A successful entrepreneur still has a lingering fear of the experience of being "killed" by the VCs.

A successful entrepreneur still has a lingering fear that he was almost killed by the VCs. At that time the enterprise experienced a round of financing, the product gradually mature, but also want to further expand the funds. Under the introduction of his friend, he met Mr. L, a VC. After the conversation, Mr. L was very appreciative of the entrepreneur's company and if to sign the cheque on the spot. "Otherwise, we have a grand financing release ceremony, signed on the spot." Then VCs said to the entrepreneur, you are now the task is to go back to spend money, the brand awareness of the enterprise to get up, and then strive for three years on the market.

The entrepreneur rushed back, pulled out of his own small office building, and spent hundreds of thousands of renting a seemingly decent office and renovating after paying the rent.

The venture also went to the company for due diligence, but did not practice the last sign of the cheque ——— afterwards knew that the fund had invested in the entrepreneur's competitors, due diligence to gain more information and internal information about the business. And this makes the original lack of money in the entrepreneur moved back to the same time, but also had to pay rental property liquidated damages, the company also nearly collapse. ——— and the venture is still active in the industry today.

Facing the "rebuilding after the disaster"

The point is that the industry's jokes are always exaggerated, and despite such jokes and a less funny reality, but if the "cheat" to describe the characteristics of the VCS, it is clear to those who work hard to nurture the growth of the enterprise investors is not fair.

However, it is necessary to point out that there is a widespread phenomenon of flicker and flicker in the industry, although the "magnitude" may not be the same, but each occurrence can be seen as the destruction of the concept of integrity, in order to form a negative effect or even a vicious circle of endless ——— venture can be fooled enterprises, enterprises in turn can be a variety of "Chinese-style means" In order to deal with venture, the end can only be an increasingly bad business environment. Therefore, the venture industry faces the "post-disaster reconstruction" task arduous.

According to Zhao Benshan's fan "early, middle and late" symptoms of the summary, venture and enterprises will often reflect the typical symptoms of different time periods, the "flicker" of the strange situation can also be divided into venture and entrepreneur between the internal flicker, as well as the media, to the public (including the level two investment market shareholders), the peer (other VCs ).

And to be fair, if divided by "subjective" and "fault", "cheat" in many cases can be classified as pure "character" and integrity issues, but also do not rule out the parties "only in this mountain," the enterprise situation, industry situation, including the capital market error judgment, and from the objective played to the role of the flicker There was a flicker of mentality at the beginning, and then it was "revolt" ... When a foreigner wrote the "Mrchina" is specifically about how they have been fooled by Chinese collaborators, and in the past two years, the wind cast a similar subject material can be written a book.

Why are there so many "72 changes" in the VC industry? Boils down to nothing more than "opportunities, regulations less, talent shortage", in the rapid development of China's economy has sprung up countless business opportunities, many industries are in the ascendant stage, in the capital market created by the "creation of rich myth" stimulated, people choose more inevitably have the practice of quick success; Venture capital industry in China has just started, with the rapid expansion of the team in a short period of time, which inevitably mixed, there is a level, experienced, familiar with the Chinese market, the venture is far from enough, and the industry is still more in the rules of the game to do things, rather than with the norms and tenets of the state.

This period we first look at the typical symptoms of "external", we will focus on the next issue of venture capitalists and entrepreneurs with each other "internal".

The typical symptom of "external bluff"

The typical symptoms of external flicker include: "Water" exaggerated financing data to attract eyeballs, peers play "drum pass Flowers", mutual grab single, fooled two-level market investors.

A well-known Chinese company listed in Nasdaq, before listing, has been in the media to expose a round of financing, including 25 million RMB start-up fund, 40 million U.S. a rounds of financing, "tens of millions of U.S. dollars" B-round financing, 30 million U.S. dollar C-round financing, but in the IPO prospectus, It shows that the entrepreneur plus a round of financing investment is also invested in a total of more than 6 million U.S. dollars, B-round financing is only 12 million U.S. dollars, only the C-round financing and the amount announced.

Of course, there may be a commitment to venture capital and the difference between the actual investment, but the actual gap is so wide, can not but say that the "Great leap Forward" the result of consciousness. The case of a successful person in the former, in many people's consciousness "big is beauty", in order to gain the media attention, the public and the partner's trust, the enterprise leapfrogging to refresh the financing record, but in this behind to the financing amount "the water" seems to have become the industry widespread latent rule.

"This year is not only fooled by the company, but also by the same peer." "This is in an entrepreneurial forum annual meeting of an investor sigh with regret." Although many investors have said in unison that "the investment effort is not in the first place", but quite a few cases are the opposite, many companies to finance, piling up concepts, the project rushed to the horse, investors only spend two or three weeks or even shorter time to do due diligence, then found the problem, investors to find a way to "drum" to attract the next round of investors, And being fooled into the wind if unwilling to eat this grievances, the end can only be the problem of enterprises to two-tier market investors ——— ordinary shareholders.

In the high tide of investment, the investment of the popular enterprises not only between the investors to rob each other, and the industry's survival between the more and more tense, peer aloof, chestnuts, and even looting cases abound, in the wind of the most contradictory when the conflict is even in court.