10 Tips Working With Venture Capital
The concept of venture capital funds (Venture Capital - stands VC) derived from the United States
. The first venture capital company in the United States by the Rector of the University of MIT founded in 1946. It is the method by which investors poured capital into the newly established businesses, not listed on the stock market (mainly science and technology enterprises) ...
Venture capital investment Unlike conventional finance, venture capital objects are mostly high-tech companies, innovative technology small and medium-scale are in start up.Vi phase of investment in technology highly advanced technology to high-risk, whereas if successful, the huge profit. One of the characteristics of venture capital venture capital providers do not directly provide capital for that business through a professional organization to implement and manage the investment, as this requires must have high professional qualifications.
Many reputation of the U.S. technology company like Microsoft, Apple, Yahoo, ... are established and developed venture capital. To date, the U.S. venture capital investment is about 60 billion dollars.
In Vietnam, recently the Ministry of Science and Technology Fund to submit a project in the Vietnamese high-tech venture capital to 450 billion dong, in order to promote the operation of the business and technology trade commodification of high-tech research results.
Most people who start using online services and information technology would one day receive the VC investment, simply because not everyone is born a millionaire. However, because of this desire, many business lies.
Guy Kawasaki is a managing director of Garage Technology Ventures, a venture capital investment bank for high-tech companies. Previously, he worked as an advisor to Apple Computer. He is the author of eight books on business, but the most recent book is The Art started. As a venture investor, every year he received a lot of calls for investment in projects in the start-up phase. He realized that, while the introduction of projects calling for investment, traders have used at least three to four lie. False words he summed up into 10 below.
So if you as a start-tech projects and would like to call capital from venture investors, you should avoid the 10 things that Guy Kawasaki summarized.
1. "Our project is calculated very carefully and will preserve capital." A business project no matter how carefully calculated, also can not be sure will be successful and preserve capital. And only with the objective of preserving capital, is no mean. According to Guy Kawasaki's experience, usually from the start of the project considered, then a year later it is likely to be included in the deployment, and if successful, it must be a few years later be able profitability.
2. "A research firm predicts that names our market will reach $ 50 billion by 2010." Even just a small software technology projects, the investors also claim that their market potential is very large, up to 10 billion dollars. However, do not mention the expected size of the market, as it is often inaccurate.
3. "A big company has a good name in the market will contract business with us next week." Only use this card after the order has been signed, because no investors were duped by this.
4. "Many people have skilled professionals, with names, will take on an important position in this project, they were ready to join the company as soon as we get the investment." As a venture investor call for the character that you say that will be involved in your project, will usually get the following answer: "I did call back to meet him, but of course not can make sure that his promises will leave the current salary is $ 250,000 / year to come to him. "
If those who have qualified this good intention and ready to join your company and participate in the project, they will likely call for venture investors and confirmed that, because simple the new venture capital funding and can decide their salary.
5. "No one is doing what our project will be done." This also means there is currently no market for your product, or you have the confidence and the lack of information necessary to not need to use Google to find out what their competitors. The lack of market and found no clues of the competition is not conducive to ensure calls are invested.
6. "No one can do what we will do the project." This is arrogance.
7. "Make decisions quickly, because several other venture capital companies are very interested in our project." Perhaps, can count hundreds of businesses around the world have declared that. Hopefully after reading this information
tai game mien phi, you will not be one of them.
8. "Oracle is not as formidable as possible to become a threat to us." The reason that Larry Ellison (Chairman of the company Ocracle - the second wealthiest in the world and the only one who can beat Bill Gates in all respects) to the current position lies in your statement . Larry Ellison and Oracle already famous and successful to the extent that you have in your project and can not be overcome. The business had uttered this speech is absurd and foolish he says.
9. "We have a proven management team and experienced." If you really prove myself and have experience, you probably do not need to call for investment. Words better: your statement is that you have the appropriate experience and will do everything possible to bring success. You will gather around them professional advice and experience.
10. "All we need to do is to be 1% of the market."First, no venture investors interested in a company that just 1% of the market. Second, it is also not easy to be 1% of the market, so you look really silly to pretend words. Instead, identify and evaluate can be difficult for a company to be successful.
In short, the need to be vigilant in the negotiation process to call for investment, because the final destination that aims to remain a source of investment capital that you need. However, if you are prepared to receive the VC's capital, then be prepared to face the pressure and possible loss. You have to learn how to work with VC investors so just make sure your business plan is not distorted while satisfying the target signed. Finally, not all VC are the same, select investor enthusiasm and understanding of your project, the lack of this all the work and money will become meaningless.
by: vgame
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