Zhou: Some insights into angel investment

I make angel investment, in fact, especially simple. At that time, after selling the company to earn some money, IDG once helped me, I feel that I also have the responsibility to help other people, the knowledge and experience to pass down. Secondly, I think I am very good at making Angel investment. I have been in IDG for some time, and found that the middle and late of the project, need to look at financial models and financial figures, this is not my good, and not interested. However, I have a special feeling about the early projects because I am doing it from small companies. I often say that the company from five to 150 people, this stage is my best. So, I feel that angel investment is more suitable for me, also can give full play to experience.

Also, I do angel investment, I feel that I am actually involved in entrepreneurship, I became the entrepreneur behind the entrepreneur, is the entrepreneur's coach, nanny. This role is especially satisfying for my vanity, my sense of accomplishment. You think, at the earliest of a company, I was able to understand beads, fancy these items, and then through efforts to help them succeed, I will feel particularly proud-this company is my vote, the company is my vote, I do not earn more money than VC, because VC large amount of investment, the amount of return of course will be very high. Angel investment is relatively small, the return can not be particularly high, but it will make me particularly fulfilling.

I prefer angel investment, because I have always felt that the internet is the world of young people. To be an angel investment, on the one hand I talk to those young entrepreneurs, I can teach them some experience, some experiences, introduce some resources, in turn they can give me a lot of new ideas, can bring the most vivid information on the market, the latest user's feelings, I think this is also very important. So, with young people working together, I can constantly grasp the pulse of the market, otherwise, like many big business executives, the position is more and more high, the office of the floor is more and more high, less understanding of the industry, from the user more and more distant, that will not take the earth, from failure.

Angel Investment, there is a demand for investors, that is, investors can participate in the project, but this project is owned by entrepreneurs, and their own companies are fundamentally different. Do their own enterprises, enterprises are their own, a lot of things are the courage to make decisions. However, if you do angel investment, it must be the right place: the enterprise is not its own, it belongs to the entrepreneur. That means you don't make decisions for entrepreneurs. You can speak a lot of things, but in the end it must be the entrepreneur. Many times, I discuss with the entrepreneur, but the words will be more intense, but this sense of propriety I will grasp very well. I never want to be their chairman, and I don't want to be CEO instead of them. I was his coach and nanny, the cheerleader who was cheering him on behind his back, a teacher or a brother who could be found when they had problems. So I'm not going to force them to do what they don't want to do, which is my principle.

I have also concluded that there are several investment traps.

The first is a friendship investment, is a friend to find you, wipe off face, many times is friendship sponsorship. This kind of investment is easy to fail because your assessment of a friend's ability is not objective. It may also be that you are not optimistic about his project, but in the end you convince yourself: put some money to try. Such investments are generally unsuccessful.

The second is to go with the flow, that is, you do not understand the project, but others voted, a piece to find you say a cast it. You'll think that since everyone else has voted, I'll just put some. So, an angel investor's case is not necessarily suitable for the big family to vote for, because we have different views. Angel investment or oneself want to have more original opinion.

The third, is Buffett said a word: "Do not know not to do." People for what they do not know, often have a lot of good fantasies, so invest in their unfamiliar areas, often fail more. I voted in the case, the success of the client software is basically the industry-this industry I still know more. I know more, I can have a lot of participation, can make a lot of judgments, and my experience can be used. If Cross-industry investment, such as catering, or film and television, I have no knowledge of the industry, there is no experience and contacts, the problem is not easy to see, this investment failure is more likely.

Four, people do not too greedy, the world is always have investment opportunities. So don't worry about throwing the money out. In 10 years, there will be no better young people in China? In fact, every year there will be excellent projects, there will be excellent young people out.

Also, be focused on investing. I think this is like doing business, not concentrating on making money. Every investor should find a field that he is good at and not be good at. You see others succeed in that, you should be happy for others, not that he can earn, then I should be able to earn. There is a lot of money you can not earn, so, people do not too greedy, is to focus.

I haven't invested much in the last few years because I still do 360. The companies I invest in are not only investing in money, but also spending some energy on it. If I don't have enough energy, I'd rather not vote for the money and have the energy to do it in a few years.

I never expect my company to invest in billions of dollars. I think I've found a lot of young entrepreneurs, giving them money and giving them a lot of experience and help when they need it most. Finally, these people grow up in the industry, may become the next generation of the Internet elite, become the next generation of the Internet mainstream characters, I can be proud to say that I helped them. It's like Bill Gates has a lot of money to do charity, the last to make money for you is not so big, in fact, everyone needs to feel that they are important to others have help, people need this feeling, in fact I think Angel investment I am this feeling. In the future I hope I said I discovered a lot of people, I saw a lot of people, I also help a lot of people, this feeling I feel very good.