note: hunting cloud believe there are many entrepreneurs have a lot of experience, the feeling is very good reception of their financing a project in negotiation is a investment manager, rather than the agency’s boss, is the project no lost out? Or another reason? The following for partners China partnership RenCong really an article, to solve the Chinese VC institutions the change of the decision-making process, and advice for entrepreneurs.
q: my period business year, products launched recently had investors to start looking for me, but a few are investment managers and analysts. I never melts, in thought, so whether I should directly with bosses, fund partner chat, will be more save time?
A: this is A very good question, not only is the first time founders have the financing difficulties, and even A lot of melt into A, B or C chakras, the founder of the in many cases, is still not clear how should face behind (why).
VC the decision-making mechanism of
to answer this question, we must first understand the decision-making process and mechanism of VC. And their American counterparts are basically only partners a layer (and occasionally a few investment managers to support and cultivate) under different, the vast majority of VC in China, is a hierarchy of, can be roughly divided into founding/managing partner, partner, MD/ED/Principle/VP (different VC, based on the investment stage, its history, industry rules, the staff personal growth as well as the loading force and so on reasons vary, but generally belong to a class), investment managers and analysts.
a different class, age, experience, communication, business travel hotel, even face each are not identical, but the biggest difference is the different decision-making power. Way of correct understanding of this sentence is influence and contribution of decision making is different, because the development of nearly 20 years later, most VC investment committee (IC) is JueCeZhi, people discuss the partnership, joint decision-making, a single person slap on the table will make a decision as faded as the sun. Let everyone realize the development of times, in the face of so many niche and stage of development, so numerous and varied widely entrepreneurs, an investor even if the ability is strong, again also cannot do.
decision-making, are single people have their own independent judgment, but the collective discussion because you can avoid thinking dead Angle, strengthen information sharing and adopted by most of VC. Any normal rational VC so, even if the fund’s boss was often the legend/media bosses), also dare not don’t want to shouldn’t (sing), himself a hasty decision, because in the long term, the partnership is no longer the partnership as authoritarian system.
so actually in this industry is not so (sun play type “saw side, chatting for 20 minutes, on the spot clappers for!” Or “dinner chat for an hour, say to want to throw, the evening will call back the money”. These more PR and YY, the myth behind many sad story, most investors still very carefully in the judgment and act.
investors to do DD, founder should do more DD
investors like to chat with the founder of a few times more, and like to make their own investment team more colleagues to chat with the founder of a few times, on the one hand is the need of collective decision-making, on the other hand, is leading the investment of the investor, earnest rigorous performance (can also be lack of judgement in two minds, of course). He wants to in different situations, different status, the founder of the different problems with more contact, more solid understanding of the team and the thing itself.
truth jun has a “theory” marry, that is a responsible investor take the money out, is pregnant with marry her daughter’s heart, hope that the investment decisions, and the money, can find a good husband’s family, with the husband (founder) have a good life in the future. In this case, deepen understanding is a must.
so truth you suggest founders, see this process as normal (rather than to see a vote as normal), and also the process of communication as their understanding of the VC of a process. Mantra often tell their contact’s founders, met also please bring joint founders, we with all fabric, I feel the prophecy king (it was found that many entrepreneurs take the invitation as polite or “scam” their excuses to prophecy jun of the office, sad story).
we do early investment, investment, people go at least 5 to 7 years, investors hope to people, founders also hope to select the right partner. So each time to prepare intelligent questions, when investors understand we also earnestly understand investors, their investment style, good at field, current status of funds, to oneself is engaged in the professional level, in the field of smart investors have, whether it is worth the long-term cooperation (of course a lot of investors are “wit”, may not say so thoroughly, but if they are interested in you, they will seize the opportunity to sell yourself, this is also a test)…
investors to do DD, DD founder more should do. Words you often meet with the founder, please ask questions, come up to ask you what fabric mainly in the field of investment… The black line, can only be deducted. A meeting to do your homework and preparation, the challenge for the future work and preparation ability can only say that.
