A new understanding of the game between entrepreneur and capital

In the "2012 Black Horse Contest in the summer," Jingdong mall Liu as an entrepreneur to everyone advice, "Chinese entrepreneurs and entrepreneurs, in dealing with the capital market to avoid committing three types of typical mistakes: cheat, the second is just want to make their own business bigger, three is not clear investment rules."

In fact, even if you understand the so-called "investment rules" has not seen a good day, because "capital from head to toe, every pore is dripping blood and dirty things" (Marx), otherwise Liu himself will not be in the NVC storm in the Wu Changjiang of entrepreneurs. Twists NVC storm, to the success of the founder of the temporary calm, staff strike, channel forced palace. The conflict between the entrepreneur and the capital is reflected in the process. Some people will say, http://www.aliyun.com/zixun/aggregation/17851.html "> NVC lighting is not from the Internet industry, it industry, and we seem to have little relationship." But its contradictory mechanism is interlinked, especially the conflict of management is Yan representative of the Sai-Fu Asia, and the Chinese Internet industry is not unfamiliar to Yan, called it The godfather of Chinese VCs.

The conflict between entrepreneurs and capital in the Internet industry and IT industry is not uncommon, Jerry Yang recently from the encounter of Yahoo, after the combination of cool potatoes Wang micro embarrassing situation, Zhidong 11 ago was forced to flee Sina, even including the early days of jobs was expelled from Apple's board, are a vivid case.

So how do we get to know this pair of contradictions between entrepreneurs and capital and reduce conflict?

In my opinion, the first task of the entrepreneur to introduce capital is to draw a clear line between each other and give full consideration to how to have enough ability to contend against the transgression of capital. Wu Changjiang in the NVC of the period of victory can bring entrepreneurs such a revelation: unity upstream and downstream, and staff heart to heart, can become entrepreneurs and capital to contend with a powerful weapon. The staff's concerted strike against the management of course is to identify the clear expression of the entrepreneur, and according to media reports, "Personality frankly Wu Changjiang during the tenure, led the NVC and distributors to form a close interest sharing and risk mode", do not underestimate this strategy, at the critical moment, it played a "united front" 's power.

Behavioral economics believes that people have a "loss aversion", or "endowment effect", is that a person to give themselves the value of the goods are higher than the value of the items not yet owned, even if the objective value of the two are identical, even the same thing. A typical example of this effect is that investors in the stock market tend to reap profits prematurely, but are reluctant to give up on losses. This is not a question of rationality and irrationality, but a perception of human behavior process and trajectory. So for any entrepreneur, because of the endowment effect, it is not willing to replace (owned) enterprises into the (previously not owned) purely pecuniary interests. The process of entrepreneurship itself is full of too many entrepreneurs too many emotional track and life experience, not to mention this process is often with the team, and employees, and partners to share.

And capital is accustomed to seeing everyone, including entrepreneurs and middle-class managers and ordinary employees, as mercenary. In other words, it is called "rational Man". The rational person hypothesis and static analysis of the traditional economic concept have given the capital such misleading, so that the entrepreneur's emotion and entrepreneurial trajectory have been neglected. It is this "trajectory" that profoundly affects the way entrepreneurs make decisions. The fundamental aim of capital investment enterprise and entrepreneur is to return the future, this is a typical "trans-period behavior" in economics, it must pay attention to the importance of trajectory.

Therefore, the entrepreneur and the capital cooperation, must start from the compassion, the pure interest drive inevitably will have the deep contradictory conflict in the future.

After the introduction of capital, entrepreneurs must give up too many principles and ideals. Liu's distress lies in the steady development of the enterprise generations and the capital spur of quick success to make a choice. DST has been selected as a deal with the devil, a huge loss for a super market, and a huge market for a constantly refreshed sky-high valuation. Capital is thus profiting from the valuation, neither the benefit nor the profit. But the enterprise, but in Chichori at the same time, again and again thirst. So when the entrepreneur faces the lure of capital, it must know clearly: this is a Faust trade, is it the purpose of your business?

In addition, the young people who deserve to be on the road to entrepreneurship are wary of rogue investors like Zhou. Remember in last winter's Black Horse Entrepreneurship competition, there are contestants in public rage as the Judges Zhou 祎 plagiarism and kill its products. The evil intentions, people all say abandon! That's why Chrysler's Chinese company hired a new spokesperson for the 300C model, and 300C was dubbed the "rogue driver". In the mature capital market, do the VC than do PE to be tired, and do Angel is a hard job. Because do a good PE, as long as the money and will spend money, do VC but have the eye, and do angels, not only to have the ability to needle in a haystack, but also to bear the risk of the cost of no return. But in China, there has been a "VC collective forward to do angels," the abnormal situation, the core reason is that the lack of moral bottom line of capital, overstepping the cost.