Angel with gold coins: walking through the valley of Death with the entrepreneur

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As an important financing way for individual entrepreneurship, the development of angel investment in China is still in infancy. Whether it is the idea of "not ripe or not", or the trend of the Angel investment Organization, it is essentially defined that angel investment is also a business. Success in "Death Valley" is the primary goal for entrepreneurs and angel investors.

Not every project is "dead", not every project has Facebook potential, the only thing to be sure, Angel, the angel with gold coins.

Angel investors are not from the sky, but from the entrepreneurs around, and beyond the "six-degree space theory" boundary. Yes, they may be the founders ' family or a "fool" with extra money, or the entrepreneur's buddy. With the famous angel investor Lei (Weibo), said, "Do not put angel investment myth, Angel investment is whip support a friend entrepreneurship."

This saying is lightweight, but also full of strong solemn and stirring breath. In the "2012 First Chinese angel investor Conference", Lei again preach his theory, and joke "angel investment is the core of the theory is the lottery."

If you believe this, there are two possibilities: one is to show that you lack a sense of humour, and the other is that you may be the rich "fool" who has the capital to enter the angel investment world.

The logic reasoning behind the "not being familiar"

Orchid Pavilion Set potential chairman and CEO Guo to call himself an "accidental entrepreneur". Prior to his venture, he was Google's China chief strategist and a special assistant to the president of Google's Greater China region.

One day in 2006, he and Kai-Fu Lee went to Guangzhou on business, in the hotel he gave Xiaoping a phone call, chatting about their own business. According to his statement, Xiaoping did not "fully understand", but promised to invest, but also a bargain, "50,000 dollars can not?" Guo went to the disease to veto, must be 100,000 dollars. Xiaoping ADO, 100,000 to 100,000, the next day let the driver to send the money passed.

In the case of Guo, if Xiaoping had hesitated at the time, he might not have started his own business and would continue to dream of his executive.

But this "if" does not set up, because Xiaoping is moving "really", he is very sensitive in investment judgment, if the entrepreneur can impress him, even if he did not understand, even if not know, he dared to smash a hundreds of thousands of past.

Domain name investment famous angel investor Cai also quite this wind. His early entrepreneurial experience gave him deep feelings for grassroots entrepreneurs. This also to a considerable extent to shape his investment style, many projects have not signed the contract, the money has been called to each other. This is a compliment, when IDG invested his 265.com, his business plan has not been drafted.

But there are many angel investors who want to invest in acquaintances.

Tencent co-founder Zeng Liqing said that he only cast two types of projects: "One is a former Tencent employee entrepreneurship project, the second is the industry friends and acquaintances recommended projects." Other projects do not even look at it, send us e-mail directly, also useless. ”

In the Angel investment world, Lei's three "commandments" about angel investment are like "thunder" through the ear. These three "commandments", the first two are for entrepreneurs, one is "not familiar with the vote", the second is "only vote for people do not project"; The third is self-discipline, "help not to mess up."

However, whether it is "former Tencent employees" or "not familiar with the vote", there are deep intentions, not that they do not see other entrepreneurs. To a certain extent, investment "acquaintances" can avoid some moral risks, and, "Do not invest" does not mean that acquaintances will definitely vote. At the same time, Lei also stressed that "cooked" there are two layers of meaning, one is "only to vote for acquaintances, only acquaintances, not more than two layers of relationship", the second is "only the industry to be cooked." Therefore, "not familiar with the vote" is actually "improve the success rate" of a strategy.

Similarly, the second "vote-only" project is also due to the investment success rate. In the interview with the network leader, Lei said himself "only 2 million yuan a vote, I think that is to choose one or two points, use this method to force you focus, forcing you to put all the points here, so that the explosive." ”

Normally, Lei will "make a small request" to the entrepreneur being invested. I invested you four years, investment 2 million yuan, if the first company smashed, the second company I also have a share, continue to vote you 2 million, in this four years I have a share of things to do. The direction is not appropriate, early death early. "But if it doesn't work," it means you're not fit to start a business.

