The Relationship Between Venture Capitalists and Entrepreneurs in Venture Capital Urgent 50

1.When choosing an investment project, venture capitalists choose an investment project, the quality of the entrepreneur is the first important factor, and then the market and technology.

2.Negotiation enters a venture company, and after selecting a project, the venture capitalist negotiates with the entrepreneur, which is a process of balancing interests.

3.Participate in venture business management.

4.Exit from a venture company, the entry of venture capital is based on the premise of being able to successfully exit, it will not accompany the entire development process of the venture company, but in a relatively short period of time, after obtaining the excess return of capital, that is, exit the venture company. On May 29th, [Yicai**] [Blue Ocean Venture Capital] invites you to have a dialogue with venture capital.

Open up the blue ocean of financing - 2007 China (Shanghai) Venture Capital New Army and Project Financing Conference.

1. Summary of the Conference.

Location: Jiaqing Hall, 2nd Floor, Hongqiao Hotel, No. 2000 West Yan'an Road, Changning District, Shanghai.

Silver Sponsor: Tonghui Venture Capital.

Organizer: Blue Ocean Ventures.

**Organizer: Yicai**.

Official Assembly **:

2. Purpose of Participation.

1.Through the morning conference, we can learn about the capital scale, field, quota, investment preference and other information and new financing trends of more than 40 new Chinese investment institutions.

2.Through the afternoon to the fair, we will conduct in-depth face-to-face negotiations and financing with investment institutions;

3. How to register.

Moral hazard among investors and venture capitalists is largely caused by the imperfection of governance structures. For the prevention of this kind of moral hazard, we can consider taking the form of a limited partnership as stipulated in China's new Partnership Enterprise Law. For example, Shen Yin:

The contract stipulates that the general partner (venture capitalist) contributes 2 and obtains 22 of the venture capital**, and the limited partner (investor) contributes 98 and obtains 78 of the venture capital** income. This kind of institutional arrangement generates a great incentive for the general partner, and in order to pursue his own interests, the venture capitalist will do his best to strive for success. Second, the venture capitalist contributes capital as a general partner2 but has unlimited joint and several liability for the debt, while the investor as a limited partner is only liable within the scope of the capital contribution98, which sets an upper limit on the assumption of risk.

Finally, it is also possible to implement a performance-related mechanism for venture capital operators, allowing them to hold a certain percentage of equity or options in venture capital companies, and can also require venture capitalists to inject personal funds into the investment projects with a certain proportion of the investment amount, so that their remuneration is linked to business performance, which can limit their short-term behavior and excessive speculation to a certain extent.

1. Prevention of moral hazard between venture capitalists and venture enterprise managers.

Moral hazard between venture capitalists and venture business managers can be prevented by:

1. Implement participatory, that is, relational investment. In the entrustment relationship between venture capitalists and venture enterprise managers, the uncertainty and information asymmetry of enterprise management are stronger and simpler, so it is necessary for venture capitalists to prevent moral hazard to a greater extent through their role in the board of directors and the power given to them by contract to intervene in the business process. Venture capitalists can take direct participation in the business decisions of the investee companies by providing them with a variety of management services, such as assisting them in formulating development strategies and making major decisions, identifying strategic partners, providing financial and marketing consulting, and helping to organize mergers and acquisitions.

By working closely together to understand the actual situation of venture companies, we will help to prevent moral hazard for the managers of venture companies.

2. Stage investment. Venture capitalists can only provide funds for the development of the enterprise to the agreed period, and reserve the right to waive the right to reinvest and the right of first refusal to purchase the additional financing issued by the enterprise. Segmented investment puts the managers of venture companies under pressure to suspend investment funds, forcing them to do their best to develop the enterprise.

Each segmented investment is an audit and supervision of the business operator. It not only prevents risks, but also serves as an incentive for business managers. Encourage the managers of venture enterprises to be highly cautious and pay attention to every link in the management and operation of venture enterprises.

In venture capital, venture capitalists and entrepreneurs are actually starting a business together. From the moment the venture capitalist and the entrepreneur reach an initial investment agreement, the two parties are in a cooperative relationship, jointly planning financing options and finding outstanding funds in order to finally realize the investment; Since then, the two parties have continued to work closely together, with a common goal of enabling the company to grow smoothly and eventually to mature, so that entrepreneurs can realize their entrepreneurial dreams, and venture capitalists can exit their investments and obtain high returns. As the investment process progresses, the relationship between the two parties grows closer.

To put it simply, venture capitalists are those who invest in whatever is risky (except for bank robberies and similar behaviors) with keen insight and professional vision, in order to pursue high returns.

Venture capitalists need to understand the venture capital industry, know the professional roles, job content and skill requirements in venture capital companies, and choose a career development path that suits you based on your own situation, and apply for a suitable position in the future. Understanding the career path that a career role will go through can help candidates better plan and execute the job search process, where an understanding of the senior roles along the career path can help candidates recognize what skills they need to develop themselves to ensure they are focused in the right direction if they are to pursue better success in the venture capital industry in the future.

How to Become a Venture Capitalist: A Beginner's Guide to a VC Career is a popular read on a career in venture capital and a guide on how to step into a career in venture capital. Through this book How to Become a Venture Capitalist:

VC Career Guide", you can understand the development history of venture capital, learn the basic knowledge of venture capital, understand the characteristics and quality requirements of the venture capital profession, and master the job search skills of the industry. How to Become a Venture Capitalist: A Beginner's Guide to a VC Career is for those who are interested in venture capital and are interested in entering the industry, especially for MBAs, college students, and entrepreneurs who are interested in pursuing a career in the field.

If you're a recent non-MBA college graduate (undergraduate or graduate), then you need to think about it first: in venture capital.

There are not many career opportunities and the competition is fierce, but once you get it, your first career is also very rewarding.

It could be your last career. The skills you develop from this career are not highly convertible, so it will limit you.

Future career choices. It's going to be a long apprenticeship, and the right entry position for you to apply for is undoubtedly an analyst.

Venture capital companies are optimistic, and in a few years, they may send you to an MBA. If you have worked for a few years before.

Experience MBA graduates, then the right position for you to apply for is Investment Manager. After graduating with an MBA, he worked in an investment-related field.

Those who have worked for a few years may apply directly for a position at the level of vice president and director. In the next 4 to 8 years, you may want:

Follow two or three partners, monitor and manage two or three invested companies, and learn to take risks under the guidance of experienced senior partners.

Invest in the business and build a personal track record before you can hopefully be absorbed as a junior partner.

First go to fight the landlord and play mahjong.

Please see how the boss of Tianjin Satellite TV made Dongfeng Motor's 500w entrepreneurial capital support.