What is the function of project financing?

1. Capital is the primary and lasting motive force of enterprise economic activities. Whether an enterprise can obtain a stable source of funds and raise the funds needed for the combination of production factors in time is very important for its business development.

2. The biggest obstacle to the development of private enterprises in China is the financing dilemma. Among the private enterprises surveyed, about 8 0% think that financing difficulty is a common or main constraint.

3. In the start-up stage, more than 90% of the initial funds are provided by the main owners, members of the start-up team and their families, and bank loans and loans from other financial institutions or non-financial institutions have little impact. Financing can solve the capital problem of private enterprises in China.

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Financing misunderstanding note:

1, the founder's equity is evenly distributed and the equity is too scattered. Many entrepreneurs believe that the average equity distribution of several founders can make everyone work together without causing interest disputes. In fact, one of the biggest advantages of startups lies in their efficient execution and flexibility, and the founders are often at the center of this process.

Looking back at all successful enterprises, we will find that almost all enterprises have a very special founder, such as Microsoft, Apple, Amazon and so on. In the early stage, they represented the company and pushed it forward.

2. Pay attention to the fund and ignore the investors behind the fund. Of course, investors need to pay attention to funds in financing. But as we have analyzed before, the connection between entrepreneurs and investors is like marriage. Marrying an inappropriate investor is likely to ruin an entrepreneurial project.

Therefore, pay attention to the investors behind the funds, pay attention to their industry background, pay attention to the resources they have and the projects they invest in, and see if they can bring real value to themselves.

When investors look at a project, they often need to conduct very detailed due diligence on the project and its team backbone; Similarly, as an entrepreneur, it is necessary to conduct similar due diligence on the investors behind the fund when looking for investment.

3. Part-time entrepreneurship hopes to integrate funds, and then full-time entrepreneurship is not only a full-time job, but also a career. Part-time business instruction has no confidence in your project or yourself, because you put it in the second backup position.

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