Institutional trends are obvious

Since investment acquaintances and familiar industries are all based on success rates, it is clear that for angel investors it is not a matter of familiarity with the entrepreneur before investing, the key is whether the project is reliable or not.

"Angel Bay" is an angel investment fund focused on the internet, claiming "pioneering investment to help entrepreneurs". On the surface, this "groundbreaking" has at least two points: first, open the core investment documents, accept the supervision of entrepreneurs, "the vast majority of entrepreneurs are first contact with such documents, we do not want to take advantage of entrepreneurs in this regard." More unwilling to be a troubled investor "; second, online can apply, including seed investment of 200,000 yuan," as long as there are entrepreneurial team and entrepreneurial ideas can apply, "angel investment between 506 million yuan," have a team, there are products can apply. "

Although investment is a very commercial thing, but Angel Bay founder Pang Xiaowei with his dedication to the poetic God pen to the entrepreneurs salute: "We are full of talent, believe in code to change the world, we are stubborn, we 100 do not Rao, we love the Internet, we call entrepreneurs ... and then the same passionate confession:" What can Angel Cove do to help you? give you enough money to develop your website ... Give you ... "

Pang Xiaowei said: "Do not care if you have to prepare the so-called business plan, rather than give us a beautiful business plan, give us a rough demo (refers to the entrepreneurial show)." "The advantage of this is that it helps us standardize our investment processes, improve our investment efficiency, and help entrepreneurs keep abreast of our assessment processes." ”

Maybe that's the advantage of an angel investment agency.

"Organization" is actually a very general statement. In fact, Angel investment in the development process has gradually formed the following models: Angel investors, Angel investment team, Angel Investment funds, incubator forms of angel investment, investment platform form of angel investment, the latter can be grouped into the ranks of "institutions."

In the United States, under the Securities and Exchange Commission regulation NO. 501 and the 1993 Securities Act, the so-called "certified investor" must be eligible for an annual income of at least USD 1 million, at least 200,000 dollars. An angel investment organization usually has 10-150 members. It is reported that the United States currently has a formal Angel club of about 150, Angel team more than 300, members of more than 12,000 people. Nowadays, one of the most popular, when Paul Greheum is the founder of the entrepreneurial incubator Combinator.

Although the trend towards institutional evolution of angel investment is obvious, however, it should be noted that the current is not a "big flow", but only "niche", because the number of angel investors in the United States, is said to be as high as 400,000 (also said only 260,000, estimated that the other 140,000 angels are folding wings).

But in China, Angel investment is in dire need of development. China's rich seem to be keen on luxury cars, and they have little interest in supporting young entrepreneurs, so China's angel investment has not formed a culture. In the 2011 China Angel Investment Research Report, the Research center of Qing Ke pointed out that and the United States from the angel investment to the middle and late venture capital of the complete, pipelined system compared to the recent years of our country VC/PE is surging, but Angel investment is still in infancy, the current investment scale of only 51 billion yuan. You know, last year Jingdong Mall's C-round financing amount is 1.5 billion dollars!

The institutional benefit is to overcome the lack of experience in individual investment, less funds, narrow project channels and other shortcomings, brainstorming, so that investment become more systematic, standardized, large-scale, to avoid risk. In this camp, both the Shenzhen Angel Investor Club, the Yajie Chamber of Commerce, such as Group of Angels team mode, but also in Guangdong today investment, entrepreneurial State angel funds, such as angel investment funds, and Lenovo music funds platform-type Angel funds ...

When it comes to the big trends in Angel investment, Kai-fu Lee very recognized Shire "angel investors around the formation of Angel Investment Alliance," and on the operational aspects of the specific recommendations: first, the establishment of investment committee, everyone vote, close cooperation will help to play a team of collective wisdom; "The team can complement each other, have a lawyer, have an accountant , Internet experts ... At least the success rate is higher than a person's solo.

