For projects with large investment funds, VC/PE institutions may even set up special service teams to strictly control risks, pay attention to the development trends of enterprises in real time, and intensify efforts to provide better value-added services. Of course, different stages of enterprise development, the corresponding post-investment management is also different. Judging from the financing rounds, post-investment management should focus on each stage.

The rounds discussed below are roughly divided into four parts: before Round A, A+ turns to Round C, D turns to Pre-IPO, IPO and beyond.

First of all, before the A round

1, save the team, build the team and straighten out the shareholding structure.

Before Round A, enterprises often had imperfect team configuration and unreasonable ownership structure. At this stage, it is not so much an investment project as an investment founder or core team. For early projects, human factors play a vital role. Projects that the team has been very reasonable and perfect at the seed stage are very scarce.

For most early projects, the team often has defects or deficiencies, so in order to incubate high-quality projects faster, the employer needs to work hard to help enterprises code the team and put forward suggestions on equity. In the A round, the perfect construction of the core backbone team also provided the foundation for the explosive growth in the later period. Some investment institutions even set up special personnel recruitment departments to find suitable candidates for invested enterprises for a long time.

In incubators, such problems are often encountered, but the advantage of incubators and industrial parks is that resources are more enjoyable.

2. Clarify the business model

Business models in different fields are different. For example, TMT, which is in the stage of Angel Round or Pre-A Round, should be able to grasp the core business, iterate quickly, and constantly try and make mistakes in business direction and mode. Once in the A round, the product form and mode need to be basically stable. At this time, we need to pay more attention to the integrity and stability of products, including stability, perfection and safety.

At this stage, the management helps enterprises to explore more reasonable and imaginative business models, reduce the trial and error costs of enterprises and avoid paying tuition fees for detours.

3. Docking financing

For early projects, financing is almost a necessary support to ensure the stability and sustainable development of the enterprise capital chain when the enterprise itself does not have good hematopoietic capacity. It is best if the enterprise has high-quality hematopoietic capacity at an early stage. But on the whole, the prophase project lacks reasonable financial allocation, has no good liquidation channel, and even breaks even. At this stage, the break of the capital chain is very likely to directly destroy a project. For companies that can make blood, capital intervention in the early stage is still beneficial, such as shortening the product cycle, making products mature and facing the market faster.

Considering that the introduction of the next round of investment institutions needs a period of contact and running-in, in this case, the employer and the project party need to make plans in advance. Under the condition that the enterprise's book funds can support it, of course, it is best to make plans at the beginning of enterprise financing, for example, when the enterprise's operating conditions reach a certain level, it will start a round of financing instead of financing because it needs money.

Valuation itself is linked to the maturity of enterprise growth and the future development space of business model, and it is not simply because enterprises are willing to release as much equity as they want to raise. Enterprise valuation needs to be reasonable in the market, in order to connect with the right investment institutions better and faster under the condition of homogenization of enterprise products. Then, on the one hand, the post-investment department helps enterprises sort out the financing plan, on the other hand, it helps enterprises determine the post-investment valuation and rhythm.

Second, A+ is C's turn.

1, Profit Model-Liquidation Channel

At this stage, on the one hand, the post-investment departments of enterprises and management help enterprises to improve their business models, but what is more worthy of in-depth study is the opening of cash channels, that is, the combing and development of profit models. Even in the angel wheel, the profit model will always be the point of thinking, but it is particularly important in the A+ wheel.

When the project develops from A+ to C, a reasonable profit model will bring more flow and cash flow to the enterprise and start hematopoietic function on a large scale. For example, TMT company, which is B's turn, has already had certain advantages in scale, and its focus should be shifted to expansibility, performance and efficiency, as well as details processing and liquidation channels.

2. Strategic financing

For enterprises at this stage, financing is not only to find funds, but also to find investment institutions that conform to corporate culture and future strategy, which can not only bring financial help, but also bring more resources to supplement and support. At this stage, the post-investment department should have a deeper understanding of the future development strategy and planning of the enterprise, sort out the employers that meet the corporate cultural attributes at present, and then make capital matching, which is actually equivalent to the role of professional FA.

In the process of capital docking, we will constantly solve the doubts of employers and sort out the future development direction of enterprises. At this stage, there may even be necessary transformation or cross-disciplinary expansion, but it must be carefully considered.

Third, D is the turning point of Pre-IPO.

1, strategic layout

Generally, a large amount of funds will take over the D round or Pre-IPO. At this stage, enterprises often have mature business models and good profit growth points. At this stage, the post-investment department needs to assist the project parties in effective strategic layout, such as business mergers and acquisitions, supplemented by supplements, improving the industrial chain and preparing for listing.

2, strategic financing or mergers and acquisitions

Absorbing small and medium-sized enterprises through mergers and acquisitions and supplementing the shortcomings of enterprises have become the focus of enterprise development at this stage. Necessary strategic financing and mergers and acquisitions will become the focus of this round of follow-up investment institutions. Judging from the current post-investment management, the post-investment role at this stage has begun to weaken, and more is to follow up regularly and replenish resources. As for the strategic level, such as financing or mergers and acquisitions, the depth of post-investment management needs to be strengthened.

Of course, being merged is also one of the paths to realize capital withdrawal. General enterprises will roughly finalize the willingness and feasibility of being merged in round B. When the enterprise develops to the D round, if it is to be merged, the post-investment department should assist in docking enterprises that can form strategic supplements in the industry or at this time, and assist in docking.

Four. IPO and beyond

The post-investment management of IPO and beyond is much less than the previous value-added points, but it does not mean that it is not needed. Regular financial return visits and the disclosure and follow-up of necessary events ensure the effective development and growth of enterprises after listing, thus ensuring the interests of investment institutions. At this stage, the post-investment department plays more of a doctor's role, regularly taking the pulse to ensure the healthy development of the enterprise.

Most companies can effectively expand their strategic territory after IPO, but some companies buy blindly. Whether it is strategic layout or investment and financing mergers and acquisitions, enterprises should not only understand their own industrial structure, but also think about the actions and value-added after mergers and acquisitions. No matter on the business model or on the technical level, enterprises cannot stop innovating at any stage.

To sum up, we prefer to compare the post-investment departments and enterprises directly to the mother-child relationship, of course, not to refer to the hierarchical relationship, but to the interdependence of the two in the development context. At different stages, the relationship between parents and children should be adjusted over time.

Early enterprises, like newborn babies, have just begun their lives, and the future is infinite. At this time, it is very important for the mother to raise and care, such as helping the seed wheel enterprise to save the team and providing financial and legal advice.

When you enter adolescence, you can take care of yourself by eating and drinking. At this stage, you pay more attention to spiritual edification and cultivation to prevent detours, just like enterprises in Pre-A round. When the child enters the age of 20, his personality and thoughts are relatively stable, so this time is the control of the general direction, and greetings in too many details are easy to backfire, similar to the enterprises around the C round.

When you step into middle age, you are mature in all aspects, just like companies that are about to IPO or have IPO, you can care and greet them regularly and irregularly.