Angel investment It's hard to find you

--This reporter on Angel investment Dialogue investment expert Zheng Lei Reporter: Can you introduce angel investment? Zheng Lei: OK, angel investment, English called Angel Investment, is a one-time investment of the original project or small start-up enterprise by the free Investor or the informal venture capital, which belongs to a kind of venture capital, and is a kind of non organized venture capital form. Its origins are generally three, that is, the former entrepreneurs, the traditional rich, large high-tech companies or senior managers of multinational companies. Sometimes the angel investor is called the Investment Angel (Business Angel), it is the entrepreneur's Bole, is also promotes the technological innovation and the development important impetus. The domestic angel investors mainly refers to the senior managers of foreign companies, overseas Chinese and returnees, successful private entrepreneurs and first-rich people, and also includes various government venture funds. Glancing at this rare species, you can see that the most conspicuous ones are the entrepreneurs who have been out of the limelight. Their names sparkled: "Microsoft" Kai-Fu Lee, Dr. Zhang, leaving Yahoo Zhou Hongwei, the former Sohu COO Koo, before Tom's CEO Wang first, former Sina Coo Hurst Lin, the former e Dragon CEO Tang Yue, former finance CEO Ningjun, investment "Ya Xin" Liu Yaolen, and Walden Spear Dorian,　　Even the Su Qiqiang of the state, the Wang Juntao of 8848, the Shen of Ctrip and so on.　　Journalist: So, what are the investment characteristics and strategies of angel investment? Zheng Lei: In terms of characteristics, angel investment is the first direct investment, it is the rich family and individuals directly to the enterprise equity investment, is the initial stage of start-up enterprises, namely seed period of the main financing way. Angel investors not only provide capital to startups, but often use their professional background and resources to help them succeed, which is also the best way to protect their investments. At the same time, it usually appears in the form of individual investment, its investment behavior is small personal behavior, to the investment Project inspection and judgment procedure is relatively simple, timeliness is stronger.　　As for the investment strategy of angel Investment, it is mainly that it does not dabble in the unfamiliar industry, and often reserves some follow-up capital to ensure that the investment is protected when the invested company is in trouble.　　Journalist: Why is it difficult for seed-stage enterprises to be favored by angel investors? Zheng Lei: This is related to the entrepreneurial planning characteristics of start-up biennium enterprises. Often in the start-up stage of the entrepreneurial plan has such characteristics: dare to dare to say and lack of resources. More promising projects usually have a core entrepreneur, full of entrepreneurial enthusiasm, technical or sales expertise, while the main entrepreneurial team is not in place to give investors confidence, the product in the development process, the business model is not clear or feasibility argument is not enough to convince investors. The business plan usually depicts a grand blueprint for development, and there are bright spots in business ideas, but the analysis and description of business models and profit points, as well as development strategies and resources, is often utopian and idealistic. Details on how the scheme is implementedDo not think deeply, or even a brush, to the competitive situation and the understanding of opponents and coping strategies have not been deeply explored. As a result, we often see that at least 90% of each hundreds business plan received by an investor is a concept and seed-period project, but less than 10% are willing to invest in it. In other words, in our current financial environment, entrepreneurship means that entrepreneurs have to invest their own money in small businesses.　　However, if your business in the initial period of the annual profit and increase by 15%, it can be said that the basic view of investors. Data show that 64% of investment projects and 56% of the investment amount are concentrated in the expansion and growth period, and this trend is still expanding. Therefore, entrepreneurs do not have to expect them to give themselves "Angel" wings. In the case of investing in students, the general venture capital firms focus on high school students, while angel investors nurture budding pupils and even pre-school children. So, needless to be, the first law of Angel investors ' investment is that the first investment failure is highly unlikely. The second law is that successful returns tend to outweigh any other investment activity. There are a number of such cases abroad, such as the three state Angel Investment Club in North Carolina, which invested in a company that manufactures web software, 18 months after it was acquired by a well-known venture capital firm, CMGI, and investors withdrew from their investment earnings by more than 60 times times. At home, there are many examples, Shih's "Wuxi Suntech" just set up, small Swan Group, Wuxi venture capital company, such as investment 6 million U.S. dollars, respectively, obtained 10-23 times the return on investment. By the transfer of land made a wealth of some huadu villagers, invest 5 million yuan to stay in the United States Dr. Sheng set up a Monterey industrial company, the company was DuPont to 30 million U.S. dollars acquisition, the return of 36 times times. The story of Shi Qiuxu and Mengniu is another classic deduction. Niu Gensheng rely on a cottage on their own, Xie generously took out cash into the start-up period of Mengniu, the eventual harvest, the initial 3.8 million yuan investment has now become 1 billion yuan.　　Baidu was also on the 1.2 million dollar angel investment started, Asiainfo has received 250,000 of dollars in angel investment.　　Reporter: Is it possible to understand that entrepreneurs are still difficult to find their own "angel"? Zheng Lei: Well, you can't understand that. According to the comprehensive resources that angel investors can provide to the entrepreneur, I can divide three kinds of situations here: the first one is only as a contributor, and the investment generally does not exceed 200,000 yuan. In this case, it's the wealthy angel investors that entrepreneurs can find in their surroundings, they invest in entrepreneurs either out of trust, or emotionally, or even intuitively, in the second case, more experienced and, to some extent, involved in or directing the operation of the invested enterprise, with a larger investment of about $1 million, These angels may be successful managers, small business owners, senior intellectuals, white-collar workers or gold-collar elites; The third scenario is that the enterprise with successful experienceThe entrepreneur can provide the unique support for the enterprise, the investment is more than millions of yuan. As I observed, in the domestic has begun to appear similar to the angel Investors Group, you can see, preference investors, only to invest in their own understanding of the field, and the project's geographical preferences, investment decisions rely mainly on their own judgments and investigations, they tend to participate in the company's management to some extent, Many of them are private entrepreneurs or industry experts who invest in similar industries for diversification and risk-sharing or mastery of technology. A short, loosely-organized individual investor consortium, or partner, is willing to invest with more people, brainstorming and spreading risk out of fear of a weak assessment and mastery of the project. In their investment team, there are often lead investors, who seek investment opportunities from such leading investors, and propose investment opportunities to joint investors, who may be seeking to act as chairman of the invested enterprise. Family investors, the funds by a more knowledgeable family members to master and unify the investment decisions. Then there is the senior management investors, once the company managers, "Laid-off" after the investment to buy a "last job opportunity." These people rarely pursue control of the company after they invest and gain management positions. The transfer of managers into the field of investment is becoming a trend. Some multinational executives want to be able to seize the opportunity to create wealth, but not to abandon the existing preferential treatment. As a compromise, they are willing to invest their money in "like-minded" entrepreneurs.