with this knowledge, you may not succeed; without this knowledge, you will not succeed.
financing, now in a double era, with the relationship between entrepreneurial than ever more closely. On financing, I would like to share three aspects of the problem: the first is the financing of ABC, the second is the legal planning of financing, the financing of the provisions of the third.
now let us share the first part, some viewpoints of venture financing, but not all related to the law, some personal view is some understanding of venture capital financing, not necessarily correct, please forgive me.
first part financing ABC
is now a time of public creation, but there is a bad atmosphere is: many people in order to finance and entrepreneurship. Remember, when you start a business and finance, ask yourself: "why do you want to start a business, what is your product in order to solve or meet the needs of what you have the ability to do it well?"
had a college student in the background asked me: I want to start a business, how to finance? My reply is: you are not suitable for entrepreneurship." Start a business in order to finance, is wrong.
first thing is their own business, you have to prove yourself, rather than the beginning of the investors, expect financing. Often see some business (hobbies) those aspiring to subvert an industry, and change the future, but if you ask him the project is now in progress, will be his answer mine down: "as long as the funds, I resign immediately, immediately open dry". I quite agree with this statement: even if no one to invest in you, you have to do things.
investment and financing is actually a trading
why do you say that?, investors invest in simple terms, is at a relatively early time point, with a relatively low price to buy your shares, then, in the back of the right time, with a relatively high price to sell equity, profit profit. Therefore, the investment and financing is a sale, the sale of shares.
since it is trading, it is necessary for the entrepreneur, is to obtain financing, but also to give the agency an opportunity to make money. Therefore, in the investors, need not improperly belittle oneself, bow and scrape.
when is it appropriate to finance
financing means equity dilution. The sooner the financing, the valuation of the earlier is less, the higher the proportion of shares sold. There are two elements of financing considerations: first, the need for money, and the two is the need for help. If you are the seed stage, the pressure is not money, it is not necessary because not much money for 10% to 20% of the equity financing, can not too late, early equity financing, is more precious than gold oil; of course, if your team and product is particularly good, clear business model, there is relatively good the mechanism is especially important to you, with the help of institutions can obtain rapid development, early financing is also very good. According to your needs, if the amount