The Simpler The Mode Is, The Easier It Is To Succeed.

Venture capital has become the hottest topic in IT and venture capital circle.

But how to understand venture capital or venture capital correctly?

Are all enterprises suitable for venture capital?

With the rapid development of foreign venture capital (VC) and the rapid growth of local VC, the combination of capital and intellectual capital is burning rapidly.

Venture capital has become the hottest topic in IT and venture capital circle.

But how to understand venture capital or venture capital correctly?

Are all enterprises suitable for venture capital?

What issues should entrepreneurs pay attention to in financing?

Should I change the money?

From Wan Wan to the world interconnection, from 1999 to 2006, from IDG's $500 thousand to many successful financing now, Zhang Xiangning CEO not only understands the venture and capital market, but also deeply understands the common mistakes and doubts of the financing side.

Zhang Xiangning said that the biggest feature of venture capital is that capital must exit.

The way of exit includes mergers, acquisitions and pfer of shares.

This determines that the size of the investment company's market should be large enough. Otherwise, no matter when it develops, it will be difficult to develop a large enough enterprise to do IPO, or it must be able to develop enough enough to be merged by other companies.

He stressed: "if the project is not big enough, but it is very profitable, it does not necessarily have to look for venture capital. They are not the right financing targets for entrepreneurs, especially not for risky investments that are specially designed."

Xiao Qingping, chairman of palmtop, who worked with IDG ten years ago, said that every entrepreneur should have a degree and scope for his own ability.

The bigger the business, the better.

Some people are suitable for early projects, some are suitable for medium term enterprises, others are suitable for mature management and professional positions.

All these factors are important.

Fu Dekun, vice president of Xiamen scholar, has made a unique voice on the current venture capital boom.

He warned of overheated entrepreneurs. Many people are now stealing VC's idea of stealing entrepreneurs, while VC's illegal practices have made some entrepreneurs unable to get a good development even if they get venture capital.

Therefore, before looking for VC for financing negotiations, entrepreneurs must take all factors into consideration. Even if they are looking for a VC organization with operational norms, they must cooperate.

How to change money?

Yang Ning, President of air network, who has made many successful financing and roadshows, said that there are three problems to be explained in the contact with investors.

First, how big is the market?

Be sure to figure out the amount for VC.

Second, why is it you?

Why only you can do it well.

Third, what exactly is your business model?

In this way, the chances of success in financing will be greatly enhanced.

"With the deepening of contacts with investors, the two sides are increasingly moving towards the core issue of the enterprise, that is, financial projections.

But the vast majority of Chinese enterprises are not familiar with financial data and forecasts.

For example, your business model, team, existing market, competition environment, service target...

They are all implemented in a Excel form, including how much profits will be achieved in the next 3~5 years.

Zhang Xiangning attached great importance to this link.

The internal reports of investors will also predict the value of the company in three years, and how much money the investment can make, in fact, it is based entirely on financial forecast data.

Therefore, it is also a good choice to find a venture capital consulting company.

Zhang Xiangning further said that in many contacts with investors, performance and momentum are also noteworthy: "from the beginning of the business plan, performance will be kept as a record.

After half a year or a year of tracking, the Investment Association will produce a comparison between the plan and the current performance. If you see what you said at that time is a mirage, it will be a very negative impact; on the contrary, it will be affirmed and recognized.

"Entrepreneurs should also strive to make the impact of manufacturing enterprises and improve people's attention. This is the essence of venture capital to follow suit. It will also save a lot of cost in the financing process and create a large number of effective opportunities."

Zhang Xiangning added.

Paul, the former subpacific CEO of Citibank, believes that the order of financing is very important: "the first stage is to make use of its own funds;

The second stage is to find a strategic partner to build a winning team. The third stage is to find venture capitalists. At this point, you have to tell an attractive story to excet VC, and the fourth stage goes to a relatively conservative commercial bank; the fifth stage is to issue bonds to the money market.

Xia Baoluo stressed: "in contrast to these five stages, we should look for different financiers at different stages, and make no mistake in order."

Summing up the views of many VC and successful entrepreneurs, if we want to get financing from VC, we should at least pay attention to project packing (including writing business plan, training core team, making financial forecasts, etc.), spreading the net extensively, making influence, and injecting own funds.

Of course, the most important thing is to produce technology and innovative business models that are enough for the market or peers to be amazed.

What kind of money do you want?

In the choice of venture capitalists, the industry generally believes that it should be the first choice for VC that has made many well-known investment projects in China, especially the venture capital investors who have invested in the same industry chain and have no overlapping projects.

Because they will integrate new projects into existing investment relations networks and provide value-added services platforms with higher added value.

Its experience in financial management, enterprise management, M & A and IPO will also greatly help enterprise development.

On the other hand, the optimism of senior venture capital institutions will also expand the influence of enterprises virtually and reduce many obstacles in the next development.

The second is to choose VC with entrepreneurial experience instead of venture capital, because having the same entrepreneurial experience will enable them to understand more about the difficulties experienced by entrepreneurs and have greater tolerance for bottlenecks.

They will have a deeper understanding and observation of the industries in which they are located, and provide more practical solutions to problems and suggestions for development.

Xu Xin, a partner of today's capital, believes that venture capital is an institutional investor whose decision is to do due diligence, depending on market size, industry rankings, and many other factors.

Bankers and venture capitalists are basically like icing on the cake. In this case, it is difficult to find the first money from venture capital. "Unless you have a very good technology, we may bet that this person has this technology.

But most of them are not technological innovations, but if technology is used, you should look for the first money from angel investors.

Zhou Hongyi, who pformed from an entrepreneur to an investor, believes that the most important thing for angel investors is not to find rich people, but to find out the relevant industries and investors who are experienced in this industry.

In the first year of the enterprise's "infant period", angel investment can play the role of "babysitter" on call.

The judge's criteria for choosing angel investors are that investors account for less than 10% of the company's shares and must be in the relevant industries.

Angel investors can also play a bridge between venture capital and venture capital.

It is understood that in July 18th, Zhou Hongyi has just joined hands with Sequoia Capital for third times, investing in e-mail service provider billion post newsletter.

Prior to this, Zhou Hongyi and Sequoia Capital have twice worked together, once investing in Qihoo $20 million, once the investment forum software Discusz.