What do VCs value most? Teach you how to attract venture capital

Issuing time:2018-04-04 17:47

1 Venture capital appraisal to be financing entrepreneurs

How can entrepreneurs more effectively finance venture capital? Gobi's investment criteria include four aspects: venture capital, which is abbreviated as VC. Although it is an equity investment, the purpose of investment is not to obtain the ownership of the enterprise. It is not for the purposes of controlling, nor is it for the purpose of operating a business. Instead, it invests in and provides value-added services to expand the size of the investment company, and then withdraws through public offerings (IPOs), mergers and acquisitions, or other means to achieve return on investment in the flow of property rights.

  Entrepreneurs attract several key aspects of the VC process. The first step in financing should be for entrepreneurs to establish contact with potential investors, and they must have a business plan for the company. In a business plan, entrepreneurs need to be clear about what you are doing, what business opportunities are, what kind of solutions will be provided, how you will implement your strategy, and why you can do it.

  In the selection of VCs suitable for entrepreneurs, Xu Yi pointed out that entrepreneurs need to understand the differences in the industries that different VCs are concerned about. They also need to understand the differences in the stages of investment of different VCs and how different VCs have resources. . Knowing whether the venture capital firm in the target is aware of the industry in which you are working or whether it has ever invested in some companies in this area will help entrepreneurs judge.

  "Entrepreneurs must be honest. Integrity can get the favor of VC!" Xu Yi said that companies should be clear that successful financing is only the first step in the long march. The goal is to develop and develop a business opportunity that can create high value for shareholders. Funding is just part of the success of a venture. The key is to build a team with the same vision, complementarity, stability, and execution, and then work toward this vision. This is not only a requirement for employees. It also requires such investment when looking for investors who want to ensure that investors have the same vision and values and can really help develop your company.

  2 Venture capital focuses on corporate "hematopoietic" function

  Founder Partner of Sequoia Capital China Fund Zhou Yi: Sequoia Capital, one of the world's largest venture capital companies (VCs for short), has invested in globally renowned companies such as Apple Computer, Yahoo, Google, Oracle, Cisco, and Sequoia Capital. The total market capitalization of the company exceeds 10% of the total value of the Nasdaq market. So far, more than 500 companies have invested in the company, more than 200 have achieved IPOs, and more than 100 have successfully withdrawn through mergers and acquisitions.

  There are signs that the competition between China's VCs and international VCs will become increasingly fierce in the future. VC investment in domestic companies should focus on three major issues: market, business model, and team. Excellent entrepreneurs also need to attract outstanding teams to attract VCs.

  "Bing the track is better than the betting player." Zhou Hao believes that if the market is selected, the possibility of success of the enterprise will be greatly improved. To a certain extent, this is a better choice for the development of the enterprise. The team is even more important. Businesses are convinced that there is a market with potential for growth and change. VCs generally prefer to enter such companies.

  The importance of the business model was explained by borrowing the "operating moat" viewpoint of Mr. Buffett. The company invested by VC must have a continuous "moat", that is, it does not need to constantly pay for the company. The company's own good business model will continue to "blood" and maintain a good rate of return on capital. If a company's "moat" is imaginary, the company will soon be conquered.

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