VC selected entrepreneur's three main points: ideas, my ability and social relations

If you have a good idea to start a business or start a startup, you might consider raising some money from the http://www.aliyun.com/zixun/aggregation/17478.html "> VC". Now, I want to talk to you about the key points that VC takes into account when evaluating an investment project. They will generally start with the following three aspects: first, your entrepreneurial ideas, followed by yourself, and the third is your social relations.

1. VC Most of the investment activities will eventually be wasted, so a successful investment case to bear the cost of a large number of failed projects to the task of diluted. Typically, VC expects a multiple return on investment than 10~100 times. If you can't get him to see the prospect, he won't be interested in your ideas. In other words, if you don't seem to have an entrepreneurial idea that can grow at least a few times a year for your business in the first few years, don't waste your time on financing.

2. If your business in the future does not reach hundreds of millions of U.S. dollars in the market valuation, then you should at least let VC believe that your creative ability to quickly realize, in his investment in a year after the huge gains. Otherwise, do not want to get the venture capital.

3. If you want to rely on the long-term development capabilities of the enterprise rather than the temporary profitability of attracting investment, it must let VC see a convincing business model. This business model should be able to gather a lot of popularity and make money, even if it can't be done directly, at least through some other alternative way to achieve this effect.

4. VC expected to see the kind of entrepreneurial ideas that can lead to social trends, so that your business can become an emerging market benchmarking enterprises.

5. VC will consult those technical Montana, if your ideas can not be in their discernment, the VC will not have investment interests.

6. VC will interact with each other, if your entrepreneurial ideas or startups themselves belong to a new area, and this area has a market hot to the pioneering pioneer, the other VC will also try to find such enterprises and investment. So, whether you and your friends are particularly optimistic about their ideas is not the most important, as long as VC optimistic about it, you can get investment. Of course, most of this investment will end in failure, but at least you've got the investment.

Oh, by the way, do you have a business plan? Sometimes it doesn't matter, because some VC feel that making a business plan is a total blind delay. In their view, the business plan is like a plump ideal, it is always the enemy of the reality of the bone. In the face of the vagaries of the world, the business plan is almost useless when it comes to considering how to actually push a project forward.

That said, you still have to have a basic plan to demonstrate your entrepreneurial goals and the direction of your business's financial position in the process of achieving that goal. This allows VC to feel that you are serious about starting a business and have the answers to their questions. In this respect, I don't think it is superfluous to make a business plan.

In addition, you need an on-site exposition of the opportunity. On this occasion, you have to use good communication skills to fully display their entrepreneurial passion, and let their passion to infect the presence of VC. If your emotions don't infect them, financing is doomed to fail.

About the entrepreneur himself

VC visit the core or you personally, they want to see whether you have a successful entrepreneur potential: whether the burden of courage to be trusted. So, when you face VC, must do "say must believe, resolute", this can reflect you have they value the entrepreneur basic quality. In addition, you should also pay attention to make your facial expressions and body language and their words to match.

In the evaluation process, VC will not just listen to you, but also depends on whether you are really trustworthy. They will focus on the following:

1. VC to consider is, if your business can successfully develop to prepare for the day of the listing, you have the ability to act as a listed company CEO. If you lack this ability, VC may not necessarily give up investment, but the possibility of investment will indeed be reduced. And if they invest, they will either quit you or move you to a non decision-making position when the future company is going public.

2. VC will see if you have extraordinary passion, if you do not, their willingness to invest will also be reduced. You have to let your passions infect them, and if you do not, they will feel that you are not able to motivate others and will not invest in your business.

3. VC will investigate your ability to solve problems in the absence of funds. Your sense of responsibility when you spend money is one of the most important things they need to know, because they've seen too much of the entrepreneurs who put other people's money in the wrong place. If you look pretentious and pompous, passionate about a decent life, like driving a fancy car and going to a fancy restaurant, they won't be able to put their money in your hands. To see VC, remember not to drive luxury cars, dress to ordinary, do not wear a name table, meet the location do not choose in high-end restaurants, do not admit that they like luxury goods. In this regard, the best you can achieve is to show your frugality while also making them feel that you are good at creating a way of doing things, so that you can spend a small sum of money without even paying for it. This is what they are most happy to see.

