When Johnson Johnson saw Lao Tan's appearance, he laughed secretly. It was actually quite good. He lived a real life, and it was also a kind of ability to dare to kneel down and lick the strong.

He waved his hand and said casually: "I just returned to China and have no specific plans yet. Tell me?"

"No problem, very honorable!" Lao Tan asked the waiter to send a bottle of red wine, opened it and poured it into the hands of Johnson, saying: "Many people like to say that early investment is to invest in entrepreneurs, how to oppose this entrepreneurial team. But in reality, it emphasizes more on the first place in the track."

"To put it bluntly, it is: the trend is the first, concept is the first!"

Johnson's eyes lit up, and he listened carefully, which was also the main purpose of being willing to come out to meet. After all, the other party has been in the investment circle for many years, and it is not embarrassing to secretly learn.

Lao Tan took a sip of wine and continued: "Venture investors like to promote concepts and create trends. A good concept can leverage a very large venture capital market."

"For example, sharing economy is a very successful concept. In fact, it is just time-sharing rental, but sharing seems high-end."

"There is also stock trading. All stocks that once suffered heavy losses will still rise sharply because of the concept of restructuring. There are also many stocks that were originally unwelcome to suddenly become popular stocks, such as stocks with certain concept stocks and certain fields."

"So the same is true for venture capital companies. Advocating concepts is the survival logic of the industry itself."

"But because the investing in is not a listed company, and without standardized financial statements, it is difficult to accurately judge the company's future development prospects. Only by casting a wide net and investing in a hundred companies, even if ninety of them die in the end, ten of them can be made back."

"In fact, it's just betting, betting on vision, betting on luck, and even betting on fate. All domestic venture capital investors like fast-growing projects, and they want to make a profit in one year, double in two years, and go public in three years."

"Big funds have time limits. Generally, it is 52 in the bank. It takes five years to liquidate and settle accounts with the investor. It is amazing to give two more years, and it is impossible to invest indefinitely."

He poured a glass of wine on his own and smiled and said, "Take me as an example, I have played dozens of projects, and basically the investments are born in the 1980s, and there are very few in the 1970s."

"I think young people are more energetic and can hold on for three days and three nights. They have strong material desires, are willing to endure hardships, and have more persistent thoughts on getting rich."

"It's not just me. The entire venture capital industry generally likes young people. No one looks at entrepreneurs born in the 1960s, so there is not much time left for the 1970s."

Seeing that Johnson frowned, he seemed to understand something, and explained: "Brother, the situation in China is different from that in foreign countries. You are all playing top listed companies. You can just take the stock of Apple and Mobil to retire and pay dividends freely?"

"What are we playing? After all, it's buying and selling entrepreneur projects!"

"The fool wants to pay dividends to start a business project at the end of the year. For entrepreneurs, entrepreneurial projects are all theirs. But for venture capital, entrepreneurial projects have nothing to do with us, they are just one of a hundred projects."

"Feeding, find a good home, then wait for the price, take a break and leave!"

Johnson Johnson suddenly realized that everyone was playing like this?

Lao Tan helped Johnson fill up red wine, fully understanding the other party's confusion. God's hand plays with the top listed companies, and the world's top 500 may not be attracted by them, let alone these fledgling rookies in China.

"I have seen many entrepreneurs with full confidence, and they talk about the bullshit dreams from here. I hate seeing such idiots the most!"

Lao Tan said disdainfully: "My money was not blown by the strong wind. You didn't even understand what venture capital funds were. You came to ask for money when you lick your face?"

"The purpose of investment is very clear. You can sell the equity directly to cash out. There is no second way. No matter if you cash out after listing, the investment company is acquired, the founder repurchases the equity, or other funds come to take over..."

"Even if you meet a big fund with a deep background, you have to buy and sell for a long time, as long as you have money to make money, you should give in with your hands and try every possible opportunity to hold the other party's thigh. This is the qualified limelight."

