With the approval of the US venture capitalists.

Source: Internet
Author: User
Keywords Venture
Generally, a project ready to launch can be recognized by the U.S. venture capitalists, the key lies in the project's technical value, management capacity, investment volume, financial data, operational methods, risk analysis of these six aspects. It has been a dream for many it entrepreneurs to be recognized by the US VCs.   But before delving into specific operations, as a pioneer of venture capital, I would like to say that the team is the real lifeline of a business, to the U.S. investors to recognize the project, the most important thing is to let it recognize your management team, not a certain person.   Here are a few questions that American angel investors and extended investors often ask. The technical value determines the value of the purchase price of the project and determines the equity allocation between the middle management and you. The correct assessment will help you to open an appropriate price to the capital investor. The value of technology is generally determined by its degree of sophistication, uniqueness, maturity and commercial profitability. The role of technology in the project, combined with different projects requires different understanding. For an entrepreneurial project positioning, its core value can come from the technology, can also come from the team credit, but also from the unique business design and market model, can even come from an unprecedented market gap in the excavation capacity.   Our project has certain technical characteristics, but in many cases, often the advantages of technology is not a sufficient condition of the project, not even the necessary conditions, so our proposal to strengthen the technical advantages of the elaboration, on the one hand, and technology-related market, user psychology and other background analysis. Generally speaking, the domestic technology is not the world's leading advanced technology, and its specific application to business, the investor's approval and investor's doubt will be many.   As far as I know, in the United States that the technology is more than everything, the domestic view of project creativity and market value is the key, it is clear that it takes a lot of time to adjust contradictions, contradictions and coordination of the key issues to see how to communicate and flexible. I wonder if your project has obtained the patent in this respect, can you get legal protection? Is there a unique value potential in the field of your project? Americans are more interested in how to protect their technical value. U.S. investors see the highest value of the project, which is being reported, but has not yet approved the patent, that is, the process is not completed in the project. Patents get their hands on the project, especially after 3 or 5 years, the investors will not accept, they would think that this is outdated, no market value. The protection of the law is the most important, it is recommended that you should have a project patent in China at the same time, to the United States to apply for another, so that can be better international recognition, this is more conducive to your negotiations. How much market share can you make in the US about business profitability and the prospect of this technology total market? The United States values how to occupy the market, to complete this task. Typically, a business plan calculates goals and financial budget reports for 3 years. Domestic capital market General investment return is 10 times timesIt's excellent.   But American angel investment is not necessarily, some need 20~30 times, even more, your project highlights, positioning and evaluation is critical. The most moving management level in your technical experts and operations management team, the technology shares and management shares usually accounted for 25% respectively, the investment side is 50%. Management team to contact the funds, specifically how much to see your skills. In addition, there is a real experience of successful management activities, very important. It should be said that there are many good projects, but good entrepreneurial operators are hard to find. Investors are investing more in good managers and entrepreneurs than in investment projects. The formation of the entrepreneurial team is vital and critical!   Tacit cooperation and trust plus management culture will determine the success of the project. In the United States, technical experts and operations management teams are usually the same team of men, with management and technical skills, can be very convenient to carry out business. My entrepreneurial team has laws, economic background, as well as the background of career and overseas entrepreneurship, more communication and innovation development background, while everyone's cultural background and values are highly mutually agreeable, so give investors a more profound impression, for the financing success played a very important role.   Therefore, some entrepreneurial friends, in the early days as a team organization, need to study what kind of portfolio is the most easily accepted and touched by investors. Invest in the big seed companies when they first started their business, the investment was not very large, for the U.S. capital investment Market, is a small part of the investment, generally 100,000 ~20 million dollars. In the United States to find 100,000 ~50 million dollars difficult compared to find 1 million ~500 million dollars more difficult, because the time spent on the project is the same, the activities of the upfront expenses are the same.   In our project, we do not advocate a very large amount of investment, because the large amount of investment will increase the demand for equity ratio of investors. In the United States, angel investors generally live happily, they are usually rich people who can take 100,000 of dollars from their credit cards to invest in their projects: usually 100,000 dollars in the first year, after 1-2 years of investment is 100,000 ~75 million dollars, investment objects are usually their relatives and friends, we discuss together to do something.   In addition, the U.S. government will encourage angel investors, more directly is money support, investors can reasonable tax avoidance. In the United States, the acquisition of venture capital may seem easier than in China, but after the investment, investors are more strict in the management of the entrepreneurial layer than China.   According to my experience of many years, many domestic entrepreneurs are very difficult to pass this off. Financial data to be polite the U.S. investor is most interested in technology and data, so it must be in the U.S. GAAP format. Domestic can refer to Quickbook format, Peachtree account format or IRS format, strictly according to the form to fill in data. The right data and marketing plans are important to the attraction of the project, and the investors will do much toPut forward different questions, to certify the future development of the project market, there is no certain investigation and understanding as support, the answer is without any convincing.   Data-class surveys can be very effective in attracting U.S. investors, but not blindly exaggerating the reality. At the outset, we did not design in the project proposal in strict accordance with the general format and requirements of the business Plan in the United States, but around the project characteristics and the reality of the Chinese market, focusing on the project's market prospects, operational model feasibility, the user's prior investigation results, market expansion of the specific plan, the progress of the next few years. We feel that the writing design of the plan needs to be based on the characteristics of the project, not necessarily rigidly adhere to the format, and the matter and reason to understand is the most important requirement. The proposal was endorsed by the US side, but in the negotiations we made a redo in accordance with the American rules.   It is advisable to prepare the appendix of the Business plan, the US will ask the source of the data at any time, and other circumstantial evidence is very important. Intermediaries are the most important domestic commission system, the proportion is generally 3%~5%, but to advance a part, may be detrimental to the upcoming projects. In the United States, the Commission is a bit higher, but the U.S. upfront spending is free. Is it important to find a company or individual that can help you with your project? After the success of the project, the venture capitalist intermediary or the agency to get 5%-15%, if given in advance, then the success of the most they get 5%, so when the assessment, most of the contacts want to limit the small investors more than one year, Can get 10%, in the future bigger, own benefit is many.   For the financial check problem, the investor's request is very strict, the future report work should be clear. Business plans must be targeted the United States will often ask why your project is different from others? What is the purpose of this? Where are your strengths? How do you occupy the market? In addition, what is the position of the market? What is the difference between your services and the structure of your products compared to competitors in your industry? Therefore, the business plan must be targeted. On the project, you have to assess your risk in what place, how to face, it is best to explain the investment funds in a certain period of time used up, or to say that someone on the halfway back investment, what should you do? America's most standard business plan is typically between 25~30 pages, with the first 3 pages a summary of the project. Investors usually finish in 3-15 minutes, if the lack of potential and attractiveness, there is no chance to talk about, so the previous introduction, compared to the following part of more important. The following section, the investor will be in the future time to study well, in order to put forward the question.
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