Internet VC embarrassment: 70% this year did not vote 1 cases Electric Corps purchase huge losses 50%

The failure history of 17 start-ups has been forwarded over 60,000 times on Weibo, causing great concern. Many readers will not understand the question: the large number of investment elite of the major venture capital, why the wrong enterprise. While failure has brought about the growth of entrepreneurs themselves, the huge sums of money invested in similar electric or group purchases have also contributed to a huge waste of resources and contributed to the bubble of the national economy. Is there a more scientific and risk-averse mechanism that will allow investors or entrepreneurs to have a higher success rate and win altogether? This is a thoughtful question; the internet industry in China over the past 2012 years has been as aihongbianye as the broader environment. 70% of VC has not voted a case in the year, which is the first two years of the electricity dealers and group buying spree. It is said that the two-year investment fund and group buying venture capital funds average book losses in more than 50%. From the stock market, the real profits of pots and pans are 360 navigation as the representative of the navigation station and the media. If VC's failure rate is so high, it is conceivable that most of the start-up enterprises are naturally and dismally. How did all this happen? To answer this question, we must first understand the venture capital industry. Venture capital should never have a halo that doesn't match. In the United States, VC is only a branch of many financial investment institutions. Venture capital, like many equity management funds, is nothing more than a wealth management tool. Fund managers let investors (including university funds, pensions, corporate funds, and wealthy individuals) believe they can help them better manage their wealth and gain high returns from investing in High-tech Industries, a fund that can be raised. VC funds and we can buy in the two level of the various types of funds are the nature of the same, are helping organizations and the rich financial management. In terms of the size of the fund, VC than PE (private equity funds), not less than the two-tier market. In terms of resource possession, because of investment in scientific and technological innovation, VC funds can not enjoy real estate, ports, minerals such as the monopoly of resources to obtain excess profits. In other words, VC is a general industry, just because the information revolution in the numerous High-tech companies listed, only to let VC leap into a halo industry. From the data of the past years in the United States, the VC industry's overall return is almost always negative every year. That is to say, most investors don't make money by investing in High-tech companies, or 20% of investment firms earn 80% of the industry's money. What does that mean? First, he is in line with the famous 28 law, and secondly, it means that the whole industry of VC is actually going downhill. It sounds very paradoxical, why mobile internet innovation is still in the leap, but VC is not the sun? In the United States, the rise of Super angels and numerous incubators such as y-combinator, robbed the industry a large number of excellent projects, and can be quickly fatten, directly docking listing; Often VC in the middle of this ring is squeezed at both ends. To bear the high risk, but also under the technology bubble to take a high price. And at both ends, Super angels and investment banks actually make real money.。 In China, VC faces more complex challenges than their American peers. It is because many of the Fund's decision-making committees are overseas, and neither the members of the Investment Commission nor the two-tier market in the United States are aware of China. This creates a Chinese-style but money-making model that may not be able to pass through the board, and the investment managers will naturally be willing to push the American-style start-up projects. For example, China's Groupon (American group), China's Facebook (everyone), China's Google (Baidu), China's YouTube (Youku) and so on. The great differences between China and the United States make it impossible to do things in exactly the American mode. However, investors, and even selected gold entrepreneurs (such as Harvard's 24 coupons Du Yinan) are many of China's national conditions are not very familiar with the returnees. When burning money, whether VC or entrepreneur, anyway burning is not their own money, nature in order to spell speed, nothing regardless. Sometimes the boss of a start-up company will be blamed by the VC fund partner if he is slow to burn money: "We invest your money to enlarge the market, not to interest the bank." "Don't be afraid to burn money, no money we can continue to melt B-round, C-round", such remarks in the market madness is the standard golden rule.