How can I find an investment company? My project has a good development prospect, but what are the specific requirements of the investment company?

Venture capital is an integral part of investment, which is similar to commercial banks in that venture capitalists, like bankers, act as a medium and channel between investors (such as lenders) and entrepreneurs (or borrowers). But it is completely different from commercial bank loans: bankers always avoid risks, while venture capitalists try to control them. Banks always require borrowers to mortgage their property before lending money; Venture capitalists, once they see promising companies or projects, will invest money and help the invested companies operate and manage. Therefore, for those small companies, especially those in the initial stage, accepting venture capital, investors bring them not only money, but more importantly, resources such as strategic decision-making, technical evaluation, market analysis, risk and recovery evaluation, and helping to recruit management talents.

Traditional venture capital mainly invests in small enterprises that are in the initial stage or early stage of development but grow rapidly, and mainly focuses on those high-tech industries with development potential. Venture capital is usually carried out in the form of partial equity participation, which has a strong "risk-taking" feature, and the return of high investment risk is an opportunity to obtain high returns in the medium and long term.

Angel equity means that individuals contribute money to help entrepreneurs who have special skills or unique ideas but lack their own funds to start a business, cultivate and bear high risks in starting a business and enjoy high returns after success. Or a one-time upfront investment made by free investors or informal venture capital institutions to an original project idea or a small start-up. It is a form of venture capital, which invests according to the investment amount of angel investors and the comprehensive resources that the invested enterprise may provide.

And "angels" usually refer to investors who invest in very young companies and help them get started quickly. In the field of venture capital, the word "angel" refers to the first investors of entrepreneurs, who put money into the company before its products and business take shape. Angel investors are usually friends, relatives or business partners of entrepreneurs. Because they are convinced of the ability and creativity of entrepreneurs, they are willing to invest a lot of money in entrepreneurs before the enterprises come in. A typical angel investment is often only a few hundred thousand dollars, which is a fraction of the money that venture capitalists may invest in the future.

Usually angel investors don't expect high returns, but the returns of 10 to 20 times are enough to attract them. This is because when they decide to invest, they often invest in one industry 10 projects at the same time, and only one or two projects may succeed in the end. Only in this way can angel investors share the risk. Its characteristics are as follows:

1: The amount of angel investment is generally small, and it is a one-time investment, and its audit of venture enterprises is not strict. It is more based on investors' subjective judgment or personal likes and dislikes. Usually angel investment is invested by one person, and it will be closed when it is ready. This is a personal or small business activity.

2. Many angel investors are entrepreneurs themselves and understand the difficulties faced by entrepreneurs. Angel investors are the best financing targets for startups.

They are not necessarily millionaires or high-income people. Angel investors may be your neighbors, family, friends, company partners, suppliers or anyone who is willing to invest in the company.

4. Angel investors can not only bring money, but also bring contacts. If it is a celebrity, it can also enhance the credibility of the company.

Angel investment is often participatory investment, also known as value-added investment. After investing, angel investors often actively participate in the strategic decision-making and strategic design of the invested enterprise; Providing consulting services for invested enterprises; Help the invested enterprise to recruit managers; Assist in public relations; Design exit channels and organize enterprises to quit; Wait a minute. However, different angel investors have different attitudes towards post-investment management. Some angels invest and actively participate in post-investment management, while others do not.

The operation process of international venture capital generally includes the following steps:

1. Preliminary review

After getting the application form or business plan, international venture capital institutions often just skim it in a very short time to decide whether it is worth spending time on this matter. There must be something that attracts him to take the time to study it carefully. Therefore, the first part of the application registration form or business plan-"executive summary" is very important for financiers.

2. Consultation among venture capital institutions

In large international venture capital institutions, relevant professionals will get together regularly to discuss the project proposal that has passed the preliminary examination and decide whether it is necessary to interview or reject it.

interview

If venture capital institutions are interested in the projects proposed by entrepreneurs, they will contact entrepreneurs and directly understand their background, management team and enterprises, which is an important part of the whole process.

