Entrepreneur financing plot inversion induced by two circle of friends

note: hunting cloud entrepreneurs looking for financing by VC how to play the story for many times in the process of case, whether it’s the last moment jump ticket, or to switch to competitors, most entrepreneurs are in a vulnerable position. Serial entrepreneur Chen just met something once the financing process, although the investor or successful capital injection, but the process is worth pondering.

the following content from tencent technology

new Oriental founder Mr Yu co-founded HongTai funds and intelligent headset manufacturers star cluster technology financing jump ticket detonated vc circle in the past two days.

things originated from Chen hair of a circle of friends. On March 1 in the afternoon, he in the circle of friends big beefing, complain HongTai fund in bad faith.

“it is hard to believe that big Mr Yu and ChengXiTai HongTai funds will also. After efforts to urge we have signed the Term Sheet, has already finished all due diligence, have signed a formal investment agreement, only 20 days into the endowment done, such as years ago said to the Chinese New Year, years after the second day didn’t give any reason said it could be discussed again.”

the next day, after complaints from Chen March 2 night, Chen again sent a circle of friends, “HongTai fund investment fund has just received.”

star cluster technology CEO Chen first by entrepreneurs complain of bad faith, then stars gathered the financing amount of science and technology is quick to account, financing, a “reverse”.

what has happened in this time?

Chen: VC to credit

Chen had founded orca digital music network, star science and technology, founded in 2014, the main do intelligent hardware. The company imitate Beats headphones mode, introduced the world’s first intelligent networking headset vow, star cluster technology in those early days he had won a $ten million investment, shareholders include radium and complete angel fund, etc.

Chen HongTai fund, this round of accepted by new Oriental founder Mr Yu, joint huatai securities former President ChengXiTai November jointly founded in 2014, founded the beginning, raised $200 million after two years. HongTai fund limited partnership (LP) there are about 20, each minimum investment threshold is 10 million yuan. Detailed list, though not released, but it is understood that sequoia China Andrew y yan shen, saif fund, high capital zhang yi, huayi brothers were among the chairman wang zhongjun, etc.

“I learn financial background, my teacher li yining and Brandeis university of Peking University professor Allen Sinai has taught me, all the financial investment is Credit! Credit! Credit Credit! I have many friends in VC funds, they can fool you, you can quickly give you a Term Sheet, and rigorous investigation, even part will not cast, these are no problem, is a normal game. But you can’t finish it all signed a formal investment agreement after jump ticket, delayed startup precious months.”

Chen said on March 1 night. VC, he argues, is the most important thing in good faith.

however, “some of China’s funds still stays in the mentality of a decade ago, anyway, entrepreneurs are vulnerable groups, only need to tell their power, do not need to speak credit, jump jump ticket, entrepreneurs can, is not mostly chose to pick up his trousers, silence again to look for the next one.”

in September last year, tencent technology “lesson” in a recent conference, Mr. Chen has review whale music network due to the loss of control and subject to Google, the final closure of entrepreneurial experience. Chen reminded the entrepreneur, the first is to fight for power, can’t afford to lose the control of the company, or in real distress, there is no way to make decisions.

HongTai fund: “working days” computing misunderstanding

in Chen “saw chai jing, blood, decision, and run as fast as before, a close friend of the so-called service for entrepreneurs HongTai funds left behind”, things appeared to reverse.

March 2 night, Chen again sent a circle of friends, establishes the investment already HongTai funds to the account.

to tencent technology, according to Chen HongTai fund co-founder ChengXiTai back to Beijing in the afternoon, on March 1, contact him about the matter. “Due to the Close there is misunderstanding on the date of the algorithm, a is a direct and simple man, I combined with chai jing spirit, he said.”

Chen admits, misunderstanding is that “our understanding of 20 days to the account does have a misunderstanding, during the Spring Festival, 20 days and 20 days.”

ChengXiTai has published an apology on the matter, the first time and explain “jump ticket HongTai fund” is purely a misunderstanding. HongTai any member of the fund, he said, never on any occasion, in any way, expressed refused the group or cancel the agreement. So-called “HongTai fund jump ticket”, just a due to the investment and financing both for understanding the contract details have deviation, slow communication caused by misunderstanding.

the trust concerns behind the “jump ticket”

although HongTai fund said, born from that day on, the spirit of “contract” in the top of the core values, “jump ticket” events are solved successfully. But in the era of entrepreneurship, HongTai fund jump ticket misunderstanding is more or less reflects the lack of trust between the two sides by founders and investors.

as Chen himself puts it “when the letter of intent and the investment agreement are enforced in China is greatly reduced, it’s a start-up world of fog, there are no winners.”

clear family group Gavin ni, founder and CEO, said do VC/PE, regardless of the financial industry over the Internet or in other industries, the spirit of contract is bound to tell. If at least contract spirit all have no, many disputes will happen in the future.

softbank saif fund partner sheep east think, signed is the funds owed to the company money, the company owes fund shares. “Investment for both parties at the time of signing agreement is always a choice of half open. Who will be when the investment significantly accounted for cheap. Actually don’t need too much. The key is to clear goal, trust each other, look in the long run.”

the following for the HongTai fund ChengXiTai apology of the so-called “jump ticket” incident “,

first of all, I would like to star cluster technology entrepreneurs Chen Gary, and feel the passion in the event the bruised entrepreneurs friends, sincere apology! You are the basis of HongTai, you are the future of HongTai!

I skiing in Japan with his family during the lunar New Year holiday, because of the communication signal is very bad, failed to timely handling, irrational increase the psychological pressure of the entrepreneurs, here, I said very sorry!

at the same time I also solemnly declare that HongTai any member of the fund, never on any occasion, in any way, expressed refused the group or cancel the agreement. So-called “HongTai fund jump ticket”, just a due to the investment and financing both for understanding the contract details have deviation, slow communication caused by misunderstanding. But so that entrepreneurs has a misunderstanding on our performance, this is we really don’t want to see! In the process, may harm to the entrepreneurial passion, we want to sincere apologies!

HongTai funds as new forces of Angel investment in China, was born from the day the spirit of “contract” in the top of the core values, HongTai fund the English name of “the Angel Plus” represented by the idea is to provide enough value-added services for start-ups, to do co – the founders of entrepreneurs. Quoted Chen Gary all words in a circle of friends, “signed is the funds owed to the company money, the company owes fund shares”.

we sincerely hope that entrepreneurs don’t affected by the incident, the passion and drive into the business! HongTai funds, and all the partners will firmly behind the entrepreneurs!

thank Chen finally Gary, “complained that” before he Yu Hongtai fund overspending: the description is accurate, that is – “a close friend of services for entrepreneurs”.

24 hours before the star cluster technology CEO Chen had big trouble on social media, said HongTai fund jump ticket, cause the attention of the media and venture capital. Just, Chen has announced HongTai funds to the account, he said “20 days to account” there is a misunderstanding on both sides, and with the funds to the account misunderstandings have been lifted, at the same time also thank the 24 hours to a few of star investment to the fund of science and technology.

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