cloud network hunting note: early investment institutions in didn’t see the market prospects, we haven’t even see products online choose to believe the founding team, give them strong support. So, late founder of investment institutions required to clear before investment funds will be the next round of investment, this kind of practice is very selfish. For entrepreneurs, margin to not only money, more important than money resources, trust, breadth of view, experience of investors. Hunting cloud network sincerely recommends entrepreneurs whenever a little bargaining power, it must carefully choose investment institutions, investment is a process of two-way choice. Investors should understand the most important thing, really love you.
the author | wang qiang Very serious fund founding partners from: Forbes China
recently, very outrageous a fund, said the news, they hope the founder must be removed before all the investment funds, to the next round of investment. A fund manager said to us, “you have earned enough, she can go to the exit.”
I was very surprised, is an angel investors have no right to keep his stake in the initial investment? As a shareholder, is unable to obtain legal sacred equity?
any round of capital to enter, and should be grateful for several rounds of capital in front of the bedding. because only angels, under the condition of the enterprise life and death is unknown, for enterprises, enterprises on the road. If capital thinks, when companies to grow and mature, the angel fund should automatically quit enterprise, this from the logic and human nature are very selfish.
the entrepreneur should not favour such investment fund, because such funds without gratitude, then how can it be with honest with you go on?
I was surprised by the investment manager so selfish idea, also inspired me to talk about the idea of challenging concept.
in 2011, I founded with xiao-ping xu very fund of the first moment, we have established two actual values: put yourself at the feet of an entrepreneur .
redwood once there is a very famous quote it this way: we stand behind the entrepreneurs. And both xiaoping and I think, we as angel investors, should put figure is extremely low, below the entrepreneurs.
because for angel phase of entrepreneurs, they have a great ideal, plenty of enthusiasm and passion, what they need is not only a facilitator, guide, more need to pave the way. We are willing to bear the “ stepping stone “role. Maybe it’s because I and deng xiaoping are doing education background, we believe that for young people, they all far higher than other.
also because of this, we set up many of the “first” the investment community.
we are the first proposed change Termsheet to the investment arm of a sheet of paper, has caused the investment industry innovation. At that time, we all feel that should not be fobbed off with word games entrepreneurs, but because of who I am as far as possible concise and clearly to let them know that we are each other’s demands.
we are the first call will investors pull visibly investment institutions. We think to restore China’s commercial civilization, civilization should reshape the investment. Based on information asymmetry and investment scarce resources be a sustainable business model.
we believe that if a fund is not true for entrepreneurs to provide value, will be out of business. Investment funds should open mind, be honest and entrepreneurs.
young entrepreneurs should be alert to investors who “vulture” . There used to be many entrepreneurs and investment funds on the agreement. For entrepreneurs, this is the biggest trap. You may not understand, you as an entrepreneur can never win the game.
because if you win, so the investment agreement to become a reality, if you lose, you lose everything.
I called for an entrepreneur, entrepreneurs start period, in particular, do not sign on the agreement. Unless, you don’t love you founded by industry. bet is bubble , means you are now unable to achieve the goal of the existing resources, and you will be forced to must achieve. It is so tragic.
bet means you have to do things to do, once lost, the business enterprise the beginner’s mind, the nature of mind, you can’t turn back. in negotiations to bet against, entrepreneurs face the investors like to casinos in the crops and the probability of win would have been good.
I urged investors not to take a risk and you can’t ask entrepreneurs integrity, at the same time as self-serving, completely unreasonable rules, let entrepreneurs to lose everything. Entrepreneurs worth capital sincerely treat, bet fundamentally fool entrepreneurs, let him in the case of don’t understand, the sacrifice of their own future.
a few years earlier, I have invested in nice. Then it is called “fashion trends”. At that time, this project because of the unknown, unable to finance, almost collapse. Week, one day, the founder of the first to find me chat, said ran into trouble, really don’t know whether to hang in there.
that night, I tell weeks first, personally I take money to you, you hold on for a year. I don’t require you to turn, just want to see if you can do a thing, and I believe you can do a thing.
at the beginning of 2014, the nice transformation is successful, has 2 million registered users, share photos for every day of hundreds of copies. At this moment, warp/weft led, morningside and threw A round of $8 million, after three months, nice to get the H Capital led, VY Capital, warp/weft and morningside and $20 million B round, until the end of the year, nice to get A tiger by the global fund and VY Capital3600 million dollar C round of financing.
sometimes, the relationship between entrepreneurs and investors is very subtle. each other dependent .
when you cash flow fracture, life and death moment, someone give you money is going to take? Of course to take, don’t take died. This is not a moral issue, the survival of an enterprise is the greatest moral.
but if investors are really love you, he will be in the most critical time, initiative to support you, don’t add anything.
and some investors, when you are in crisis, estimate to you and can run, but they will seize the opportunity to request a lower price for shares.
in my observation, those who develop stumbling start-ups, related to the founder, are also associated with poor introduction of investors. Some investors like to say, you take my money, other funds are not equal to me so good, this also was basically a lie.
what is the most key investors can provide entrepreneurs? Can is when you most need to give you the most important resource, when you lost the pain, will you pull out the abyss.
if an investor said he can help to do it, so he didn’t do your own business?
we are not in advocating for the bureau count, but said that before you take money, need sober judgment, you get what you need to pay the money.
take capital financing stage along the way, is in keeping with your enterprise development logic, you introduce what kind of partners and staff, will greatly influence the direction of you. If who do you think money is the same, so you must be a very passive situation.
homework together financing process is a star that milestone in financing process. From 2007 to 2011, xiao-ping xu and I have become angels homework together. In 2012, led by lei jun suitable to fund A $5 million round of investment; In September 2013, net finish together $10 million B round (suitable for paid $5 million m, wang qiang, xiao-ping xu paid $5 million m). Then, the tiger Capital funds and H, suitable for funds, such as joint investment of $20 million, contributed to the work together net C round of financing. In 2015, Capital brought by H, temasek, DST and finished the homework together such as Capital D rounds of financing of $100 million.
this pattern of financing arrangement, whether in the capital market, and the development of the enterprise internal power, the values are consistent.
if capital have personality, I believe, is what kind of investor, what is adhering to the values of the capital.
in 2013, my personal loan for weeks, all of this does not belong to a bridge loan this kind of condition, this is the real help. What I believe is very serious, is what I show is very serious. I believe that only stoop to below the entrepreneurs themselves, can truly service good entrepreneurs. Investors don’t feel like cattle, but to have a big heart, want to have gratitude mentality.
what kind of money belongs to you ? Is values highly fit capital . because only in this way, can provide real value and help in times of crisis. The significance of capital, is not the icing on the cake, but in you in the valley of despair, he can unconditional support.
here, I’d like to very cordially to investors, from now on, please learn to peel the arrogant epidermis.
please grateful for you invest in entrepreneurs, who hold on pride, will be eliminated.
please grateful for you before any round of investors, they have not, you won’t be able to stand in peaks. It is in this sense, the angel investment and before any round of investors, are equivalent to an extension of the founders.
is very determined to make contributions to the new commercial civilization, let in good faith, let in startup of true personality, the capital from the arrogance of shrines, and entrepreneurs to real life and death together.
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