Looking for VC: The game of the Brave

Zhengzhou teenager Guo Yifan called the reporter, said he has a very good business plan, as long as there are venture capital (Venture CAPITAL,VC) willing to invest, "I am the future of China's richest man." What makes Guo Yifan puzzled is that all the VC he has contacted first asked him for a business plan. He was worried that when he told his thoughts to each other, these people would find someone else to do the project. What Guo Yifan don't know is that he and the VC he is looking for are playing a "game of the Brave". If both sides have little confidence in each other, the game is destined to be "speechless". Are you sure? In this case, the Gobi (GOBI) partner Ken said that the first step is to determine whether the company really wants to introduce VC. For example, the first thing entrepreneurs or entrepreneurs have to decide is whether they can give up some of their equity. "If you think equity is more important, the percentage of entrepreneurs in the hands of more important, then do not talk to VC, VC too expensive." Said Sequoia, a partner of Sequoia Capital. As a shareholder, VC will certainly affect the business management. For example, SMEs in the early stages of development, in the organizational framework, team building, financial norms, etc. will be deficient, a lot of VC into the enterprise's first step is to reform these systems in order to exit later. In fact, there are many examples of this: enterprises and VC "married" but found that can not live together, the result is either VC sold in the hands of the corporate ownership, or corporate management was driven away. "Good companies must understand what kind of VC they need." Ken says that almost all VC values the added value they can bring to the business, "we don't usually choose a company that needs only money." "So entrepreneurs need to know what they want most, is strategic planning, improving management, listing counseling, or helping to expand market resources?" Different VC, good at not the same. But finding the right person doesn't mean you'll get the money. VC's fundamental purpose is also to make money, investors always have to consider the possibility of investment profits and the risk to bear. Enterprise growth is not fast enough, the product market share is not high enough, the stock market of similar enterprises PE (P/E) is not enough drilling, IPOs (IPO) or mergers and other exit channels is not clear enough, any one of these reasons may let VC give up investment. Did you find the right person? Guo Yifan may be the type of entrepreneur the VC hates most: "neither introduced nor how to know our phones." To get straight to the point, would you like to meet today? See, and do not prepare a business plan, it is very straightforward to say that my project is good, do not vote is your loss. "The venture capitalists who have to make an appointment with his secretary in advance to have a meal with him are very polite," he said. "It's OK to call VC, but it's best to find a middleman who is familiar with each other." The more familiar the relationship, the better. Venture capitalists Joe said VCis a very personal business, so it is important to communicate with them. Entrepreneurs can contact VC through intermediaries such as investment banks, accounting firms, law firms, financial consultancy firms and financial media. Intermediary agencies understand the preferences of various VC agencies. Ji Yue of Sequoia Capital said. But intermediaries are only matchmaker, and entrepreneurs still need a good business plan to reflect their own content. A good business plan makes it easy for investors to understand the key information such as the positioning of the enterprise, the execution of the team, the market prospect of the industry, and the market share of the enterprise. "If you have a chance to interview an investor, you have to learn to let investors know what you're doing in 15 minutes." "To learn to convince investors in 5 minutes, entrepreneurs must be very" simple and clear "when preparing a presentation at the business plan level, says Zhou, a rich Asia.