Enterprise development is generally divided into five stages: seed stage, initial stage, growth stage, expansion stage and maturity stage. There are corresponding investor types and precautions at different stages of development.
(1) enterprise seed period
At this stage, the enterprise is in the stage of technology and product research and development, and there is no mature business plan, team and business model at present. Therefore, most of the investment attracted is based on the angel investment of acquaintances and friends. And acquaintances and friends who are angel investors can only help entrepreneurs get start-up funds, but lack knowledge, experience and resources. Mature angel investors or institutions can not only provide funds for entrepreneurs, but also provide guidance on enterprise management, market, products and development strategies by using their own resources and channels to help entrepreneurs grow and develop rapidly.
Angel investment is a kind of equity capital that invests in high-growth enterprises, and it is an early investment in original projects or small start-ups in the state of conception. Angel investment is a kind of venture capital, but there are great differences between them: the threshold of angel investment is lower than that of other venture capital institutions, entrepreneurs only rely on one idea and one idea, and as long as they have development potential, they may have the opportunity to obtain angel funds; Venture capital mainly invests in mature and expanding enterprises, and has little interest in these unborn or hungry "babies" For entrepreneurs who have just started, they can't eat the "big pot" of loans from banks, and they can't touch the "vitamins" of venture capital. They can only rely on the "baby milk powder" invested by angels to absorb nutrition and thrive.
(2) Enterprise start-up period
At this stage, enterprises initially formed products and began to supply the market. It has formed a rough business plan and initially established a management team. However, the stability of the team is poor, and it has a certain operating income, but it has basically failed to achieve profitability. At this time, enterprises, like toddlers trying to stagger their legs, need various teaching and support, and still rely mainly on angel investment, government incubators/government funds and venture capital to some extent.
At present, in order to promote the development of entrepreneurial enterprises, the government has established some angel investment funds. 20 10 12. Beijing fuhui angel high-tech venture capital co., ltd., the first government-guided angel fund in China, was established in Beijing with a total scale of 250 million yuan, mainly investing in innovative enterprises and high-tech enterprises that are not listed in the initial stage and the growth stage. The fund was established by Beijing Municipal Government, National Development and Reform Commission and Beijing Fuhui Venture Capital Management Co., Ltd.; 20 12 angel funds such as Hunan Lugu Hi-Tech Angel Fund, Chongqing Youth Innovation and Entrepreneurship Angel Fund, Chengdu High-tech Zone Venture Angel Investment Fund and Ningbo Angel Investment Guidance Fund were established one after another. Among them, Chengdu Hi-tech Zone Venture Angel Investment Fund is the first angel investment fund fully funded by the government in China, with an initial investment of 80 million yuan. The investment direction of the fund includes mobile Internet, electronic information, biomedicine, precision machinery manufacturing, environmental protection, new energy and new materials, and modern service industry. In 20 13, angel investment fund of Hefei High-tech Zone, angel investment guidance fund of Jiangsu Province, angel investment fund of Wuhan City and angel investment guidance fund of Qingdao City were established one after another, and government angel investment fund became an important form for the government to guide scientific and technological innovation and entrepreneurship.
(3) enterprise growth period
At this stage, the product structure of the enterprise is initially improved, forming a relatively stable quality management system, and occupying a certain market share, the cohesion of the management team is enhanced, and the operation is gradually on the right track and has profitability. This stage is the first stage of the enterprise's strong demand for funds. Because putting products on the market involves production, circulation, sales and other links, enterprises need a lot of money for plant construction, equipment purchase, marketing and so on. At this time, the enterprise has formed or controlled certain resources, such as existing factories, equipment, bargaining power in the industrial chain, etc., and has certain financing ability. Therefore, enterprises at this stage have the conditions to obtain venture capital and private equity investment.
It is very important for enterprises to obtain venture capital or private equity investment during this period. After the investment, the enterprise can not only realize the expected large-scale investment, purchase equipment, expand production capacity and enhance market expansion ability. , but also improve the company's product system and further expand market share; Introduce excellent senior managers for the company, expand and enrich the entrepreneurial team, and strengthen the role of the middle-level backbone team; It is recognized in the capital market and lays the foundation for subsequent financing.
(4) Enterprise expansion period and maturity period
At this stage, the enterprise has formed a stable management team and business model, achieved the established market share target, has considerable cash flow, and has profitability higher than the industry average. At this stage, enterprises own and control more social resources, own their own hard assets such as factories and equipment, and control certain upstream and downstream resources. They have passed the high-risk period of entrepreneurship and the bottleneck period of development, and enterprises urgently need to expand rapidly. Therefore, the demand for funds is increasing, and the financing methods are becoming more and more diversified. They can seek investors from private equity funds, commercial banks and capital markets for a new round of investment.
Private equity funds generally invest in the period before the company goes public or in the mature period of the company's development. At this time, the company has a listing foundation and achieved the income or profit target required by private equity funds. Private equity investment usually provides enterprises with the necessary funds and experience, helps them to complete the restructuring structure required by IPO and the funds needed before listing financing, and helps enterprises to sort out the governance structure, profit model and fundraising projects according to the requirements of listed companies, so that they can go public within 1-3 years. At this stage, we need to be very cautious in choosing private equity funds, and we need to know their reputation, background and past successful cases. The correct private equity fund can accelerate the process of listing and get rich returns, while the inappropriate private equity fund can not only help the listing of enterprises, but also hinder the listing of enterprises, leading to the failure of listing in a short time.
From: Golden Carpet Capital.
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