VC is the grave digger of internet entrepreneur?

Intermediary transaction http://www.aliyun.com/zixun/aggregation/6858.html ">seo diagnose Taobao guest cloud host technology Hall

Recently, several websites that hit the ads last year have burst the rumors of a shortage of funds. The so-called hole does not come to the wind, rumors somewhat some basis. However, the true is true, only the parties are most clear. When talking to a friend about these things, he said: "VC is the grave digger of Internet entrepreneurs!" So, what's going on?

Last year, the site of the malicious hit ads, mainly related to the electrical business. As far as I know, some of them were very good, although not the absolute lead, but live a little bit of moistening. But since the investment, in order to compete for the market first, will bring more money for advertising. In advertising, the boss will not consider the effect, only to consider how many people can cover. Regardless of whether these people are their own users, the Black Cat and White cat, the cat will be caught.

What is the result? Not only did your family get the investment, several of the same industry got the investment. You cover the crowd, it also hit ads covered up. Because, no one wants to be far away. There is no way, the first thing to get money is to hit the ads mercilessly. Even if not more than the first, at least to keep distance, can not be far away. Then, the second, third, all take the same advertising follow-up strategy. In their eyes, we must cover all the people who are covered by our competitors. We will cover any competitor that is not covered.

But what about the final results? I read a report on a website. ROI is hundreds of before there is no advertising and no financing. But after getting the VC money, increased the advertising, ROI finally to how much? more than 2 points. In just over a year's time, his market investment costs rose 10 times times, but the overall revenue growth is less than 2.5 times times. To see such figures, as a bystander, I feel very wide disparity. A lot of market costs are wasted, but for business owners, that doesn't seem to be enough, because he hasn't caught up with the first one. As far as I know, the site will continue to vote, austerity also have to vote, can not eat food, save money to hit ads.

I dare not imagine that the cash flow has threatened to survive, but continue to smash ads. If you stop advertising, you can make a profit right away. Why not do it? Because someone is looking at you behind your back, and if you don't spend your money, you're considered a loser. But you spend the money, know that most of them are wasted, do you understand gan? Can you just watch the enterprise that you've worked so hard to create? For entrepreneurs, surely not. But for the investors behind them, they want you to rush ahead. Anyway, the money has been given to you, life and death need to gamble. In their eyes, as long as you do not fight to the first, then you are failure. That being the case, it might as well force you to gamble, even if you know the odds are not so big, but also a desperate fight.

Of course, these are just what I heard. But from a bystander's point of view, the truth seems to be the case. To the entrepreneur, the investor's money, that is not his own money. For investors, the entrepreneur's business is not its own. So, a play investor's money, a play entrepreneur's enterprise. Finally, both sides hold the mentality of gamblers, the King defeated. Success, everyone is good. Failure, Entrepreneurs * * *, investors continue to look for the opportunity.

Some friends say that entrepreneurs take VC money, to learn to kidnap VC. However, VC so many children, you can kidnap it? And for entrepreneurs, so one or two companies, you lose? I don't know. I just hope, whether it is to get the money, or not to get the money, the enterprise to do a good job in the first place. Other gods and horses are clouds. (Text/kick)