Crisis is the best chance to start a business

When the financial crisis broke out last October, we were all in a panic, and now it's been eight or nine months and there may not be so much pressure at home, but if we can feel it in the United States it is very low. 05, 06, 07 When everyone is burning money, for entrepreneurs, seemingly a good thing, but in fact, is very not stable. So we started to expand the team from the end of last year, and we felt the investment efficiency was the best. First of all, from the people, the cost is much lower. Often in the United States or Europe, VC venture the most successful stage of the economy is the most bad time, why? A crisis is the best chance to nurture a business.

Plateau Capital has long been supported and invested by many LP, so on the other hand, we are in fact the same as 5 years ago, or adopt a more conservative approach, including our investment companies, to maintain a certain strategy, whether it is very high peak or very low peaks, as long as the maintenance of a certain strategy, can overcome this difficulty.

Two years ago, we may feel that after the enclosure will also make money, that era is the line, but today, the field of education, online games, fast food fields are growing. But there is a key point is the effective use of funds, which can be said in the country before is completely ignored, the front constantly to the enclosure, to buy resources, to advertise, now invest in a few Beijing companies than expected, four companies do not need to finance. We do not mean to reduce costs, but the original 1 dollars can buy things we 5 cents to buy, originally sold one months 3000, may now 5000 block. Simply say that you and VC meet, do not need to show me how much of the circle now, I have how much energy, it is no use, many times there is no way to become money. So, first you have to prove that our application is very effective, you give me 5 million dollars, two or three years later I will not need your money to make money. 11545.html "> We have a company that was voted last year, and now they have 20% of the money, we say it is difficult to finance, we in the first quarter when three companies come to us to talk about financing. In fact, VC or PE, not much of a timely, this is the fact that business is the same. So, first of all, to straighten out the original 5 products, one of the fine selection of 2, one is good. The money used well, the other side said that I give you 5 million dollars, you will be able to raise the value of one times tomorrow.

Note: Original from 2009 China Venture capital and private equity investment medium-term forum