widely circulated a pioneering spell called "C wheel die", 90% B round of company to get C round of financing. Recent cases include Bo Pai car, 77 delicious, honey amoy. So, don’t take financing when success! This article was not written for ordinary entrepreneurs, but those who look more beautiful is the financing of start-up companies, the Unicorn
"paper come Zhongjue shallow, and must know this to practice". Some of the big business to understand the truth, but the entrepreneurial curse has always haunted, hide hide. And it is a mistake to make a mistake again. Success is an accident, failure is inevitable, even those C round of financing unicorn.
contact with dozens of Unicorn companies, but also personally participated in a dozen entrepreneurial projects. Summed up, the feeling of start-up companies are mainly in two aspects of the problem: one is the strategy, one is employing.
strategic error: business kidnapped by capital
can do B round C round of start-up companies, will generally have a more direct performance requirements, rather than just talk about the model, talk about small and beautiful innovation. But to do the results, the majority of traditional companies return to the routine, especially electricity providers. The initial stage, can be small and beautiful, talk about the focus of professional, long tail subdivision, personalized not price oriented. But if the results do, must be multi category cross category integrated, hot blast products, low price strategy. Finally returned to the same company and strategy of attrition, difficult odds.
through a large number of advertising marketing budget, low price promotions, subsidies, as well as a single brush, and so on the way to expand the performance of value? What is the value, the so-called value of the valuation of the valuation of bragging force only help. So we often see some B round, C round of financing the company failed, because essentially all of them are to VC, once the financing is not smooth, will be back.
we can simply put this kind of errors are classified as strategic mistakes by capital kidnapped, there is a root of the problem – founder of the wrong valuation when the worth, feel good, the performance of the optimistic. Our commitment is too high, but actually can not be completed, the company finally die! So, the author remind entrepreneurs, not too optimistic, but also avoid talking about the agreement on gambling. Staring at the user, staring at the needs, staring at the nature of the industry, rather than staring at the capital. Capital is one of the core elements of the growth of start-up companies, not all. It’s nothing to be ashamed of, it’s a long way to build the company’s barriers.
recent understanding of a case: a few tens of millions of vertical community APP, in the financing of the commitment to investors to achieve hundreds of millions of years of water. But because the existing advertising business model can not achieve the support of hundreds of millions of revenue, valuation, so, electricity providers will become the best choice. But the author believes that there is not equal to the amount of traffic volume, short-term sales by low brush and no continuity. There is no positioning, no word of mouth, no repeat purchase, such a vertical platform to do the final inevitable death >