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Investments

Some investment companies provide finance for start-up or young companies which need capital to develop their business. Usually they are run by a group of extremely rich people of various nationalities who made their fortunes in the computer and financial services industries. They enjoy the excitement of working with start-ups (and small companies) and believe that Central and Eastern Europe offers outstanding opportunities for investment. They are willing to take risks and back different projects. However, they also expect to make money usually by taking a stake in the business or a share of the profits. They often consider several proposals.

After hearing presentations from individuals and companies they decide which projects they will invest in and how much money they will give to each one. The business plan needs to be clear and presented logically. The presenter should speak with confidence to pursue the investor that the project is worth while.

However at the end of the day the investor may feel intuitively when the project is not worth investing in. Business is risky and sometimes financial disasters may happen in this country. For example, in 1929 in the USA the stock market crash was huge and it led to a severe and lasting economic crisis in the world. Many bankers and industrialists last their money and reputations. Some went to prison and others committed suicide. During the crisis the USA government persuades the policy of the severe protectionism and raised tariffs on all important goods.

The countries which exported goods to the USA could not paid such a high tariffs and had to get out of this market. Later on, the USA restored int national economy by protecting home industry and agriculture. But all the countries trading with the USA got bankrupt and lost their money.