Many venture capitalists focus on a few industries, and generally don't think too much about the industries that set the investment scope.
Second, the region
Some venture capital companies may focus on investing in certain areas.
Third, funds.
Some venture capital companies only like to provide some start-up funds, and some venture capitalists focus on investing in a certain industry or region. Early fund can be subdivided into seed fund, initial fund and initial fund.
The first step of venture capital financing is initial contact, and the process of conversation is very important.
You need to clearly explain the outline of your financing project in a short time to attract investors to follow up your story.
You should prepare a detailed business plan to let investors see your business profit model.
At the same time, let investors feel that you have a clear understanding of the market, industry and target customers.
What stage does venture capital go through?
Generally speaking, venture capital companies have their own investment strategies. Their investment will always go through some stages. (1) Venture capital. According to some business ideas or business plans of business operators in the future, as well as some advanced technologies or embryonic industries, it is difficult to predict the prospects of enterprises by providing venture capital as the start-up funds and early commercial operation funds of enterprises. This step is largely a gamble, which mainly depends on the personal judgment and decision of the managers in charge of venture capital companies. Overseas markets. For venture capital companies, this stage is the most cautious, but caution means caution. Never be so cautious that you have no guts, nothing ventured, nothing gained. (2) Development investment. After the completion of venture capital, business operators have mastered the prototype products after starting a company with venture capital, but they need to develop the prototype products into market-accepted stereotypes and start market promotion. At this time, entrepreneurs need to carry out economic environment analysis and market research, and ask venture capital companies for enterprise development and investment with reliable technical data and convincing market data. At this time, venture capitalists are concerned about how long it will take for enterprises to break even. If it is in the foreseeable future, it may be impatient. According to statistics, most companies introduced by venture capital companies are often unable to start at this stage and are ruthlessly eliminated by the market. At this time, the remaining enterprises undoubtedly have strong vitality. For them, the darkness has passed. For these venture capital companies, it is time to really try their luck and make huge profits. At this stage, most venture capital companies are unwilling to invest a lot of money in order to avoid accidents, so enterprises are often at a disadvantage in negotiations with venture capital companies. (3) Development investment. At this stage, the enterprise has gained a firm foothold and made great progress in market development. In order to establish the brand and establish the dominant position of the company in the market, entrepreneurs often need to obtain the third round of investment, but this time, unlike the previous two, enterprises have mastered the initiative in choosing investors, because the source of funds is no longer a problem. (4) In order to quickly occupy a larger market share and even establish a controlling position in the market, in order to seek greater profits, entrepreneurs have very favorable conditions to obtain expanded investment to update equipment, merge other companies and open more branches. At this stage, entrepreneurs should seriously consider the issue of public listing of companies. For entrepreneurs, in the above four stages of enterprise development; The first stage is the most difficult stage to raise venture capital. Everything is difficult to start a business, but as long as entrepreneurs can achieve the goals of each stage of enterprise development, financing is always easier than the initial stage of the enterprise. In an ideal state, entrepreneurs should strive to protect their controlling shares. Many American enterprises often exchange 30% of their shares for venture capitalists' sufficient venture capital at the initial stage of their business. Then about 10% of the shares are exchanged for the second round of development venture capital. With the development of enterprises, the more valuable the shares of enterprises are, entrepreneurs generally will not sell their shares rashly. When the enterprise develops to control the whole industry, the process of venture capital can come to an end.