Once, some media summarized the reasons for the failure of foreign startups, and found that capital became the most critical factor for the survival of a company.

This also makes many founders have to make some compromises, especially after attracting investment, all decisions made by enterprises need to be approved by shareholders. When your enthusiasm is not answered or even opposed, every step you take next is extremely difficult.

The founder of Gigaom said with emotion, "Business, like life, can't be like movies, and everyone can't get a fairy tale ending."

While the market needs subsidies to burn money, employees' salaries need to be paid this month. When you are extremely anxious, the words of shareholders echoed in your ears: "We lost money again this quarter. If we continue to lose money like this, we can only ask you to leave."

You are angry and helpless, and you think, "You have paid so much for the company, but in the end, you are denied a word. Why?"

once you step into the road of capital, many things begin to get out of control. when you don't have enough chips, you can only be slaughtered by the major shareholders. You can't change this state at all, you can only secretly sigh at night.

In order not to be cornered, you must understand these five points.

The founder needs to establish a sense of rules.

In many cases where the founder was forced to leave, the capitalist actually did not violate the rules, but only took advantage of the loopholes in which the founder was unfamiliar with the rules.

We often see "gambling agreement" in some investment clauses. When South Beauty received an investment of 211 million yuan from CDH, it also made such a bet: if South Beauty could not be listed before the end of 2112, CDH had the right to withdraw from the investment and demanded the original shareholders of South Beauty to buy back the equity of CDH at a high premium.

before signing the "gambling agreement", the founder should have enough confidence and accurate judgment on the future of his own enterprise. Instead of being greedy for perfection, in order to develop, no matter what conditions, take the money first, and in the end, it will only bury the curse.

Don't introduce capital prematurely

"All these troubles of NVC are caused by attracting external capital. Advise entrepreneurs to be cautious when you need to introduce funds. I was too hasty at that time. When the funds were in trouble, I thought that the funds would come, and I didn't consider it clearly. " Wu Changjiang, founder of NVC Lighting, said.

according to an insider's analysis, "most of the financing for those projects that cause disputes is a timely help, not a icing on the cake."

when enterprises encounter difficulties in financing, the conditions of investors will be relatively harsh, or even "take advantage of others' danger", which will lay the seeds for the later struggle. Therefore, if the founder wants to continue to have influence on the company's decision-making, he must be cautious when financing, and must not easily transfer the controlling stake for short-term benefits.

reflect on "why should I raise funds?"

Some founders are kicked out of the house and blame the capital game for being too cruel and sinister. But there is no friendship in the business world. What the founders should reflect on is: Why should I raise funds?

Especially in recent years, with the maturity of venture capital environment, many start-up companies are ready to talk about the wind and get financing. However, there is no need to follow this trend when the business performance and financial situation are very good.

South Beauty and Auntie Dumplings, as catering enterprises, have no "accounts receivable", and their cash flow is sufficient and stable, so they are not short of money at all. Then why do they need financing?

probably because the domestic financial market is immature and the market participants are not rational enough, many enterprises, especially entrepreneurial enterprises, often suffer from "financing hunger" and "financing worship". They may not be very short of money, but in their view, getting the favor of capital is a very tall and promising thing, which can be used as propaganda material. Therefore, today they are proud of "A round of financing" and "B round of financing". However, can these financing really make your enterprise develop better?

It's easy for entrepreneurs to realize the intention of capital. The real difficulty is whether you can resist the temptation when capital comes to your door. Less financing hunger, you will avoid a lot of trouble.

Looking for investors who are consistent with their own ideas

The founder and investors are in trouble, not all because of conflicts of interest, but sometimes because of inconsistent ideas.

He Boquan, the founder of Robust, was forced to leave Robust because of his different business philosophy from the controlling party.

like several cases in China in recent years, it is not normal to have a fight, which shows that many enterprises in China still need to improve their corporate governance.

it is very important for an enterprise to seek external investors to see whether its ideas are consistent with the company's development vision.

The founders should be "clean" themselves

In most controversial projects, there are inevitably some irregular or even illegal shadows in them, which is also the fuse of the struggle.

For example, Vanke was accused by Baoneng and China Resources of having the problem of "insider control"; For example, in the case of NVC Lighting, Wang Donglei pointed out that Wu Changjiang privately granted the brand rights of NVC Lighting to three other enterprises with deep connections with Wu Changjiang without telling the board members.

during the development of NVC lighting, Wu Changjiang was also suspected of holding shares on behalf of employees, which left a "tongue" for competitors, and was also suspected of using the power of dealers to "force the court" for other board members, which led to the situation of Yan Yan and Schneider in no way back.

Therefore, if entrepreneurs want to rightfully safeguard their rights and interests, they must first ensure that they are clean, so that they will not be afraid to speak out because they are caught by others.

As the owner or partner of an enterprise, have you ever thought that the era of equity investment in China has arrived, which is the best time for small and medium-sized enterprises to enter the capital market!