’

This is a test of your ability to justify the timing. It is worth showing market trends and a unique window of opportunity here.

Five top tips for securing investment in 2026

The conditions for startups are changing in 2026: competition is growing, funds are operating more cautiously, and the quality of founders is becoming increasingly important. In order to secure investment, it is significant to demonstrate not just a product, but also strategic thinking, technological maturity and data literacy. The five most relevant tips to significantly increase your chances of attracting capital are outlined below:

• Use AI pitches and automated content preparation tools. This will save you time and demonstrate your technological competence. However, don't rely on AI too much — it's only an assistant.

• Join international accelerators and incubators. Teams that participate in global programmes such as Y Combinator, Techstars, Antler and Startup Wise Guys, as well as new regional deep tech accelerators, have a better chance of securing funding. These programmes educate participants and provide access to funds, partners and initial sales.

• Show traction, even a minimal one. Investors want to see proof of your ability to generate revenue. This could be a small but real volume of sales, active users, successful pilots or letters of intent from potential customers.

• Understand your metrics. Investors fund founders who understand CAC, LTV, margins, growth rates and churn. If you can manage the numbers, that's a positive sign.

• Build a strong network of advisors, mentors, and partnerships. Having experienced people around you increases trust and makes fundraising easier. Investors are more likely to invest in a team that has surrounded itself with experts.