Looking for "three steps" of venture capital

Venture Capital | VC

For many projects, the focus on getting venture capital is undoubtedly a flashed. and "Home thin industry Small" franchise project has the opportunity to gain investment tens of millions of, hundreds of billions of venture capital funds favor it?
Looking for investment "three steps"

Reporter to see a lot of large investment projects in Qingdao, the executive director of the Trust Company Shi Yijun, he is helping an energy-saving boiler enterprise boss to do financing advice, "first make a good story, do a certain scale, I will help you find venture capitalists." ”

"Whatever the field, if you want to attract venture capitalists, the first thing you have to do is tell a story." Shi Yijun told reporters that the franchise is also the case, whether the franchisee or the leader, must have a good capital story, this is the most critical element. The story includes: Why this project is worth investing, the unique resources that the project has, the market prospect in this field, and the market demand, etc. If you are not good at speaking, you can find the relevant advisory body or trust Company.

A good capital story is to let the investor know how you will use it after getting the investment. "Sow, invest 1 million yuan, if can return this year, the second year can have 4%~5% income." This can attract investors to a certain extent, "Shi Yijun said," and throughout the story, you should make sure that the story is true, not codified and exaggerated. Because investors can tell at a glance. ”

After telling a good story, what the franchise enterprise needs to do is to establish an open, transparent and practicable monitoring mechanism. Because, "We are living in a system of lack of credit in the society, investors can not easily give money to you." The story and the monitoring mechanism should be combined. ”

Finally, investors should also see a stable and good expectation, Shi Yijun said: "This expectation is generally based on you already have a certain visible foundation, only then others will finally be determined to vote for you." Whether there is any expectation, it has nothing to do with the scale of the project, whether the income is stable, for example, if there is a 10% yield per year, there is no problem. ”

Pave the ground for attracting investment

"Venture capitalists ' draught ' degree is not the same, 50,000 tons of ships, is not open to the Pearl River, so must have ' open barge ' people." For a franchise project, if you want to get venture capital, you need the help of a consulting or trust company. Shi Yijun said that if a project from scratch, there is no equity, debt, or can be mortgaged assets, then the proposal can be preferred option, to find professional firms, such as trust companies, first preferred. For example, the investment 1 million yuan in this project, the year repayment, has the 4%~5% income, by the Trust Company raises the fund for you, carries on the investment regulation, sees this project for the investor.

"If you have a compelling story, a workable regulatory regime and good expectations, and your team is not arrogant, then things can be left to us." "Shi Yijun said.

In fact, early American venture capitalists, having suffered a bout of new technology investment in the 2000, have had to move closer to some traditional industries because they find these industries to be more secure. These are the models that are gradually being pursued by venture capitalists: modern technology plus traditional services, and modern services. Shi Yijun thinks, who conforms to this definition, can get the favor of venture capital.

Shi Yijun told reporters: "Frankly speaking, in the franchise area, whether the leader or franchisee, regardless of size is now impossible to get the support of traditional financial instruments." Listing the shares does not say that it is difficult to bank loans. "Because these traditional financial instruments require companies to have reliable cash flow or equivalent assets, and so on." These conditions, franchising enterprises are difficult to have.

Therefore, franchising enterprises can only obtain funds through venture capital or non-traditional financial means. At this time, can be financed through the help of trust and so on. If the traditional finance is compared to the "Ocean ship", then non-traditional finance is like "barge". Trusts or fund companies can give some advice on financing projects, do some management or market consultation, and make up stories for them; On the other hand, you can make angel investment and prepare for future financing business. "When the project is done to a certain extent and the market is expected to be more visible, it attracts large sums of money to intervene." "Of course, for risk investors, the key to measuring whether a project is accessible is not the size of the project, but the story, the regulatory system and the expected return," Shi Yijun said.