Entrepreneurship is a trend in modern society. If you want to start a business, money is the guarantee. So what are the sources of venture capital? The following are five sources of venture capital that I have sorted out, hoping to help everyone.
First, it was given by parents and elders.
Some people despise the second generation of rich second generation officials. Actually, there is nothing to despise. This is the natural resource they brought, and they can't envy it. As long as these second generations don't do anything harmful to society, there is no need to despise them. These second-generation entrepreneurs have a natural advantage, that is, not bad money. National husband Wang Sicong is the son of the richest man. His father gave him hundreds of millions of dollars to practice, but fortunately, Wang Sicong worked hard on his own, and the income from investment and entrepreneurship was not bad. Therefore, if the family has money, it is embarrassing for parents and elders to give some money when starting a business. It is good to use it well.
Second, I earned it myself.
However, not everyone has a rich second generation, which requires making money by themselves. People, as long as they are working or trying to do business, have income. These incomes are the capital when starting a business. Moreover, starting a business with the money earned will cherish money and opportunities more, and the probability of success in starting a business is higher.
Third, apply for a loan.
Foreign entrepreneurs will apply for bank loans. With the improvement of China's economic system and the enhancement of financial vitality, it is much less difficult to apply for loans. If you want to start a business, take the initiative to apply for a loan. It is best to have a policy loan to support entrepreneurship, because its interest cost is very low; If not, apply for an ordinary bank loan.
Fourth, find friends to borrow or pull people into shares.
Borrowing money from friends is also a skill. And if the entrepreneurial project is really good, it is also a good choice to pull friends or acquaintances into shares. When Ma Yun started his business, he brought a group of people together and everyone made a sum of money. Without this method, there would be no later business empire Alibaba.
Fifth, find venture capital.
For some projects with great potential, if you have a business plan, you can go to venture capital. Now venture capital is in a very active period, especially in the field of mobile Internet. As long as the project has a good prospect, it is easy to get venture capital. If venture capital can be recognized and affirmed when starting a business, it means that there is a lot of money to enter, which is of great help to starting a business.
Six ways of venture financing+cases
First, venture capital: the entrepreneur's "vitamin C"
In English, the abbreviation of venture capital is VC, which is exactly the same as the abbreviation of vitamin C. From the functional point of view, both of them have similarities and can provide necessary "nutrition". Venture capital in a broad sense refers to all investments with high risks and high potential returns; In a narrow sense, venture capital refers to the investment in the production and operation of technology-intensive products based on high technology. According to the definition of American Venture Capital Association, venture capital is a kind of equity capital invested by professional financiers in emerging, rapidly developing enterprises with great competitive potential.
Case: Chongqing Jiangbei General Machinery Factory began to develop and produce new products of large Freon units from 1995, which have compatible functions and can replace other refrigerants. Because banks generally don't lend money to new products. Chongqing Venture Capital Company provided a loan of 6,543,800 yuan. Two years later, the sales of new products of Jiangbei General Machinery Factory reached 70 million yuan.
Second, angel investment: entrepreneur's "baby milk powder"
Angel investment is a one-off upfront investment made by free investors or informal venture capital institutions for original projects or small start-ups in the state of conception. Although angel investment is a kind of venture capital, there are great differences between them: angel investment is an unorganized venture capital, and its source of funds is mostly private capital, not professional venture capitalists; Angel investment threshold is low. Sometimes even an entrepreneurial idea can get funds as long as it has development potential, and venture capital is generally not interested in these unborn or hungry "babies".
In the field of venture capital, the word "angel" refers to the first investors of entrepreneurs, who put money into the company before its products and business take shape. Angel investors are usually friends, relatives or business partners of entrepreneurs. Because they are convinced of the ability and creativity of entrepreneurs, they are willing to invest a lot of money in entrepreneurs before starting their business. A typical angel investment is often only a few hundred thousand dollars, which is a fraction of the money that venture capitalists may invest in the future.
For entrepreneurs who have just started, they can't eat the "rice" of bank loans and the "vitamins" of venture capital. In this case, they can only rely on the "baby milk powder" invested by angels to absorb nutrition and thrive.