4. Having one or more successful experiences of entrepreneurship will be your greatest advantage, if you have such experience, VC will treat you as a "bonanza". At this point, no matter what kind of entrepreneurial ideas you propose, they will be willing to invest. Of course, most people don't have this kind of experience. At this point, having a successful start-up in an important position is also valuable because it means that you have the experience of being successful with a start-up and how to avoid the pitfalls of entrepreneurship in the process.

5. VC also want to see you in the business of the determination to burn the bridges. What they want to see is that you put all your assets into this venture, even if it goes bankrupt, because it means you will spare no effort to develop for your business. If all your venture capital comes from the outside, you are personally only taking a stake in immaterial capital, VC is unlikely to invest in you.

6.VC also wanted to know if you left your last employer on the way you were fired. It's a little hard to say, but if you've been fired for some kind of VC's "justification," the experience will be a bonus. For example, you have been working hard in a big business, but business management has not only rejected your innovative advice, but also fired you, which is a "justification" for being fired. At least in the United States, many of the most outstanding entrepreneurs have had the experience of being sacked by big companies, as these companies cannot tolerate innovative people.

7. Of course, VC also value the enterprise financial situation and profitability. What they want to see in you is not just the ability to innovate, but also the idea that you have a business acumen, especially a strong desire for profit. Many entrepreneurs are more than the founder of Enterprises, research and development products, rarely from the financial point of view, but also the lack of business in the shortest possible time to profit awareness. It would be helpful if VC could see that you are different in these areas. If your business already has excellent financial professionals, or you can prove to VC, its investment can attract such professionals to join, it will also be helpful to your successful introduction. VC will usually invest in the same time to appoint their own trustworthy financial staff, as a counterbalance to the founder of the company, so as to ensure that the latter will not be crazy to burn money. Therefore, the enterprise has excellent financial staff will let VC feel at ease.

The social relationships of entrepreneurs

When VC examines an entrepreneur, the latter has a vital social relationship. Because you see the social relationship, VC can understand, in order to succeed in business, you still need what new social resources. So, VC will investigate all the social relationships you have, especially the following categories:

1. VC Circle

Believe it or not, if you tell VC that you have been in contact with other VC and they love your idea, even if you don't get the investment from the latter, the former will do the same to you. If you tell a VC, another VC has been interested in your ideas, the end result is likely to be the two VC together to invest in you, because the joint investment can diversify investment risk. If the final investment fails, they can explain to their bosses: "Look, we're not the only losers." This is good for maintaining the professional reputation of VC, they need this when they change careers.

2. Media Circle

VC likes to have a good relationship with the media company founder. If the business is to be listed later, it will have to be widely publicized to persuade the public to buy a stock they have never heard of before. So, with reporters, technology from the media writers, bloggers, social media, public relations and investor relations managers do a good job of relationship, will make VC to you have an excellent impression. On the other hand, once the enterprise has not developed smoothly after the investment, VC is unwilling to invest, if you have a good relationship with the media, you may also from high net worth people directly to get investment. So it is useful for entrepreneurs to maintain exposure through the media. VC itself is very susceptible to the impact of the media, if you see them before you have to use the media to earn enough exposure, the opportunity to grasp.

3. Angel Investor

Angel investors are the amateur investors who invest in early startups. In the order of financing, angel investors usually follow the founders ' friends and relatives. The advantage of choosing an angel investment is that while angel investors are looking for financial rewards, they are more interested in your entrepreneurial ideas. VC will be pleased to know that you know a large number of angel investors, because this way, when you find that the actual needs of the enterprise capital than the financing plan and VC do not want to invest, you can ask angel investors to help. Moreover, the subsequent funds from Angel investments tend to have higher valuations, which makes the value of the shares of VC investments not diluted. This is important for VC because it means their investment rights are not impaired.

4. Corporate Clients

This kind of entrepreneur has the social relationship that VC values most, because the customer is the person who buys the enterprise product actually. VC would like to have a direct dialogue with the customers of the start-up enterprises, you give VC referrals can be effective dialogue customers more, you have the opportunity to invest more. Sometimes, customers will also invest together with VC, this way will make the latter in the investment feel more secure. And if the eventual investment fails or the effect is not satisfactory, the joint venture will reduce their losses.