Red and Black: The Chinese angel's rivers and lakes, the bad beating after the loan shark venture failed

All said that people in the rivers and lakes can not be a knife ", and a micro-blog called for a relaxed life too tired," the entrepreneur really get the investors a beating. A few days ago, he revealed on Sina Weibo that he was the investor because he failed to start a business and was also the creditor of his mouth. He said that after his failure, only steamed buns did not send money to support the family. But the comments did not attract sympathy, but were ridiculed by netizens-only the Low-energy people would borrow money to start a business. Subsequently, he deleted the relevant microblogging. Opportunities and risks. An investor's life-saving money can be the cornerstone of a doubling of the future, or the beginning of trouble. The crux of the matter is whether the entrepreneur chooses the right investor, which is behind the chaotic side of the angel investment industry that is still in its infancy. From the original verbal agreement and the promise on the napkin "to today's pipelined Agreement clause, Angel investment in China, experienced a stage from scratch, is walking from chaos to norms of the road." The chaos seems to be too tired to live a relaxed life. "In the micro-blog said:" Some time ago by the creditor to call a person, but this year I also returned fifty thousand or sixty thousand, the current ability of my return can only be so. What is sincerity I really do not know what is sincerity, every day I eat the basic is these steamed bread, children I basically did not send money home raised [tears]. This is the price of my startup failure. "His microblog signature is now a failed entrepreneur!". The comments sparked some controversy on Weibo. @ Lao's microblog that he has three sins, one is to borrow usury to start a business, the second is to leave family and children, three is not responsible for the consciousness. Netizen also quotes famous investor Mark Cuban words-only the low-energy talent borrows money to start "to evaluate him." Do not covet for a while to find some grumpy unreasonable so-called investors or partner money, not to borrow usury! @ Angel investment Don says. There is no free lunch. Although angel investors tend to put out an olive branch early in the event that an entrepreneur has only one idea or product, it is apparent that they are at their own risk, but in the end they still need to withdraw funds from the project they are investing in. Among them, there are angel investors in accordance with the rules, but also in troubled waters, the so-called angels who are good at counterfeiting. An investor and entrepreneur who declined to be named said to Sina technology some of the projects invested by individual funds mainly rely on the hype, may be a loss of start-up companies, cash flow is not normal, but by buying data to brush results, can also pull to the United States to tell stories, the U.S. investors are more difficult to trace the domestic source to find loopholes. In addition to unreasonable "investors, there are not reliable" entrepreneurs. The industry said that at present there are many entrepreneurs in the industry are specialized in angel investors, pull investment as a business, take the money to run away, investors can only have to go without return money. Although the angel investment industry has the above chaos, it is undeniable that the rise of many internet companies are inseparable from angel investment in funds, management and network support. At the second Angel Investment conference in 2014, Zhong Guan Cun GuanMa Shengjie, deputy director of the committee said: At present, some mobile internet companies, such as Sohu, millet, poly-Mei excellent products, there are angel investment and angel investors support. Zhongguancun rapid rise of a number of emerging industries to take shape, and the Angel Circle is inextricably linked. "and angel investment in China, gradually from scratch, into the initial prosperity." At present, Silicon Valley has more than 70,000 active angel investors, while China has more than 1000 active people. By contrast, Xiaoping, the founder and Angel of the True fund, said: "There is no doubt that China's Angel investment development stage is in the early stages." "Angel investment is like a river, and there are many different door factions." "he said. So, the current well-known angel investors such as Cai, Xiaoping, Lei and so have what kind of pie? Among them, Cai wins preference investment grassroots entrepreneurs, many for stationmaster, at present for the United States Mito Chairman. The industry generally believes that he has a sense of the river, intuitive, but his investment style is mixed. His investment projects include 4399, 58 and Cnzz Amerto. Xiaoping is a lover of returnees, is a perceptual faction, is now a true fund founder, was one of the founders of the new Oriental. At present he has received a lot of rewards from the projects he has invested, from having gone back to getting on track. He invests in projects including Big aunt, super timetable and like painting and so on. While Lei is good at layout industry chain, integrated industry ecological circle and Investment circle, through the investment for the entrepreneurial blood transfusion, and he is a millet technology, Jinshan software, gathering time and the president of the Cheetah. His investment project also includes UCWeb, every customer sincerity goods and so on. Investment structure Angel Investment, mainly refers to the funds in the 1 million U.S. dollars before the a round of early investment, and less than 1 million yuan can also be called seed investment. In general, Angel investment accounted for no more than 30%. The specific amount of investment is based on the entrepreneur's seniority, background, and stage of the project, and the share of the shares varies, from 10% to 30%, and the other part is the options pool, giving the entrepreneur and the reserved staff a stake. Sing it, CEO, Angel investor Chen believes that the current domestic angel investment style is divided into two kinds: one is the overseas model, in the United States dollar settlement, the other is the domestic model, is the traditional renminbi structure. In his view, according to the Overseas Angel investment method, the investor mainly invests to the entrepreneur, as long as the entrepreneur has the enterprising spirit and the attitude, the product direction decides by him, the risk is shared, while the renminbi style is the fund share, the share proportion is decided by the contribution amount, simultaneously also may use the KPI Index to carry On Sugar Protection Technology CEO Li Chengzhi said that the reason for choosing a different structure is to refer to the company's consideration of the future exit mechanism, if the plan for overseas IPOs, will tend to achieve a VIE structure, if the intention to choose the renminbi in China is more convenient. In addition, the renminbi structure is slightly conservative, mainly looking at industrial turnover and profit, while the dollar structure attracts technology stocks and is valued more. For the renminbi and the dollar structure, Aunt Rauschecker, CEO, Angel investor, said that the reason why different companies choose different architectures,Mainly consider its operating status and cash flow situation. Companies that choose the renminbi structure can dispense with capital registration and avoid some additional legal restrictions, while the dollar structure has higher water flow, mainly because of the influx of hot money and the flexibility of the exit mechanism. As a personal investment lawyer for Lei and Xiaoping, Zhang Mingjo believes that inexperienced angel investors are fit to invest in how much money they share, while the terms of the agreement may include a veto and a maturity clause. Towards the norm 2007, foreign top VC investment institutions are pouring into China, but Angel investment is still difficult to find traces. According to statistics, in the first half of 2008, venture capital in the middle and later 49.302 billion U.S. dollars, compared with the same period 2007 190%, 348 companies have won the middle and late venture capital, investment amounted to 7.383 billion U.S. dollars, and angel investment is very few. Asian Founding father "Liu Yu saw the domestic angel investment blank, then took the lead in the investment of Kai-Fu Lee's innovative factory, his original intention is to lead the Chinese angel investment into a highly large-scale and industrialized realm." At present, the investment environment in China is gradually entering the normative stage. At that time, angel investors often feel that the project is good, did not sign a contract, only oral agreement or writing on the napkin in two halves, and then to the entrepreneur, and the share structure in accordance with who pays more than the share of the big "principle. As large shareholders, they usually play a decisive role in the direction and management of the start-up companies. Even angel investment firms such as innovation workshops are more of a shareholder structure. Now, angel investment in China already has a set of standard operating procedures, from the investment Letter of Intent (Term Sheet) to due diligence to sign the investment agreement. But in the equity structure, not all angel investment share ratio is below 30%. In the angel investment norms, Sunland law firm founder Partner Zhang Mingjo, last year launched the "Angel Investment and financing legal documents and analysis" document, mainly reference to Silicon Valley investment and financing norms, combined with the domestic situation, at present more become a reference sample of the legal rules of venture capital industry.