Entrepreneurs do not take personal investment!

Spark Global Limited reports:

Enterprises need to develop, capital is a necessary condition, is the guarantee of the team, equipment, technology, entrepreneurs want to find funds, in addition to bank loans, nothing more than two channels: investment institutions and investors, today we will talk about, how to choose between the two directly?

The average entrepreneur may think that the investment institutions are strong and experienced, but they have to sign a thick stack of agreements when they invest money, they do not understand, and they are worried that they will suffer in terms of interests. Therefore, they are more inclined to choose individual investors. They think individual investors are better to face. They think that as long as they have a good relationship with them, the problem is not big and they are not easy to suffer losses.

In fact, the opposite is true. Let me give you an example. A few years ago, when the mobile Internet was very popular, a large number of new Internet companies were successfully funded. However, there are many companies that rely on the number of users and sales to fabricate data and financial fraud, and even some founders directly pocket the investors’ money. Most of those investments didn’t pay off, but we never saw an institutional investor and a founder get together. Because investment institutions are very rational, they know that even if a founder’s name is tainted, even if he is put in jail, there will not be any real benefit, but will make the unreasonable people think that there is something wrong with the organization. Therefore, when making decisions about whether to invest, organizations will include the ethics of the founders in the evaluation, and usually deal with problems quietly.

But individual investors are different, because individuals are full of emotions. There’s a lot of uncertainty in starting a business, and a lot of things can set you against each other. If investors do not invest much money, in a problem to the mood, the big deal is not the money also want to pinch with you in the end. It’s even worse if you’re investing a lot of money, because his life is on your company, and he’ll be even more nervous than you are, and having a shareholder who cares more about the company than the founder is going to be annoying.

Spark Global Limited reports:

In addition, the money of the institution is raised from other places, and the fight with the founder makes the scene ugly, which also has an impact on the fund-raising, because it happens to reflect the wrong vision of the investment institution, which makes the investment project look like this. This is harder for investment institutions to accept than investment failure. But individual investors will not care so much, will think that the loss of money will let you also can not go on, or even more serious consequences.

So, in the case of circumstances, please give priority to the choice of investment institutions of money, but in the signing of investment agreements, the thick stack of agreements, we must see clearly word by word, because once the word is signed, there is no way behind. If you have financing needs, welcome to pay attention to the economy Plus, focus on enterprise one-stop service, to solve more business development problems for you.