How Do Entrepreneurs Get The Favor Of VC?

Venture capital is generally difficult to obtain funds through bank loans because of its high risk attribute, while high risk and high return venture investment is just in line with the financing characteristics of these enterprises.

However, most entrepreneurs are often excluded from contact with VC due to their lack of experience in dealing with venture capitalists.

Therefore, how to get the favor of VC has become a common concern of entrepreneurs.

Most entrepreneurs are often excluded from their contacts because of their lack of experience in dealing with venture capitalists. Therefore, how to get the favor of VC has become a common concern of these entrepreneurs.

A few days ago, at the entrepreneur financing strategy meeting organized by the Asian venture capital journal group, many famous VC at home and abroad told entrepreneurs about 5 problems that need to be paid attention to in the process of contacting with VC.

Business plan can not be vague. Business plan is the first material provided by VC to entrepreneurs. It is also the starting point for entrepreneurs to contact VC.

Capital has the nature of profit seeking. Therefore, to arouse the interest of VC, business plan must explain that the business mode that the enterprise will operate is to make money.

Specifically, we need to answer the 4 question: "what do businesses do?

How to make money?

How much does it cost?

Why can we make so much money?

Entrepreneurs should answer these questions in detail as far as possible when writing business plans.

Shao Yibo, a partner of MATRIX, thinks that a good business plan should include the following elements: who the enterprise team is made up of; what the enterprise intends to do, how to do it, why others fail to do it; the consumer of the product, how the enterprise intends to sell the product, how the profit is realized, whether the product has unique technology or can fill the market blank, and the specific steps of the enterprise development.

Of course, business plans can not be too detailed.

Zhang Ying, managing director of the United States Economic Cooperation Commission, said: "VC is usually very busy. First of all, they need to judge whether the project has investment value. For specific operations, that is the matter of deciding to cooperate later. Therefore, the business plan needs to sum up the essence, and the page number is controlled at about 10 pages."

Mutual inspection, if the business plan provided by the entrepreneur is favored by many VC, when these VC are investigating the entrepreneurial team, the entrepreneurs also need to investigate these VC. Different VC will not only offer different prices, but also provide professional services to the enterprises after the successful financing.

Yuan Wenda, managing director of American red dot investment, said that the role of VC is not only in terms of money.

There are many VC on the Chinese market now. All VC say they have added value.

The added value of VC for entrepreneurs is to examine their familiarity with the industry, whether there is any successful experience, the size of the relationship between enterprises, the size of the help of enterprises, the size of the market, and whether it will become a member of the board of directors or an observer in the future. When the enterprise is formulating its strategy, it will get help from VC and what kind of help it will get.

Each VC has strengths and weaknesses, and their added value is different. Entrepreneurs need to choose the VC that best suits them.

When the timing of financing was grasped, entrepreneurs once asked the question: "the company is doing well, the market share and profits are rising, and there is no shortage of money at the moment. Is it necessary to find VC?"

This is actually how entrepreneurs grasp the timing of financing.

Yuan Wenda said: "if you have the ability, entrepreneurs can start for a while, so that there will be a variety of information feedback, including from the market and employees.

These feedback information can make entrepreneurs understand business models better and make their business models more perfect.

At this point, entrepreneurs can go to VC and tell them that I am not short of money now, and I need money in 6 months. "

In the process of contacting VC in this way, entrepreneurs can get some suggestions and demonstrate their ability to facilitate investment in the future.

It is important not to think that finding VC is better.

Shao Yibo said: "entrepreneurs have better not find more than a dozen VC. If all the people in front of us do not vote, the next VC will feel that your project is having problems. If you want VC to invest in you, you will pay a lot of money.

Focus on finding 2-3 VC, not too much. "

Judging VC attitude, entrepreneurs often encounter such a situation in the financing process. VC tells you, "this project is good. I'll think about it for a while, first look, then contact."

How can entrepreneurs decide whether VC is really interested in this time?

Zhang Ying said: "entrepreneurs can not simply give up, even if there is only a little opportunity to fight for.

Generally speaking, VC does not want the case that they once handed but gave up to become tens of billions of projects in others' hands. They usually drag you in a vague way.

VC, who is really interested in your project, will give you an answer in 1-3 days. If you don't like it, it will drag on for 2-3 weeks. When the enterprise asks again, he will let you provide some more information and information. VC will never say no. If this happens, entrepreneurs may wish to try another VC.

Frankly speaking, when entrepreneurs get money, they actually establish a relatively stable cooperative relationship with VC. At this point, entrepreneurs should actively communicate with VC, and pay attention to the communication skills in this process.

Shao Yibo stressed: "be honest and be practical.

It can be exaggerated to raise money before financing. But after getting the money, entrepreneurs and VC are already on board, so we must be honest with each other.

No matter what is good or bad, has reached the goal or failed to achieve the goal, we should tell each other that bad things happen and we can solve them together.

We should inform VC in advance of the questions raised at the board of directors, so that the other party can prepare for the problems together.

It is expected that the goal that cannot be achieved should be communicated earlier. Everyone has a mental preparation to solve the problems in the future. Some problems will be said in person.

Of course, entrepreneurs also need to understand that they can communicate with VC and listen to their suggestions, but can not rely on them, because VC can not help you solve all the problems of the company.