What skills are necessary for a good venture capitalist

I would like to think about this issue from what venture capital is, understand the business model of VC, and know what knowledge, skills and resources are needed.

It is well known that venture capital is mainly invested in high-growth start-ups. Venture capital funds hope that the investment enterprises can be invested in the fund period (the longest is 5-7 years) before the end of the enterprise can be invested in the entrepreneurial team under the management of the industry trend of the Dongfeng, to achieve rapid growth, so that high return to exit. The success of this model depends on the following factors:

1. The industry has the potential to rise, preferably in a short period of time there is the possibility of explosion, there is a huge opportunity to come or rich potential to dig;

2. The investment enterprise should be able to seize the industry opportunity, gain a leading position in the industry, or have a core competitiveness, or be able to monopolize resources, or have competitive barriers, or can be faster than others, in short, business to be able to grow fast enough to make the fund in the years before the arrival of some form of withdrawal; above two points together, What some investors say, choose the best companies in the best industries.

3. The team must have the necessary experience, ability and resources. Team leaders should have leadership temperament, can unite team, have executive power, can struggle hard, can persist without lack of flexibility and adaptability, both ambition and sureness, both broad vision and vision, but also foot strength. The other members of the team should be able to complement each other and work together in a clear division. In the industry, the company team must have the corresponding experience and business capabilities, but also to have a vein of resources, the industry has profound insights and judgment.

4. Investment can be withdrawn in a timely manner. In the failure to achieve the exit, regardless of the enterprise's valuation turned a few times, profit how much, for investors are hanging on the wall of beauty, only after the profit after the withdrawal, is the daughter-in-law on the Kang. The key to exit is the industry's trend to the industry or enterprises recognized by the capital market, some people take the stock. Exit channels are generally IPOs and mergers and acquisitions, but also share transfer or repurchase, but the latter two are basically no way to approach.

These factors, which make the investment successful, are basically of great risk, especially before the investment, these factors are basically unknown, is likely to occur, and may not occur, and it is difficult to observe in a short time, so investors in deciding whether or not the main decision-making basis for investment, is based on experience, analytical judgment. So, back to the answer question, personally think, the most core is judgment, and judgment comes from analytical ability, learning ability, communication ability, relevant industry experience and operation experience.

Analytic ability: From the above factors can be seen, investors in the face of a project, not only to analyze the industry, enterprises, models, and so a series of factors, but also to analyze the team's ability, experience, character, etc., around the "this team is not doing this thing right person" this question to analyze and verify. The so-called, investment three things, "opportunities, models and industries." Therefore, in the analysis of this ability, investors should have a good logic, reasoning, induction, summary, refining capacity, to have a strong information and information acquisition, screening and integration capabilities, to be able to grasp the small, and can not ignore important issues. In the analysis of human beings, we should have the experience of reading people and the ability and confidence to make judgments in a short time.

Learning Ability: First of all, no matter how rich the experience of an investor or how deep the knowledge of an industry is, you will not be able to meet a project that is more than what he had before. Secondly, most of the industries that venture capital pays close attention to are change quickly, update quickly, technical update iteration head is not the flaw, business model changes infinite, from the angle of their knowledge preservation, investors also have enough strong ability to learn to maintain their knowledge reserves. A digression, an investor has the ability to learn under the premise, but also to maintain the enthusiasm of learning, otherwise, the face of new things will be rejected, puzzled feeling, nature can not cast a good project.

Communication skills: Communication is the most important source of information, especially in the venture capital industry, because the information obtained from communication is alive, freshest, most intuitive and the most valuable information to make judgments. Therefore, investors must have good communication skills, not only to say, but also listen, to be able to make the other person understand you, trust you, like you, so that you can get more valuable information from each other. Avoid in the face of the entrepreneur when the predecessors, elders, experts pose, you put yourself up, and others sincere communication heart closed.

Industry experience: Rich industry experience, can make investors to industry chain, relevant side, development law, the direction of the future has a full understanding, in decision-making time more self-confident, easier to draw more reliable judgment. And this kind of experience the more upstream the better, the more core the better, the more platform of the better, only the higher the station, see the farther.

Operation Experience: Many investors have very rich experience in industrial enterprise operation, John Dull, the godfather of the venture capital, also said that "the best preparation for investment is in a high tech company with excellent management experience." Operational experience is so important because your operational experience can be a powerful way to help you determine whether something can be done. The idea is natural and important, but execution and operation are the keys to whether a good idea can be a good business.

In addition, what may be required to become a good investor is:

Careful: In the face of a lot of information, investors to be able to catch large and small, where the big and little finger is critical, not the size of information fragments. In fact, a lot of small pieces of debris are hidden behind the great value of information. Therefore, investors, whether in the process of meeting with the entrepreneurial team, or in the process of due diligence, should be based on bold assumptions, careful verification of the mentality, careful observation and consideration, to obtain all the information needed to judge.

Network resources: Good network resources can not only make you encounter not understand the project to get second opinion from others, you can also get rich project sources. Good contacts also mean good word-of-mouth, become a good reputation of investors, will be a lot of congenial entrepreneurs of all ages.