Three elements of Venture Capital Selection: Experience, team, and business model

Csdn will kick off the 3rd software technology hero conference in Shanghai. Eight outstanding entrepreneurial projects will be presented to the audience in the form of a 5-minute elevator speech. At the opening of the Meeting, csdn reporter visited and Tong group's investment director Du Wei and Lin Jie, the investment director of Bailian youli, to share their experiences in Venture Capital selection and entrepreneurship projects.

With the increasing development of the Internet, entrepreneurial upsurge in the IT field is also increasing. Many college students with entrepreneurial ideas and young graduates are willing to use this method to sharpen their own values. In this regard, du weiming said, "It is precisely because of the participation of more and more entrepreneurs that the entire IT industry has been well developed. From the perspective of investment companies, it is precisely because of the expansion of the entrepreneurial team that the development of the investment industry is also active ."

Three elements of Venture Capital Selection: Experience, team, and business model

The two investment representatives told reporters that when selecting an investment project, there are three key factors to consider: Experience, team, and business model.

Some experience is the foundation: the experience mentioned here can be the experience of working in the industry, or the experience of starting a business. Graduates or college students who are new to the society have a low chance of success because of lack of practical training. Therefore, when selecting an investment project, it is an important metric to determine whether entrepreneurs have sufficient work experience.

Lin Jie said, "work experience and social experience are insufficient and need to be honed by practice. In this way, the success rate is very small, and the proportion of success in the second and third startups is greater ." At present, more venture capital companies are more inclined to select experienced entrepreneurial teams for investment, which can increase the chance of success. A stable development team is more valuable than a good technical project.

A stable team is the core: the entrepreneurial process. If there is a lack of human factors, it doesn't matter. Whether to have a stable team is the key to success in the entrepreneurial process. "From the idea of one person to the implementation of three or five people to the team of ten people, good coordination and division of labor are required ." Mr. Du weiming said, "I personally think that a good team is more important than a good product because a good team can try new products after a failure, until you find the product that is suitable for development."

It takes time for a stable team to work together. Only when your team is relatively stable can you attract the eyes of venture capital.

The business model is the criterion for judging: the development prospects of a product are very important, but the bright prospects are far from enough. "Whether your product has actual needs and whether it can attract stable customers to try your product is also crucial ." Du weiming said, "Can you attract your business partners, have you own customers, and have received good feedback after the customer tried your products ...... If the answer is yes, it is no problem to attract more venture capital ."

Lin Jie of Bailian youli also said that meeting the current market needs is a decisive factor for the survival of products. Unlike many educational R & D institutions, investment institutions of commercial nature will pay more attention to the existence of products of entrepreneurial enterprises in the market.

Face failures correctly

We know that every year, nearly of newly registered startups are ruthlessly eliminated by the market. Mr. Du told reporters that, in fact, entrepreneurship is not afraid of failed projects, how to deal with failure is the most critical. "You can accumulate experience in other ways, either from a start-up experience or from a start-up company or with a startup team. ."

"When you select a startup project, you may not be able to identify the same direction from the very beginning, it is most important to find a project that is more suitable for you during constant exploration. Entrepreneurship is like a waste of money. Only perseverance can make it possible to succeed ."

Shanghai heroes will look forward to more outstanding projects

Shanghai has a good business atmosphere and a large number of young people who start their own businesses. This is also the basis and prerequisite for cultivating truly competitive enterprises. "Previously, I often participated in innovation project demonstration activities similar to elevator speeches. I am also very happy to have the opportunity to attend the hero meeting held by csdn. Through the conference, on the one hand, you can learn the latest developments and development trends of software technology development, on the other hand, you can also meet more friends in the same industry. Of course, I would like to see more outstanding projects with development potential at the meeting ."

We are delighted to see that more and more people are involved in entrepreneurial teams, and more people are paying attention to the development of entrepreneurs. We believe that the entire software industry will develop healthily in an innovative, open, and interactive environment.

If you want to learn more about how investment companies choose to invest in projects, please stay tuned to the 2008 China Software Technology hero Summit Shanghai site.