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How to get venture capital?
Here are five keys to "grabbing" money from "venture capitalists". Key 1: Innovation is not everything. Generally speaking, venture capitalists (hereinafter referred to as "venture capitalists") especially prefer those fields with strong innovation, such as software, medicine and communication technology, and they are even willing to pay for some vague "concept" venture capital-as long as these venture projects really have rich market potential. For example, Focus Media, Zhan Zuo. Com is a typical successful case of integrating creativity into venture capital. So many entrepreneurs think that as long as they have good ideas, they will certainly get venture capital, which is not the case. In the eyes of venture capitalists, the standard of a good project is unique, difficult for others to imitate, can be replicated in a short time, has a huge customer base, is expected to occupy more than 30% market share in the future, and may even become an industry leader. The project has a profit period of at least 5 years. The best projects have been put into the market with good prospects, but the funds are insufficient. Key 2: The profit model is most valued by "venture capitalists". The ultimate goal of "venture capitalists" is to make money, not to cultivate high technology. Whether a project has a good profit model is their greatest concern. The profit model is a tangible way for venture capitalists to make money. The most mature profit model in the industry is often more attractive to venture capitalists. Key three: the team is more important than the project prospect. "Venture capital" not only provides funds for entrepreneurs, but also provides a series of services such as law, finance, human resources, government relations and enterprise relations. For investors, "venture capital" is equivalent to a partner. Therefore, "venture capitalists" pay more attention to the strength and development space of the team they will cooperate with, and they will even examine the experience of future partners. For venture capitalists, a good team must meet the following conditions: the personnel responsible for market development and marketing are the main body of the team, and the technicians are the assistants; Team members work together for a long time and will not easily disagree; There is a leader in the team and the leader has absolute authority; More than 50% team members have some experience; Team members have a good educational background; Team members have no bad business records; Team members have a certain fighting spirit and pioneering spirit; Team members have the spirit of never giving up. Key 4: You should have good quality. How important is the entrepreneurial quality of entrepreneurs for financing? The answer of "venture capitalist" is decisive. "Venture capitalists" are emotionally willing to regard their collaborators (entrepreneurs) as friends. If "venture capitalists" don't appreciate entrepreneurs' own qualities, it is difficult for entrepreneurs to raise funds even if they have good projects and teams. "Venture capitalists" judge all this for only a few seconds, because they have their own unique evaluation criteria. Venture Capital believes that entrepreneurs must have the following qualities to reassure them: persistent will, rich connections, certain social skills, clear language skills, a certain sense of the overall situation, entrepreneurial experience, preferably successful experience, courage to take risks, certain business literacy, familiarity with the overall competition in their industry, frankness, certain leadership skills, and the potential to become an industry leader. Key five: persistent pursuit: Yang Dong, a partner of Softbank Safran, said that the person who is most willing to cooperate with all VCS is a persistent person. If an entrepreneur has no persistent personality, it is difficult to succeed. It's easier said than done. In the process of starting a business, there are bound to be various problems. If entrepreneurs do not have persistent personality, they will shrink back in the face of difficulties. This is what "venture capitalists" fear most. Therefore, if entrepreneurs show strong persistence in negotiations with "venture capitalists", they will certainly gain the goodwill of "venture capitalists".