There is a metaphor in this process: this woman wants to be a mistress. Look at this rich man, but the money is not necessarily yours. You may just look at it at most. If he doesn't want to play with you, he can always find various reasons to stop the loss decisively, then realize the high-quality resources and then quit. This process has priority rules, which are the laws of capital and ruthless hands.
Of course, in the process of operation, some founders who specialize in capital can have a lot of space to realize operations, such as advertising promotion and business model services, which are undefined, such as traffic, and they can quickly burn the capital money. In this process, they turn several links and then transfer them to their own accounts, but every time you turn a link, there is one more risk. Once the relevant risks appear, no one can escape, so all the links that let you operate need money. This is capital.
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When you understand the real profitability of venture capital, you will find that venture capital is really not afraid of no money, and is afraid of no good projects.
Venture capital, also known as venture capital and venture capital.
In the past, the rich got rich by starting their own businesses.
Nowadays, rich people rely on money to invest in others to start businesses and create wealth.
We have seen many entrepreneurial failures, which can be described as a narrow escape, but we have never thought about how much return the company can bring in that life.
The rich understand how much the success of creating wealth can bring back, but they are no longer able to start a business again.
Therefore, finding the most professional entrepreneurial team in every field and sharing profits through capital shares has become a new way for these rich people to play, which is venture capital.
The earliest venture capital companies were not founded by investment tycoons as we understand them, but by the money paid by entrepreneurial tycoons.
The earliest venture capital project was not to inspect the startup companies in the whole market, but to incubate the projects within the bosses.
Domestic venture capital companies didn't have that much money at first, and many projects lost money. The surviving projects only ensure that these bosses' funds are not lost, and there is not much profit.
The real peak of venture capital begins with the outbreak of Internet dividend, and 70% of venture capital profits in China also come from the Internet.
The reason is relatively simple. Internet companies are mostly light-asset models, which makes banks reluctant to lend to Internet companies.
Because once these enterprises go bankrupt, they can't repay their debts, and they are often insolvent.
Since the Internet was founded, because of the high R&D cost and promotion cost, and the long profit process, the company has always needed a lot of money to make reserves.
Internet companies that can't borrow money hope to have capital to enter the market, help them tide over short-term difficulties and share the dividends of the Internet in the later period.
We all saw the ending. At present, relatively large companies, such as Ali, Tencent, Baidu, JD.COM, Pinduoduo, Meituan, Didi, etc., all rely on the Internet and have accumulated a lot of venture capital to achieve their present achievements.
There are different opinions on how much profit venture capital has. Most of the published data are actually inaccurate. Many venture capital companies don't want to reveal their actual profits because the industry is too profitable.
Good venture capital companies don't need to publicly raise funds from the market, so they have a lot of money to come to you.
In the initial stage of starting a business, whether it is the seed round, the angel round or the ABC round, the funds will be invested in the startup company at the agreed valuation and the agreed share ratio, giving financial and resource support.
Of course, some capitals like company control or one-vote veto.
With the long-term growth of enterprises, capital will choose a relatively good time to quit and get arbitrage in capital.
The common exit method is listing, in fact, a large part is mergers and acquisitions, and a small number of enterprises will choose to buy back.
No matter how to withdraw, the capital will strive to promote the transaction and ensure that it can withdraw with the proceeds.
Capital doesn't like the return of dividends every year, because the price-earnings ratio of most investment stocks is dozens of times, which means that it will take decades to withdraw if the capital is recovered by dividends.
Needless to say, like Tencent Ali, the market value soared to hundreds of billions of dollars after listing, and the market value of most domestic companies was several billion yuan.
If we follow the ordinary seed wheel, the valuation will not exceed 654.38+million, and the enterprise will grow at least several hundred times.
If you can invest in a future industry giant with a market value of 1000 billion, you will make a lot of money.
It is precisely because of the possibility of a return of 100,000 times or even 10,000 times that venture capital is willing to find high-quality projects in the market.
The answer is almost impossible.
Maybe you think you have millions or tens of millions, and you can also invest in many entrepreneurial projects, hoping for success and a return on capital.
But the reality is that the projects that ordinary people can access are not good projects, because good projects are not short of money.
Excellent entrepreneurial teams don't want ordinary people's funds.
Because in addition to capital, ordinary people can't bring industry resources, and individual investors are easy to dictate, which is easy to cause unnecessary disputes and affect the development of enterprises.
What ordinary people lack is not only the open source of entrepreneurial project information, but also the research ability, which makes it impossible to accurately judge the future development expectation of the project and the investment success rate is extremely low.
If the venture capital project is one in a million, then the success rate of ordinary people doing venture capital is one in a million, or even ten deaths and no life.
If each project only needs to invest 65.438+billion, and 10,000 projects are successful and need 65.438+billion, then people who can invest so much money are no longer ordinary people.
Let's take a brief look at what kind of projects venture capitalists like, or think about the possibility that what kind of projects can bring them huge returns.
1, the market environment of the project.
Many people may not quite understand what the market environment means, but you can simply understand how big the project can be.
Generally speaking, the bigger the potential market scale of the project, the more favored the venture capitalists.
If we can target all the people, it will be better.
It's not that projects in niche markets can't be done, but that such projects are easy to have an upper limit, and many capitals don't like it because the imagination space is small.
2. Project profit model
This is actually very important. Many people misunderstand venture capital, and think that most companies that need venture capital are losing money.
Even if you see companies such as Pinduoduo, Meituan and Didi. All of them are perennial losses, but that doesn't mean they can't make a profit, and there is no clear profit model.
The reality is that the company that venture capitalists are looking for has very strong profitability in the future from the perspective of profit model, but it will only lose money because it needs a lot of cost investment in the early stage.
Any enterprise, if it has no hematopoietic capacity and only relies on capital subsidies for blood transfusion, will eventually die.
Because capital is not a philanthropist, but also a vampire.
3, the ability of entrepreneurial team
Capital investment is not only the project itself, because the project itself is mostly just a model.
The success of the project depends on the ability of the entrepreneurial team in most cases, in addition to the market environment and industry conditions.
Therefore, venture capital also attaches great importance to the ability of entrepreneurial teams, especially founders.
Venture capitalists have a unique risk control system for the research of projects and the judgment of future performance expectations. The above three points are only the most critical aspects.
There is still a lot of knowledge about venture capital. Interested friends can learn about it by themselves. Welcome to exchange and discuss.