Case: During his tenure in Yili, Niu Gensheng became friends with Xie because of customized packaging products. When Mengniu started its business, Xie, as a printer, generously injected cash into Mengniu during its initial stage, and gave most of its equity to Mengniu management, employees and other beneficiaries in the form of "Xie Trust" for free, and did not participate in any management and development arrangements of Mengniu. In the end, Xie also gained a lot. The investment of 3.8 million yuan has now become 65.438+0 billion yuan.
Third, innovation fund: a "nutritious meal" for entrepreneurs.
In recent years, China's small and medium-sized scientific and technological enterprises have developed rapidly and become a new important growth point of national economic development. The government also pays more and more attention to the development of small and medium-sized science and technology enterprises. Similarly, the contradiction between the urgent requirements and financing difficulties faced by these enterprises in the initial stage of their business has also become an important problem that the government is committed to solving.
In view of this, the Ministry of Science and Technology and the Ministry of Finance jointly set up and launched a government-supported technological innovation fund for small and medium-sized scientific and technological enterprises to help them solve their financing difficulties. Innovation fund is increasingly becoming a delicious "nutritious meal" for financing small and medium-sized science and technology enterprises.
Case: Lanzhou Dacheng Automation Engineering Co., Ltd., mainly engaged in product development for one year, with almost no income. Although great progress has been made in technological development, the shortage of funds is becoming more and more prominent. At that time, the technological innovation fund for small and medium-sized scientific and technological enterprises was launched, and the enterprises were very excited after learning about it. They chose the internationally advanced project "R&D and transformation of all-electronic intelligent control series modules in railway stations" to apply for innovation funds. To this end, they further accelerated the speed of research and development, passed the technical review of the Ministry of Railways in 1999 and 12, and achieved phased results. It is precisely because the enterprise has a good technical foundation that it won the support of 1 10,000 yuan innovation fund in 2000, which not only played a timely role in helping, but also played a role in guiding funds. In the same year, it won 500,000 yuan from Gansu Provincial Science and Technology Department's Major Achievements Transformation Fund and1.2000 yuan from the Ministry of Education's Basic Research Fund of "Backbone Teachers in Colleges and Universities". 200 1, according to the technical requirements of Qinghai-Tibet railway construction, this project is included in the key research plan of Gansu Province, and the scientific and technological support cost is 300,000 yuan.
Fourth, secured loans for SMEs: the "anshen decoction" of entrepreneurs.
On the one hand, small and medium-sized enterprises have difficulty in financing, and a large number of enterprises are hungry; On the one hand, banks lack funds, but they are unwilling to lend to small and medium-sized enterprises. The main reason is that banks think it is difficult to prevent risks by lending to SMEs. However, with the strong support of national policies and relevant departments, and the surge in the number of secured loans, secured loans for small and medium-sized enterprises will surely become another effective financing road for small and medium-sized enterprises, which will "soothe the nerves and replenish the brain" for entrepreneurs.
Case: A high-tech company in Shanghai is a first-class professional enterprise in art lighting landscape construction in China, and has developed dozens of products. Supported by strong R&D capabilities, the company's business has developed rapidly. With the development of business, financial difficulties come. The industry characteristics of engineering enterprises are slow withdrawal of funds and serious occupation of circulating funds. However, due to the small scale of the company and the lack of credit records of cooperation with banks, it is difficult to obtain bank financing.
At the end of 2005, the company received a working capital loan of 800,000 yuan guaranteed by China Insurance Company. Therefore, the company has achieved rapid development in the past two years. From June to July, 2007, the company won the bid for the lighting project of Beijing Olympic Stadium in 2008.
Five, government funds: entrepreneurs' "free imperial grain"
In recent years, the government is fully aware of the important position of small and medium-sized enterprises in the national economy, especially the local governments in various provinces and cities. In order to enhance their competitiveness, they constantly adopt various ways to support high-tech industries or advantageous industries. To this end, governments at all levels have set up some government funds to support them. This is a good opportunity for many scientific and technological personnel who have skills and are interested in starting a business, especially those who have returned from studying abroad, to eat "free imperial grain".
Case: Dr. Shi, 200 1 studied and worked in Australia 14 years, returned to his hometown of Wuxi to start a business with 10 years of scientific research achievements. When the leaders of Wuxi learned that Shi's reputation and his research achievements in solar crystal silicon batteries were still blank in China, they immediately made a decision to support scientists as bosses. Led by the Municipal Economic Commission, Wuxi Municipal Government and several large local state-owned enterprises invested 8 million yuan to establish Wuxi Suntech Solar Power Co., Ltd. ... With the full support of government funds, Suntech has developed by leaps and bounds, with sales exceeding 100 million in just three years and becoming a star enterprise in the industry.
