Seven Classic Lies Of VC

At ordinary times, we often hear how companies that seek financing can fudge investors. In fact, they are not just the ones who need money.

As China is VC, it is the individual who has invested in the investment that makes the investment competition fiercely. The days are no better than the catering industry or the household electrical appliance industry.

Therefore, when seeing a truly quality enterprise, the investors and the men who met the beautiful women's suits in the cocktail party and their eyes shine brighten.

At this time, you have to be careful!

You often hear them say:

1. "we manage a fund (for example, US $12 billion)."

Tip: that means the global distribution, and it can actually invest less than 5% of China.

So far, there seems to be no more than $1 billion 500 million of funds for the Chinese market.

2. "we have strategic value."

Tip: investors with strategic value are not, but in general, they do not have a chance of over 10%.

Most of the time, the "strategic value" of investors who need to see eight people every day and the need to fly three cities a week is limited to their brands. Therefore, under the same conditions or even slightly inferior, enterprises should choose brand investors.

3. "we have a lot of experience in this industry."

Tip: if you are a chain drugstore, his experience may have been a chain shoe store in France.

If you are a mobile TV, his experience may have been only a video site in India.

4. "we are long-term investors."

Tip: do you really think they are long?

You tell them that you will not make a profit in the next three years, but fifth years will become the most profitable company in the world.

The life cycle of the fund determines that the fund can not become a real "long line". Their long line and short line are basically the difference between 1 years and 3 years.

5. "let's come in. We won't care too much about the price."

(especially those who start late and want to squeeze into a project often say so).

Tip: there is no investor in the world who doesn't care about prices, at least institutional investors.

The biggest guarantee for return on investment and the best hedge against investment risk is one thing: cheap enough!

Therefore, no matter what he says today, if he wants to change his timetable and process, he has to make good preparations for changing his mind after his due diligence.

6. "we can't do without this."

Tip: as long as your project is good enough, and there are other investors competing for it, you can see that he can't do it.

7. "we have the ability to invest RMB."

Tip: the two most recent in words in the investment circle are Cleantech (clean technology) and RMB fund.

Now many investors dare not directly say that they have RMB funds, so they will change their faces and say that they have "RMB investment ability".

As to whether this ability is embodied in Lily law, they are often secretive and vague.