Helping entrepreneurs is helping themselves

By contrast, entrepreneurs are more like singles. And, as we all know, entrepreneurs have to go through a so-called "Death Valley" stage after they set out on an ambitious basis. If he is lucky enough to find an angel investor who is willing to come up with real money, a knowledgeable and instructive guide, the chances of getting out of Death Valley will be greatly increased. #p # subtitle #e#

Dot dot net founder Xu Chang to Kai-Fu Lee's gratitude, can be summed up in a sentence, "gave me a lot of time to help."

Originally, in the August 2010 Xu Chang Venture has no direction, Kai-fu Lee on the "advance booking", promised to invest in him. This trust has changed his previous idea of "making a career a little more perfect", a year ahead of the business, and a year in the mobile Internet equivalent to four years of the traditional Internet.

Not only that, the incubation service of the Innovation Factory, let Xu Chang get rid of the chores such as renting a house, looking for finance and so on, can concentrate on research and development, the result launches the product three months ahead of time. Three months may not seem like a long time, but, "when I launched my product for the second month, I had five competitors."

In 2011 years, Kai-Fu Lee again, to help him get more than 10 million yuan of financing, "We do light blog mode, can also spend five years." Even so, Kai-fu Lee still give Xu Chang left a road, said even if there is a strategic disagreement, but also to accompany him to the end.

There is no doubt that Xu Chang is the lucky one. While other entrepreneurs are struggling with rent, he has received the most "loyal" commitment-although, in some ways, angel investors are playing the role of "fickle Lang", they usually have a lot of entrepreneurial projects, more than 200.

For angel investors, it is difficult to measure the relationship with the entrepreneur. Potential role positioning will determine the success or failure of cooperation. Look at how angel investors describe themselves, and they can see one or two.

Lei very ridicule: "That is all friends help, you treat me as a warm-hearted aunt good." ”

Xiaoping Sonnets: "I use real money to express my trust to you." ”

However, "mentorship relationship" is the favorite role of angel investors.

"They are entrepreneurs, the fate of their decisions, they are responsible for the company's life and death." Zeng Liqing said: "We want to be more like a teacher, constantly give him advice, and we will regularly request to see their financial statements." ”

Cai in emphasizing "division" at the same time, hope to have a closer relationship: "Angel investors have the ability and means to help entrepreneurs as far as possible ... It is the best angle and way to be a friend. ”

Hebo's metaphor is the most unique, he said: "For entrepreneurs, angel investors are like mirrors." ”

When entrepreneurs take the initiative to ask, or angel investors to "voice", the entrepreneur should not listen to the angel investors? Hebo has a very incisive summary: "One is that I speak only the past experience, the set in their business is not necessarily appropriate, the entrepreneur should not be carried out, Should not be carried out because of my identity; second, even if I am right, but not clear, entrepreneurs do not understand, this should not be implemented; Three is even if I am right and speak clearly, but the ability of the entrepreneur is not, understand, and should not be implemented. ”

In addition to these three "should not be implemented", there is a need to carry out: "There are some things that must be done, he understood to carry out, do not understand also to carry out, this need to make a decision at the board level." ”

Angel investors, of course, have many ways to help entrepreneurs. For example, the Rice net CEO Wang Haibing (Weibo) believes that angel investors determine the height of entrepreneurial enterprises; Lakara founder Suntaujan (Weibo) believes that many angels have "the return of the Hundred and then Angel" characteristics, their experience can make entrepreneurs less detours, otherwise, "You may eat three-cut will not grow that wisdom" ...

What entrepreneurs want to learn, of course, is not those experiences, but angel investors are good at grasping the present, the methodology of the strategist. They are like the legendary "demands", do not LU gold, but to his fingers.

If all goes well, after a rough trek, the entrepreneur will come to the eve of the fundraising with angel investors. This is a watershed in the success or failure of the venture, or it dies, or the venture capitalist's finger will start the Capital Acceleration button for it. Naturally, this is the angel investors success or failure of the checkpoint. In the United States, VC investment Project, is only 10% angel investment projects, most of the Angel project silently fell the night sky.

