In the first half of the venture capital inventory: business how to avoid premature death


“it is the best of times. An investment for you, let’s do a project?” Many investors lobbying high-level also work in the big Internet companies. There are even rumours that some institutions to top Internet company executives are talking again, business lobby out one by one.

“hot money, more good projects and less expensive” is the description of the many investors for the first half of the investment environment. A lot of hot money inflow, lead to investment institutions to rushed to early start-ups. , according to netease division skill only in the first half of the year of 2014 science and technology circles, there are more than 200 startups get B wheel and the following financing, far higher than in previous years. And match to this is, many institutional and individual investors to enter the early investment market, each big Internet companies have set up investment, eyeing up early and for the raising of equity markets. Domestic venture capital rounds a boom. But in silicon valley, the investors have begun to reflect carefully, they call it “bubblish”, means looks like bubbles, but could not.

but under hot money, it is more startups in the dissolution and adjust the direction, substitution and so on. The rationality of investment are eternal. Under the hot money business how to avoid premature death? Netease science and technology for the first half of this year’s business and investment were investigated and the condition of the inventory.

team, and acquaintances to open a company

group team is more important or project is more important? Interviewed 80% of investors will be very safe to say, “team!” . A recent example is the failure of “instant noodles”, after the three full of ideal 85 otaku co-founded online education platform “noodles”, but in front of the investment is about to get A round, because equity allocation problem, apart because of distrust between team, untimely.

with the Chinese partner in Mr Wang said “don’t start a company with your best friend”, in the domestic circle of venture capital, investors prefer common is their understanding of entrepreneurial teams. , rapid investment, managing director of the high we to netease science and technology, said their favorite team is worked before, it is best to company out in front of the whole team, or classmates before, such as more understanding to each other.

in the high we view, current business failure is the most common causes of the instability of entrepreneurial teams, product and market are good projects, founder of the background is very strong, but problems appeared on the founding team cooperation. than more example is a founder of the thought of a very good idea, excited, looking for partners, found some like-minded people, the result is also good. But they actually know very short, between the contact is not deep. After the project, once meet with difficulties, began to appear antinomy, CEO of conflict management ability is insufficient, power is not strong, the team began to split. Many founders later said, “it turned out that he is such a person.” Before interests easily exposed some deviate from the nature of things.

so, when the founder of old classmates, old boy, old friends to together after startup, the second step is to do what? To ensure the integrity of the team, that is to say, technology, products, market, be short of one cannot.

wi Harper investment managing director Richard xu said, for student team, a team when looking for a few people with experience is very important, the student team because they have no experience, often want to do too much, to do anything. For example, in the case of entrepreneurial teams, do subtraction is to add more difficult.

after good team group, the third step, the founder to determine the equity allocation in time. Richard xu told netease science and technology, business gangs off appear most frequently when it is in after obtaining financing, because equity allocation problem, finally collapsed. the high we have said, the newsletter will typically require shares more than 10%, the founder of the use of industrial and commercial registration form, in order to avoid disputes in the future, thus reduce the team because equity problem of conflict.

direction: stand in the tuyere can blow up

according to incomplete statistics, netease technology in the first half of 2014 science and technology circle round parts B and under the financing situation, can see clearly that the enterprise service is still the most preferred field in the current investment institutions, public financing cases during the first half as high as 37 pieces.

but since last year hot Internet financial also received extensive attention of the investors, in the first half of 2014 the public Internet financial financing case up to 28, second only to the enterprise services, including P2P area especially by favour, all loans obtained from zhi from the investment capital of $130 million in A round, become the Internet financial sector’s biggest financing at home and abroad. In the past half a year, a number of P2P appeared like now, run the founder of the company but this does not affect the enthusiasm of the investors.

is a rising star in the field of intelligent hardware, although in the first half of the public investment case isn’t much, but the matrix partners, kleiner perkins caufield & byers institutions are publicly expressed the strong interest in the field of intelligent hardware. Roll call time CEO Zhang You said, “2013 domestic common hardware entrepreneurs are copying foreign products, but since 2014, more and more entrepreneurs to begin with the localization of innovation, the domestic intelligent hardware market with great potential.”

when it comes to the future more important areas of matrix partners partner harry man, said the future wearable products, smart home is a hot point, in 2014 is expected to more than 10000 domestic smartphone hardware products. In the field of hardware, warp/weft valued at hardware, team of supply chain, manufacturing process and product; In the field of software, warp/weft more important Good at software interface, data mining, user operations team and products. And between the item and platforms, warp/weft are more likely platform products, attitude towards a single product very carefully. harry man also emphasized that “bracelet watches don’t find me, find me also won’t throw”.

while Richard xu said, his eyes when the most investment value of vertical strong interaction in the field of product, the intelligent hardware, hardware and light, heavy service company will have a better chance, in addition to medical field and car central screen after installed the market is promising in the future.

investors: in addition to money, also can give me what?

when entrepreneurs have a good team, a good product, actually very close to investors (who is) — because when you desperately looking for who, who are desperately looking for you.

netease science and technology in the first half of 2014 the domestic part of the star product B wheel and the financing situation, it can be seen in the domestic venture capital market, the agency is still the main force, but many emerging powers have begun to show strength, including the Internet giants as well as a variety of the raised platform. recently said publicly that tencent will be to invest in some A wheel and the previous project, product, team.

before looking for andie, entrepreneurs must first determine what kind of, who is more suitable for you. More professional, but Internet companies in channel, flow more additional value. While the raised platform, with its low threshold, low requirements. In this case, some agencies also started playing CARDS, value-added qiu, we said, the newsletter in the project by is decision speed, resources and channels to reflect value. While Richard xu said, because they have a TMT industry business and operation experience for many years, so the more understand product and entrepreneurs, know that entrepreneurs need, can help entrepreneurs to expand the market and looking for better resources cooperation.

smart home manufacturers BroadLink just won a qihoo 360 in May this year and jingdong $10 million B round, BroadLink CEO Liu Zongru to netease science and technology, said in May last year launched socket, jingdong and 360 they perceive the future what to do, and began to contact. Jingdong is a voice in the field of 3 c, also recently launched jingdong + plan, each BroadLink is out of the new product, jingdong give commend them to push on the front page. And 360 is in the field of family security for their help. BroadLink DNA plans cooperation more than 60 companies, more than half are recommended by the two.

those who are active? Need not dwell on the raised platform, Internet companies and emerging of venture capital institutions often active in various exhibitions, business salon, media channels are they looking for part of the project. but for large VC, acquaintance introduced tend to be more reliable. a famous investment institutions to netease science and technology, said the investment manager has tried before to the activity to send business CARDS, but in the end find over 100 home team no one of, instead of wasting time. So if entrepreneurs want to win the favour of famous investment institutions, the most important still is to expand connections. According to the theory of six degrees of contacts, in fact, every entrepreneur who is distance is not far away, so long as the project is good enough.

at home, too much money into early stage investment at the same time, put the market to overheat. Entrepreneurial teams how to find belongs to own a place in the red sea, find suits own andie, investment institutions how to be more calm in the face of the market, are necessary to avoid a new bubble.

source: netease science and technology