Before meeting Venture Capital

Http://nextfuzhou.blogbus.com/logs/2006/08/3004153.html

The last time Mr. Xiaorong chatted with an old Webmaster on his island coffee, he had been chatting for more than a month. This W Jun hopes to choose a direction to launch a successful Web product/service and develop an outstanding startup company during his second start-up. We will discuss in depth how venture capital companies (VCs), competitors, partners, and external professional services.

This article discusses Venture Capital (VCs). It was published in Fuzhou Evening News in July 18, and its title was changed to "when hot money has become a thing of the past". Sorry, this time, we cannot find an electronic version of the table, but you can check the following content. The yellow part is not published.

 Entrepreneurship in shangdao coffee

Venture Capital is a more accurate translation of Venture Capital, and a larger scope is Private Equity ). Nowadays, VC is no stranger to many entrepreneurs. The first round of Internet entrepreneurship boom in the late 1990s s has brought many new ideas and practices to Mainland China. A few of the winners are developing fast companies: writing business plans, attracting venture capital and going public overseas ...... In April 2000, the Nasdaq stock market index fell from its highest point, and the investment boom of high-tech companies set off by network stocks gradually calmed down due to the burst of the bubble.

As time passes, since 2004, several Chinese network technology companies have tapped into Nasdaq's long-locked door to China, and the wave of investment from high-tech companies has returned to China again. This time, more mainstream U.S. venture capitalists have brought about larger amounts of funds. According to a number of media reports, venture capital institutions raised $2005 in 4 billion to invest in mainland China, and $2006 is expected to continue in 1.5 billion. Sequoia Capital (Sequoia Capital) and Kleiner Perkins Caufield & Byers, two venture Capital companies in the United States, entered the Chinese Mainland market, this is recognized by the industry as a sign of the formal entry of mainstream venture capital companies in mainland China.

In the mail list where an entrepreneur gathers, someone once posted that there are so many "hot money" that he is considering how to quickly copy a foreign website and spoof investors' money ...... His speech was sternly refuted by a venture capital manager, who believes that, in fact, billions of dollars in investment funds are still outside China, it has not been officially invested in the Chinese Mainland market. Indeed, these new funds are raised by offshore companies outside of China. Once the wind changes, these funds can be transferred flexibly to other emerging markets, such as India, Russia, and Latin America.

Some time ago, the Financial Times reported that the popular social image sharing website, Flickr.com, was titled "no venture capital or entrepreneurship" and won the resonance of many entrepreneurs, widely spread among entrepreneurs. What's more interesting is that some time ago, a magazine editor was preparing to plan a special article with the VC as the subject. He wrote in an email to Xiaorong as follows:

"At the beginning of the 20th century, the eight-nation coalition forces, composed of foreign powers such as the United States, Germany, Italy, and France, opened China's country with guns, and then snatched countless Chinese treasures. At the beginning of the 21st centurySoftbank(Softbank Capital)The US dollar, consisting of IDGVC, Carlyle, Sequoia and other overseas VC, opened the door for Chinese National Enterprises and began a new plunder of China's wealth. The huge profits of overseas VC companies from Chinese enterprises are essentially no different from those of piracy in the past ."

Overseas, venture capital (VCs) is a mature industry. It is only a way of business. It is rooted in the connection between technological innovation and commercial capital, this business method is not necessarily suitable for all business areas. In Xiao Rong's view, the development of multinational venture capital companies in the Chinese market does not need to be examined at the height of nationalism.

{
Function anonymous ()
{
Show_notes_initially ();
}
} ">
Flickr addressHere

For entrepreneurs, whether they are overly infatuated with "hot money" or reject venture capital in the Qing Dynasty, it is not advisable to adopt an extreme attitude towards venture capital. The rational attitude is to carefully analyze the capital needs, market thresholds, and competitive situation of each phase of entrepreneurship. Before meeting venture capital managers, consider the following for their own interests: Are they investing in a secure business? Are they investing in the most appropriate value growth stage? Can their investment in our project produce synergies with the original project? For our projects, is their investment "Living money" to maximize the benefits? -- Their investor team is familiar with the industrial background of our project, which can easily bring us a lot of assistance other than funds. In fact, entrepreneurs are considering issues from the investor's standpoint, we are also more thoughtful about our own ideas.

Mature venture capital managers know a variety of risk mitigation methods. In emerging markets, they will take time to test the entrepreneurial political and commercial relationship capabilities; they will inquire about the social credit of entrepreneurs in "inner; they will say no to entrepreneurial projects that have huge profits but may bring about litigation risks ...... Therefore, when He and W Jun talked about the direction of the entrepreneurial project. His first suggestion was to give up the idea of a project that may cause copyright entanglement.

When a new round of entrepreneurial craze gradually recedes, "hot money" will become a thing of the past, and impetuous risky investors with speculative psychology will leave the market, rational and professional venture capitalists continue to fight. The entrepreneurs who are surfing now need to have sharp eyes to identify who is holding "hot money", and who is a professional investor who can accompany you with your vision to overcome difficulties.

First draft of Fuzhou on Friday-7-14

Amendment to Fuzhou on Saturday,-7-15

 

{
Function anonymous ()
{
Show_notes_initially ();
}
} ">
Flickr addressHere