Here in my country investors think in after lunching a product in 3 months they should start receiving some amount otherwise they will close funding and take all of equity and kick you out. What can we do then, Here in my country we have many idea's and also a big and cheap market of developers but we have lack of product development tools and investment. If some investors agreed they all have very tight conditions. Any suggestions from you respected cofounders
Ferhan, whether you are in a market with this kind of investors, or a broader market like we have in the US with lots of choice, your initial launch is best funded by people who know and love you and believe in you. That is why most successful entrepreneurs have at least one or more Friends & Family round in their history.
Some entrepreneurs fund their initial product/idea development with credit cards or some other kind of leverage (loans) before going outside for investment.
Here in the US, no investor worth their salt would ever expect a return in 3 months. 18 months is even a tight horizon.
Work two jobs, get people who believe in you to do work for you without expecting quick payment. Do what you can do to see your idea come to life. If you don't have that resource pool, it will be a tough, uphill battle.
Do these investors have experience with other investments where they start receiving a return (money) on their investment in 3 months?
What you describe sounds a lot more like a loan than a capital investment. When you invest, you typically are buying a % of the company. Which means you get a % of earnings (after all expenses). In the early years, most companies reinvest all their earnings back into the company to grow it. That leaves $0 earnings to share with investors.
Bottom line: your investors get paid when you get paid (as an owner), which is usually many years into the future.
It sounds like these investors are used to investing/lending to shops or restaurants where you can start paying dividends sooner. For startup angel investment, investors usually wait 5-10 years to get any returns.
So what you say how to deal with that kind of investors?
How can we go to international market?