An angel investor who starts a business

Angel Investment, equity capital a form of investment in which a wealthy individual contributes to an original project with expertise or a unique concept or a small start-up to make a one-time upfront investment. It is a form of for venture capital , investing in the number of investors on the basis of angel investors and the combined resources that may be provided by the invested enterprise.

For entrepreneurs, the money and business opportunities that investors bring are as promising as angels, but it's not easy to really get investors ' certainty and get funding.

"You are angels, how can you be so picky?" "This is the feeling that an entrepreneur has uttered after a conversation with one of China's most famous angel investors."

In this "Angel" and Entrepreneurial project meeting, came nearly 10 angel investors, Shire, Kai-Fu Lee, Hebo, Zeng Liqing ... All ding famous. Entrepreneurs from around the country have more than 100 people, lined up in a long line. Although the scene is extremely hot, but most of the project talk less than 5 minutes, that is, these angel investors sent away.

One of the main reasons for being sent away is to have ideas and goals, but there is no concrete way and no action. An angel investor said, "some entrepreneurs want to take money, I want to say, you first try your best to make the product, and then come to us." ”

For this, entrepreneurs also have grievances. "I just came to see ' Angel ' because I had no money. With money, you can implement AH. "Such words are very representative among entrepreneurs.

Can't China, like America, get an angel investment with an idea? For ordinary entrepreneurs, how to get the favor of angel investors? Reporter recently participated in a number of investor conferences and docking meeting, trying to answer these questions.

Picking a project is like looking for someone to fall in love

"Angel investors and entrepreneurs are essentially in love with men and women," he said. "There is" angel investment first Person "said Shire, both at the beginning of love, but also suddenly look back to find" but in the lights dim place ", of course, there is no more to see.

As early as the 90 's, Shire began to invest, so far has invested one hundred or two hundred projects, the most beautiful is 250,000 U.S. dollars to invest in UT Kangda, the benefit of more than 100 million dollars. Later he invested in E-commerce sites 8848, Li Bubble and auto, Cai wins 265 navigation sites.

Shire that since it is Love, sensibility is an important factor, so it is inevitable to miss some good projects.

That year, soft silver son want to pull Shire a piece of Jack Ma, but Shire saw Ma Yun said: "This fellow grow up like this son, what future?" "Refuse to invest. Later, Shire went to see Zhou just founded 3721 but said: "What call no matter 3,721 ah?" Can such a company succeed? "3 years later, Yahoo bought 3721 for 120 million dollars, and after Zhou founded Qihoo 360 and listed on Nasdaq."

The Circle friend Kai-Fu Lee, Xiaoping have sent micro Bo to stimulate the Shire, the "old urchin" also even said regrets should not have, and this investment opportunity missed.

Shire summed up the choice of several factors, first, the founder must be interested in the project. How interested? He does not pay the money, the second is the team of entrepreneurs, the third is whether the project is a sunrise industry, whether it can be bigger and stronger.

When you fall in love, different people have different goals and hobbies for their friends and girlfriends. For example, Hebo, who started out of the consumer sector, preferred the field of investment and consumption; Yang Xiangyang initially invested in the biomedical industry, originated from Tsinghua University's alma mater Complex, but now he has invested in the biomedical industry as a cause ... Entrepreneurs familiar with the investment style of different investors, can be targeted.

Focus on the executive power of the entrepreneur

There are many reasons for rational judgment, but in the eyes of angel investors, there is one of the most important factors, that is, entrepreneurs are reliable. Shire to meet the entrepreneur, he first is to see whether people are reliable, and then see whether the project has investment value.

"I cast one hundred or two hundred companies, lose a lot of money, but no one is cheated, we pay attention to is good faith." We cast the people must be gliding, this is human nature, but the person is absolutely not allowed. He said, if some entrepreneurs get the investment, go back to buy a house, buy a car, the wife to find the CEO, this is not.

Not only Shire a person to the integrity of attention, Lei, Sun ran ... Almost every angel investor has expressed his concern for the entrepreneur's personal integrity and character.

"China's contract, credit mechanism is immature, angel investors are not busy every day to monitor the day-to-day operation of the investment enterprises, so basically rely on the self-awareness of entrepreneurs." Lei said that in order to reduce the risk, he is not familiar with the vote. "I basically only vote in my familiar industry, only to invest in acquaintances, only acquaintances, to vote on these two-tier relationship." I invested in Suntaujan, Lee Colling. Suntaujan was 1994 years old, and Lee Colling met in 1997. ”

Lei in the investment object, you can see a lot of work in Jinshan technical staff or senior executives, this can also confirm Lei "do not invest" investment principles. And Lei has confidence in the person he has identified, even if he fails. For example, in the founder of every customer-prudential products have been two times before, but Lei to recognize him, this has a later where the customer-prudential products.

Zeng Liqing also uphold this style. He was one of Tencent's founders, then turned angel investors, including the already-listed Rice net. The principle of his investment is to invest only Tencent employees or Tencent is engaged in the field.

So who is the easiest to get the favor of angel investors?

Whether from the words of these famous angel investors or from the case of their actual investment, people who have worked in the society for several years come out to start a business and are more likely to get angel investment. Lei says the average age of entrepreneurs he invests is 35 years.

"Although the United States, Microsoft, Google and other large companies are made by college students, and even graduates of college students, but the situation in China and the United States is not the same." Lei said that in today's China's entrepreneurial market, the lack of executive power is not an idea, the idea of a pat on the head is 10,000, the key is to have a good idea, you can not let it become a reality.

Journalist Notes

An angel, a VC.

In the United States, some ordinary entrepreneurs can get an investment with an idea. Hatchback contrast, there seems to be some differences, why?

First, in foreign countries, most of the angel investment as a way to repay the community, that Angel investment is a charitable cause, the probability of failure is very high. Investment in the United States for many years Shire interpretation that the angel of English is Angel, is that you have only an idea, ideas, you find any agency does not give you money, but people give you money, this is called Angel.

However, the angel came to China, more or less have some deformation. The founder of an institutional angel investment in China bluntly, was the idea of giving back to society, the public good to do Angel investment, but later found that the profit of angel investment is very considerable.

On the other hand, angel investment in the United States after years of development, has formed a very large group, including retired executives, professors, acting stars have become angel investors. Lee said that the United States nearly 6 million of the millionaires, there are already 300,000 angel investors, the equivalent of 5% of millionaires in the angel investment. From the amount of money, in 2007, the total amount of angel investment in the United States is 25 billion U.S. dollars, and the total amount of venture capital.

The Chinese population is 5 times times the size of the United States and needs 1.5 million angels. Most angel investors in China started investing after 2005, with 60% of investment starting after 2009, according to a report from the Research Center for Entrepreneurship. It can be seen from this, although China's angel investment is heating up, but China's angel investment is far from a significant number, there is still a big gap.

Gruel, China's angel investors have a lot of choice. Therefore, Chinese angel investors can reduce the risk, ask entrepreneurs not only have ideas, but also to implement, make products. In this sense, China's angel investment is more like a venture capital.