The way of "creation" and "investment"

In the past July, in the field of entrepreneurship and investment, the hottest topic is "NVC storm" case. NVC co-founder Wu Changjiang and investors, due to the backlog of contradictions can not be properly resolved, and eventually through micro-blog, media and other public channels to attack each other, making http://www.aliyun.com/zixun/aggregation/17564.html "> Relations deteriorated , to the brink of a break.

The general background of the NVC storm is as follows: Wu Changjiang in 1998 with another two partners to create NVC lighting; In 2005, three founders were divided, with the support of the dealers, the other two were forced to take the money away; 2006 NVC into the capital of the rich; At the same time, NVC was listed as the largest shareholder in Hong Kong in 2010. In May this year, NVC a sudden announcement that Wu Changjiang resigned for personal reasons, and that the board announced the chairman of Yan, the chief partner of the Asia Fund. In July, Wu Changjiang through Weibo that he was "forced to leave". At the same time Yan to the media revealed Wu Changjiang involved in investigation, there are related transactions, disregard of the board resolution and other insider. But neither side has come up with actual evidence to substantiate or disprove the allegations. The matter immediately became the focus of public attention. The dispute between the two sides escalated. NVC all over the dealers stop orders, suppliers stop supply, staff strike, request Wu Changjiang return.

NVC Storm highlighted in recent years in Chinese enterprises founder and investors more or less conflict phenomenon, other more typical also have red children, Qiao Jiangnan, after Valley coffee, affordable herbal and other enterprises. The reasons for the conflict are different, the main 1 is the strategic divergence of enterprise development; 2 The control power of the enterprise; 3 The IPO was not smooth; 4. The founders and investors lost their mutual trust;

Many people believe that there is an antagonistic relationship between entrepreneurs and investors, and the case seems to confirm this NVC. And I think that the entrepreneur and the investment side is a winning relationship, rather than you lose me win the fight, the basic goal of both sides should be consistent: all want to create value, for customers, employees, shareholders to create value, but also for their own creation of value. But apart from this goal, there is no difference. Entrepreneurs pay more attention to: independent operation and can lead the strategic direction of the enterprise, the sense of ownership and entrepreneurial sense of achievement. And investors hope: low risk, high returns, transparent operation of enterprises, entrepreneurs can be fully committed to not another.

I supported Wu Changjiang conditionally when I did not know the truth. First as an entrepreneur is very difficult, the enterprise as their own children, all the painstaking efforts are poured into it, braved the huge risk of entrepreneurship, a lot of sweets and bitters are unknown. Chinese entrepreneurs are particularly difficult to face, with irregular markets, ineffective regulation, and a lack of integrity in the social situation. There are data to prove that entrepreneurs have endured ten years, survival rate is only 2%, not to mention success rate. Second, entrepreneurs are not perfect, they can not be too demanding. They zaguomaitie, put it all, take great risks and commit to it, should help them to succeed. Moreover Wu Changjiang can obtain the staff, the supplier, the dealer's support, explained that he obtains the other people's respect and the trust. It is also to his years of painstaking work can successfully come to today's corroboration, should not be a stick to kill him. My support to Wu Changjiang is: he must abide by the contract, abide by the rules of the game, can not be dishonest.

Angel investors sometimes with feelings and feelings of investment, and VC and PE investment is very rational, this is understandable, because VC and PE in addition to consider the return on investment, but also to consider for investment funds of the investors are responsible for reducing risk. Financing at the beginning of a start-up is very difficult. Remember in early 2008 we started financing for store 1th, and through friends we found a VC, partner Liu Junling and I went to see his partner. At that time, this is our rare opportunity, we go all the way to talk about how to preach our business plan, feel confident. After seeing the partner for more than 10 minutes, he lost his patience and began to teach us the content is probably the hardest to start from 0 to 1, and the two of us, the professional managers of Dell executives, know how to do 10 from 1 and not 0 from 1. I said I started a business in the United States from 0, through a more complete process. He said arbitrarily, "That's America, this is China!" ”

In the NVC case, I think Yan's approach to the problem is too hasty, and he should sit down with Wu Changjiang alone, instead of resorting to the media, to treat it in a broken way, and to hint at a stain that has not been proven. And when the two sides in the emotional first conflict, will only talk about the worse.

In the past two entrepreneurial experience, from angel investors, VCs, strategic investors, six times, the total amount of billions of yuan; at the same time, I have been an angel investor, the entrepreneur and investors have hands-on experience. I think that investors and founders have to do the following:

The consistency of the values of investors and entrepreneurs is important, and it is also a top priority for entrepreneurs to choose investors. Both sides must have a consensus on the future of the enterprise and the exit mechanism.

Investors and entrepreneurs are partnerships, equal relationships, either win or lose together. In order to achieve a total win, we must understand each other, respect each other, know their own goals and reasonable to meet each other's needs. Find differences should be a positive attitude, inclusive mind to solve.

Communication becomes so important that you have to be transparent and put your words on the table instead of guesswork, criticism and accusations. Chemistry is very important, must be maintained, without chemistry, it is difficult to continue to cooperate. Do not underestimate the importance of communication, rather than excessive communication (over communicate), also do not lack of communication (under communicate), to ensure that both sides of the enterprise development process understanding of the consistency.

Most of the "Chuang" and "cast" relationship is benign. Entrepreneurs do not have the ammunition provided by investors can not go to victory, investors do not have the enthusiasm of entrepreneurs and investment can not make the greatest value.

Hope that in China's "creation" and "investment" field, see more understanding, respect and tolerance, the two sides to the road of mutual win.