Entrepreneurs can't torture investors in the top ten restricted areas

Many entrepreneurs are looking forward to VC, PE, but once the investment, new contradictions followed. The time pressure for investors to chase profits, and the control of ownership of the enterprise, often make entrepreneurs tired of parry. PE/VC is the discovery of value or the capital Hunter? Faced with this double-edged sword, how do entrepreneurs maintain a healthy mindset? investing and being invested are two-way choices. Entrepreneurs are severely tortured during the financing process, and, as a matter of course, entrepreneurs can ask investors whether they are the ideal and appropriate investor. For a good entrepreneur, the first thing to do is to be able to stabilize the investment in front of investors, consider thoroughly whether to take other people's money, how much money, take whose money? For those who disorderly, desperate entrepreneurs, torture investors is a must not go to the corner. The following is the explanation that the entrepreneur must not interrogate the investor's ten forbidden area question.

1 How big is your bankroll? Have you invested in any enterprises, can you introduce me to see?

Today, all walks of life mixed fish, in order to test the true and False VC, ask also no harm. But from another point of view, the problem is a nonsense, as long as you make sure that the other party can give money to you, what other companies they have voted, if not to pay you, they fund the size of a large, more money, it is none of your fart.

But you this question, perhaps just opened the other side of the conversation, open mouth to talk about how many billions of dollars in the management of their hands, turn the hand for the cloud of the hand for the rain how great how big ... Just listen to it, don't listen to these words, make yourself smaller and bigger. In the world of entrepreneurship, entrepreneurs are always the mountains, investors are foil hill, because the value of a start-up enterprise is created by entrepreneurs, investors money is only accelerator, money to do a little faster, no money slow, no matter money, entrepreneurs are destined to start. If investors do not have entrepreneurs, a bundle of money can only be locked in a safe box moldy.

2 You give me the valuation, is based on what kind of assumptions and calculation method, whether can introduce?

Entrepreneurs are always sky, and the valuations of investors are always more or less deviating from our expectations. You know, VC are professional investors, valuations have their own assumptions and methods, if the VC's valuation does not make you satisfied, you should give a good reason to improve your value, otherwise you can defend the attack, first ask VC basic assumptions and calculation methods, and then see if you have better reasons and algorithms to retaliate, Don't be unreasonable, do not speak rationally blind tongue-tied.

3 How much time do you usually need to invest in a project? What kind of process is it?

Many entrepreneurs see investors think one afternoon can talk about, tomorrow will be able to call the money, and some people even more tone: "You are not immediately can cast?" Our request is to be quick, otherwise we don't have to talk about it. ”

Such a statement actually exposes the entrepreneur's own forcible-the basic doorway to investment and the lack of basic sales skills. Any business in the world, is to let consumers voluntarily out of money, to let consumers feel satisfied, whether it is supermarkets, restaurants, processing plants, software companies, system integrators, which can be an exception? Financing is actually a sale of your company's shares of the big business, who has the ability to let customers (VC) do not spend kung fu left to see, ask this question, pick and go, wear and try, immediately feel hundreds of thousands of, millions of, tens of millions of to smash in?!

VC usually takes 3-5 months to do a case. VC will have to make time in the many cases in hand to pay close attention to your project, and you sign termsheet, due diligence, find a lawyer to draw up an investment agreement, the middle may also go abroad for vacation ... But each VC will be in front of you to show their professional and neat, so you have to catch this, first ask them how soon they can finish your project, if the other side said three months should be almost, which means he is not busy with the hand; if the other person said 5-6 months is the minimum, then his subtext is " I have been very busy recently, this project also does not mention the priority. Then you should wise their process and send a timetable to them as they say, and then send your secretary as the project manager to follow up, so that you can control the amount of time you spend on financing.

4 What are your biggest concerns when you look at our project?

Investor concerns are obstacles to the way entrepreneurs finance their businesses, so entrepreneurs should take the initiative to clean up roadblocks. You can ask investors what their concerns are, if they say "the biggest concern is risk control", you can answer: "When the money is in place, we will go to 4 major accounting to dig a master to become the financial controller, the establishment of strict financial management and risk control system"; If investors say "we're worried about your sales, Lack of a sales VP in the team you can answer: "Ah, you are right, we are already ready, see, 15% of options have been set aside, the candidate's resume here already a lot of, if this person is not in place, I will not move you a penny." "Financing is the essence of the right to investors, so that investors buy what they want, for your financing on the road stumbling block, do not hide, do not explain, immediately clear!"

5 you said that in addition to investment in our money, you still have a lot of resources and value-added, whether you can specifically say to see?

