Overseas entrepreneurship: How to start the venture capital wisdom is the key

Returnees choose to return to the road of entrepreneurship, many people are "self-made". The lack of understanding of the domestic information and living environment will bring many problems to them. Relative to the domestic entrepreneur, capital, contacts, information, the master has become the "soft rib" of the returnees.　　Among them, the capital is the most urgent problem to be solved in the starting stage of start-up. At present, more and more overseas entrepreneurs focus on High-tech industries, this industry needs greater capital investment.　　Therefore, the search for venture capital has become a necessary route for many overseas returnees. What to do with venture capital Downing had worked on Wall Street DLJ investment banking, after returning home to create China's leading Peer-to-peer (personal-personal) credit-loan service platform, the company. On the development trend of China's venture capital industry, he said: "At present, China's venture capital industry has more and more participants, the wind investment industry is constantly going hot, but this trend brings an inevitable problem: VC companies in the more mature enterprises more and more interest, and early start-up companies in the proportion of investment is declining." "Today, international venture capitalists have to invest in 3 start-up enterprises at different stages of development: Angel Investment – for startups in the very early days, even in the concept of enterprises, venture capital-for early start-ups, long-term enterprises, private equity investment-for mature enterprises, near-listing enterprises.　　The development trend of China's VC industry is to move from venture capital to private equity investment, and to invest in low risk projects in late stage. Beijing Hao Hai Jing Technology Culture Co., Ltd. President Zhiyong's first venture capital came from venture capital, and he believes that the reason for this situation is that "the domestic VC companies are many but immature, the fund management talent is too small, resulting in the use of capital simplification, so tend to invest more easy to operate mature companies." "At the same time, the domestic venture capital is too short of short-term benefits, demand a short period of return, and the returnees are concentrated in the High-tech industry risk, return cycle long, there is a greater contradiction between the two." Zhiyong negotiated venture capital, and finally did not cooperate successfully. His first venture capital came from some well-known group of Jiangsu and Zhejiang Angel Investment. But the domestic angel investment situation is also not optimistic. "No Angel Investment class has been formed in China, and the amount of funds is insufficient." But the folk angel investor many to fail, the deep reason actually lies in the credit system, the information channel immature. But the reality is that China needs angel investment very much.　　Zhiyong said. The government plans to help the great success of the government's plan to introduce overseas talents and support the returnees ' entrepreneurship in recent years, when the returnees venture to seek venture capital is frustrated. Wuxi since the implementation of the "530" plan in 2006, nearly 1000 companies have settled in Wuxi, most of which accept the government's shareholding hatch.　　Wuxi government turned into an "angel investor". Dr Zheng, one of the first returning founders of the "530" plan, said the government's venture was crucial to his entrepreneurial help. "Government-provided 300Million is the Sino-German Union start-up funds, the development of our enterprises played a very crucial role. My personal strength is simply not enough to solve the capital needed for the development of hi-tech industries. If the enterprise develops well, it will return the funds of the government investment in the form of interest every year; if the venture fails, the government will not recover the money, and the talents of the enterprise can continue to contribute. "It can be seen that the government's nurturing behaviour like" angel investment "could achieve mutual benefits and benefit.　　In such an investment environment, start-ups can develop without worries, regardless of the success or failure of the business, the government will receive a different degree of return. "Smart money" is the key in the market, whether it is the government's "angel investment" behavior, or private venture companies business, more attention should be given to the provision of funds outside the supporting services.　　Only the fund is not enough for the development of an enterprise, the start-up enterprise still lacks many important resources, such as pioneering team, development plan, development strategy and so on. "Small business start-up needs many aspects of expansion, especially with the same industry resources, especially with some successful large enterprises to establish relationships." This will make the company grow faster. Enterprises without funds will not be able to obtain other supporting resources, so the most important foundation of enterprises is to enable enterprises to increase the value of those things, we can call ' wisdom of money '. Downing's "smart money" refers to the company's all-round help to companies, which is what the venture industry should pay attention to.　　All-round help for the development of enterprises can play a very important role, and this in the objective also helped to improve the success rate of VC, this mutual-win cooperation, why not? As can be seen, a significant reason for the effectiveness of government-wind investment banks is to provide entrepreneurs with a lot of money to help. For example, Wuxi "530" plan not only provides the work place for the returnee entrepreneur, but also provides the policy consultation, the housing apartment, the home subsidy and so on support measure.