Method direction for SMEs to obtain capital investment and financing (I)

Source: Internet
Author: User

Capital markets, due to the weakness of the stock market and the pressure of policy on the property market, have begun to shift their eyes from the virtual economy to the real economy. This is an opportunity for small and medium-sized enterprises because there are more investors, there are plenty of funds. To get the favor of capital, you need to understand their needs.

Yesterday, I attended the Wuhan International Investment and Financing Project matchmaking conference. In the face of Fang Zong of Shanghai Jiashi investment, I discussed some investment and financing issues with him with a learning attitude and made great gains, in addition, I have a deeper understanding of the thinking model of the capital market.

The purpose of investment is to make money to help others achieve success and share success by providing financial assistance to others. Investment and Financing are based on a win-win situation. Before investors invest funds, they will rationally examine the capabilities and background of investment objects to maximize investment results and benefits, investment and Financing gains and the length of recovery time are the return on investment.

How investors recover their investments:
  1. Investors continue to go public until they get a return from the stock market.
  2. The company entity or product of the invested object is acquired and merged, and investors get a return by selling the company.
  3. Stable development of investment targets, good cash flow, and return to investors through debt repayment
  4. Others

Investors tend to invest in the first two aspects, which are relatively fast. Although the risk is high, they can quickly withdraw their cash to invest in the next project, with fast capital turnover, risks can also be dispersed.

Investors prefer to invest in two companies:
  1. Companies with differentiated products and market space
  2. Companies with first-mover advantages in emerging industries
  3. Companies with fast expansion capabilities
Companies that investors are not interested in:
  1. Customized project company with market already in the Red Ocean
  2. Companies with high assets and liabilities
  3. Companies with no performance or competitiveness
Summary

In the eyes of investors, rapid expansion is a very important weight. In addition, differentiated or often said highlights are also the key. It is not an important indicator of the company's survival or creation. In the face of investors, the most important thing is to come up with real market value andProduct selling points prove how powerful your company is..

For detailed case analysis, see:

Method direction for SMEs to obtain capital investment and financing (medium)

Methods for SMEs to obtain capital investment and financing (II)

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