1. What are the main channels for venture capital financing
There are five financing channels for venture capital, including bank loans, personal venture loans, commercial mortgage loans and pawn loans.
1. Bank loan
This is the first financing method that people think of when the funds are insufficient. At present, banks are also expanding their credit support for individual entrepreneurship. There are more and more types of loans and the conditions are constantly relaxed. Entrepreneurs can choose the one that suits them according to the situation.
bank loans include personal business loans, commercial mortgage loans and guaranteed loans.
2. Pawning loan
Pawning is a kind of financing method to obtain temporary loans in the form of transfer of ownership in kind. Pawn items include: gold and silver jewelry, antique calligraphy and painting, valuable securities, household appliances, cars, clothing and other personal belongings. Pawnshops are generally valued at 5%-8% of the retail price of mortgaged goods in the current market. If they cannot be redeemed at maturity, they can go through renewal procedures.
compared with bank loans, pawn has incomparable advantages.
first of all, the pawnshop has almost zero credit requirements for customers, and only pays attention to whether the pawned items are genuine or not. Moreover, general commercial banks only do real estate mortgage, while pawnshops can pledge both movable property and real estate.
Secondly, the starting point for pawning items in pawn shops is low, and items of 1, yuan and 1 yuan can be pawned. Contrary to banks, pawn shops pay more attention to serving individual customers and small and medium-sized enterprises.
Third, compared with the complicated procedures and long approval period of bank loans, the procedures of pawn loans are very simple, and most of them are desirable. Even real estate mortgages are much more convenient than banks.
fourth, when a customer borrows money from a bank, the purpose of the loan cannot exceed the scope specified by the bank. Pawnshops, on the other hand, don't ask about the purpose of loans, so they are very free to use them. Repeatedly, the utilization rate of funds has been greatly improved.
Baidu Encyclopedia-Venture Financing: Five Financing Methods
Second, how to choose the financing channel for venture capital?
Write a business plan first, learn some basic knowledge of the venture capital industry, understand how the venture capital industry works, and let yourself have the ability to distinguish. Then lock investors' docking channels, try more, and recommend several ways to you:
1. Deliver your business plan through the official website BP delivery channel of major investment institutions.
2. Participate in all kinds of offline salon activities, and take the initiative to find the investment exchange contact information present to deliver your project.
3. Through the tripartite financing platform, try not to choose the membership system, which is too expensive. Choose the platform that can apply for one-on-one direct telephone communication with investors (try "cloud docking"), choose the one that matches the industry stage of your project, and the telephone communication is more efficient, and you can explain your project in more detail with investors. After the chat, you can add investor WeChat, which is more helpful for your project to be selected by investors.
Third, the main channel of venture capital financing
The main channel of venture capital financing
Entrepreneurship is a process in which entrepreneurs and business partners optimize and integrate the resources they have or make efforts to create greater economic or social value. Entrepreneurship is a kind of behavior that requires entrepreneurs and their business partners to organize management, use services, technologies and utensils to think, reason and judge. Let's follow me to see the main channels of venture capital financing! I hope it helps you.
the main channel of venture capital financing: channel 1: bank loan
Bank loan is known as the "reservoir" of venture capital financing. Because banks are rich in financial resources and most of them have government background, they have a "mass base" among entrepreneurs. Judging from the current situation, there are four types of bank loans:
1. Mortgage loan refers to the loan method in which the borrower provides certain property to the bank as credit collateral.
2. Credit loan refers to a loan issued by a bank only on the basis of its trust in the borrower's credit standing, and the borrower does not need to provide collateral to the bank.
3. secured loan refers to a loan granted with the credit of the guarantor as the guarantee.
4. Discounted loan refers to the loan method in which the borrower applies to the bank for discount with unexpired bills when in urgent need of funds.
channel 2: venture capital
in the eyes of many people, venture capitalists have a magical "money bag" in their hands, and the money falling out of that "money bag" can make entrepreneurs sit on Aladdin's "magic carpet" and soar to the sky. However, venture capital is a kind of high-risk and high-return investment. Venture capitalists enter the start-up enterprises in the form of equity participation. In order to reduce risks, they will withdraw from the investment after realizing the value-added purpose, and will not be tied to the start-up enterprises forever. Moreover, venture capital favors high-tech startups.