"I have invested in two Internet companies. Although the company itself has entered a virtuous cycle and can make profits every year, you also know the characteristics of the Internet. It is normal for long-term low profits or even non-profits. It has not yet recovered its capital, and it is like a waste of money, and it is in a dilemma."

After saying that, he sighed and said helplessly: "There are too many such things. If you raise funds in the next round, no one will give you money. If someone gives you money, you will eventually lock it and become a shareholder, and you can only get some dividends?"

"If you have to worry about others making fake accounts when you get dividends, you may even fight in the end. The most important thing is that the liquidity of large amounts of funds is gone."

Johnson smiled and seemed to buy a financial product that can only get interest but cannot get principal. Who would buy such a scam?

"Of course, traditional industries, such as copper mine investment, are just to pay dividends, that kind of thing is another matter." Lao Tan looked at Johnson and said seriously: "Saying so much, I actually want to express one thing. The domestic venture capital operation model is destined to be unable to make a profit by methods other than cashing out!"

"Because there is a cycle of fundraising, investment and management withdrawal, the pressure on the speed of cash out is very high, and it is basically not feasible to pay dividends."

"So if you want to invest in the country, you must be quick, accurate, otherwise it will be difficult..."

Johnson Chan smiled and clinked glasses of wine with Lao Tan. He didn't come in vain. He heard a few words of truth. He pondered for a moment and asked, "What project are you investing in?"

Old Tan smiled, this was already a commercial secret, and someone else would definitely criticize him, but who is SC Johnson? That's what he is waiting for.

He sat upright and said sincerely, "It's very simple, just two points: you can sell it in a short time, and you can also sell a high-priced company!"

"The reason is very simple. The investment was early, the valuation was low and the price was cheap. Within one or two years of investment, the company will grow rapidly and have a bright future, so it will be valuable."

"From a certain perspective, those who can be sold can basically be sold at a good price. As long as those who cannot be sold, they will most likely go bankrupt."

"Those companies that can go public in the future, or projects that will cause acquisitions from large companies, are the treasures that venture capital is willing to invest in. Only those companies that can be positioned in key areas and have broad market prospects may be favored."

I was afraid that I wouldn’t understand what I said, so I continued to analyze: “For example, there was once a vinyl record community APP that came to me to discuss investment and went to dozens of companies. It was difficult for them to gain the favor of venture capital because the target market audience was too small.”

"Vinyl has almost disappeared in the mainstream music market and has no say. The pool is so small. Even if you do it to the end, how much money can you make in a year?"

"Take Douban as an example, why is it difficult to make a profit? First of all, it does not do group buying, and secondly, Douban movie rating is not very lethal for the movie promotion and distribution market. IMBD and Rotten Tomatoes are more authoritative than it."

"And the audience will watch some movies that are bad, such as "Superman vs. Batman". After all, in places like China where imported films are restricted, the audience has no choice at all."

"Young couples always have to go to the movie when they are dating. If the man says that the movie on Douban is not high, then isn't it just a scoring?"

"So in the entire environment, Douban is a product that doesn't matter what it is, and it's impossible for such things to obtain high valuations."

"There is also a kindergarten management solution provider with 2,000 entities nationwide, with strong cash flow, but from the perspective of market share, it's a pity that there is still a significant gap with its competitors."

"Investors are not willing to invest in the third place in this kind of industry. Although they can live a good life based on their own cash flow, but so  what?"

Old Tan smiled and said, "Especially, the project is still relatively early. It's so early that it's all competitors at first glance. Isn't it very desperate?"

He slowly approached Johnson and whispered: "I recently discovered a good project, Miepin.com. The core selling point is that everyone can become a product manager, and Internet companies have strong recruitment needs for operations and products."

"The project is still in its early stages, investing 2 million yuan, accounting for 45% of the equity. What if the PMs across the country rely on this website to find jobs?"

"hey-hey……"
Chapter completed!