"Turtle" VC appeared in the degeneration of VC individuals

Ten years ago, most of the VC active in China are foreign agencies of the Chinese office, these "Shanghai" or "returnees" VC will follow the basic principles of many VC industry. But with more overseas VC influx, a large number of "turtle" VC rise, coupled with the Chinese market environment ear smoked eyes, some individuals in this group (note: is the individual, not the whole) has begun to appear metamorphic and pathological. Beginnings: Despicable is the pass of the despicable, Noble is the epitaph of the noble.

1. Plagiarism of trade secrets

Many entrepreneurs in the search for VC financing, the most worried about is their own trade secrets leaked out, so they will be in the business plan of the home page listed on the confidentiality of the terms, more knowledgeable about some entrepreneurs will require VC signed confidentiality Agreement (Non-disclosure agreement, that NDA). VC usually will not sign, unless it is the VC feel that the project is really good, need in-depth understanding, will be with the entrepreneur to sign a VC prepared NDA, this situation will not exceed 5%.

VC is not willing to sign NDA for a reason, they will see a lot of projects every day, many projects are identical. Entrepreneurs may feel that their ideas are unique and their business model is original, but VC is likely to hear you say that, and then see 5 other competitors who do the same thing with you. So, if with each start-up enterprise sign DNA,VC will face huge legal risk, no secret can say things, VC how to give you secrecy Ah!

VC usually advertised that they will keep their word, will not reveal any of your secrets, if you believe, then you are a huge fool. VC may like your idea very much, but want to subsidize others to do it. In VC company usually has a partner, called the venture partner (entrepreneur in Thrive, EIR), they are formerly the entrepreneur, now nest in VC company participates in the appraisal project, the Discovery investment opportunity, once sees some pioneering enterprise to be good, may persuade the VC investment, Then join the venture to start a business again, or see a good idea or business model, roll up your sleeves and do it yourself, and they can also invest in a company and replicate the business models and plans of several competitors.

In the current business environment in China, even if you sue the VC and win the lawsuit, what minor compensation and spiritual victory can you get? Your company may be dead, and the startup company that steals your idea may become a big market, making a lot of money for VC. Worse, it may be that the business does not have the time and enough evidence to sue VC, only to watch others take their own things to make money.

VC for any area of concern, will see a large number of companies, these companies may be in the market is a direct competitor. VC is also learning ability is very strong people, they are based on the return on investment as the goal, so entrepreneurs in communication with them when, must be a number of hearts.

2, to create bubbles, kill the industry

Originally we can make money in the industry, as long as VC fancy, sure to chaos. For example, WEB2.0 's representative-video site, in the business model is still groping stage, a few major video giants are not happy to call. But the war between them, is essentially a few big VC between the blood spell, less can get millions of U.S. dollars, more than tens of millions of dollars, we can do is nothing but to burn money to buy server bandwidth, pull high site Alexa rankings, the accumulation of resources ... A dead dog, burned hundreds of millions of dollars, in addition to let piracy more rampant, but also really did not for the development of the industry to explore a road.

Again such as new media, the success of the media in the overseas listing, so that more than 10 VC earned. As a result, more VC and entrepreneurs in this field continue to dig gold, dozens of new media companies get VC more than 1 billion U.S. dollars investment. As long as there are people in public places, all have been put on billboards: airports, stations, squares, shopping malls, restaurants, hotels, roofs, walls, highways, airplanes, trains, subways, buses, taxis, toilets, and so on, and even mobile phones are not spared. Competition from these media has led to a rise in rents and a sharp rise in the cost of media companies. But as advertisers, investment in the new media will not increase too much. In this way, bubbles naturally emerge. At present, many new media companies, including Big Brother's media, have run into crisis.

Other such as solar energy, such as clean energy, catering, chain, E-commerce, and so on, have been, or are experiencing the risk of VC blowing bubbles.

VC not only enthusiasm the way to kill certain industries, entrepreneurs are also spoiled by them. No VC, entrepreneurs will thrifty, live within their means, once the VC's lot of real money come in, these austerity belt entrepreneurs immediately put those most pure commercial quality caution, first find a high-end office, and then give staff a big raise, and then recruit a pile of idler, anyway, the money to pay, Burning money seems to be a very honorable thing, the more burning, but the more cattle B, to get the investment of VC, listed Circle Money has become a lot of entrepreneurs of the success of the logo.

3, unscrupulous Rob project

Usually 90% of the financing project is not interested in VC, 1% of the best project VC flocked, "Rob single" in the VC circle is very common and common things, I ask the world VC who does not rob a single?!。 This is because the number of VC is really more these years, it is said that only in Jiangsu and Zhejiang area of RMB investment companies have hundreds of; In addition, most VC has no professional team, lack of in-depth understanding of investment areas, resulting in no ability to explore their own projects; and entrepreneurs don't usually hang themselves in a tree, When they raise money, they can't wait to meet all the VC they can contact.

Nonse Dorau, have the ability to project mining VC on the whole of the whole of the project, do not have the ability of the VC squatting in other VC doorway, the entrepreneur comes out, pull over to chat. VC meeting with entrepreneurs, will ask a lot of business problems, but there is a problem is basically all VC will ask: "What other VC is talking to you?" If you tell him, "We're with Sequoia, IDG, its, Ding Hui these several preliminary contact", that this VC will pay close attention to the trend of Redwood Sequoia, and you Snoop news, if the Sequoia to term Sheet, this VC may give a relatively more "friendly" term Sheet, Because many VC to Redwood's eye still trust. If the VC with you initial contact, no later, you do not expect this VC will be interested. So, good project, entrepreneur hand can hold 5, 6 parts Term sheet contrast is very normal.

