Gingko dilemma-Big VC in the eyes of small entrepreneur

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One

Ginkgo does not appear in your VC list. You can think of it as a wrong omission, or as a nickname for a VC on your list or some home. It doesn't matter to me. Ginkgo as the mainstream VC, silver as an investor, in the investment circle fame. Entrepreneurs are proud of the money they can get from ginkgo and the total investment they make-not to say that this is the dream of small entrepreneurs in China today.

At the beginning of the phone, I received the total of silver ginkgo to vote me, I am extremely excited: I have to do silver always look at my point? In fact, I later learned that silver in general dedicated investment circle in the rare horse. In his position, it is normal to shrug off small projects, but he remains highly sensitive to investment opportunities regardless of their size.

Then I saw him very quickly. "Don't talk to them any more," he said to me, "I vote for you. "At that time, several investment organizations decided to invest in me, of course, although they are not a general, but compared with Ginkgo, the fame is not so big." Which small entrepreneur has resisted this temptation?

For insurance, I found a senior to consult. "If you're sure Ginkgo will vote for you," the seniors seemed skeptical about it, "other people's money would be all right." But I have to remind you that you are probably going to be tossing, it is best to charge them 5 million yuan deposit, if he does not vote you, you will not give him. ”

This predecessor and Ginkgo have done this (you see, predecessors are also difficult to resist the temptation). However, it is said that the final investment has not become, the silver total lawsuit and the deposit to go back. Elder earnestness, Zennai my blood has been boiling: to the prestige of Ginkgo Biloba, 5 million and what? The investment agencies are also not angry anti-XI: Ginkgo's horizontal knife to take love to prove their vision. They are required to "leave me five points, leave a point", "as long as I and ginkgo to vote on the line, the price does not need to talk about the price of Ginkgo biloba I what price."

Term Sheet (Investment Letter of Intent) signed, due diligence also quickly completed, professional and meticulous. For the next 1.5 months, I had plenty of time to appreciate the gingko style.

"I am abroad." "I'm not in the country. "You can find So-and-so. "To put it simply, I can't find the silver total." For me, Ginkgo became a legend, can not be. I can't sit down. I was completely unprepared for this situation. Term sheet asked me not to give him or to the investors eclectic. I can only wait alone, silently bear.

Finally, in my almost impatient urge, Ginkgo asked me to sit in its office again. This is the last time, unforgettable. "This is a good project," my project manager said to me, "but now there is a fact that our other team decided to invest in a company that is essentially the same as your business." Generally speaking, we will not be two competitors at the same time. So, the first question, can you accept that we're going to vote for two of you at the same time? And even if you accept it, we don't necessarily vote for you. ”

1.5 months ago the warmth vanished. This is a very cold question, and it means that you have to accept that he is at the same time voting for your competitor, and that he will not vote for you when you accept it. What a disgrace to an entrepreneur. I stood up, went out, and began to circle in the corridor.

The lawyers I brought are not prepared to talk about it. Moreover, Term sheet has no legal effect. He can't help it.

I turned back to the office and sat down. "I accept. "I said. You know, the general venture to finance this step, it means that it at the rapid development of the capital demand is very urgent, it is likely that the money has been used up, financing can only succeed can not fail.

The other person obviously did not expect me to be so settling. He is also clearly equipped with a plan. "If we're pitching your competitors there are activities, can you go to the onsite support?"

Do you think this is push? I didn't think so. Getting the money is more important than anything else. Can。 "I said.

My resistance was so thorough that it must have surprised them. However, villains, outsmart, after all, I was fish, on the chopping block.

"Compared to your competitors, your price is too high, can you make a 70 percent?"

I have a hunch that even if I agree to 70 percent, this financing is not possible. But the price I alone can not make the decision, and my first round of financing shareholders to discuss. I was agreed to go back to discuss.

A week later, I got a call: "Sorry, we can't vote for you, we voted for your competitor." ”

At this point, when I went back to the first few investors who had asked for a "save a spot", they shrank. All the previously agreed terms should be reopened. In fact, it is impossible to talk about it because they are not willing to vote again.

I fell into a dilemma. My name is "Ginkgo biloba dilemma". It's like an earlier joke: is ginkgo going to vote for you? Ginkgo didn't vote for you? The former means you will be a big success, the size of investment institutions to you. The latter plummeted, Ginkgo did not vote you, it must be you have problems, even if there are people willing to talk to you, you have lost the bargaining power.

Two

When I spoke to more entrepreneurs who had talked to me about raising money from Ginkgo biloba, I found myself not an orphan. Their experience is similar to mine. To be fair, Ginkgo did not vote for me, must have encountered some of its insurmountable obstacles, but its final lower prices and investment ratio (and the number of term sheet) is too low is not uncommon, if not said this is commonly used methods.

An entrepreneur who has entered the "Ginkgo dilemma" has carefully studied the operation of the U.S. VC, concluded that the domestic VC commonly used in the United States, such as term Sheet, the entrepreneurial team too much restraint, and there are few restrictions on investors. In the United States, because there is a sound credit system, if the entrepreneurial team does not have major problems, the general investors will not violate the agreement. But in the domestic, the good faith existence very big problem, therefore the pioneering team and the investor is in completely unequal position. "From term sheet to real investment," said the entrepreneur, "I can understand if the valuation is 20% or so, but if the difference is 60%-70% or more, I don't think it's a bona fide approach." "Of course he encounters the latter. "Rejected by Ginkgo biloba," he said, "is not just a waste of time, no one is willing to talk to you about investment, your own mentality has also been very bad change." ”

Another entrepreneur who had dealings with Ginkgo concluded that the investment style of Ginkgo biloba can be summed up to three. First, they work hard, any financing needs of the occasion can see their figure, this in the first-line VC unique. Second, the pursuit of the project ferocious, exclusive price. Ginkgo's fame and price, invincible. Third, delays and lower prices have resulted in a low rate of investment completion compared with its original wide net.

It seems that Ginkgo biloba is like Wal-Mart in the investment circle, rupees, invincible. I think if I had changed, would I have avoided doing so? So don't accuse. Moreover, as another entrepreneur said, no VC money is hard to do. I just want to tell those entrepreneurs who are in a financing craving that they have been hurt by telling them that you can opt out of Ginkgo biloba or choose the price it may pay.

If the following statement is true, then I will feel that ginkgo does not invest in me is really my lucky. They say silver always has a bad temper, and if he invests in you and enters the board, he will scold you on the board when the company doesn't agree with him. Some people have even been thrown by the silver ashtray, splashed water. They said it was hot water. I can't imagine what to do if it was me.

There are also a number of things that may involve the excessive packaging of the invested enterprise by the investor, as well as the possible related transactions and the transfer of benefits. "One of the things I've learned is that we should be clear about the future of our business," said an entrepreneur. It was only later that we discovered that capital was going to expand rapidly and then go public, and we wanted intensive farming. Some industries or companies may need this practice of capital, but not for us. Usually, if the capital is so, it will not speak frankly, it requires more communication, and then make a judgment. ”

Silver always has business genius, diligence and ability to be undeniably. He has in less than six months to the number of Ginkgo enterprises to invest in the United States successfully listed. Some people say this has nothing to do with silver, it is the role of investment bank. I don't think it would have been the case without the general judgment of the silver.

It is also the extraordinary ability of silver to create the Ginkgo biloba today: because it can send you to heaven, so it has the power to let you endure purgatory. Unless you have superhuman endurance, or self-confidence can be stronger than silver always, otherwise, or away from ginkgo. Flying may not be so high, fall not so ruthless.

(Liu Jianqiang According to the true experience of four entrepreneurs to organize)