note: hunting cloud surge in hot money, hunting early projects such as the environment changes, made more vc institutions to provide capital for investment company is no longer a pure, is more and more with the banner of “enterprise value-added” services, involvement of that operation process, however, this phenomenon was Christian as Claussen.
written by Ventech capital managing partner, there are 16 years of investment experience, mainly to Europe French regional innovative company, at the same time, he in Picanova, TV Smiles, Smiles and TV, and Speexx. The company as a director.
the following is the full text, by the American technology blog venturebeat, Chinese version is compiled from the heavens and the earth will point zhuhai rudder (micro public letter number: techgogogo) :
the VC like now declared that they would not only provide enterprises with enterprise need capital support, in this work, help them to value-added service for the enterprise. Especially between VC industry increasingly competitive today, we often see their marketing to nod to mention this point. After all, in the above money alone, enterprise whose money are the same, which provided by the VC is not real money?
VC funds provided not only limited to
as a European VC, I’m from the United States launched the agitation of the VC value for the enterprise’s attention for 15 years. In the beginning, you are the only as a means of brand marketing (and you can go and have a look in the VC website, on which to hang around with VC and founder of the enterprise “loving” cute photo). And then more far more strong, this kind of phenomenon is slowly evolved into a support platform called “portfolio”.
to each big company founder hype the complementary operation support they can provide resources, these so-called “platform”, the function of “talent agency,” or “commission” (in prospective marketing effect), also let us VC can be very good to their own investors (LPs) parsing out their annual consumption of more than 5 million budget where is on earth.
first of all, you don’t get me wrong, I itself is to how to our old VC under the business model to a new level of an enthusiastic supporters. But, I will be here sincerely suggest that the founder of our company in the search for the VC investment, to those that can provide your business with additional senior operating value-added of VC company, to maintain a certain degree of skepticism in my heart.
operating value-added is nonsense
as long as you have been creating an innovative enterprise, you will deeply realize, all aspects of the business operation, must be with you in the process of exploring the unknown fields discovered by the demand for meticulous carefully. Process optimization, market information, product packaging, and customer value proposition, all need to constantly repeated precipitation, think twice. These require us to work closely with our target customer, the product of rapid verification of hypothesis, to learn from our customers come back quickly and flexibly to modify feedback.
in these areas, I find it hard to imagine that a group of so-called consultant can bring how many resources that can help you. For VC itself, even worse, if the VC to intervene in this matter, it will be and VC company – for a wide range of different business models, and technology in the field of enterprise portfolio is balanced — a goal conflict, because a company alone already consumes the VC company a lot of resources and energy. So do you believe that a VC firm will really appreciate the business you so?
so the next time you hear a VC que phrase is put in bigger, say their so-called “value-added platform” will bring your innovative start-up companies how to additional sales, so you can imagine if you outsource your sales business to a group of people sitting in the office to answer the phone customer service center will be the result of the how. When it comes to recruitment, marketing and international mergers and acquisitions industry with this level, you can really feel the VC platform than the somebody else, specializes in the recruitment, market team and merger and acquisition of enterprises is more effective?
there is a worth consideration is that once the VC investment by enterprises and their so-called “value-added platform team conflict, VC is hard to play a special escort erudite tutor role for the enterprise. Vinod Khosla has infuriated said “70-80% of the VC for enterprise to provide value-added, but is negative value”.
please keep in mind that, according to the statistics, a start-up that come to you in terms of the key just so 5 to 15 times, and in terms of these decisions has a vital influence on the final success or failure. So you a wrong decision, may be will your business to ruin.
so VC how to enterprise value?
it is VC should bring more value-added “operation”, the following descriptions of these aspects are not entirely:
a VC, should have in the absence of brings to the enterprise management is too much trouble to finalize round of financing ability;
for a VC company, it should be to lead and coordinate its investment portfolio (syndicate) in the next round of financing of the future how to process the forecast and actual combat ability;
, should have a wide range of information industry, based on the KPI data meaningful to enterprises to burn money to contribute to the adjustment of speed, as well as the prospects for enterprise planning ideas;
, when the enterprise internal contradictions, VC should act as the role of a professional referees for mediation;
in the members of the board of directors and stakeholders while waiting for the split to processing, and to safeguard the interests of managers;
, above the key positions and recruitment of the start-ups started giving their own advice (for example, sales vice President, chief financial officer, etc.);
, when seeing miss on enterprises in the internationalization strategy direction, should be active to prepare VC this and argued;
, help enterprise is the company’s strategic positioning and related on the pitch to help;
in the enterprise such as financing, access to key industry/government approval, OEM and other important things on key negotiation strategies provide a wide range of information support.
maybe some of the so-called “brick house” will stand up at this time bossing said, “the enterprise incubator” and “accelerator” is to provide “value-added” VC on the depth of the enterprise’s operations of one of the most obvious evidence?
it is true that do have heavyweight VC is fully use their own resources to hatched a start-up, and to the success of their escort (German Rocket Internet incubator is a utilitarian, for example).
but you should know is that: the VC, the correct, actually focus on just some fake, or some in concept has been proved feasible and easy to copy the field above, the success of these start-ups rely more on the quick speed of execution and a lot of money in advance, and this is fundamental to a innovative start-ups it won’t work.
in the chaos of the VC environment, how to identify these types of VC is not a easy thing. But doesn’t mean you should throw the dice decide which should choose a head. You should be more about further through various channels, consulting, and then to decide who should take the money, otherwise a bunch of so-called “value-added” genius may your blood would make a feather.
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