IDGVC Cao Dijun: How entrepreneurs deal with foreign VC (figure)

June 26 News, 2009 China Internet Investment and Financing Forum held in Shenzhen Convention and Exhibition Center today, the figure is: IDGVC Venture Investment Consulting Co., Ltd. Cao Dijun delivered a speech. The following is the full text of the transcript: Cao Dijun: Thank the organizers for this opportunity to communicate with you, please have the opportunity to find IDG, please write down the contact method, the host has been away from the field, I have to leave the field in a moment. Until now, except for Mr. Wang, everyone is advertising, and so do I. IDG Company is our whole basic situation, doing the Internet may be a lot of things are more clear, I think in Shenzhen, many colleagues are also familiar with me, the table also sits a lot of familiar faces. Today, I would like to give you a few years of experience in the field of investment, to tell us how we deal with foreign investment institutions, whether they are internet companies or traditional enterprises.　　Just now Mr. Zhangmingliang said one or two, three or four, four themes, I would like to use some living language to share our real work experience, hope that the financing of everyone to play a role, if there is a need to communicate back to my phone.　　Foreign VC Eight characteristics: First, the culture of the atypical Chinese, many foreign institutions will have a different culture with China, this will be explained in the following.　　The second is the communication method mail, the tradition is also transferred to the Internet many people like to use mail.　　Third, business activities to simplify, not accustomed to bubble feet, do not like to sing K, like to chat in the office.　　Four is the first-line personnel younger.　　Five is the decision-making process democratization, does not want to find a key person to solve the problem, this is impossible, many foreign capital institutions are the partnership system.　　Six is the due diligence form of the questionnaire. Seven is the investment terms of the host, institutional investors to give the investment plan must be very harsh, please read carefully, many people talk about the last time after two months of effort, the contract is not read and signed, the results found by their own sell, like some of our early investment projects will have some institutions to set up such a way,　　Suppose an early project we will invest, and then the project fails, all your future ventures as long as you have a stake in our 30% free, we may not have seen such a provision, but many people will sign such a clause, this is very irrational behavior.　　Eight is the investment management herding, do not expect which investment project he will take care of you, we cast our staff will not tube, so the management is very sheep, this is to the investment team very trust produces the shepherd management. There are several misconceptions in Shenzhen particularly obvious: first exchange to find leadership; the second business ostentatious; the third knowledge is not prepared, this is very stupid practice, since it is the Internet Investment and Financing forum, we are very familiar with the internet, Google, Baidu to see all know, why not see how the VC operation of the Organization, how to act the organization , to understand the knowledge and then to finance; business planning is more complicated, just now Zhangmingliang also mentioned that the business plan seems to leadGuide everyone to pay please, do not ask people to write your own business model, own information to others to convey, to others to describe, this is very irrational behavior, at most, please a consultant, write a plan love to write 50 pages, 60 pages, others wrote a lot, leaving two pages to tell themselves, see the last did not understand what is doing, The business plan is more than 10 pages, business model, team, how much money, want to do a talk on the end; the team is not open, a lot of people starting a business is a company to come out with a team to move out, or a few people organize to want to go to financing no problem, at least the team to open to the financing institutions to see It's hard to see people in the back, looking for a middleman to cover up the talk for half an hour, bad enough; vi call every day, nothing to chat, the general organization is very few people, IDG in China only more than 20 people do first-line investment work, in addition to the old project and daily contact with new projects, Everyone has his own abacus, we put forward harsh terms, he said this is not appropriate, why do not you mention it?　　Then the contract must be looked at, foreign VC investment What kind of enterprise, entrepreneurial team and management team very strong enterprise, business model in line with VC culture characteristics of enterprises, this need to explain that your business model and VC does not meet is difficult to do. For example, I saw a project in Shenzhen, this project to do very fast, 2007 to do 10 million of the business, 2008 did 100 million of the business, he is active in Shenzhen, small and medium-sized hardware processing plants concentrated together, from foreign auto factory orders issued to small and medium-sized enterprises do, said I have 20% price advantage, As a result, he made more than more than 100 million orders a year, finally come to us, this logic, the final core competitiveness is the downstream partner is not standardized, not to employees to send insurance, not as usual tax, so produce 20% of the profit, this time his core strengths if the big after the no, so we do not want to make this money,　　So we did not continue to vote, this is a typical cultural failure of the example, if you want to give me more time please give me some applause. Business models that have been proven successful in some areas, many foreign models in China are copied very successfully, while others successful mode you can also copy, for example, I recently saw a wave of people doing a website, called Shanzhai Net, this is also a model, there is not to look at the business, we have a creed,　　In our view do not understand the enterprise must spend some money to see, so can understand.　　Many people actually don't know what business model is when they describe their business model, many people put how to make money called business model, a variety of things are thought to be a business model, I want to give you a hint, describe their own business model and the structure of their own company must be the four words to find out, this is the necessary conditions for your financing. Please guess, Peisi, Zhao Benshan and Feng Xiaogang which make money, I analyze, Peisi said I moonlighting once also can receive a hundred thousand of, now a performance only to sell a hundred thousand of, including the actor's remuneration,Pay the actor's money, the actor's insurance, for the stage in the past few years my personal income loss of more than 2000 press, I am now the ordinary people in the middle and lower, Santana 2000 opened eight years, my sweater are ten years ago bought, the flow of the water wheel.　　Zhao Benshan, from "Liu Lao Gen" to "Ma Da" are making money, chic is almost bring Chinese football to the World Cup.　　Feng Xiaogang, seize the spring festival before the Lunar New Year file, do a few years to do a very crazy. Peisi is the production and marketing of one-stop, all the costs, all the links are his costs, is very hard to ox. Zhao Benshan All links are friends sponsored, star free appearance, filming the government sponsorship, advertising someone to him out, the last of all the rights of his own alone. Feng Xiaogang, the cost of income, recently several people have seen, all the links, including mobile phones, bank cards, web sites, communications operators, aircraft are all income, including begun ceremony is to collect money. The business model of these three people can be wondered why there is such a big difference.　　The structure of your own business and all the trading links on the chain, no need to write, I want to say it again you know on the line, the entire trading chain on all your own business and trading chain of each transaction structure, the transaction structure of each link to design well, your business model can be designed. Back to the subject, the key points of communication, psychological equality, and VC negotiation psychological equality. You have to understand the VC organization, and then very simple proposal, and then know VC, you find the organization he likes what field, he focused on what areas, know that these are to find targeted. Respect each other's communication like. It is best to hire a lawyer to ask him, otherwise we will eat a lot of losses. The logic and feasibility of business model is VC most like to ponder the content. I think I said just what the business model is, which each of the trading links are logical, I hope that everyone to figure out their own first, otherwise to the agency here is directly pushed off. Do not calculate simple subtraction market data, China has 1.3 billion people, each give you a piece of money you earn 1.3 billion, how to give? Not to the revaluation of fixed assets to attract VC, many people say that I did five years of business, bought a piece of land, buy the time 80 million, two years after the value of 800 million, I said the main business make how much? Production of mobile phones, one months to sell more than 100,000 units, we cast you must put the large amount of fixed assets aside, because it does not have a high value-added significance. Listing is not the best profit-making target, VC exit is the best mechanism, if the listing as the goal is not too much retaliation, VC very like, he does not listed VC back, hope for everyone a little use, thank you.