VC favor the Internet: decryption game rules and the law of selection

Venture capital (Venturecapital) is a kind of equity investment which is invested by professional financial experts into new, fast developing enterprises with great competitive potential. It is invested in the open participation of shares, the purpose of which is to help the investment enterprises mature as soon as possible, resulting in business interests and capital appreciation.　　Venture capital proceeds by transferring equity and continues to invest in other risky enterprises. VC favors the Internet's "indisputable fact" in a recent report, more than 6,000 start-ups across Asia have won VCs since 2005, 56% of them from India and China. Data show that the number of Chinese VCs investing in start-ups has climbed: In 2005 the number of invested enterprises was 324, with a total investment of 1.8 billion U.S. dollars, 607 in 2008 and a total investment of 4.2 billion U.S. dollars, and by 2010, the number of companies invested was more than doubled in 2005,　　Reached 817, investment also exceeded 5.4 billion U.S. dollars.　　In the first half of 2011, China Mobile Internet investment case has been disclosed 31, of which, the disclosure of the amount of investment cases of 24, the total investment of 318 million U.S. dollars, from the overall situation of the investment enterprises, the first time to invest in the start-up of the majority of enterprises. Silicon Valley's technological boom has injected a boost into the venture industry. From Internet E-commerce to mobile apps, video and gaming, the investment boom seems to have never stopped. In the first half of this year, several of China's leading venture capital companies have carried out third or fourth rounds of financing.　　The investment boom is expected to continue in the second half of 2011. "Sequoia Capital" (Sequoiacapital) has become a large investor in the internet industry. As the world's largest VC, Sequoia Capital invested in Apple computers, Cisco, Oracle, Yahoo, Google and PayPal, its investment in the company's total market capitalisation than the Nasdaq total value of 10%. Perhaps inspired by the successful listing of companies such as Facebook, it is more of a social network than its investment in the Internet. It has been proved that the formation of a large number of loyal users, mature business model and stable growth of income flow, but also make e-commerce become the preferred Internet subdivision of Sequoia.　　So for the 2010 hot group buying industry, Sequoia choose Financing American Group network, is understandable. In addition, following the 2010 U.S. Groupon model in the domestic thunder of the potential expansion, other ventures are also eyeing several large domestic group buying sites. Kay Peng TdF (kleinerperkins) investment full, reviews the network also obtained from the Qiming Venture (Qimingventures), the Speed of Light venture (Lightspeed Venture) and Sequoia Capital (Sequoia) of favor. And the handle net, in refusing Groupon shares demand, has been from the Jinsha River Venture (GSR VEntures), Northwestern venture capital (Norwest Venture), milestone Investment (Milestone capital) and Tenaya capitals (Tenaya) have been financed with a total of over 166 million dollars. For some venture capitalists, they are both investors and operators. After they invest in innovative enterprises, they join the business management of enterprises.　　Typically, entrepreneurial investors provide more than just money for such businesses, and more importantly, professional expertise and management experience. Like Rocketinternet, a prominent German internet investment company, expands its investment site in the international market. Rocketinternet with a unique vision to quickly analyze and make decisions on the development potential of the Internet projects, followed by project development, financial support, operations and market operations, until the Internet market value and business benefits. Its business spans the world, covering all the Internet industries, including Plinga, edarling, Toptarif and Zalando of the local sites, but also includes StudiVZ, CityDeal and other global well-known sites. [Page] The "rules of the game" that hit the Internet in 2010, China accounted for 22 of the 61 IPOs issued by U.S. exchanges.　　Under the smoke of the storm, the large VC company, with its long established business network advantage and successful case of investment to take the market, and to further benefit from the hottest deals. Revenue from the venture industry is uneven, with most of the proceeds being obtained by well-known VC companies, who have benefited from a series of internet company IPOs and soaring valuations of private-owned companies.　　Even though the dotcom bubble has been controversial, for VC, it depends on its foothold in the emerging mobile internet industry, a comprehensive assessment of the growth potential of the start-up, the positioning and judgment of the niche industry, and the resilience of the investment enterprises to enter different market stages when faced with crisis. The interests of the VC are closely linked to the interests of the invested enterprise.　　The VC not only participates in the enterprise's long-term or short-term development plan, the Enterprise product localization and the marketing strategy establishment, sometimes also participates in the enterprise's capital operation process, for the enterprise additional investment or creates the fund channel, even participates in the enterprise important personnel employment and the dismissal link. VC leading the Internet's "selection rules" for the domestic famous "incubation base" Innovation Workshop (Innovationworks), Kai-Fu Lee has its own rules of selection, "a full range of entrepreneurial platform, aimed at nurturing innovative talent and a new generation of High-tech enterprises." Innovative workshops for different stages of entrepreneurs and entrepreneurs to adopt a different "incubation plan", there is no management and operational experience does not matter, to have a very high technical or product design talent, to explore potential market or business potential. With the management and leadership of the talent, through the integration of quality resources and network to leadIts rapid adaptation to the environment into the business plan or entrepreneurial project implementation.　　In addition to the leaders and partners, the most important is the core team composition and product development line of the clear planning. By contrast, Rocketinternet's "unspoken rules" seem to be somewhat stringent on material selection criteria. The world famous MBA graduates, majoring in finance, economics, it, or McKinsey, BCG and other internationally renowned consulting companies from the background, in a certain area of deep attainments. This is also related to the experience of rocket, founder of the internet, Oliver Samwer. Rocket, the founder or partner of each assigned project is also based on this established standard for global projects that operate on the Internet's investments.　　It has become the "rocket model" of shone, an elite entrepreneur and entrepreneur in the Internet world.　　It is reported that the Silicon Valley venture capital company TDF (Kleinerperkins) also launched a second round of 250 million U.S. dollar financing, aimed at supporting Chinese entrepreneurs and entrepreneurs, to promote high-speed growth industry innovation. Through entrepreneurship and fame, it is no longer just an American dream. The Asian innovation boom has made it incumbent on many young entrepreneurs to choose this route.　　In this risky game, it is also the biggest test of how to use the money that is available to expand the team, expand the scope of the business, change the development strategy, improve operational efficiency and quality of service to achieve higher valuations. The venture will eventually exit. In what way, what kind of exit strategy, to a certain extent, is the mark of success or failure of venture capital. Of course for a real investor, as long as the market is big enough, there must be investment opportunities.