Investor share: Who will be shunned by investors

Source: Internet
Author: User

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In the past 5 years, we have encountered many entrepreneurs, many projects, some successful, there are some failures. Why fail, I will focus on sharing the lessons learned in the failure.

First, do not invest in cross-industry entrepreneurship. For example, the original game of the people to do the electrical quotient, the original Internet community to do the game. Now the Internet environment, this cross-industry entrepreneurial failure probability will be relatively high. When the industry is more mature, if you carry out cross-industry business is often not enough professional experience, so it is easy to lead to failure.

Second, do not invest in comprehensive quality is not high or core capacity is not strong companies. For example, the investment game company, your core research and development capabilities, there is not one, this project basically the probability of success is not high.

There is a kind of comprehensive quality is not high, but someone asked: "Why do you cast a comprehensive quality is not high project?" Sometimes in a bubble, we cast our heads in a fever. We will find that after 3 months of voting, we regret it, then how can we vote for this project?

Last year we invested in a number of projects in the context of an environmental bubble, leading to a much higher number of companies in the first half of the year than last year.

Third, not to invest in the founder of the disharmony, easy to split the company. 2, 3 person cooperation, the product has not come out of the team on the contradictions. There was a saying that "entrepreneurial partnerships are more difficult to maintain than marital relationships" because marriage only needs to be back home before 12 o'clock in the evening, basically guaranteed. Marriage divorce is the property of the half, assets still exist.

But if the venture partner is dissolved, then we are basically zeroing in on the money and turning it into a bunch of computers. I now deeply understand that 10 years ago, IDG Shong (Weibo) said, "Entrepreneurial failure has nothing." There used to be a net to do the company did half dissolved, our 9 million yuan investment only 4 million yuan, still have more than 40 PCs.

So marriage can be divorced, divorced from the other half of the assets, but the start-up team dissolved, assets immediately clear zero, this is a typical failure lesson.

Four, college students are not reliable. They are difficult to manage if they are not being taken care of by others. Li Kai said: "Successful CEO should be married and have children, will marry, talk about love, communicate with others." With children, he learns to be responsible. ”

We have voted one or two college students to start a business, especially the gifted students to start a business is worse. We had a lot of work to do with him, but found it difficult to manage people, and it was hard to recruit good, experienced people under such a founder. Other people will feel that the boss just graduated from the people who communicate with the problem, why to serve him?

We have about a project that has been invested for more than 4 years, and the company is now in the same situation as we did a 4 year ago. Although not dead, but basically that is the case. In fact, we did not shut him down in response to the government's call for "stability", at least to provide more than 20 job opportunities.

Five, you must focus on doing a good thing. I'm going to talk to all the entrepreneurs and start a business with a focus on doing the right thing. What do you mean "one thing"? can only develop a game, can only do a product.

I have seen several projects, when the first game did not succeed when the two, three, originally his cost is not large, but at the same time to do two games, the cost is big, the cash consumption is very fast, resulting in easy closure of the company.

In the electric business industry, business-to-business and Business-to-consumer businesses cannot be mixed together. One of the most famous failure cases for the investment in Germany is the Lateran Custom shirt project. The project was later given to the staff, who are still alive, earning hundreds of thousands of a year. At that time, there were two opinions in the company, one was directly oriented to the enterprise, and the other was directly to the individual, so then the business-to-business and the consumer mixed together and failed.

Entrepreneurs should learn Zhou, only do one thing, rely on this first to do the user. Tencent has only done one thing QQ in his early years.

The company that does not invest the share arrangement unreasonable. There are many projects in the initial stage of start-up shareholders are not suitable for the interests of uneven, there is no room to accommodate other better talent. When we invest, his shareholder structure is already so, we are very painful, want him to send a bit of option is a little bit, it is difficult to absorb very good talent.

Over the past few years, we've tried to buy old stocks and readjust our shareholders, spending hundreds of thousands of and millions buying old stocks to restructure, and then failing. This is a very valuable experience and we should not vote if the shareholder structure is not suitable.

Seven, entrepreneurs blindly optimistic or very closed, not willing to communicate with investors easy to fail. There was an entrepreneur who planned out when he would be able to finish the game, and then he thought it would be okay. We communicate with him, he is not very willing to communicate with us. By the time we came to see him, the cash flow of the project was running out.

There is also a more funny project, we have just voted him, only after 4 months, the cast of 2 million yuan has spent half, he also launched 4 iOS game team, he had to do only one thing, the opportunity to do it slowly. Then he said confidently, "I'm sure the first game will make money." "Later failed," said the second, the last one was not done. So the first step of entrepreneurship is to protect their own cash flow, not blindly optimistic.

The speed is too slow to cause failure. Before, there was a company to do the end of the tour we voted it two years ago, originally planned 9 months to do the game to come out, that time the page tour is not so fire, end of the tour

It's possible to succeed. But he delayed the time until a year later, the product came out. The whole market has undergone great changes, the end of the tour is basically no chance. I refer to the end of the investment rate is lower than the 2D tour, now only Tencent such rich people dare to spend 50 million to 100 million do 3D end of the trip to have the opportunity, small companies have no chance.

The world martial arts only quickly does not break, if you plan the time is very long, the market environment is changing, and you originally entered the market when the idea is completely different.

Ninth, learn to hide yourself. Some companies, especially the founders, are keen to expose themselves to the media, leading to the entry of new competitors and giants, which often fail miserably. To give a case, when the rice business, when the people around us will not tell others Wanghai (the founder of Rice) in what, only he is quietly doing. For more than a year, until the market began to have other companies know that competitors later in the chase is too late.

If you have not yet started to make publicity, for example, even I know the "sing", often can not be successful. Everyone may come in a flash, Tencent to the QQ music to knock you down. Entrepreneurship must be very low-key into the market, has not been successful in the market, do not be too high-profile. Investors can be very high-profile, because we want to attract entrepreneurs to let us invest money, but the entrepreneur can not be too high-profile, must do your business, until forced exposure.

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