How do VCs make money, distribute money and manage personnel? When dealing with capital on the road to entrepreneurship, it is very necessary to understand the organization's profit distribution model and personnel structure. The following is how VCs make money, compiled and recommended by J.L.

, share money and manage personnel, please continue to visit (www.oh100.com/chuangye) for more popular entrepreneurial projects.

This was posted by Huang Yungang of Jingwei in the circle of friends a few days ago. I am very touched. This situation is very common. In many cases, both entrepreneurs and FAs will want to directly find partners to communicate at the early stage of project exchanges. This is

This idea is understandable, but the bandits think there may be several misunderstandings: 1) Partners are proficient in any industry; 2) Partners can directly make investment decisions; 3) Direct meetings can shorten investment decision-making time; 4) Direct meetings can make impossible decisions

become possible.

However, this is not the case. Generally, investment institutions make decisions through basic research and initial project interviews by analysts/investment managers, project screening and judgment by investment directors, and finally through an investment committee composed of partners.

This scientific method is the working process of a formal investment institution.

And as Huang Yungang said, partners may not necessarily have a deeper understanding than analysts on many directions and specific points.

Moreover, many analysts have a very strong ability to promote project financing. It does not necessarily mean that only partners can promote projects. After all, analysts understand many projects more deeply than investors. Because they understand better, they are often more willing to promote projects.

Project, this is also something that entrepreneurs should consider.

This article will let us go into VC institutions to understand how "high-end" VCs make money, distribute money and manage personnel. It will also help you find suitable promoters and communicate and cooperate with investment institutions efficiently.

Why are there so few people who are VCs? Normally, an early-stage institution’s investment and post-investment team will not exceed 20 people. Even for VCs with relatively large fund sizes like Matrix Partners and Fengrui Capital, the investment team is still small.

It will be controlled within 50 people. Many people must ask, why are the teams in this industry so streamlined? The reasons are as follows: The personnel structure of partners-directors-investment managers/analysts is relatively reasonable for early-stage investments. A VC focuses on

There are generally 5-10 industries, and if there are fewer, there may be 2-3 big industries. In this way, according to a 2-3 partner, each partner has 2-3 VPs, and each VP leads 1-2 investment managers.

/ Analysts are fully covered, and an investment team is indeed only about a dozen people.

The risk coefficient of early investment faced by VC is much higher than that of the secondary market and far higher than that of PE. The main reason is that the investment stage is very early and it is basically impossible to judge the company's development expectations through financial models or business data.

, so a relatively in-depth and complete logical chain is needed to judge and analyze the industry and evaluate the team. In fact, the fewer people involved in this process, the better, so as to ensure that the transmission, sharing and discussion of information are complete.

, error-free and efficient.

In view of the clear division of labor and the investment committee to check, there is basically no need for two people to work together to do one thing. To establish a single-person operation tactically and tacit cooperation strategically is what an excellent early investment team should do.

Some goals.

The goal of VC institutions is to bring excess returns to LPs (investors), and at the same time, to bring relatively generous carry (project shares) to the investment team through the exit of projects. A flat small team is not only conducive to the efficiency of investment work

It will also allow the team to reap more financial rewards in comparison.

Personnel of VC institutions Following the previous topic, let’s talk about the composition of the investment team of VC institutions.

The organizational structure of VC is still very flat, mainly divided into three functional roles: partners, directors/VPs, and investment managers/analysts.

Partners of VC institutions are mainly responsible for fund raising (especially founding partners), brand building, daily management, investment committee decision-making, post-investment resource matching and other matters. General partners need to meet several conditions. The first is

Have connections and resources in one or several industries; secondly, have past investment cases that have been recognized and have brought excess returns to LPs (at least 10 times or more); thirdly, have relatively strong fund-raising capabilities and long-term development as a VC

There will be several funds, and the investment team needs to constantly invest and layout in the industry, so it will test the partners' ability to find money. Of course, if you do well in the first two points, both individual LPs and institutional LPs will take the initiative to come to you.

Come.