In order to succeed in financing, entrepreneurs should first examine themselves carefully and learn how to communicate with VC.

Why can't I finance now?

Many entrepreneurs don't know who to raise money when they need money.

Of course, they all know that this road is unlikely.

I was asked by many entrepreneurs the same question: "Ma Yun was initially invested in Softbank and had nothing at all. I am much better now than he was then. Why can't I find VC financing?"

I can not answer. I can only say that Ma Yun must have his own uniqueness at that time. The success of a single case can not hide the reality of the failure of thousands of start-ups.

According to the statistics of Qing Ke group in recent years, domestic venture capital has been increasing year by year. No matter the number of VC funds, the total amount of funds managed, the amount of investment or the number of investment cases, it has continuously hit a new high.

However, there are few VC in early investment projects, and more and more entrepreneurs find it harder to find VC financing.

In order to find VC financing in China, the entrepreneurs need to look at themselves first: is your team ever earning money for VC?

If so, if you start a business again, you will have VC's attention, or even get creative enough to get VC investment.

If so, as long as you rank in the industry, there may be good financing opportunities; if you are engaged in traditional industries, and income has reached tens of millions of yuan, or even hundreds of millions, then you have the initial conditions for VC financing; if the above questions are negative, do not consider VC financing for a short time, because the possibility of success is relatively low.

This is the fact that entrepreneurs complain or scold.

Domestic VC is more and more inclined to invest in mature companies, focusing on the development period and even Pre-IPO projects. The investment boundaries between VC and PE are becoming more and more blurred.

The group of angel investors is still in the bud in China, with only sporadic investment cases.

How do you write the standard business plan?

The most important skill for entrepreneurs is sales.

Most of the entrepreneurs do not have the ability to raise equity financing to VC, especially for the first time entrepreneurs.

But in fact, financing is also sales, but the product sold is the company itself.

The business plan may be the first step in financing, and every entrepreneur wants to write a "standard business plan".

In fact, the main contents of the business plan are several articles, which can be found from the Internet and many related books, and nothing is "standard".

The role of the business plan is that entrepreneurs first use to clarify their own entrepreneurial ideas, motivate and inspire themselves and their entrepreneurial partners. Secondly, they describe the story of entrepreneurs to VC, and let VC be excited by the ideals and achievements of entrepreneurs, and feel that investing in this venture is an opportunity and a good chance to get a good return on investment.

Usually, with the help of the business plan template, entrepreneurs can easily decompose their entrepreneurial ideas into a preliminary business plan, but there are always some problems.

Entrepreneurs often worry that VC does not know their products, and it is very specific in business plans.

For a VC who has to read about 10 business plans on average, such product introductions are hard for them to read. They are more concerned about what problems your product can solve.

The description of competitors is not enough.

I have always believed that entrepreneurs are always more aware of the industry than VC. Although VC also has to do in-depth industry research, if entrepreneurs are "swimming", VC can only walk along the river.

Entrepreneurs may not be willing to list competitors in a business plan, or even be willing to admit their competitive advantage. It seems that only VC will not be attracted by competitors.

However, if VC considers that your competitors' descriptions are incorrect, they will be very skeptical about your understanding of the industry, and of course, the future of the company.

Financial forecast will not be done.

Entrepreneurs are very clear about the history and finances of the company, how they earn and how they spend it, but when it comes to financial projections for the next 3 years or even 5 years, it is rare for entrepreneurs, even CFO, to do so.

Financial forecasts are the expectations of entrepreneurs for the future development of enterprises. They are also the basis for valuing VC by enterprises.

In fact, as long as the entrepreneur can really identify the factors and driving factors of income, cost and expenses, and match the company's development plan, the financial forecast based on the financial model will come true.

How much is financing?

Many entrepreneurs are not financing according to the development needs of the company, but they can do so. 1 million of them are not few, 10 million are not too many; others are looking at the financing situation of other companies.

In fact, the amount of financing should meet the needs of the company in the next year or so, and on the other hand, it should conform to the company's valuation and the proportion of the founder's share pfer.

It is reasonable to obtain sufficient funds for the development of the company in a certain period with the minimum share pfer ratio.

After the development of the company, the financing channels will be more smooth, the value of the company will be greater and the cost of financing will be lower.

Before you send your business plan to VC, it is better for you to find experienced financial advisors and entrepreneurs who have successfully financed the business. Some suggestions are put forward to ensure that VC can understand your company and financing needs more conveniently and clearly.

Is it enough to send 200 copies?

After writing a business plan, entrepreneurs often can't wait to start contacting VC.

You can find many VC lists on the Internet, and are ready to start email bombing according to the above email addresses.

For example, an entrepreneur is more anxious and wants to try VC's feedback first, so he sent an email to about 10 VC partners or investment managers. As a result, 1 VC partners replied to "no interest" on the same day, 1 automatic replies, and the rest did not reply.

On the second day, he called the VC without response, and the reply was basically "received, is showing the interested people, and will be interested."

A week later, there was still no reply, and the answer was still telephone.

At last, he knew that these VC basically had no expectation, but he came up with a ridiculous idea: "I think it's too small. Do you think 200 copies are enough?"

It's really not necessary.

There are only 300~400 domestic VC, and these VC investment fields, single investment quota, investment area and so on are all matched with early start-ups. Maybe 30%. entrepreneurs should first find the VC that is really suitable for them. If the same story is given to all the target VC channels at once, once there is a failure, there will be no chance at all.

Therefore, every time it is best to communicate with a few families, such as 4~5, to see their feedback.

If every VC's focus is focused on a certain problem, you may need to solve this problem before you can continue to contact the new VC.. In addition, each time you communicate with VC, your ability to tell stories is also improved, which is conducive to the efficiency and effectiveness of your communication with subsequent VC.

For VC, if your company is really a good investment opportunity, they do not want all VC to discuss and compete for this project, because this will lift prices.

Once the majority of VC is not optimistic (if they really read your business plan), your company may need several years to raise funds.

It is a tough process to find out the right VC for entrepreneurs.

Looking for venture capital is not just fame, nor is it the best capital. Like love, it is the best thing that suits itself best.