The issues that entrepreneurs should consider before they say "I do" to investors

Source: Internet
Author: User
Keywords Investment
A good investor can help startups get out of the way and build startups into a big billions of dollar company. Therefore, for the entrepreneur, a key factor is how to choose the right investors, whether it is the seed stage or the subsequent rounds of financing period. Some investors have said that the marriage of investors and entrepreneurs, like marriages, with unsuitable investors, is likely to destroy entrepreneurial projects.  So how do entrepreneurs choose investors at all stages? Perhaps the following suggestions can be consulted. Ask the right questions a common problem with entrepreneurs is that there are too few problems from entrepreneurs when meeting with investors. In fact, as entrepreneurs, we need to understand each investor and his or her real needs.  Here, investors and entrepreneurs are equal, and both are in the same position. In the process of meeting with investors, it is important to understand the investors ' perceptions of cultural genes and other investors because their experiences and methods may affect the culture of the company. Many entrepreneurs are unaware of this, but in fact early investors play an important role in shaping the culture of the company.  At the same time, understanding the internal decision-making process of investors is particularly important, some investors may be able to determine their own transactions, but other VC often have an internal decision-making process. Due diligence before investing in a start-up company, VC and angel investors often do a lot of due diligence on startups and founders. From a financial point of view, this is very important. But on the other hand, when looking for investors, our founders tend to overlook the due diligence of investors and lead to subsequent tensions. Scott Weiss, senior partner at Andreessen Horowitz, believes that background checks should be conducted at all times and that they are more careful when they want to join the board.  Communicating with as many CEOs as possible with investors is a great benefit to understanding investors. Can bring more value to entrepreneurs, the goal of looking for investors is of course to bring value to themselves. But one thing to understand is what value you have to gain before signing an agreement, and whether investors can bring that value. For start-ups that are just starting out, the most important thing is to get some industry experts to analyze the market and find like-minded people. In this respect, investors often have a lot of resources.  In addition to giving you money, can investors help with these resources? Once you find such investors, try to give them some specific work, which is what they are willing to do. Good investors often help entrepreneurs get out of trouble, and they try to help entrepreneurs as much as they can. Ron Conway, the famous angel investor we reported earlier, is such a good example. In the case of the developer Omgpop the investment draw Something, Ron Conway again and againOmgpop rescued from the brink of bankruptcy. He not only provides financial support, but also seeks ideas and advice from others, and gives confidence to the founding team.  The final result is certainly obvious, Omgpop launched draw something overnight success, sold to Zynga at a price of 200 million dollars. But it's not easy to meet investors like Ron Conway, and more needs to be done by entrepreneurs themselves. So before you say "I do" to investors, these questions should be considered in advance. "Success" is not so far off if entrepreneurs look for investors in the other half of their lives;
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