Four Mistaken Ideas Of Venture Capital Financing

Funds are

But the process of venture capital raising by venture enterprises is indeed difficult.

Generally speaking, Vc firm listens to hundreds of entrepreneurs in the year to explain their entrepreneurial plans, but the last ones are rare.

Therefore, we should be prepared to seize opportunities and take the initiative to strive for SMEs.

The process of fundraising is, in essence, a process of selling your company, selling your products and your dreams for entrepreneurs.

An important reason for the success of a successful entrepreneur is that he knows how to sell his first commodity, the start-up business, to the most experienced investor, so as to get financial support.

Therefore, in this way

Myth 1: sell your technology or creativity cheaply.

Many entrepreneurs and laid-off entrepreneurs are eager to get started or working capital, often when SMEs are financing.

Give small money to big stakes and easily sell technology or creativity.

"As long as we can get start-up capital."

Under the guidance of this idea, many core technology owners are selling their technology or creativity with ease.

After a period of operation, it was realized that the technology had been sold cheap.

At the beginning of the investment agreement dissatisfied, then some people will be quick to propose a breach of contract.

The consequences of doing so are all very bad.

It will only make us lose our business reputation in the capital market.

Myth two: burn others' money and make their dreams come true.

This kind of irresponsible use of venture capital is quite common.

In the current network SME financing performance is the most obvious and prominent.

Entrepreneurship is not only the process for entrepreneurs to realize their ideals, but also the process of maintaining and increasing the investment of investors.

Entrepreneurs and investors are two aspects of a thing. Only through the development process of the carrier can we achieve a win-win goal.

The question of "burning investors' money to fulfill their dreams" is, in the final analysis, credit and quality.

Those who hold this idea will not become a successful entrepreneur.

Only entrepreneurs who can create value for shareholders can get more financing opportunities and growth opportunities for small and medium-sized enterprises.

Therefore, entrepreneurs should not only enhance their technological capabilities, but also strengthen their moral cultivation, cultivate and possess the moral integrity of honesty and trustworthiness of entrepreneurs.

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Misunderstanding three: there is no perfect SME financing strategy design.

Like any marketing process, we need to plan and prepare well in the process of raising funds and financing small and medium-sized enterprises.

This is the beginning of achieving the best financing effect for small and medium-sized enterprises.

However, many entrepreneurs only have overall strategic planning and design, but there is no specific strategic design for SME financing.

This is not right.

The specific strategic design of SME financing is an important part of the overall strategic design.

It is a supportive strategy of the overall strategy.

Therefore, this part of content should be carefully planned.

The contents of the plan should include:

What venture capitalists are interested in your category of projects and products?

What kind of investment cooperation are they likely to adopt?

How to get venture capital, how to start business financing, business guide, entrepreneurship center, venture capital column

What questions do they usually bring up and involve in the first contact? What preparations should I make to show the advantages and characteristics of this project?

How to explain the value of the project in the first contact not only arouse the interest of the investors, but also carry out the necessary fire reconnaissance so as to lay a good foundation for the subsequent negotiations?

It should be noted that the contents of these strategic designs are not written into business plans.

Four of misunderstandings: there is a lack of a comparative choice of financing options for small and medium-sized enterprises. Although domestic SMEs financing channels are not very sound, there are still many channels.

1, joint venture, cooperation, foreign capital financing channels for small and medium-sized enterprises;

2, loans from banks and financial institutions;

3, government loans;

4, venture capital;

5, issuing bonds;

6, issuing shares;

7, the pfer of part of the right to operate;

8, BOT SME financing;

9, private SMEs financing;

10, through Alibaba and taobao net, SMEs will be financed by commercial reputation.

Through in-depth comparison and selection of the above multi-dimensional SME financing channels, we can effectively reduce the financing costs of SMEs and improve the financing success rate of SMEs.

These development funds can be divided into two categories: capital and debt funds.

The debt fund will not dilute the equity of the entrepreneur, and it can effectively share the investment risk of the entrepreneur.

If we use the way of pferring shares to finance small and medium-sized enterprises, we must make good choices for investors.

Only with its own business philosophy, its business or ability can provide investment value channels for investment projects, or effective strategic guidance of investment can effectively support the growth of entrepreneurial enterprises.

Therefore, entrepreneurs must strengthen the collection and collation of SMEs' financing information, so that we can make the best choice under the premise of sufficient intelligence information.