Affordable entry point or risks: where is the balance for investing?
Acquiring an equity stake in a business is one of the more compelling investment options, especially when a project has the potential to be highly profitable. Investing in a business at different stages of its development comes with its own pros and cons. Let us review the options so you can identify the best fit for you.
At the very beginning, when the business is just taking shape
CONS:
• many unpredictable factors,
• high risk that the project will not materialize,
• it may take several years to see returns.
PROS:
• the entry cost is minimal,
• if the business succeeds, investor returns can be maximized relative to outlays.
The business is up and running, profitable, and has growth prospects
CONS:
• the price of a stake in the business (or company shares) is much higher than in the first case; you will need to invest more to see meaningful returns,
• sometimes it is no longer possible to enter the business at this stage.
PROS:
• investor risks are minimal, though it is important to understand that risks exist at every stage of a business’s development,
• profits can be realized fairly quickly
A business just before market launch
CONS:
• the cost of participation is significantly higher than at the outset,
• some risks remain (“what if it doesn’t take off?”).
PROS:
• the price of a stake is low compared with what it will be if the forecasts and plans are successfully delivered.
• risks are much lower than at the start,
• the wait for profit is not very long.
The Duyunov Motors project is precisely at such a window of opportunity, with reduced investor risk. The DETB "Sovelmash," where unique electric motors will be designed and manufactured, has been built. The first commercial contracts with customers have been signed. The company is now awaiting commissioning authorization, after which it will commence operations and share profits with investors.
Starting November 29, the price of stakes in the project will increase by 30% due to reduced risk.
Learn more here
*The translation is done with the help of artificial intelligence.