4. Responsibility review

If the initial interview is successful, then venture capital institutions will start to check the operation of entrepreneurs and learn as much as possible about the project. They carefully evaluate the technology, market potential and scale of the target enterprise and management team through the review process, which includes contacting potential customers, consulting technical experts and holding several rounds of talks with the management team.

5. List of clauses

After the completion of the evaluation stage, if the venture capital institution thinks that the applied project has a good prospect, it can start cooperation negotiations on the investment form and valuation. Usually entrepreneurs get a list of terms, summarizing the contents involved.

sign a contract

Venture capital institutions try to adapt their investment returns to the risks they take. Investors from both sides reached the final transaction value through negotiation based on their respective evaluations of the enterprise value.

After the negotiation, enter the stage of signing the agreement. Sign contracts representing the wishes and obligations of entrepreneurs and venture capitalists.

7. Supervision after the investment takes effect

After the investment takes effect, venture capital institutions will have the right to supervise the shares of venture enterprises or other forms of cooperation. Most venture capital institutions play the role of consultants in the board of directors or cooperation. They usually participate in several enterprises at the same time, so they have no time to play other roles. As consultants, they mainly put forward suggestions on improving business conditions to obtain more profits, help find new managers (managers), regularly contact entrepreneurs to track business progress, and regularly review financial analysis reports submitted by accounting firms. Since venture capital institutions know all about the business areas they invest in, their suggestions will be of great reference value.

quit

Generally, it is the exit method adopted by investors after they get certain income in 5- 10. Mainly: public listing; Share repurchase; Sale (general merger and second merger); Liquidation.

Secondly, in addition to understanding the specific steps to obtain venture capital, SMEs should also pay attention to the following issues in the process of attracting venture capital:

1. Understand the operation mode of venture capital. Before deciding to draft a business plan, entrepreneurs of small and medium-sized enterprises should actively understand the operation mode of venture capital in detail, especially those entrepreneurs who started with technology need to pay more attention to "excellent technology does not mean a broad market". Venture capital companies pay attention to not only a single technology, but also a profit model integrated by first-class technology, broad market and excellent management team.

2. Evaluate the enterprise value reasonably. The evaluation of enterprise value by small and medium-sized enterprises will fully reflect the style of doing things. We should know that the professionals of venture capital companies will re-evaluate on the basis of enterprise self-evaluation, and venture capital companies will also consult professional experts and other opinions most widely. Only by seeking truth from facts, fully demonstrating their own advantages and putting forward feasible improvement plans for their own disadvantages can small and medium-sized enterprises leave a good impression on venture capital companies.

3. Provide a complete business plan. One of the bases for selecting and evaluating venture capital companies is the business plan of the enterprise. In fact, the business plan is to let small and medium-sized enterprises fully exercise the project on paper first. The business plan will prove the ability of the enterprise to the venture capital company and show the advantages and disadvantages of the project. A complete business plan reflects the entrepreneur's thinking, careful planning and management quality, as well as his strong desire for success and responsible attitude towards venture capital companies. It is also a good idea to invite professional consultants to complete the business plan.

4. Establish a clear financial system. Accounting confusion is the biggest obstacle in the process of financing. Unclear accounts have become one of the important reasons why financing for small and medium-sized enterprises is difficult to succeed. Therefore, enterprises should establish a clear financial system to provide the basis for data analysis in the process of financing.

5. Fully demonstrate corporate integrity. For small and medium-sized enterprises, good credit is a valuable resource, which is closely related to product sales, market share, corporate image and development sustainability. In the whole process of contact with venture capital companies, small and medium-sized enterprises should always adhere to integrity and actively eliminate the factors that cause information asymmetry.

If small and medium-sized enterprises want to obtain venture capital successfully, they should not only have a certain understanding of venture capital, but also know how to enhance the core competitiveness of enterprises according to the evaluation requirements of venture capital companies. Only in this way can small and medium-sized enterprises really win the favor of venture capital.

In addition, the information of venture capital companies can be obtained in the following ways.

1. Deliver the plan by online search, telephone, email, etc.

2. Recommended by friends and industry intermediaries.

3. Through investment and financing exhibition activities.