Entrepreneurs grow up trouble: Looking for VC or Angel

Capital, entrepreneurs dream.

As the Executive director of Lenovo Investment Co., Junfeng, said, with capital, small sparrows can also become the eagle, soaring in the capital market.

What about the Little Sparrow's bridge to the eagle? How do you find the right investor for an entrepreneur who has a passion for entrepreneurship and an ideal career?

The main character changed from foreign capital to RMB fund

Fang, who has just attended the tenth annual China venture capital and private equity investment forum, has shared a good news with reporters: 35 years ago, the venue was a foreign-funded fund, and now it is the renminbi fund. China's RMB fund, whether it is the total amount of funds or the value of fund management companies, has far exceeded the current level of investment in foreign capital.

"China's venture capital is gradually maturing, playing a more important role in our economic development." "Fang Investment Limited Company general Manager of the strong emphasis on this point."

Venture capital gradually mature, pay attention to the early venture Angel investment more and more VC, and then on PE, Xu Maodong that this is a contradictory body. He believes that Chinese entrepreneurs in particular need angel investors, are those who do not VC, not PE Angel.

In China, many famous enterprises, especially Internet enterprises, have the shadow of Angel investment.

What are the important criteria for an entrepreneur to evaluate the suitability of an investor? "You can think, if I took his money, what effect would that have on my next round of financing?" If you conclude that the next round of investment is not a problem if you take his money, then he is a matching investor. If you take his money and just meet the need for money, be careful. Angel investor Xu Maodong said.

Mobile Internet as the core area of investment Xu Maodong often in many high-end hotel lobbies, see a lot of investors and VC to meet entrepreneurs, "China is ushering in a new wave of entrepreneurial climax." Chinese entrepreneurs also have green channels. Entrepreneurship is a green channel for many of us to succeed. ”

Should not pay too much attention to the listing

What kind of enterprise do investors prefer? Wei Wei, chairman of the Hong Kong-Shenzhen Research Venture Investment Co., Ltd., the most important thing is to look at the market and see how big the market is? "Because investors ultimately want it to be in the capital market, or by a larger corporate merger, few investors want long-term dividends with the company." "Now, few startups say to investors that he will get a lot of dividends in the future, and there are few investors willing to invest in such a company," he said.

Unlike Wei Wei, Xu Maodong that entrepreneurs should not focus too much on the capital markets, let alone focus on listing. Gem officially launched, led many entrepreneurs to pursue gem listing. Can meet the listing conditions, the listing is supposed, but did not meet the conditions, to create conditions is problematic. Good business is generations, at least consider 5-10 years later, there is no need to rush to the market.

"I believe that many of the companies listed in China's gem will regret that a hasty listing will leave many sequelae." For entrepreneurs, the capital market opportunities to seize, but not blind. "For entrepreneurs to find a way to match their own funds, Xu Maodong advises entrepreneurs," now is the best time to raise money. When financing, if there is no good profit, suggest to find foreign investment; if there is a good profit, then find renminbi funds. RMB funds to see the report, foreign VC likes to see early. ”

Haitao, chairman of Shenzhen Innovation Investment Group, also has a similar view. He thinks that if an entrepreneur sees money too heavily, he will fail sooner or later. As an entrepreneur, the analysis of alternative trends is very important, when you choose a Business project or product, you must do an alternative trend analysis.

If you go the wrong way, you'll die early. "Oriental Yuan Ding partner pay Miao This sentence perhaps just and Haitao point of view."

How much equity should an "angel" take up?

Hard to support the company for several years, after the introduction of investment, the most sumptuous meal but does not belong to themselves? This is the question many entrepreneurs have about introducing investment. Investors emphasize equity and return, what should entrepreneurs demand?

Early on, entrepreneurs were excited to meet investors, but now entrepreneurs are becoming more aware that they need to be looking for investors with the same values as their own companies. So, while trying to find investors, they also learned to refuse.

Angel investor Downing has met an entrepreneur from Shenzhen. She told Downing that she was doing a marriage search business, specifically targeted at high-end customers, in the form of one-on-one, in Shenzhen, do a very good job, often a customer holding 100,000 of cash into.

See in Shenzhen such a good momentum of development, she hopes to be in the country's first-line city full spread. She asked Downing: Could this model be rolled out? If you can, you definitely need money. She asked Downing directly: would you like to vote? Downing gave her the answers she wanted and recommended a similar pattern in the United States "a lunch" for reference.

Downing told reporters, now most entrepreneurs are very clear about what they want, many times, we do not need to waste time to play Taiji there.

Many entrepreneurs have also told reporters that they will also do surveys and research on investors.

"In addition to the business model and will not invest in such issues, entrepreneurial companies, or small and medium-sized enterprises in the angel investment phase of the valuation is a lot of entrepreneurs are concerned about." Chengdu, a pioneer in agriculture and industry, told reporters.

The investor is currently in contact with an angel investor, who is demanding a stake in 20%~30%. He expressed his basic approval for the figure. He told reporters that now do not know whether to accept the angel investment, or continue to search, because other entrepreneurs encounter angel investment of 70% of the proportion of equity, more miserable than he. He said that many people told him to resist, angels can not exceed 40%.

"It's going to be different for companies and people," he said. "he concluded.