VC said they have "added value", oh, VC are always in the negotiation of the critical value of the key moment to throw out this killer. VC such a say, the entrepreneur younger sisters are relaxed on the "valuation" of the vigilance, thinking of the value of VC beyond the money, so no longer preoccupied with what "company valuation." What are those so-called "added value"? The real value added is concrete, you can hear it when you say it. Write it down immediately in black and white; general say "We have industry resources ah" and so on, nothing but the future of one or two of their investment in the company's CEO and you know, hehe, brothers remember Ah, most VC value is their money, what " Added "and so on, unless there are specific terms of the cash, otherwise listen to it."

6 Are you going to vote for yourself or are you looking for a few followers? Are you willing to take the vote?

When a VC says "be interested in investing in your project," There are many possibilities:

* Be interested to start investing in your project (Termsheet, due diligence, negotiation, etc.) right away;

* Interested in participating in investment, if there is another VC to dominate this round of investment (lead), you can follow a part of the vote;

* be interested in receiving the round of financing, but whether or not the final vote depends on finding other investors to invest;

* be interested to continue to observe, when the time is ripe to vote (of course, the time may never mature).

Entrepreneurs to understand the exact level of interest of investors in order to make appropriate preparations, do not be misled into thinking that VC is interested in then wait there, and finally delayed their own financing time. If you are sure that investors are only interested in "with the vote", try to determine a possible amount of investment, such as 1/3 or 1/4. Then you continue to work hard to find a "lead" VC, you may wish to push the new investors met said: "You come to get the vote, I even with the VC to help you find a good." ”

7 when can you offer me termsheet? Or is it possible to sign a letter of intent based on the negotiating points of both parties?

Another most effective way to judge the extent to which VC is interested in your project is to ask them directly if they want to give you a termsheet right away. Entrepreneurs can't wait to know about the sensitive issues, such as how much money they invest, the proportion of shares, the options, the terms of the bet, the conditions for injection ... Will be a lot of listed in it, if the VC interest in your not to the heat, then they generally do not bother to come out what termsheet.

The financing process is often like a smoke and mirrors, investors are not shy, entrepreneurs do not need to be brave and investors to pick broken Skylight said out, ask them to take the termsheet, and then according to the other termsheet to a systematic negotiation of the main investment conditions. Termsheet, Termsheet, Termsheet, this is your most important milestone on the financing road!

8 How do you usually manage your company after you invest?

For investors, investment is just a starting point and the real start of their work. After the investment management is very fastidious, some investors are strict, such as will require the appointment of financial controller to enter the company's core management team, and some will require a monthly board, to be invested companies to establish a variety of monitoring and reporting system ... Also some VC hit the money after the anyway, Yinianbanzai open a board also assigned an investment assistant to be a stand-in. Understand the VC investment management requirements and methods, can also help entrepreneurs judge the value is not worth their money.

9 What do you want me to do before you finally decide to invest? Is there a list you can give me?

For the first time, the entrepreneur should learn to push the investors with skill, and should actively cooperate with the investors to complete all the necessary procedures in the investment process, such as to get the due diligence list as soon as possible, so as to prepare for the due diligence in advance.

However, the entrepreneur "actively cooperate" investor's action must have the ritual to have the festival, enough to avoid excessive enthusiasm, excessive generosity, because the financing negotiation is a two sides to propose, mutual understanding, discuss the wedding event "foreplay" process, the entrepreneur should properly put some of the case, in order to enhance your sense of the mystery and attraction of VC. Some entrepreneurs are too optimistic, before the Termsheet, let VC to understand the technical background, customer contract details, and even to deal with some of the company left behind the issue of sensitive equity, the results of the entrepreneurs waste a good effort, VC but even a drafting termsheet time is not spent, Pat the Butt said not to vote.

Entrepreneurs open their doors let VC come in to rummage through due diligence, must first talk about the main investment terms, both sides signed on the Termsheet. Avoid the recklessness, to grasp the rhythm, understand those things can be fast, those who want to slow.

10 you have invested in the company, is there any case worthy of our learning and reference?

Every experienced investor will have a lesson in success and failure. As an investor, communicating with entrepreneurs about their success or failure is no doubt the best way to train and educate entrepreneurs to be the entrepreneurial team that investors China, Hore. For entrepreneurs, financing is more than just a "money" process, this is a good opportunity to learn investment, entrepreneurs should learn how to look at the investors from the perspective of entrepreneurship, what kind of corporate investors like, what kind of company investment head big ... Investment and entrepreneurial like, are never-ending learning, entrepreneurs succeed will go to become investors, now began to invest in financing it!