Stereotypes slow down business. They do not allow you to take risks, look for partners and move forward. But the reality has long been different: today you can invest with a small amount, the crisis is an ideal moment for bold decisions, partners are not enemies, but a chance for scaling.
Myth #1: Investing is only for the rich.
Yes, 1% of the population owns 45% of all assets – the Global Wealth Report 2023 confirms this. However, today you can enter the market with a small amount. On the Moscow Stock Exchange, they start with 1,000 rubles, on foreign platforms – with $50. Crowdfunding? There, the threshold is even lower – invest in startups literally from your pocket.
The collective investment market in Russia grew 3 times from 2020 to 2023, and 7 times in the world. Thinking that “my idea is not enough” is a mistake. Funds willingly invest even in small projects with an ROI of 20% per annum.
Myth #2: All funders want to steal a business.
The fear that the investor will “take the business away” is outdated. In 2023, 76% of transactions in Russia took place with a transparent structure and a minimal share of participation.
Business is putting sticks in its own wheels, being afraid to open up. In fact, it’s all about preparation: do your due diligence and you’re protected. Investors are interested in the growth of the company, not in its capture. The main thing is to understand the rules of the game and use them to your advantage.
Myth #3: Commitment is better than partnership.
In fact, loans are beneficial only to the jar. The average rate for small businesses in 2024 is 13.5%. Now compare with venture capital where investors are willing to wait 5-7 years and take risks. The business is driving itself into a corner by giving half of its profits to interest. And he could attract a partner and double the volumes.
For example, let’s take a business with a turnover of 10 million rubles. With a development loan of 5 million rubles, the entrepreneur will pay about 750 thousand rubles annually only in the form of interest. For the same period, a venture partner can help not only with money, but also with expertise, marketing, connections – and double the volume of business.
Myth #4: Investments are not for times of crisis.
Stable times are a fairy tale. All the largest corporations of the world made their breakthroughs in the midst of crises. Uber and Airbnb emerged in 2009 when the economy was in the doldrums, and are now worth $95 billion and $80 billion. The global venture capital market is estimated to be worth $672 billion in 2024 and is growing despite the turbulence.
While most are afraid of instability and freeze projects, the coolest opportunities are opening right now.
Myth #5: Dividends are the only measure of success.
Capitalization growth is important today, not quick payouts. Tesla does not pay dividends, but in 10 years its value has increased more than 100 times. While businessmen are chasing a “quick ruble”, investors choose projects with long-term potential.
Dividends are nice, but capital growth – Long-term investing reduces risk: The S & P 500 gave an average return of 9.8% per year Want even less risk?
Investment myths are holding back your business. Money does not work unless it is put into circulation. And you don’t have to be a guru: not even Warren Buffett was wrong. Learn the basics, choose a strategy and get started. In 2023, 70% of retail investors started with simple instruments – bonds and funds. They haven’t read hundreds of books, but they’ve taken a step, and that’s the main thing.