There is a logic that everyone should understand: angel investors' money is invested in you, but not for you personally. You can't easily transfer it to your personal account, but you can get it directly. Angel investors' money is set in a legal company account for guidance. The right to use and the scope of use are clearly defined, and every sum of money must have a formal financial process. Don't think that if the investor gives you the money, you can use it freely. Seeing the money in front of your eyes, you can let you in as long as you dare to operate illegally.

there is a metaphor in this process: this woman wants to be a mistress. You look at this rich man and he has money, but the money may not be 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 is the law of capital and ruthless hands.

Of course, in the process of operation, some founders who specialize in playing capital can have a lot of room to realize their operations, such as advertising promotion and business model services, which can not be defined, such as traffic, and they can quickly burn the capital money. In this process, they turn around several links and then transfer them to their own accounts, but every time you turn a link, there is one more risk. Once the associated risks appear, no one can run away, so all the links that allow you to operate will require money.

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when you know the real profit of venture capital, you will find that venture capital is really afraid of having no money and no good projects.

venture capital, also known as venture capital, venture capital.

In the past, the rich made their fortune by starting their own businesses.

Today's rich people make money by investing in others to start businesses.

we have seen many failures in starting a business, 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 return can be brought by the success of creating wealth, but they are already unable 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, and this has led to venture capital.

The earliest venture capital companies were not founded by the investment tycoons as we understand them, but were paid by the entrepreneurs.

the earliest venture capital projects were not investigated by startups in the whole market, but were hatched by big bosses.

The venture capital companies in China didn't make so much money at the beginning, and there were many projects that lost money. The surviving projects only ensured that the funds of these bosses were not lost, and there was not much profit.

The real peak of venture capital started with the explosion of Internet dividends, and 7% of venture capital profits in China also came from the Internet.

The reason is relatively simple. Internet companies are mostly asset-light, which makes banks reluctant to lend money 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, the profit-making process is relatively long, which led to the company always needing a lot of money as a reserve.

Internet companies that can't borrow money hope to have capital to enter the market, help them tide over the short-term difficulties, and share the dividends of the later Internet.

We have all seen the ending. At present, relatively large companies, such as Ali, Tencent, Baidu, JD.COM, Pinduoduo, Meituan, Didi, etc., have achieved their present achievements by relying on the outlet of the Internet and a large amount of venture capital accumulation.

There are different opinions about how much profit the venture capital has. Most of the published data are actually not accurate. Many venture capital do not want to be exposed about their actual profits, because this 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 proportion of shares, giving financial and resource support.

Of course, some capitals like corporate control or one-vote veto.

With the long-term enterprise growth, capital will choose a relatively good time to quit and gain arbitrage in capital.

the common exit method is listing, but in fact, a large part of it is mergers and acquisitions, and a small number of enterprises will choose to buy back.

no matter how you exit, the capital will try to push the transaction to be concluded, so as to ensure that you can exit with the proceeds.

capital doesn't like dividend returns every year, because the P/E ratio of most investments is dozens of times, which means that it will take decades to withdraw if capital is recovered by dividends.

not to mention Tencent Ali, whose market value soared to hundreds of billions of dollars after listing, and most domestic companies listed with market value of several billion RMB.

if the average seed wheel is valued at less than 1 million, the enterprise will grow at least several hundred times.

if you can invest in a future industry giant, you will earn a lot of money with a market value of 1 billion RMB.

It is precisely because of the possibility of a hundred times, a thousand times or even tens of thousands of times of return that venture capital is happy 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 in the hope of success and capital return.

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 money.

Because apart from capital, ordinary people can't bring industry resources, and individual investors are easy to tell what to do, and it 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, so they cannot accurately judge the future development expectation of the project, and the success rate of investment is extremely low.

if the venture capital project is one in a million, then the success rate of ordinary people in venture capital is one in a million, or even ten deaths without life.

if each project only needs to invest 1, yuan, and if one of the 1, projects succeeds, it will need 1 billion yuan, then those 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 conversely, think about the possibility that what kind of projects can bring them huge returns.

1. The market environment in which the project is located

Many people may not quite understand what the market environment refers to, 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.

it would be better if it could reach the whole population.

It's not that projects in niche markets can't be done, but such projects tend to have an upper limit, and many capitals despise them because there is little room for imagination.

2. The profit model of the project

This is actually very important. Many people misunderstand venture capital and think that most companies that need venture capital are losing money.

Even if we see that companies like Pinduoduo, Meituan and Didi are losing money all the year round, it doesn't mean that they can't make profits and have no clear profit model.

the reality is that the companies that venture capitalists are looking for have very strong profitability in the future from the profit model, but only because they need a lot of cost investment in the early stage will they suffer losses.

any enterprise that only relies on capital subsidies for blood transfusion will eventually go extinct if it has no hematopoietic capacity.

because capital is not a philanthropist, but also a vampire.

3. The ability of the entrepreneurial team

Capital investment is not only the project itself, because the project itself is mostly just a model.

apart from the market environment and industry conditions, the success of a project mostly depends on the ability of the entrepreneurial team itself.

Therefore, venture capital also attaches great importance to the entrepreneurial team, especially the founder's ability.

VC has a unique risk control system for project research and future performance expectation judgment, and the above three points are only the most critical aspects.

There is still a lot of relevant knowledge about venture capital. Interested friends can learn about it themselves, and you are welcome to exchange views.