Angel investment to deal with the high failure rate of entrepreneurship: not gambling big only small and beautiful

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["Now the entire investment community is at a low ebb, for PE/VC and for Angel investment." The Angels who still stare at the financial rewards and do not ascertain the angel's investment doorway must be the people who swim naked after the ebb. ” ]

What is different from the rigorous and meticulous vc\pe investment is that sexual freedom is more like the portrayal of angel investors. Without the cumbersome investment process, cast think familiar with the people, only look at their own good industry, even if it is an immature idea or a paper towel written on the entrepreneurial ideas, once the target, generously took out a sum of money after most swing sleeves, when a veritable Shang.

However, such a good picture may be destroyed by reality, domestic well-known angel investors have Li recently in the media interview revealed that in his opinion, the probability of successful entrepreneurial success is very low, only 10%~20%, and its leading German investment strategy has been adjusted, one of which is " Entrepreneurs want more than 3 million yuan of angel investment, basically difficult, unless he is very smart.

Angel Investment also began to tighten the hoop, is the angels become savvy, or because of the higher entrepreneurial failure rate and let them start cautious?

Bet big, small and beautiful.

Zeng Liqing to make the above adjustment reason is, the industry competition is more and more intense, the big company is bigger and larger, the small company Enterprise wants to enlarge the company the opportunity to be smaller and lesser.

This is not a case. Qingyang Angel Investment founder Partner Su Yulie told reporters, indeed, the competition is increasingly fierce, but there are certain characteristics of the industry, such as the TMT field of competition is indeed tragic, a market can only be allowed under the 1~2 companies, ranked in the back of the inevitable to be eliminated.

In addition, Zeng Liqing decided to give money in stages and never give money to the entrepreneur at once. "Early startups mostly relied on their own money to start, but now many people start to think of the first thing is to go out for change, money is not good, we have been recommending the founder of the core enterprises do not take wages, entrepreneurship should eat a bit bitter, if the beginning of the start of the cover in the hotbed is certainly not good. He said bluntly.

In this respect, starting the founder of Charlie also have the same feeling. "Investing in China is so hot now that people are beginning to equate entrepreneurship with investment," he said. Charlie told reporters, "it needs to be clear that entrepreneurship and investment are not the same thing, many entrepreneurial projects do not need to invest, many projects do not meet investment requirements, then these enterprises can find other investment channels." ”

Charlie stressed that entrepreneurs should have the ability to survive, not to rely on investors.

"As long as the enterprise is alive, there is a chance to be bigger, but if you want to make a big company in the beginning, the goal is not realistic, the so-called entrepreneurial success probability is because everyone put it on the big business, on the contrary, if you can see a small and beautiful company exists in fact is also a kind of entrepreneurial success. "Su Yulie said.

The angel investment also wants the big wave to scour the sand

In Charlie's view, Angel investment in the country is still a small group, although some organizations are trying to look at the opportunities of early investment, but in fact see more and less, so the real early venture investment in China is still cold winter.

However, the unnamed angel investors mentioned above told reporters bluntly that in the past few years, some institutions have been killed in Angel stage investment, but due to lack of preparation and experience, failure rate is high. One of the reasons is that because of a few years of PE crazy investment in the transmission, so many people on the return of angel investment expectations are also beginning to become distorted, many people have become to cast a concept, rather than to invest in a business.

"Investment is ultimately an investment business, the key is to see whether the sale of money, but now there are a lot of angel investment rely on capital operation, it is expected to be able to melt the next round, once the next round of VC to take over immediately, once the angel investment to gamble on the concept of the loss of the meaning of the angel investment itself. He said, "in the United States, many angel investment institutions and individuals to do it as an ideal thing to do, and at home there are a lot of angel investment or hope to profit from it as soon as possible." ”

"What the smart entrepreneur really needs is the push behind the angel investor," he said. Su Yulie said, "I have contacted many early enterprises in fact need not money, on the contrary they come to the angel investors are looking for resources, once the angel investors to help the busy, the enterprise up." ”

Charlie also believes that the role of angel investors is not just to put some money in, but more importantly, to help the founder to upgrade the project so that it has the value of being invested, which is the real role of angel investment, for companies like Apple, Google, Facebook, angel investors and founders can almost be regarded as synonymous.

"The main purpose of Angel investment is to prove an innovative, a business model with a huge burst of growth and an entrepreneur with strong executive power is a success, but the premise must be to do angel investment must be rolled up the sleeves and jump in with the entrepreneur to fight, will accelerate the pace of success and prevent the risk of death. Charlie repeatedly stressed to reporters.

"Now the entire investment community is at a low ebb, as is the case for PE/VC, and for Angel investment." The Angels who still stare at the financial rewards and do not ascertain the angel's investment doorway must be the people who swim naked after the ebb. "The angel investor, who declined to be named, judged.

Institutional angels may not be a trend

Li Jingying

After 2012 years of capital in the winter, more and more people began to turn their eyes to the early investment and even joined the ranks of Angel Investment, Angel Investment organization seems lively, but in the eyes of insiders, this is only a false prosperity.

Su Yulie, founder partner of Qingyang Angel Investment, said to reporters: "Because the fund is small, it determines the management fee of GP is very low, and the fund short-term cash flow is almost not, plus the institutional operation also determines its need to go through the search for projects, due diligence, decision-making and other cumbersome processes, which is obviously a thankless task. ”

Charlie, founder of the start camp, also has a similar view. "Angel investment is always the mainstream of personal investment, which will be mixed with a number of small institutions, but logically, angel investment is difficult to make institutions, because an institutional fund must have a certain amount of capital, but the funds are more difficult to do Angel investment, the two are game." "he said.

According to the investigation, in foreign countries, most of the so-called institutional angels, is actually a group of angel investors, their fund management methods, capital calls (additional requirements), divided into the core elements are not the same as regular funds. Formal funds have a set of relative standards, such as the percentage of management fees, income 28, and so on, and many of the institutional angels are set up by their own internal rules, the current domestic many angel investment institutions are actually this situation.

In addition, from the performance point of view, Charlie that for LP, if the performance can not be relatively stable quantification, to invest in such a fund is obviously not practical. "If it is not a personal investment and the pursuit of high risk high returns, but want to be a fund to get management fees of the so-called Angel fund manager, he is basically a layman speaking." "Charlie stressed," only by taking your own money to invest, you will be absolutely serious and responsible to do this, because the angel investment phase is difficult to find the perfect project, angel investors need to have different ways of thinking and perspective, especially risk to invest in ' unreliable ' projects, only individuals will have such guts. For example, projects like Apple and Google were "very unreliable" at first, and it was hard to invest in other people's money (that is, formal institutions). "I do not believe that institutional angels will become the mainstream of Chinese angel investment." ”