"Forced palace" entrepreneur advice: capital is a double-edged sword

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

"NVC infighting" appears to have eased as employees and dealers joined forces. The battle between NVC Lighting's founder, former chairman Wu Changjiang and the founding partner of NVC Lighting, the current chairman of the Yan, is also less than before.

However, this scene by Wu, Yan two people triggered NVC lighting internal events, after Jingdong Mall CEO Liu (Micro bo) to help postpone, has evolved into China's landmark event, the contradictions between entrepreneurs and investors in the world. In this context, how do entrepreneurs look at capital? How to deal with the relationship between the capital side? has become a big issue in the minds of entrepreneurs.

"Do not contact capital too soon if it is not necessary"

July 18 Night 9 o'clock, the reporter called Hou Yu Xinjiang, the other end of the phone came from the child's cry, the wife is not at home, he had to a person with 2-year-old children. If not "forced palace", leaving his own founder of the cool net, he should be busy with his career at this time.

February 25 this year, Hou Yu to the company as usual to work, but there is a special meeting waiting for him. "(a round of investors, the Cape of hope to start the Aviation Power Business Fund partner) Huang Rong, (angel Investor) Zhihihe, (cool net current CEO) Wen Yi are in the conference room, said to open the Board, the meeting content is to dismiss my chairman position, and gave me two way out: resign or be expelled, Hou Yu Xinjiang said. He chose to "be expelled", "if it is to resign, I admit that I have a problem." Two days later, Hou left the company he had created.

From the preparation of the founder of the cool net to be forced to leave, in the middle of only a short period of one year. Hou Yu's first lesson is that entrepreneurs, if they have enough money, try not to get in touch with capital too early, "if not so early to introduce angel funds, not so many things later." ”

Hou has been involved in the creation of a jiapin network, very understanding of the prospects of the luxury market, so in early 2011 he began to prepare for entrepreneurship projects. Preparatory stage, there are angel investment to come, at that time, the so-called angel investors Li Ken found Hou Yu Xinjiang. "And about Zhihihe come out to talk about, very soon the other side told me to decide to invest," Hou Yu Xinjiang didn't want to agree.

But Hou Yu Xinjiang did not think of IS, only after two or three months time, Li Ken put forward to withdraw. "He has to quit, eager to Hou Yu, the goal is to make quick money," said the Xinjiang, and at that time when the cool net a round of financing, "Li Ken said he did not allow the exit, he did not sign the investment agreement." Then after the introduction of Zhihihe, Wen Yi took the Li Ken shares.

Early start of the encounter is not smooth, so that the development speed of the cool network has been affected to a certain extent.

"Entrepreneurs also need to look at investors"

The initial business is not smooth, obviously with the Hou Yu of the capital side of the full understanding of the relationship is not enough, and in the late, he still suffered enough to eat.

"When entrepreneurs are looking for investors, they must have a two-way choice. Do not think that capital money, capital to find you, is your lucky. Not only to let VC to investigate your situation, you have to investigate the investor's details. Entrepreneurs must also be on the background of VC, experience and Industry Word-of-mouth survey. "said Hou Yu.

When the introduction of a round of investment last year, Hou had a number of investment letters of intent, including a well-known foreign investment institutions and a domestic electricity business Fund (Cape of Arms set sail). Domestic electricity-business funds offer more generous conditions, promising to inject money quickly. Hou Yu Xinjiang not too much consideration, chose this domestic electricity business Fund. But in fact, the money was delayed for 2 months before it was accounted for. The delay in funding has affected the completion of sales revenue.

More crucially, by then, capital and Hou have diverged in their business strategy, leading to a split between the parties.

At the end of September last year, Taobao a three, Taobao mall (now the cat) as an independent company debut, announced the introduction of 38 independent platform Taobao shopping mall. "These 38 include cool nets, we have settled in," Hou Yu Xinjiang very much value the online sales channels, but the capital side is firmly opposed to the view that Taobao is relatively low-end platform, not suitable for selling luxury goods. Hou Yu Xinjiang hope that the cool net walk is the main line, the line supplemented by the route, and the capital side but want to transform to do offline business. "In the Enterprise development strategy after the divergence, the capital side strong intervention in the day-to-day operation and management of the company, the contradiction between the two increasingly acute." "Hou said.

Hou told reporters that the fund's other investment in the elderly and women health products as the main product of the electricity quotient, its founder also because of the company's development strategy and capital differences, and then leave. "When entrepreneurs choose investors, they also need to know if they can follow the development direction of the entrepreneur." "said Hou Yu.

The same is because of the strategic differences with the investors, mother and child, the founder of the Red children, Li Yang left his own company to create, but he told reporters: "Now a lot of things are not convenient to speak, investment in my VC are very refined people, not the legendary." ”

"To communicate, not to mistrust."

In the later period of the cool net, Hou Yu and capital lack communication, mutual suspicion is very fierce, "I feel isolated." "Hou said.

Especially in advertising, both sides are suspicious, investors believe that Hou in the Internet advertising costs too much, even put forward the requirements of audit intervention. "The results of the last year's cool ad campaign amounted to 49 million yuan, but in fact our spending was less than 10 million, and it was a lot of money," said Eric's report. But they think I spend so much money, there will be some financial problems, there will be grey income. They were on their own, lacking communication and not talking to me. "Hou said.

"Do not comply with the board resolution, unauthorized increase in advertising." "was an important factor in the management's explanation of the dismissal of Hou Yu."

There is a lack of communication between entrepreneurs and investors, and a marriage between the two will be difficult to follow. As the current hit people-Wu Changjiang and Yan, in Hou view, "Two people are good, very loyal, as very straightforward", the beginning of a good relationship, but encounter small problems, we do not go to reasearchers, misunderstanding each other, the final contradiction will erupt.

"Everyone must protect their own interests, there will be different ideas between the two sides, but must communicate, otherwise there will be big problems." "Hou said.