Let's look at the entrepreneurial market from a product perspective.

In recent years, we have heard a lot of discussions about the venture capital market, and many people in the venture capital market have used phrases like "valuations" and "bubbles". These words can be seen from the perspective of people do analysis. And this perspective is very useful, but there is another perspective is also useful: product perspective. Let's give a brief description of the product perspective

Startups are in between two markets: one is the market between VC and start-up companies, and the other is the market between startups and consumers. The two markets are interconnected, but there is a limit to this association. When financing supply is low and customers are in high demand, entrepreneurs will be all right if they can get financing. When financing and start-up companies are high in supply, customers will benefit from it, some startups will have good performance, and VC performance is usually not the case.

If VC is too enthusiastic about a market, people will start talking about bubbles. When VC starts to fear, people start to worry about whether the crisis is coming. Historically, low tides are good for startups that can get financing, because there is less competition, and consumers ' demand for new technology is relatively stable. The low ebb period is usually accompanied by the advent of industrial change, which also means a wealth of opportunities for entrepreneurs.

There are various links between markets in different fields, but their changes are largely independent. Society can raise funds is relatively fixed, which is the survival of VC and most of the management of VC decision. As a result, a reduction in the amount of funds raised in one area would often lead to additional funding in other areas.

Markets in different periods are also linked, as early markets require late markets to find exit options and financing. This leads to the bullwhip effect: Late market changes will magnify the impact on early markets.

Sensible VC understands these principles and adjusts their strategies accordingly. But smart entrepreneurs don't always have to think about these things. Financing is necessary (at least for those who choose to take the VC route), but it is only one of many problems. The best advice I can give is to melt the money and then resist the financial market's rise and fall.

Product View

Good entrepreneurs spend most of their time in the market between startups and consumers, and they look at things from a product rather than a financial perspective. The product perspective is especially effective when you expand your initial ideas or consider product expansion.

The product perspective prompts you to ask the question: has a product in a field reached the best practice level in that direction? Is it exciting? Is there any great cultural, technological or economic change that can lead to the birth of a better product? Sometimes the outcome of a product-financial perspective is consistent and sometimes not.

For example, a lot of recent articles talk about the slump in consumer markets, one of which is that investors are shifting their focus to the corporate-level market. From a financial point of view, over the next five years, the consumer market is excessive, while the enterprise-level market needs more investment. So now we should correct this phenomenon, which also makes the performance of corporate market IPOs far better than the consumer market.

The product view is interesting. My feeling is that, at least in the mobile consumer Internet arena, the product and financial perspectives are consistent. Many people feel that home hardware and software, such as the IPhone and Gmail, are far more beneficial than the enterprise-class services they use at work, as if the enterprise market lags behind the consumer market cycle.

But things are different in the Mobile world. From a financial point of view, the mobile sector has sucked billions of of dollars of capital, this area has a strong development impetus, the start-up companies will not encounter too much risk. From the product point of view, today's smartphone mobile platform from four years ago the beginning of the development of IOS, it is clear that this is a new mainstream platform, platform and applications have traction with each other role, and constantly have new applications, design and technology in production. Historically, product innovation in the mobile sector has only just begun.

Not that the financial perspective is no use, perhaps after the financial market will be completely depleted, the platform to obtain more profits than the application, but mobile is indeed a sunrise industry.

The mistake I often make as an angel investor is to be too obsessed with the financial point of view. Financial perspectives give people a more scientific sense and are more attractive to analytical people. In many cases, "this product is too bad, I have a way to make it better" sounds naïve, but sometimes it's that simple.