20 Feb / 2017

nvestors warned business valuation is false spoil things by excessive enthusiasm must be set

Abstract: "we hear from spoil things by excessive enthusiasm" is a fable, and we’re going to talk about today is the start-ups "spoil things by excessive enthusiasm" of the story. In order to successfully financing start-ups love the bubble grows bigger and bigger, this marketing clamor may in a short period of time to allow start-ups popularity.

 

"we heard growing up spoil things by excessive enthusiasm" is a fable, and we’re going to talk about today is the start-ups "spoil things by excessive enthusiasm" of the story. In order to successfully financing start-ups love the bubble grows bigger and bigger, this marketing clamor may in a short period of time to allow start-ups popularity. However, the hype out big data is not necessarily a good thing.

tells you what to report, or you don’t have to report anything. This is the reason why the investment of China’s start-up companies, innovation is high naked reality. Of course, not everyone will uphold the facts speak principle, with words of praise is normal. But I found that until recently, Chinese start-ups to false financing rounds scale is too big!

"this is the usual practice of startups, as far as I know the vast majority (more than 50%) of start-ups will do so," said Ma Rui (Rui Ma). (Note: the king hunting cloud network editor Ma Rui is Silicon Valley incubator 500 Starups investment partners, Chinese district is interested in the early start-up. ") not carefully investigate the exact number, I cannot prove that must be more than 50% false positives after start-up financing rounds. In addition, there are some companies that I suspect, but the suspect has not been confirmed, it is necessary to say how many companies, I did not count."

Ma Rui believes that startups should bear the main responsibility for false data, however, Shanghai Gobi Partners Limited Zhu Lin (Michael Zhu) believes that China emerging Vc firm can not get away. He said: "relatively speaking, this is a normal phenomenon, emerging Vc firm eager to break a name, but the lack of experience, will not deal with these situations."

this trend is worrying, it is not only because of the huge number of start-ups, but that they are false positives in the data level. Ma Rui and Zhu Lin agreed that, in general, financial data startups will be expanded to two to three times, some six times more (equivalent to the conversion of RMB into U.S. dollars), more than ten times (to expand the amount of financing directly into one valuation).

had a completed enterprise financing, found fund theory than the IPO amount, then began to issue, "said Zhu Lin. "In general, to make or erase the fraction of integers can be understood, for example, reported $about 1900000 into $2 million. However, if a company earns $one hundred million, but the reported data is 2 to $300 million, which is related to the credibility of the problem."

is a bad habit

Leave a Reply

Your email address will not be published. Required fields are marked *