channel 3: private capital
with the encouragement and guidance of the Chinese government on private investment and the improvement of the marketization of the national economy, private capital is gaining more and more room for development. At present, China's non-governmental investment is no longer limited to the traditional manufacturing and service industries, but "fully blossomed" in the fields of infrastructure, science, education, culture and health, finance and insurance, which is undoubtedly "good news" for entrepreneurs who are worried about "finding money". Moreover, the investment operation procedure of private capital is relatively simple, the financing speed is fast and the threshold is low.
channel 4: venture financing treasure
venture financing treasure refers to the form of pledging (mortgaging) the entrepreneur's own legal property or other people's legal property under the permission of relevant laws and regulations, so as to provide him with the business start-up, working capital and operating capital urgently needed for starting a business. The procedures for handling venture financing treasure are relatively simple. As long as entrepreneurs have assets, they can apply for loans. The longest loan period is half a year, and the range of items that can be used as collateral is very wide, such as real estate, bulk materials, securities, motor vehicles, watches and so on, all of which are worth more than 3 yuan.
channel 5: financial leasing
financial leasing is a kind of credit method with the direct purpose of financing. On the surface, it is a loan, but in essence it is a loan, which is repaid in installments by rent. This financing method has the following advantages: it does not occupy the bank credit line of the start-up enterprise, and the entrepreneur can use the equipment after paying the first rent without investing heavily in the equipment, so that the funds can be transferred to the places where the money is most urgently needed.
The main channel of venture capital financing 2 The financing road that few people take
In the early stage of financing, the financing risk is more than the existing financing channels. However, with the steady rise of the company, because the risk has become smaller, the financing channels have also begun to increase. Here are some financing channels:
Crowdfunding-Crowdfunding is an interesting model. Many start-ups, including OculusVR and Pebble, have found their way out like Kickstarter.
however, crowdfunding is not a good way for software companies and some start-ups with a long market cycle (such as warehousing companies and computing equipment companies that need more than 5 million dollars to enter the market). However, if you only need a small sum of money to develop your products to test whether this is a good entrepreneurial idea, then crowdfunding is undoubtedly a good choice, especially for hardware and mobile application products.
crowdfunding limits your capital exposure at an early stage, while allowing you to analyze and study the market and customer base.
venture capital bonds-for those start-ups that already have a certain amount of funds and have made some achievements, venture capital bonds may not be applicable. Venture capital bond, also known as venture capital loan, is a financing method in which banks provide loans to enterprises supported by venture capital to support capital expenditure.
unlike traditional bank loans, venture capital bonds are only open to start-ups and growth enterprises without cash flow or important assets as collateral. For those business owners looking for low-cost capital, this is a very good financing channel, because it does not require you to sell any equity.
Banks that provide venture capital bonds are generally risk-averse. They won't invest until they see other investors investing in your enterprise. But if you have a successful career and partners as advantages, this method is worth a try.
corporate investors-corporate investors usually invest through strategic partners. The advantages of this financing method include more control over infrastructure, better bargaining power, influence on product development and more involvement in sales channels.
although many enterprises have their own investment institutions, strategic partners are also an important step, just like the examples of Cloudant and Samsung Capital, and Rackspace's financing in the B round.
government financing-there are also many government investments to serve start-ups. For example, in the United States, In-Q-Tel is a non-profit organization. They identify and partner with companies that study cutting-edge technology to help these companies deliver their scientific and technological achievements to the Central Intelligence Agency (CIA) and the US Intelligence Committee.
seeking balance
I wish I could tell you the secret of success and the secret of finding a balance between financing methods and investors, but it doesn't exist. In the end, what you have to do is to find the financing that the enterprise needs, and at the same time have most control over the company.
I don't need to emphasize the importance of the financing you got. Every dollar has a corresponding value behind it.
whether you want the company to be acquired or listed, obtaining financing does not mean the success of the company. Get what you need and spend your money wisely, so that the acquirer will like your company. If your company's valuation is too high, you also bear the risk of too high an expectation, but in fact it is difficult for your company to meet this expectation.
Many young entrepreneurs have made the same mistake. They have become cooperative with a big company, thinking that it is easier to get venture capital, which is often not the case. It is extremely important for partners to operate funds.
large companies are usually very active and make many investments. Your company is just a drop in the ocean, insignificant and can't get any support. Nowadays, there are many partnership-oriented small capitals with high touch and high value. I would recommend paying more attention to these types of capitals. These companies are more flexible because they have fewer associates and lower management costs. They can invest according to the relationship and treat you as a real partner.
when it comes to partners, it comes down to doing what is good for you and your company. It's easy to get people together at the table, but finding the right person is a challenge.
