Investors and the Great White

What is the entrepreneur's right "investor"? "Warm man" like "Big White".

The fiery release of the Marine Corps has made a soft "big white" an object of chase, and entrepreneurs are no exception-how good would it be if investors were no longer high and cold, but as warm as a white man? Dear entrepreneur, you have to remember: bread will have, milk will have, the great White will have, but you also have to learn how to find TA.

"We desperately need money" – a psychological hint that causes most entrepreneurs to simply finance success in a quick way, superstitious information that has been handled by the media, and not personally understanding investors, leading to asymmetric information-investors who know more entrepreneurs than entrepreneurs know investors.

And even more tragically, most entrepreneurs give themselves a second psychological hint: "We have no choice." "From the root of the search, leading to" whoever "the crux of the evaluation of their own high, eager to achieve success, in fact, is to" prove the ego "rather than" self-realization. "

One word: You find a "over the wall ladder", perhaps not difficult, but find a "extradition person", that is slow work malt.

What is the "right" investor?

A "yes" investor, like the ideal "lover"--"agree" and promote your career.

1. "Right" investors are based on "agree with each other".

What investors and marriage objects have in common is that after the combination of the two, a large number of inherently secretive variables will flood. The cooperative team should only rely on cognitive consistency in dealing with these variables.

Therefore, the premise of the choice of investors is "agree", because "beholder" can shield a lot of unnecessary noise, so as to reduce internal friction, focus on what the entrepreneur really needs to do.

2. Can investors "nourish" you?

If the "lover" you choose can help you ascend and make you a better person, it is an ideal choice. It is also an ideal choice for entrepreneurs to truly interact with you, help them think, and help them develop their business.

Specifically, the "nourishment" of good investors is mainly manifested in two aspects.

Initial nourishment: Money.

Money, like bullets, is an essential weapon for entrepreneurs to attack and plunder in the marketplace. If the bullets are not supplied in time, the entrepreneur will get into danger. Therefore, the "right" investors, in accordance with the development of the project to provide timely funding assistance.

The other thing to examine is whether investors can help you when they raise money in round B or C. A "pair" of investors, can bring you not only a one-time support, but also in the brand to improve the success of the next round of financing probability, or even take the initiative to help you find other investors, "married daughter-in-law also earned the dowry."

The most important nourishment: resources.

Investors can give you sufficient resources, so for the start-up team, the upstream and downstream investors are a good choice to enhance the advantages. Entrepreneurs will be supported by strategies, resources and talent in addition to capital. This is a relatively ideal investment state, which helps to develop for a long time.

What are the steps to examine investors?

1, preference long-term cultivation related fields of investors.

In addition to telling you the growth pathways of other new ventures, you can anticipate your own scale process, often providing the most front-line industry intelligence, shortening your time to explore and reducing missed opportunities.

2. Select the person first, then select the company.

Get the business support of upstream and downstream enterprises, it can greatly improve your competitiveness. But it's important to note that these companies invest in you, and that doesn't mean they can support you in business, because most businesses have very limited impact on the business sector. So "who" invests you much more than "which company" invests you.

In addition, the person who decides to invest in you, usually the future representative of your board, makes it very important to choose people.

3. Don't be confused by good promises.

If an investor promises to help you do this and introduce that in the future, it may just be a ploy to lure you. Really good investors should start to help you directly and not wait until you invest.

4. Talk to the entrepreneur he has invested in.

If you are an investor who works very hard to help your investors, he will gladly provide the list and invite you to talk to them. If the venture has reservations about providing such a list, it is likely to be a warning.

5. Work together first.

If you can, find a way to work with this venture and decide whether or not to invest. In the process of discussing strategies, business models, or visiting important partners, you will learn more about the tacit understanding between the two sides.

6. Beer Test.

Instead of testing the other person's ability to drink, we have a dinner, a glass of wine, and a mask of preparedness and a better understanding of both people and values.

7, personally involved in the consultation.

Negotiation is the process of finding out the balance between the interests of two parties, and also the opportunity to understand how the other party deals with conflicts of interest. If you and your venture can complete this process rationally and happily, it will be easier to maintain the future shareholder relationship.

8. Understand the difference between price and value.

The better the price of service is often more expensive, this reason in the world of raising capital is also interlinked. Instead of choosing an investor purely for a higher valuation (lower dilution), do not make the terms of the investment simply cumbersome to raise valuations. When prices are similar, the impact of the investor itself will be much larger than the valuation. When the investment conditions are very complex, sometimes it will scare the future to invest in the next round of the venture. So everything should be viewed in a holistic perspective, rather than focusing on the optimization of a single project.

Any "traps" you need to be aware of?

From some of the more likely to create legal disputes in the perspective of four suggestions:

1, whether investors are industry investors or pure equity investors

The two investors in advance judgment can clarify the scope of responsibility.

2, to determine whether investors will intervene in the company's business behavior

The entrepreneur should understand the investors ' post management style by direct inquiry and side confirmation beforehand.

3. Whether the investor demands a veto right for the company's decision matters

From the point of view of the target enterprise, because it is impossible to judge whether the investor will abuse the veto after the agreement is signed, it is equivalent to the invisible shackles. So be careful!

4, see whether investors require the special rights conferred by the Investment agreement

("Betting clause", "anti-dilution clause", "repurchase clause", "common stock selling clause", etc.)

Investors come up with the fashionable terms in the investment agreement template, some of which are complex and in fact lack maneuverability. Advice to counsel to assist you to judge.

Finally, quoting the pioneer workshop producer Macan, I hope you will understand that the choice is always in your own hands:

Why would a small wave of investors get long-term returns? Because they are the people who really try to interact with the entrepreneur, help them think from the perspective of the entrepreneur, and help the enterprise develop. This kind of investor is definitely a minority, so there is only one way-to be yourself, to dig, discover, or even attract investors who match your knowledge structure, character and personality.