In the past, I briefly introduced the four essential conditions for my project selection, which are "a great macro direction, a validated micro direction, an excellent team, and a high return on investment." Regarding the macro direction, it mainly involves assessing whether this direction will be promising in the long term over the next five to ten years. Every investor has their own unique insights, and currently, I am most optimistic about mobile internet. Of course, I am also willing to learn and research some new directions. Regarding the issue of investment returns, the target return for successful early-stage venture capital projects is tenfold. VC enters earlier than early-stage venture capital, with higher risks, so VCs require higher returns. Thus, the key issues in investment mainly lie in the specific direction and the team.
From the perspective of Entrepreneurial China, the team and direction complement each other and neither can be missing. That is to say, if the investor's ability is insufficient, even the best direction and opportunity would be hard to grasp; if the investor's ability is very outstanding but the direction is wrong, it would be difficult to achieve greatness. As for how to evaluate a startup project, I have summarized ten criteria for your reference.
1. Team (Investing is essentially about investing in people. People are the most critical factor. If this entrepreneurial team is very excellent, even if the specific direction deviates, they possess a very strong self-adjustment capability.)
1) Can insightfully perceive user needs and be extremely sensitive to the market.
2) Have lofty aspirations and be down-to-earth.
3) Preferably, two or three complementary individuals should start together.
4) There must be a technically proficient leader who can lead a team (for internet projects).
5) Ability to expand quickly at low cost.
6) Preference for those with impressive resumes, such as having served as senior executives in large companies or having entrepreneurial experience, which will add points.
2. Direction (Doing the right thing at the right time.)
7) Target the largest possible market. Choose the biggest market you can handle. Only a large market can create a large company; small ponds cannot nurture big fish. A slight deviation in direction will waste precious entrepreneurial resources.
8) Choose the right timing. The market is basically mature, the company already has a prototype, and after introducing angel investment, the business will experience explosive growth.
9) Focus, focus, and focus again. It’s best to do only one thing, so you can take it to the extreme!
10) Business has been validated at a small scale, with the opportunity to reach a top position in a certain vertical market.
You might think that the above conditions are very strict, does it mean that without these conditions, success is impossible? Of course not. These conditions are not entirely necessary, but entrepreneurial teams that meet these conditions have a greater chance of success. Especially in the current market environment, as the global financial storm sweeps across the globe, venture capitalists' review standards for projects will become stricter. The more conditions met, the better. If a startup project meets all ten of these criteria, it would be a perfect project in the eyes of investors, making it easy to secure funding.
This article originates from 88fa Franchise Network http://www.88fa.org/, Original address: http://www.88fa.org/post/35.html