Down to Earth, favored by VC companies

Tarang Shah, a professional venture capitalist, helped entrepreneurs get 50 million of dollars in venture capital from SoftBank. He visited more than 1000 entrepreneurs, in more than 20 start-up companies as board members and CEO consultants, accumulated a wealth of investment experience, worthy of our reference and learning.

Twitter investor George Zachary said that only 8 of the 4,000 start-ups would earn 80% of their investment costs. Another Twitter investor, Mike Maples, said: The return on investment from successful startups such as Facebook, Groupon, Google and LinkedIn makes other investments look weak.

So many venture capital companies (VC) are gambling, hoping to invest in a company like this, can bring them a huge return on investment. But what kind of venture investment companies are looking for with money? What are the common features of these investment-funded startups? How can you increase your chances of getting an investment and developing a successful business?

Do you think venture capital companies will invest in projects with little risk? In fact, it is the project with the greatest investment risk.

The partner of Ken Howery,paypal, co-founder and Founders Fund, explains to us that small, manageable, and crazy relationships: small businesses don't seem to have much risk, but access standards are very low, the chances of failure are small, but the space for growth is small; The risk of a large enterprise, the probability of failure is also large, but think most people do not like adventure, so the competition is also small.

Elon Musk, founder of Tesla Motors and SpaceX, is the best example of chasing big dreams and taking risks, and he thinks that humans will one day destroy the Earth, so prepare to evacuate the planet early. So SpaceX became the first commercial enterprise to successfully visit the International Space Station. All invest the same money for small businesses and big businesses, and there is no reason to choose small businesses.

Venture capital companies love down-to-earth businesses

The so-called down-to-earth, is the enterprise is chasing the idea is very sound, may have consumed the entrepreneur a lot of time to think. Unlike popular opinion, venture capital companies dislike new ideas in hot areas, but more reliable ideas. When Mike Maples to invest in Twitter, he realised that micro blogs were derived from the traditional blog's point of view, very dependable. By the same token, Jim Goetz of Sequoia Capital Ventures, while investing in AdMob, found that AdMob founder Omar Hamoui had three unsuccessful mobile entrepreneurship experiences, so he was fully confident in the mobile sector.

Venture capital companies want entrepreneurs to have a particular personality. Most first-time entrepreneurs think that success is defined as high IQ, high tolerance for unknown prospects, adherence to the end, agile and smart, and goal-directed success. Yes, these are needed for the entrepreneur, but not the necessary or primary factor for success. Venture capital companies want entrepreneurs to have entrepreneurial leadership, including missionary passion, balanced arrogance, transparency, trust and unity, very impressive. Down-to-earth and entrepreneurial leadership is enough to lead an entrepreneurial team towards success.

Missionary-like passion?

Money is not necessarily the driving force that motivates entrepreneurs to overcome their difficulties, cross barriers and succeed. Kleiner Perkins's John Doerr says the most successful entrepreneurs are keen to solve their clients ' thorny problems, like missionaries, to save others. The most successful entrepreneurs have a connection to the problem, which is why Kevin Hartz, the partner and venture capitalist Sequoia Capital, David Lee and Xoom/eventbrite, likes to hear the stories of the founders, This can be seen as an entrepreneur entrepreneurial concept, so as to determine whether the entrepreneur has the ability to lead the company towards success.

A balanced ego?

Entrepreneurship is an incredibly human act, because the team's success depends on the quality of the team. Clearstone Ventures's Vishnu Mishra says the best entrepreneurs are confident, highly aware of themselves, and not afraid to hire people smarter and wiser than they are. Many startups fail or are constrained by the arrogance of entrepreneurs that make it impossible for companies to hire talent.

Trust, transparency and solidarity?

Venture capital companies like and transparent, speak out of the line, unite the entrepreneurs cooperation. Even an entrepreneur has excellent conditions, but he doesn't trust anyone, and venture capitalists don't work with him. NEA's Harry Weller said that the establishment of mutual trust relationship is the key to venture capital enterprises to know start-ups. Entrepreneurs should be on line with their own products, but also listen to the market real-time feedback, need to make trade-offs.

Many startups fail because they cannot adjust their products based on market and user feedback. If the enterprise is only to develop products, then the objective analysis of market data is particularly important. Venture capital companies do not like entrepreneurs who are aware of the problems, and they like entrepreneurs who know what VCs do not know, and they want entrepreneurs to be able to maintain objectivity and impartiality in terms of whether they are measuring the team's competitiveness or the product character is not in line with the market. Trinity Venture's Gus Tai calls these "passionate cares." Entrepreneurs are passionate about finding the right answers and don't want the truth about markets and customers to be disrupted.

Invest in a-level team

What is a-level team? A-class team is "Miss", entrepreneurial success rate is very high. Sequoia Capital believes that the key to determining the success of an entrepreneurial venture depends on the top 10-12 employees employed by the team. Venture capital companies rarely invest in single founder companies. So you need to build your own A-level team.

Venture capital companies want a-level team to have multiple founders, team members with complete skills, and core members with experience in cooperation. A trusted and passionate founder is the best partner for the job. The team's core members, like the founders, have the missionary passion to solve the problem, not to make money.

Chegg's Osman Rashid, flarion Rajiv Laroia, and Ben Nile of Blue Elowitz all value the entrepreneurial enterprise culture, as well as every new employee, because corporate culture affects employee performance. Whether it's a venture capitalist or an entrepreneur, it feels like it's too late for a suitable employee to appear.