often has a TV show, XX startups seek angel investors……
Although we look XX
program startup is very good, the team is also very good, but investors are also quite recognized, give them applause, but eventually why investors refused their financing needs
?What is the reason for
declined, from the perspective of venture capital, Richwood Reed Xiao Bian summed up the following six reasons:
1, low market entry threshold
although the entrepreneurial team is good, but many industry pioneer will be imitated by the bright younger generation, was hurt by its "stab in the back", finally can be transcended.
when you can not combine user needs to create more competitive advantage, while the latter use the advantages of lower learning costs, as well as other areas you do not have the advantage, it is easy to surpass you.
2, lack of diversity
venture capital seems to be prepared for the losers, they are looking for the company, is able to do other companies simply can not do business, to the deep market value creation.
if the lack of differentiation, venture capital may not be interested.
3, the user may lack the explosive growth of
in the initial stage, a small user demand market segments is good, but if you want to get financing money from VCs, you also need to provide a credible, long-term planning, the core competitiveness has been established based on you, and meet more needs of users.
friend Reed Xiao Bian think, small and beautiful, but there is no market or culture does not have the market, not to have the same financing.
4, unsustainable economic benefits
for start-up companies, the biggest challenge is how to find the real needs.
and want to come out of the demand, the complex positioning, the company will often venture into a dead end, the external environment changes, the company is easy to get into trouble. Like this, VCs will not be favored.
5, the equity ratio is not reasonable
most risk investors have valued the company at the exit as much money as well as future investors share the number of shares.
if your equity ratio is not reasonable, VCs will not be interested. Can control the future, which is the attention of these investors.