Abstract: for start-ups, the successful financing is the first step to success. After successful financing, does not mean success, but also may die in the A round of financing, B round of financing, but also may face the death of C round.
entrepreneurship is a bumpy road, you need to select the most appropriate or the most successful one from the original idea of N, we must continue to select the most appropriate person to form a team, product landing, marketing promotion…… In these processes, the money is particularly important.
for start-ups, the successful financing is the first step to its success. After the successful financing, does not mean that the success of start-up companies may also die in the A round of financing, B round of financing, even if the threshold crossed the front, may also face the death of C round.
innovation works, senior investment manager Sun Zhichao on "the choice of financing opportunity, develop effective financing strategy, after the completion of the financing problems are" unique interpretation; nine Xuan Capital Partners Liu Yizhou, bluerun partner Chen Weiguang and Kay Vantage Capitals Ltd founder Wang Ran, is wary of "A, B, die die round round round C death gives his own views.
Sun Zhichao: a few vital
can not know the financing
1, choose the right time, the money is also financing
what time is most suitable for financing, there is no perfect answer, but the scientific judgment is beneficial. Economic situation, industry dynamics, capital markets, will affect the investor’s willingness to invest. Therefore, understanding the status of these important economic engines is an important reference to choose the best financing time. This year, what is hot in the field next year, whether the heat can keep the industry situation is good when the financing is easy, otherwise it is a headache. The entrepreneur must take advantage of the opportunity, if the environment is not good, you need to quickly financing, do not blindly wait for a more favorable opportunity.
in addition to the macroeconomic situation, there are some other possible birth of financing time points, such as: companies need to have a strategic plan to increase investment, rapid expansion, to seize the market; competitors are already financing or financing, and in areas where the funds will rapidly improve the competitiveness, etc..
2, fully prepared to develop financing strategies
next, internal to determine a financing framework. The number of shares sold, how much to finance? Whether or not to accept the stage? Whether to accept the bet? You need to re adjust the option pool? All of these need to be settled in the official financing before, in the current board of directors has internal consensus, if the founder of autocratic, could eventually will lead to naught.
is usually used to estimate the amount of 12-18 months of the company’s operating costs, but there is no unique solution or optimal solution, but a "range". Financial models do not need to be very accurate estimates, the actual operation of the company will not necessarily be executed according to the budget table, entrepreneurial team