Abstract: Winter business venture 2B, to avoid large capital investment. If you are not with financing, valuation, can quickly get the money, pocket for security; if you haven’t started financing in the next 6~12 months and financing just, that will start tomorrow.
if 2015 is the capital and entrepreneurs in the winter, the 2016 has become a barren polar startup a floating corpse.
more than half of 2016, there are countless startups crashing down. According to incomplete statistics, as of July, the total number of failed start-up companies reached more than 2 thousand, more than 10% of the total business, including investment giant unicorn, including peach, net of a car, the Autobots and the young monarch dish network car financing billions of star company.
why night club building, in this seemingly? Is the capital of winter, difficult financing caused a major defeat, but behind why – how will the capital logic peel? From two dimensions to consider these questions.
economy fell into the down cycle, an increase of 50% of the story is no longer credible
signs that China’s economy has entered a relatively long downward cycle.
statistics, the National Bureau of statistics since 1980, Chinese GDP growth in 1989 and 1990 this year in short hovering below 5%, in all the rest of the year are more than 7%, until 2015 fell to 6.9%, and for a period of time in the future for quite a long period, growth may be lower.
in this context, the Chinese entrepreneurs and investors in the business environment has undergone tremendous changes, the value of all assets have been re evaluated, all the value of the company has been fully rewritten.
past valuation is often based on the company’s net profit or income, combined with certain growth forecasts, and then multiplied by a certain number, the company’s valuation. In such a rule, a high growth company will be a higher growth rate than a low valuation of the company.
and thus cause us to think about is that in the first few decades of high growth in GDP, a lot of vertical market to maintain the growth of 20%~30% industry. Some excellent enterprises of these industries can often tell the story of 50% annual growth, because even if you grew 50%, you only than the industry average growth rate doubled, the growth rate is to be believed in the capital market.
however, the passage of time, when the China GDP growth to below 7% even drop into 5% regions, is a lot of vertical market growth will fall below 10%. At this point even if you only assume 30% growth, but also means that you are faster than the industry average growth rate of 3~4 times, which in the face of capital will be subject to more questions and challenges.
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