Angel investor Tang Yu: Entrepreneur morality accounts for at least 20% valuations

"Angel investment" is gradually being recognized by more and more Chinese investors, and Tang Yu has been in this field for more than 10 years. As the founder and executive partner of the Tang Network, Tang Yu venture, China has not yet appeared the concept of angel investment.　　Recently, Tang Yu received an interview with the investor newspaper, which introduced his experience and experience of investing in Angels for many years. His business acumen benefited from the influence of the family-helping the father of the entrepot trade in high school, opening a small shop with his brother at college and selling Halloween gifts. "Some actual combat experience is often the Father biography son, son preach Sun, it is difficult to learn in books, to eat suffering." "Tang Yu has voted dozens of projects, and the percentage of successful exits is 10%. Years of investment experience honed his mind, he did not cling to the money in return. By contrast, to see their investment in the healthy development of enterprises, the entrepreneur's life has improved, let him feel satisfied and relieved. He admits: "A lot of listed companies Mister have luxury sports cars, I have nothing, I have all the money into my favorite project." "In the past year, he has not only opened a number of investment salons, but also independently completed the" Angel investment "book, aiming at the financing of the Venture fund, for entrepreneurs and investors to provide a combat strategy.　　He hopes that one day, angel investment in China, as in the United States, into the life of ordinary people.　　Investor: What is the difference between Angel investment and PE/VC? Tang Yu: First, the amount of investment is different, in China, Angel investment is generally hundreds of thousands of to 2 million yuan, and VC/PE in the tens of millions to hundreds of millions of. The amount of angel investment is not good for big companies, they make a financial report more than that price. In addition, angel investment risk is higher, large companies have equipment, plant and thousands workers, even if the boss walked, for a person to take over, enterprises can still operate, but for the early, especially IT companies, some entrepreneurs and his mind, if people go, the company is worthless. Fixed assets are not run away, can be locked by legal means, and people say go away. So the biggest risk for angel investment is that money is being rolled away or wasted by the entrepreneur.　　People change and people change for money.　　"Investor": Where is the money? Tang Yu: The money after the entrepreneur will have some quick success of the thinking, especially in the car, but can not blame them, after all, the domestic is compared to see the pomp, if you go to see customers open a broken car, the other side will despise you.　　They will have a lot of excuses, rent a lot of places, get a big front desk, and then recruit two beautiful mm.　　"Investor": how to restrain them to spend money recklessly?　　Tang Yu: Or should be in before the investment in the agreement, such as the signing of the provisions of the paragraph, basically is to help him pay, every month or quarter according to fixed progress money to go in, this is the best way to prevent.　　Investor: What do you look for in an entrepreneur? Tang Yu: EQ is more important than IQ. I pick people who tend to see his most extreme reactions. Like a couple arguing, if they fight the most, they canEndure, then I think the marriage will last, and if I do, I will avoid it. Can not use the gentleman that set of the villain. I would like to emphasize that when valuing an early company, at least 20% of the valuation is the morality and character of the entrepreneur, and even 80%~90% is possible, which is not in the United States, the United States only examines the ability of entrepreneurs, but I also joined the moral standards, because most of the moral crisis in the United States can be legally binding, and domestic can be novices.