Less money fewer people fewer resources to start up VC in the heat flow of oil in the capital mark

For most

has shown clear trend has even become a hot market outlet, both looking for projects, investment decisions, and even arms race level finance driven competition, entrepreneurial VC may be hard to reflect the significant comparative advantages.


Hu Haiqing (left) Zheng Yi (right)

in the capital market the heat flow of oil in the summer of last year, in the office and the taxi up migration of investors innumerable Beijing, Hai Qing and I started a new journey, with an early start the risk investment fund.

in this highly congested Red Sea area, a small amount of money (small fund), fewer people (fewer team members), less resources (no large investment team) of the start-up VC

, how to go out alone (Keng) (die) in a special way? After the past year from peak to trough roller coaster, we have the honor to join the 8 family of 100% has good development investment company, in an average of 6 months after the initial implementation of the investment cycle, the book business 2 times the value of this; a slight progress depends on luck, we try to this topic in a more systematic and rational way and to discuss the entrepreneurial VC.

1, the first venture, and then VC

called entrepreneurial VC, we would like to define it as a VC based on the product model and business model as a start-up company". From a summer early investors seems to become a kind of fashionable occupation identity, everything in the market place again and again. But if the investment into an entrepreneurial project, and return to the direction of the core of the business card – return (IRR), a simple arithmetic can be described in one of the cruel:

extreme assumption that all of the investment exit channels are in the A-share market to achieve IPO, refer to the current A shares of the company’s market value distribution:


data in May 24th, more than half of the A shares of Listed Companies in the market value of 8 billion yuan or less. The current valuation is still as high as 67 times the earnings ratio of the gem, as of May 30th a total of 508 listed companies, with a total market capitalization of $450 billion, with an average market capitalization of $8 billion 900 million, the company’s market capitalization of 10 billion yuan or less. For the vast majority of start-up companies, the opportunity to achieve this level of valuation in the market is a wonderful vision IPO.

on the other hand, we calculate the comprehensive level of return fund Portfolio, the following is a simple spreadsheet, assuming that the time span is seven years, which is the typical early Internet fund return cycle.



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