introduction: understand the vc (venture capital) is how to decide to invest in a company and its general investment process. Vc is different, so this is just a process of generalization, but more or less reflect the way they make decisions.
the latest mobile game industry’s theory of “pessimistic” gradually, this view is one of the performance of “bad money”. The author exposed to many investors and the team. For this view, but to understand is the future of small and medium-sized team it is hard to get more investment, of course, after obtaining investment part, by the intervention of the big investors.
one, looking for investment, found that “bad money”.
if we think back in 2012, 2013 mobile game project investment, it is not difficult to find that as long as a little understand some ask for a mobile game, can get the investment, then investment very rough, even if said that someone can do mobile game. In the crowd of the investment: the local tyrants, rich second generation, coal boss as a regular. When investors are looking for project, and now is looking for investment. Although the investment fund, a startup accelerator, project incubation program more up, but they are not without purpose, usually a week to see dozens of products, and finally there is the intention may be a.
investors looking for a project on “tao” : a good project needs luck
in this week’s trip to chengdu found a phenomenon. After contact with multiple investors, we know that now investment choice project is more like a “tao”, they are no longer easily small investment projects, and turned to “big” tens of millions of investment. This also caused the they will be more cautious in choosing project, seek out the high-quality goods in the big waves.
can invest to a large project, for investors is luck. Some big companies out of the producer, or some everyone is bullish about products, just as there has been a lot of attention. Most of the time is “people” is not out of the company, outside money has been waiting for. If just came out again into the project such as, it is very difficult, because this time they don’t need money.
a big company for teams to “potential” : “know” the oneself person
the against is some big companies and investment team, they are more “potential”. There are investors to the author, according to team before he has seen the product but no shots, has now been another big company acquisitions, and the team still has a lot of.
than investors cautious, the team is more big company to “potential”, and their investment team also has a small phenomenon that is biased towards “independents” project. The fundamental reasons of this phenomenon lies in their different thinking. Big company brand and demand more water effect, the high-quality goods game, after all, are in the minority.
a few big companies for team is very easy. End to swim over the past two years the company to do mobile game is not a few, and they have a list, will be next to make a phone call to ask whether, need the money “, for investment projects, the “me” more.
investors thinking: there is imagination of ten times as much profit to lay their hands on
investors like to make a lot of money, rather than money, such as convenience stores, if just a word, it is difficult to someone investment, investors like chain properties. Investors need to scale effect, because investors investment projects, and to consider the chances of success. For example, $1 capital every 1 million invested 100 companies. May 10 success, then what to do with the remaining 90. Investors need is the profitable 10 to invest 90 to earn back the money.
in addition, investors investment projects, and like to have imagination. A round of investment typically have more than 10 times the imagination of space. For investment projects, the more to return the lower back, will lead to greater investment amount, but the smaller the risk.
C after wheel is usually listed ipos, but the amount of investment at this time will be very high, generally go to tens or even hundreds of millions of money to get in. Although this time return on investment has been reduced to two or three times, but due to the amount of investment is very high, so the earnings and relatively less. In C round invested 50 million, for example, two or three times in return would be 150 million.
angels, in the beginning may be made only a few million, but if it is listed, likely there will be dozens of times on even one hundred times of return.
2, investment into account, found that “bad money”.
if investors choose investment projects in fact there are mainly four: a look at whether the high-quality goods, 2 see backbone background, three character, four see team. Although the future investment is bad, but the small and medium-sized team when take investment also need careful treatment, the following will, for example, an extreme and the real case.
interests under the attractive appearance: the team with investment after the loss of voice
a senior producer, told me: capital to play is a very simple thing, to do want to do in angel stage, avoid subsequent investors into, this would dilute the core team of the company, eventually lost voice to become migrant workers.
follow-up investment injection for two reasons:
the first because angel investors don’t want to continue to input, and don’t want to give up the project, in order to reduce risk, have introduced new investors were to share; Because the second project is very good, other investors see business opportunities, and want to enter. Here, is primarily concerned with a small team how to face the financing, the first reason is the front said.
an example: angel investors invested in a small team of three core studio, investors accounted for forty percent, three core employees each accounted for twenty percent. Due to the product development time is unpredictable, angel investors are likely to have no confidence, when products are not online, with all sorts of reasons to stop the investment, but don’t want to give up, so investors into A.
a industry phenomenon: diluted shares subsequent investors take sometimes say
when A investors into, is bound to A certain number of stakes, with three as the case, then thirty percent of the excess is not appear out of thin air, but need from angel investors and the inside of the three creators stake diluted. According to the rules in the industry, angel investors are reluctant to split shares, only from creative staff diluted out the thirty percent of the shares, so every creative staff can only account for about ten percent of the shares.
at this time, an angel investor occupies absolute say, A thirty percent stake of investors and the three senior united, equal to the number of shares, lost his voice, so investors will require A continue to dilute the share for other staff, this part also want from three creators dilution, 5% per person, for example (15%), then the rest of the three creators shares is less than thirty percent, investors have A right to be heard, and creator of shares less and less.
why mobile game investment “bad money”
(is actually about ownership main body pattern design problems in the employee stock ownership plan. Usually there are five types of ownership subject design patterns: one, the shareholders holding directly; Second, the natural person generation hold; Three, the union generation hold; Four, holding company generation; Fifth, trust. Combining the two ways you adopt the holdings of the main body, four two modes, the purpose is to solve the holding company of company law to the number of holdings should not exceed 50 (not a shareholder of the joint-stock company, more than 200 people).)
if investors continue to introduce B, less and less, the entire team shares will be diluted, until all the people turned out to be the migrant workers of the investors. This notion of the whole team is in the hands of investors, the main policy or will no longer have to policy-making and the producer.
team after losing money: to satisfy the interests of investors first
if the company to make money,, this is to say, but if lost money, insolvency, sold the code, you should first meet A interests of investors, then the angels, the last is the team, will first meet B if B, then in turn to the back, so small teams want to consider to be clear about to contact capital, or is likely to become A part-time job.
now angel basic is done together, by the time A don’t look for other investors, it is between two investors, no matter how cent profit to say A lot.
deal with capital play: small team producer for holding
overall capital to play team is very simple, that is just the tooling. When the project about, certain profitable, so capital to play with you, he will have the absolute power of the company, but equity and not enough, so what can I do? Investors will find core privately; sometimes the pull, then investors had absolute power, so the creators of isn’t going to be three points, must be in a planner or main policy, this is called generation, so as to maintain absolute say, but at the time of share out bonus, other senior or points according to the share, this will ensure that the interests of the team, so have to be very careful when held.
(this article source: game gyro)