In the venture capital relationship, investors to play three roles

cloud network hunting note: each investor in a portfolio with three different role, then investors play what role is conducive to the development of his portfolio? Is a positive flag-waving, is the most severe critics, and put his hands pockets, what all don’t ask?

just contact investment industry as a novice, I have been thinking about it in addition to the below when it comes to the three key factors, whether still need to other conditions in order to establish a good relationship with investors. Investors to establish a perfect “venture relationship” (that is, the entrepreneurial teams and investor relationship) is not so easy. Investment is like a marriage, it doesn’t say as long as married the relationship between the two individuals would have been good, but you have to go to a good management of your marriage, only in this way can maintain a good marriage relationship.

after some reflection, I always think of every investor as long as still play their roles, when companies are facing difficulties to actively support, when companies are facing new opportunities for having the courage to challenge, need when you play a leading role in the company, then establish a good “venture relationship” is not a problem.

is always the strongest supporters of the “”

in fact, investors in the moment of signing the contract has already become one of them in the same boat and entrepreneurial team, a coexistence of interests. Whenever the combination team should support each other, support each other, especially at the time of the company in trouble, because only this time can test whether investors can grow together,.

I remember in 2001, I have just established a company would be massive. To at that time by injecting new capital to solve the problem at hand is impossible, in a such a crisis, the company’s investors did not fall, but have a helping hand. Although each investor is hard to want to save the company, but we finally agreed to under the condition of acceptable to sell the company. We sold the company to AbeBooks (an online book sales site); Now, it has been owned by amazon.

companies face difficulty, also is the time to see investors face. They can help you? Or will it rain? In fact this is should the Chinese old saying: a friend in need is a friend indeed.

but when “oys people critics”

the mindset of many entrepreneurs are too optimistic, they need a person can point to wake them at some critical moments, let them see reality. That is to say, sometimes need someone to severe criticism of them, to make a comment on their deficiencies. Although often criticized them no financial discipline, no sense of responsibility, product quality inspection does not pass is not desirable, but sometimes it is precisely these words can inspire them to play their best value.

a few months ago, I experienced something, I think from this matter a critics is crucial for a portfolio. A few months ago, my portfolio company raised a small fortune, and began to increase the cost base, increase the speed of even more than the revenue base to increase speed. Within a few months, the risk investment funds rate has doubled, consumes tens of millions of dollars a month. At the same time, the company also constantly expanding, lead to declining growth. Given the high consumption, low growth is one of the most lethal combination, how should the company the next development is particularly important, but fortunately, we are lucky, the founder of bring us back to the way in time, the operation of the company quickly returned to normal.

investors must adapt to the role of the wicked, neither be able to put forward the sharp, constructive, and dare to challenge the spirit of the current assumptions. Founder also must keep in mind not a sincere compliment is just empty talk, always advice when most needed is least heeded. You need to have an eye for investors: because investors are looking for is what you such talented founder.

periodic mentor “generous”

I always think others for reference successful experience and draw lessons from others mistakes is to help yourself succeed two big magic weapon. Because when you’re in a startup, others’ entrepreneurial experience will give you some useful information, such as can teach you how to introduce talents, how to build a competent board, how to broaden the company’s development.

I have been looking for a chance to improve my ability of portfolio management, so I often communicate with the company’s founder and chief executive. In addition, I also and portfolio of the company’s chief executive and senior management team is made of the problems of enlarging the scale of company experience exchange. From the eyes of others to understand your company or from the layman’s point of view to think about their own industry, really makes you happy surprises, because doing so will make you learn previously untouched, cultivate your ability to solve the problem.

for founder, they should broaden the channels of information sources, several opinions and Suggestions, but they also have to according to their own judgment to filter out the useless information. After all, they are the boss of the company, rather than investors, they have the final say and say.

although money is the key to the development, product sales of the company, but an investor to create value for the company than its financing for the company to create value. Investors have to slowly grow up to be a man who dares to advice and dared to question, to play their best team value. In addition, entrepreneurs should have the courage to accept all of the feedback information, no matter the feedback is good or bad. Establish a good relationship with investors, joint effort to founders and investors.


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