Venture enterprises are often in the predicament of lack of funds at any stage. This is true even in the United States, which has the strongest entrepreneurial spirit, the least government regulation and the richest supply of venture capital. Therefore, the adequacy of start-up funds and follow-up funds has become the most critical factor for the success or failure of venture enterprises. So, how do venture enterprises get venture capital? In my opinion, the following aspects are worth noting. First of all, we must understand the ideas of venture capitalists. No investment company will choose those enterprises that do not have the conditions for success to invest. Generally speaking, the conditions for the success of an enterprise are: (1) having a high-quality venture entrepreneur, who must have dedication, decision-making ability, confidence, courage, clear thinking, sincere treatment and excellent leadership level, and can inspire his subordinates to work hard for the same goal. (2) Have a farsighted and practical business plan. This plan should make clear the value of starting a business, the development goal and trend of the business, the market and customers of the business, the advantages and disadvantages of the business, and point out the lack of funds for starting or developing the business. (3) There are new technologies and products with market demand or potential market demand, and there will be customers if there is demand; There will be a market if there are customers; Where there is a market, there is room for enterprises to survive and develop. (4) Experience and ability in management, a management team with balanced technical and marketing personnel, and an organization that can operate efficiently. (5) There is bonus support. Any enterprise without bonus support can only be a pipe dream. Venture capitalists especially prefer those companies with leading edge in high-tech fields, such as software, medicine and communication technology. If a venture entrepreneur has protected advanced technology or products, his enterprise will attract more interest from venture capital companies. This is because the high-tech industry itself has high profits, and the leading or protected high-tech products and services can make it easier for venture enterprises to enter the market and remain invincible in the fierce market competition. Therefore, these enterprises can often raise enough funds to tide over the difficulties. "Sub-enterprise". It is impossible to form a venture enterprise only by relying on new ideas or new technologies. In fact, only a few projects actually earned income before capital investment-that is, they had the initial operating conditions. Venture capital companies will not invest in a single technology or product. Venture capitalists subsidize those "sub-enterprises"-that is, only those venture enterprises that have formed a management team and completed business research and market research can get investment. Regional factors. General venture capital companies have certain investment fields. The field here has two meanings: one refers to the technical field. Venture capital companies usually only invest in enterprises that are familiar with the industry or enterprises in the technical field that they know. The second refers to the geographical area. Most of the enterprises funded by venture capital companies are located near the company's location. This is mainly to facilitate communication and control. Generally speaking, investors themselves do not participate in the actual management of the enterprises they invest in. They are more like a mentor, constantly providing strategic guidance and business advice to enterprises. Small company. Most venture capitalists prefer small companies, first of all, because small companies are more efficient in technological innovation, more dynamic and more adaptable to market changes. Secondly, small companies are small in scale, need a small amount of funds, and venture capital companies bear limited risks. On the other hand, small companies are small in scale and have more room for development, so they can get more benefits with the same investment. In addition, by establishing a company instead of just doing an investment transaction, it can help some venture capitalists realize their ideals. Experience. Nowadays, the venture capital industry is increasingly reluctant to cooperate with an inexperienced venture entrepreneur, although his ideas or products are attractive. In general investment projects, investors will require venture entrepreneurs to have experience or successful experience in this industry. If a venture entrepreneur claims that he has an excellent idea, but he has almost no working experience in this industry, investors will doubt the feasibility of this proposal. Pick up your phone. In this case, a common mistake made by most young venture entrepreneurs is that they did not seek enough help and did not communicate with other venture entrepreneurs who have achieved successful experience in this industry. Usually, a venture entrepreneur who realizes his inexperience will voluntarily give up the top leadership position of the enterprise, and he will hire a manager with successful experience to be the general manager (CEO) of the venture enterprise. Because most inexperienced venture entrepreneurs are young, this gives them enough time to grow into excellent managers and entrepreneurs. Enterprises seeking venture capital should know the venture capital market in advance. Venture enterprises can refer to the Encyclopedia of Venture Capital Companies and other reference materials-these documents often contain some information about their preferences, or refer to the list of investors of companies that are about to go public in the industry, or directly visit the managers of other companies in the industry. In addition, venture enterprises can screen out a number of possible investment companies according to their own characteristics and capital needs. When screening, the factors that venture enterprises should consider include: the investment scale that enterprises need; The geographical location of the enterprise; The development stage and status of the enterprise; Sales and profitability of the enterprise; The business scope of the enterprise, etc. Usually, lawyers and accountants play a great role in this process. In the process of raising venture capital, sometimes venture entrepreneurs need to find a master.
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