How To Improve The Success Rate Of Venture Financing?

In English, Vc is the abbreviation of vitamin C. Today, VC has become synonymous with venture capital (VentureCapital). Almost any new enterprise sees VC as the ruler of the start of a business. What can entrepreneurs do to attract and acquire venture capital? Enterprise financing In order to ensure financing Success rate Higher, we should pay attention to the following aspects:

First, I have an idea. I want to raise funds.

It's not enough to have good ideas. You also need to have unique " competitive edge "This advantage ensures that even if the whole world knows you have such an idea, you will win. In addition to having good ideas or competitive advantages, everyone can build a company, but do you manage it? If you can explain these problems in less than a few sentences and raise the interest of investors, then you can tell him how much money you need and what you hope to achieve.

　 Two, about first entry advantage

It should be noted that first entrant does not guarantee long term advantages. If you emphasize the advantages of first entry, you must be able to explain why first entry is an advantage, whether the entrant can effectively obstruct the new entrants, or the users are not easy to replace suppliers.

　 Three, pay attention to the market.

Rather than technological level, many emerging enterprises, especially high-tech entrepreneurs, are engineers or scientists. Because of their professional background and work experience, they are very interested in high technology, high precision and sharp points, but investors are concerned about the profitability of your technology or products, and your products must be what the market needs. The advanced nature of technology is of course important, but only if you can explain to investors that your technology has great market potential or great market potential, then he will invest. Many creative products are not promoted because inventors do not fully examine what customers really need, do not choose the target market or do marketing. Investors are businessmen. They invest in you not because your products are advanced, but because your business can make money.

　 Four, why do you say you can do that large scale?

A common mistake is that the description of market size is too vague, or there is no basis for saying that it will occupy a large percentage of the market share, which can not convince others that your business can achieve a large scale.

　 Five. Why not mention competitors?

In order to emphasize the uniqueness and dominance of enterprises, some entrepreneurs deliberately do not mention famous competitors, or emphasize few or weak competitors. In fact, the existence of successful competitors indicates the market potential of products, and for venture capital firms, strong peers are the potential opportunities to be acquired in the future.

　 Six. Forecast sales according to market demand or sales ability.

A common mistake in forecasting is to estimate the entire market capacity first, and then to say how many shares the enterprise will get, so as to calculate the expected sales volume. Another questionable method is to estimate the growth rate of annual sales and calculate the sales volume in the next few years. Too optimistic estimates can be laughable. For example, some people estimate the turnover: I invented a new insole, assuming that the people of the whole country buy two pairs each year, so the market capacity has 2 billion 600 million pairs. We only need half of the market. It's more reliable to plan how much resources to invest, to investigate how many potential customers are competing for the market, what competitive products are there, and then according to the potential customers to become the true users' potential and the sales volume generated by the unit resources input, and finally calculate the sales forecast of the enterprises.