Kai-fu Lee: Why entrepreneurs can not get venture capital funds?

Last week, Dr. Kai-Fu Lee, former president of Google Greater China and founder of Innovation Lab, published an essay on his LinkedIn page saying "Five reasons a VC did not back you" - talking about why five entrepreneurs can not get VC funds Of the reasons, pointed out that it is also easier for entrepreneurs to commit the basic error:

1. Sell yourself by phone sales

To a venture capitalist, if a founder of a start-up company, the CEO can not find a person I know recommend them to me, then he is not very good. So stop blindly spamming E-mail marketing your own company. I've never invested in a company doing that - just the same day, Dave McClure, founder of 500 Startups, made the same remarks.

2. To find a lack of preparation before the venture capital

Be sure to carefully study and prepare for the first exposure to VCs, such as their background, which companies to cast, and what are the common features of these companies that you can use to get VCs to impress their own company of?

Poor communication skills

Communication must be succinctly. Start with a good description of your company and be prepared to give a quick and concise explanation of how your market, competitors, how are you differentiated, what the team is special about, and so on.

4. spend too much time in market research, lack of investment in products and teams

Do not spend too much time reviewing the overall picture and potential opportunities in the market as VCs may understand better than you. Even if he is not so understanding, you can make judgments from your short narrative. So please save your time to introduce products and teams, this is what VCs want to know.

5. The first meeting with the venture capital to argue

You do not want to bicker with VCs for the first time, do not try to convince venture capitalists that you're wrong. Of course, there is no need to agree with all the views of venture capital. If you "stuck" somewhere, move on to another point and continue, trying to show the benefits of your company.