It is important to establish alliances with partners, because they will occupy seats on the board of directors in the future, so it is necessary to know these partners and establish relationships with them before signing the agreement. If you are not in a hurry to raise funds, please find a suitable partner and financing method first, which will help the company succeed.
The main channel of venture capital financing 3 Banks
Put funds into banks: In the second half of 213, the annualized rate of return of bank wealth management products was about 5.1% (including Internet wealth management tools such as Yu 'ebao and WeChat Wealth Management), and there was no threshold for investors.
Lending bank: The annual interest rate of the loan is about 7% to 1%, and the total cost of the loan is about 8% to 12% with hidden costs, such as loan transfer and third-party agency fees.
Case: Yu 'ebao packaged 25 billion pieces of demand deposits and "bought" large amount of bank agreement deposits. In the past six months, the annualized rate of return averaged over 4.9%.
trust company
funds are put into trust: the sources of trust funds include individual investors and institutional investors. Among them, individual investors' funds are generally raised through third-party wealth management and private banks; Generally, a single investor is around 3 million, and the average income is about 8.8%. The cost raised by third-party organizations is about 2%, and the total cost of fund raising is about 11%.
fund lending trust: it includes various expenses, and the total financing cost is generally between 13% and 2% per annum. The average single loan financing is 19 million yuan.
Case: "Chengzhi Jinkai No.1" is the most important trust of the 3 billion number one trust. Through the relevant implicit guarantee, the investor withdrew with an average annual yield of 7%, with a per capita investment of 4.28 million yuan. It is 3 points lower than the original 1% annual rate of return.
Fund subsidiaries
Capital investment: The funds of fund subsidiaries mainly come from individual investors and are generally raised through third-party financial institutions; Generally, a single investor is around 1 million, and the average rate of return is about 1% per year. The cost raised by third-party organizations is about 3%, and the total cost of fundraising is about 13%.
fund lending: the financier raises funds through the fund's subsidiaries, and the total cost is about 15%-24% of the annual interest rate, and the single financing amount is generally between 3 million and 2 million yuan.
entrusted loans in the stock market
Funds invested in the stock market: In 213, the average investment return rate of A shares was about 8% per year, about 2% of the shareholders reached the income level of 8%, 3% of the shareholders guaranteed their capital, and 5% of the shareholders suffered losses.
Lending funds to the stock market: Many listed companies issue entrusted loans to other enterprises through banks. The average total financing cost is about 15% per year, and the financing of a single loan is between 5 million and 5 million yuan.
Case: In December 213, Panda Fireworks Group Co., Ltd. announced that it entrusted Jiujiang Bank Guangzhou Branch to grant 13 million yuan of entrusted loan to Chuangshijie (Guangzhou) Media Development Co., Ltd., with a term of one year and an annual interest rate of 12%, with quarterly interest payment.
private equity fund
funds invested in private placement: the average annual return rate of debt-based private equity funds is about 12%, and the average annual return rate of equity funds is about 15%. The investment threshold is extremely high, generally more than 1 million yuan, and the risk is large, and the investor and the financing party bear the risk in part or in part.
Private placement through capital lending: The total cost of project financing is about 24% per annum. The amount of single financing is generally between 5 million and 5 billion yuan.
Case: In 211, Xinghao Capital Phase I (equity fund) raised 3.7 billion yuan, and a single investor raised at least 3 million yuan. The roadshow of the project assumes that the annual return rate may be close to 35% in the ideal situation. It was announced in 214 that the expected rate of return may return to the market, which is about 16% per year.
P2P lending
Capital investment: It varies greatly due to online and offline, amount, operation mode, guarantee method and other factors, but most of them are raised from the private sector, and the capital cost ranges from 8% to 15%.
fund lending: divided into investment projects or personal loans. If the institution that invests in the project itself has no small loan qualification, there is a risk of illegal loans. However, investors have to face the situation that the amount of funds is small and a lot of business is needed to promote the scale.
Case: In 213, a large number of P2P companies ran away and closed down, but there were many outstanding achievements in the "backstage" platform left behind by big waves. CreditEase, the largest asset scale in China, Renren Loan, lufax, a bank-born company, and Huiren Loan, supported by large private enterprises, all provided more than 1 yuan on the basis of better risk control. (MFCLearningPlatform)
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the main channels of venture capital financing article 4 (