to find the right person, not a high level or famous people
on this point in time, an entrepreneur with a VC financing, there is a big probability to meet man sitting across the table, had told himself doing the same thing: the Internet product manager. Since 2012, domestic investment institutions are from Internet companies recruiting analysts, investment managers and even the VP level of employees, rather than as before 10 years, mainly to recruit from investment Banks, consulting firms, the big four audit firm, MBA students graduating from university, and other VC counterparts. This shift, can be very sure have a lot to do with matrix partners. Warp/weft line investment team in China, almost all from domestic well-known Internet companies, so that the words you speak at 36 kr Shanghai Open Day for the first time when do the characteristics of the PPT to show how a single page.
investors from Internet companies, for the same in the field of Internet startup entrepreneurs, is a very good partner and listener. They are easier to understand your business model, customer base, business plan, and have the same belief in a better future in this field is almost believe.
in the join investment circle in the wave of new investment in people, they are the winners, now in every fund has gradually gained some recognition, and the influence and acceptance decisions. If you encounter such investors, can be in Muse 1: Yes! , then gush, openness, using direct way to express themselves.
in the past three years is the golden time of entrepreneurship, a large number of talented people to leave the warm big companies, heaven and earth into a cold to start my own business, make a startup companies have sprung up, conservative estimates nearly 1000 start-ups in 2014 won the financing, the total number of startups several times more than that. Because VC is a physical strength live (heart) and the reasonable logic inference is that the VC industry in the past three years also greatly expanded the team. The fact is indeed.
so each niche has started some cover, and study, and find a good company. But when asked about an investor attention what fields, most people would instinctively give a tactfully replied, mobile Internet, O2O ah, big data, intelligent hardware. In conclusion is general, because don’t want to lose the opportunity.
the answer may be good for investors, but also not necessarily), but not necessarily for entrepreneurs. If you are looking for investors to do to you don’t understand (of course we all have a heinous learning ability and unscrupulous diligence degree), than for you to find a great insights in the field of investor, you want to spend much more time. And, more importantly, if the investors within the agency is not considered in this area is very understand, he in internal drive the difficulty of this investment will be much more, and he himself also is likely to make a choice, there are several cases in takes time, he will be rational or instinctively invest time to push on the case of more easily.
in addition, due to a large number of Internet practitioners to join the investment community, a lot of people are experts in the field of some, although the level not high, but the industry is very understand, but also had influence within the fund, so this time should be able to keenly distinguish who is the founder of smart deal driver, who is the decision maker, rather than blindly follow titles or bosses halo, because sometimes the title only that come out to mix more early, usually only the aura that past.
like Internet startup river’s lake, VC is a jiangshan generation has talent, the excellences of 3 to 5 years, if you believe that every five years there will be a new batch of company out subversion before, then you must also will agree that every five years there will be a new batch of, stepping multicolored xiangyun investors, stand out, carrying a bag to send money to you. So, this is also one of the people all dare not lazy, in the field of the cause of hard work, finally said out good sorrow mulberry)
how to contact investors
usually, a founder if with one investor can sit together to chat, there are several possible, words you may points situation for everybody:
1. Investors find you
congratulations you, you can show your wayward side.
smart founder will meet investors in the first meeting, in addition to introduce themselves in doing things, will ask the basic information of the investors, the very name such as who (commonly used when the telephone communication. I often find that many founders to chat up don’t remember) and who chat, what level (can be broadly reference decision-making), in which city (helps the arrangement of the meeting time and place), focuses on what areas, which is engaged in the field had his founder in investment, basic situation where funds (RMB or dollars or have, fund size, investment stage and domain, etc.). These are all you have to understand information, otherwise you can only tell you, co-founder of or the wife say today I chatted for a investors, when they ask you the details, you can only ahhh.
2. You go looking for investment
congratulations you, you can show your toughness side.
before you go to best to baidu or go to see this fund to visit the basic situation of investors. Mantra is said to have jun has the baidu encyclopedia entry (today said, listen to a beginner, the good will move), then must have a lot of investors have (though don’t know who in the maintenance, and many are not by spectrum). Website is our front, usually writes very spoiled, convenient to open the topic when they greet a compliment.
3. FA (financial advisor) to connect
congratulations, the above two someone with money to help you do the work. If they didn’t do for you, to put the money back.
4. Industry conferences or roadside encounter
hello hello I’ve heard a lot about you we change the card must visit another day. Then repeat the first three links.
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