Interview room

"The Angels must restrain themselves."

Guests interviewed: Pang Xiaowei (founder of Angel Bay)

Journalist: Airon

Network leader: Angel Bay where is the core point of the investment team?

Pang Xiaowei: The team is the most critical in startups, so identify whether the entrepreneurial team has a partner mentality, whether they have true love for things, and whether they have the ability to learn iterations quickly.

Network leader: Many people in the industry think, "the return of the Hundred War Angel" seems to be more helpful to the entrepreneur.

Pang Xiaowei: An angel with a wealth of entrepreneurial experience, the value of startups is self-evident, like the Alpine Guide and the first climbers. At the same time, the Angels must restrain themselves, not to take over. On the one hand, to protect the strong self-awareness of entrepreneurs, on the other hand, must have a fear of heart. Each business model has its own unique DNA, and the experience of different businesses is not necessarily universal.

Network leader: You have been exposed to a large number of entrepreneurs, both the conditions are more mature, there are simply not prepared cases. How do you rate their mentality? What do you think about college students ' entrepreneurship?

Pang Xiaowei: In the entrepreneurial period, entrepreneurs can often experience roller-like mentality ups and downs. This is a very typical psychological experience in entrepreneurship. I suggest that entrepreneurs focus on long-term investments over short-term speculation, focus on their progress over competitors, and third, focus on processes over results.

At present, Chinese college students still need more precipitation to start a business.

Network leader: is the Angel Bay Fusion campaign targeted primarily at first-time entrepreneurs?

Pang Xiaowei: Angel Cove Fusion is not only for first-time start-up teams. On the contrary, Angel Bay prefers serial entrepreneurs, and the lesson of failure is the cornerstone of the entrepreneur's growth.

Network leader: In the study of the team, you are more emphasis on the "luxury lineup" or the founder's vision and courage? How many members do you think is appropriate for a start-up team?

Pang Xiaowei: There is no conflict between a rich CV and foresight. The more members of the entrepreneurial team the better, as long as the founders can control and coordinate, and this is very very challenging.

Network leader: Angel investors once decided to give investment help to an entrepreneur, the deep heart is sure to hope that this project can become, after the VC to take a place, and VC can be a buyer, it is the hope that it is a "big business." Does this mean that a "small business" without a high growth character is unlikely to be invested even by angels?

Pang Xiaowei: As an institutional angel investment, it is actually the starting point of the future capital market, so it will certainly choose the big business that looks like, but the size of the business business can be transformed, or to see what the founders are willing to do big things.

Network leader: How do you evaluate the move forward in the investment phase of venture capital institutions?

Pang Xiaowei: Both the previous overheated PE investment appropriate correction, but also the rational choice of venture capital institutions, but the different stages of the investment logic is still somewhat different. In any case, this is a boon to Chinese start-ups.

Network leader: VC and angel investors between the interests of how to balance? What do you think is the proportion of angel investors in the scope of the investment to promote the sustainable development of enterprises?

Pang Xiaowei: VC and angel investors are the front and rear links of the industrial chain, and the benefit balance should be facilitated by enough market participants. We believe that it is reasonable for the Angel Stage Investor to control the shareholding ratio within 25%.

Network leader: What qualities do you think a good angel investor should have?

Pang Xiaowei: In the long run, to be a great angel investor, it is not enough to rely on experience and intuition, the real decisive factor is values.

Network leader: What is your current mentality and entrepreneurial phase different?

Pang Xiaowei: Entrepreneurship and venture need a very different mindset, especially when it is necessary to treat entrepreneurs equally. Any attempt by investors to control the entrepreneur is futile, because the heart of the real entrepreneur is unwilling to accept bondage.

Network leader: Is the institutional change of angel investment a trend? What is the status of the domestic angel investment industry?

Pang Xiaowei: China's angel investment is still in the initial stage, so there will be more and more personal angels and institutional angels. With the passage of time, professional institutions will be open, methodology, professionalism, scale, identity and so on to obtain greater recognition of the entrepreneur market.