For more money VC, the price is not a problem, they can use a higher valuation, more investment, from other VC hand Rob Project, and for the money is not too much of the local VC, Rob Project also has its own "soil method." Through the Z government F relationship pressure is a means, there is a local VC claimed to be able to grab a PE project from Goldman Sachs, because the VC has the project side of the local Z government F relationship, entrepreneurs dare not let him invest. Also, some VC will be on the one hand with the entrepreneurs to drink and drink, sauna, looking for a lady and other ways to do a good job, on the other hand, some other VC or have or no bad records to shake out, scare entrepreneurs.

Not only second-rate VC will rob projects, even the most well-known first-class VC will do so. One of the most bullish VC in the United States, the Chinese team has a small household appliance companies, in the absence of due diligence, investment in tens of millions of dollars, because if the time to do due diligence, the project was taken away by other VC. Another is the United States one of the most bullish VC, for the robbery project by other VC lawsuits, claims on billions of dollars, a temporary uproar.

Competition is brutal, so VC chat, usually do not talk about their own projects, the most common is to say something like "big environment", "renminbi fund is the direction", "E-commerce is not bad", "we focus on TMT, medical projects", such nonsense.

4. Investment Hazard Project

If the VC robbery between the project, but is "dogs, entrepreneurs benefit" words, that this is the VC and the entrepreneur together to entrap society.

There is a pharmaceutical intermediates of enterprises, products can be used as raw materials for ordinary drugs, but also can be the raw materials of drugs. What the enterprise for the customer is to do what use, do not care, as long as willing to buy money, all the. It doesn't matter if he is black, society, smuggler, or a pharmaceutical factory, signs a contract to develop a ticket, or a hand-paid delivery. This enterprise annual income can achieve nearly 100 million, profit also has tens of millions of, many VC rob to throw money.

There is also a placenta production enterprise, from the dead baby's spinal cord extraction of raw materials, processed into a wrinkle skin function of the injection. Stillbirth is dozens of pieces of a, from township small hospitals and street private black clinics to buy, made of injections, a needle is tens of thousands of pieces. This shameful business, entrepreneurs and VC also try to pack into High-tech Bio-Pharmaceuticals, listing the circle of money.

Pharmaceutical Research and development outsourcing in China is now very popular with VC, these companies are to undertake foreign pharmaceutical companies pharmaceutical chemical composition and clinical testing. In fact, there is a huge problem, chemical synthesis will produce a lot of toxic gas and hazardous waste, outsourcing enterprises usually direct emissions, seriously polluting the environment. And clinical drug testing is shocking, as long as these companies willing to pay a small price, can find a large number of Chinese people to do clinical drug trials, and finally even if the drug to the human body caused damage, there will be no big deal of compensation.

VC on the Internet to support the public nuisance Project more: Video site made a pirate base, dating site made a "one-night Stand" alliance, online games made to lure young people addicted to the poison, private computer by rogue software kidnapping into money-making tools 、......

Mercenary is the essence of the businessman, and VC is the businessman behind the businessman. When the financial crisis came to an end last year, the owner of Sequoia Capital of the United States said to the company he invested: "Now, cash flow is more important than mom!" I think, for some VC, money is more important than his mother at any time.

5, the death of entrepreneurs

Many entrepreneurs in the financing, the most painful is hard to get from the VC there is a good saying: My project is better or not? Are you interested or not? For the recognized good project, VC of course is a word: "Rob". But if he is not interested in you, or is still undecided, then you will not get a clear answer. VC very cunning, they will not explicitly say to you "no", in that case, you go to find other VC, they most hope that you have been hanging on his tree. VC sometimes hold "wait to see" attitude, because like fashion will often change the same, technical staff will continue to improve their products, perhaps over time your product or business model will be better. In addition, VC wants to get more inspiration from you, "plagiarism" Your innovative ideas, transplanted into the other startups they have invested.

If VC know you have other options, they often have a lot of excuses to hook you up, such as: "I would like to invest in you, but I need some time you go to find the VC with me to invest." "I still need to spend some time consulting with experts." "We'd love to invest in you, but now we're raising a new fund, and we'll talk about it later." "I'll call you in a few days." ”

Before the investment, the investment is no exception. Some VC investment companies, after several years, VC still do not see the exit (Sale, IPO) opportunities, this may be because the VC's valuation is too high, can not find a buyer to buy VC shares, and the company's own development is not too ideal. In this case, VC can not always accompany the entrepreneur consumption, the VC fund is due to liquidation, that such a company usually has only one way: Shut down. Even if the company has the opportunity to be bought cheaply or merged with other companies, VC will not give entrepreneurs such opportunities. VC prefer to let the company die completely, because the failure of the case is allowed, it can be said that the market environment is not good, and so on, VC investment decision-making is not wrong. But if the VC quit, the project is done, that is the responsibility of VC, or VC was the original valuation is too high, or the founder of the quality is not, these can be said to be VC wrong, these VC reputation are very bad, he later how to mix? Therefore, VC would rather do you off, will not give you the opportunity to turn over.