6. Pawn financing: the "instant noodles" of entrepreneurs
Although venture capital is a beautiful thing, it is only the "privilege" of a few elite entrepreneurs; Although the door of the bank is open, there is a certain threshold. "It is the fastest to apply for a loan in an emergency", and the main function of pawn is to save the emergency. Compared with the mainstream financing channel of bank loan, pawn financing only plays the role of filling the gap and adjusting the surplus and deficiency, but it is figuratively compared to "instant noodles" because it can win more funds for financiers in a short time, and it is gaining the favor of more and more entrepreneurs.
Case: Mr. Zhou is a communication equipment agent. Some time ago, he won the agency right of a brand-new mobile phone, but the problem is that he can only get the goods after paying the purchase price within three days, and the funds are invested in another commercial project. He doesn't want to lose this hard-won agency. Mr. Zhou's mind turned to his "BMW" car, so he immediately drove to the pawnshop. After knowing the situation, the salesman told him: you can apply for pawn to get the funds on the same day. Mr. Zhou was overjoyed and immediately went through the pawn formalities, paid the relevant documents, filled out the form, drove the car to the designated warehouse, signed a contract and received the pawn money. Within half a day, he got the urgently needed 500 thousand and redeemed it a month later. This pawn helped him earn nearly 654.38+ten thousand yuan.
Sources of venture capital
Path 1: parental support
According to the data research of authoritative analysis organization Michaels, parents, personal savings and sponsorship from relatives and friends are the main sources of funds for college students' entrepreneurship, accounting for more than 80% of the total sources. However, the amount of self-raised funds is very limited, which is far from meeting the capital needs of business start-up and operation. Once the business fails, not only will all parents' savings for many years flow to Shui Piao, but they may also be burdened with heavy debts.
Path 2: College Students' Entrepreneurship Loan
College students' entrepreneurial loans are unsecured and unsecured college students' credit loans issued by banks and other fund-issuing institutions. With the country's increasing support and attention to college students' entrepreneurship, governments at all levels have introduced many preferential loan policies for college students' entrepreneurship. However, college students' entrepreneurial loans have been launched for many years, but the proportion of college students applying for loans is still very low.
Path 3: Entrepreneurship Support Fund
In recent years, national and local governments and relevant financial institutions have successively issued some targeted policies to support college students' venture capital. These entrepreneurial support funds reflect the support and encouragement of the government and universities to college students' entrepreneurship, which can really solve the urgent needs of many college students. However, these funds are generally small in scale, narrow in scope of assistance, high in application threshold and difficult to implement.
Path 4: Venture Capital
It is the equity capital invested by professional financiers in emerging, rapidly developing enterprises with great competitive potential. Venture capital needs neither mortgage nor repayment. For entrepreneurs, the biggest advantage of using venture capital is that they will not be in debt even if they fail, which makes venture capital the most popular source of funds for young people to start businesses. For college entrepreneurs, it is difficult to attract the attention of venture capitalists.
As can be seen from the above, although college students' entrepreneurship has been supported by the government, schools, society and families, the lack of venture capital still makes some college entrepreneurs feel headache. Most entrepreneurial companies in society take venture capital as the threshold, but there is also an example in these entrepreneurial companies, such as Chuangshan Technology. Chuangshan Technology is a new startup company, which can make some large sketches start businesses for free, and fundamentally solve the problem that some college students lack venture capital. Its interactive entrepreneurial model, experience first and then start a business, greatly reduces the entrepreneurial risk of college entrepreneurs. The mode of creative recycling has become the biggest guarantee for entrepreneurs when their entrepreneurial projects are cold.
And in 20xx, Chuangshan Technology also launched the Chuangshan Fund policy, which is specifically aimed at those entrepreneurs with high risk investment pressure. All O2O stores under the joint line have invested 40,000 yuan to support entrepreneurs, and entrepreneurs only need to act. The funds needed for starting a business are all flashed by innovation, and various projects are randomly selected to become a startup market and a real free pie.
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