Port communicationThe most comprehensive summary of basic knowledge points on "corporate financing" in history! Corporate financing is an eternal topic in corporate management，It is also one of the must-learn topics for business executives。Today let’s talk about the common sense that you should know about corporate financing.。one、The difference between equity financing and project financing 1. Equity financing：Refers to the financing method in which a company introduces new shareholders through capital increase，Increase in total share capital，The money goes to the company instead of to the old shareholders。
2.project financing：for specific projects，For example, the financing of a film, television drama or variety show，Liquidation and settlement at the end of the project。
Some projects will be financed through the establishment of project companies，In form, it is also equity financing，But in fact it is still project financing，The key point is：(1) The project company will make settlement after the project is completed.，Equity financing projects will continue to operate (2) An enterprise can set up multiple project companies at the same time，But in terms of equity financing，Investors generally
Require
The founder cannot have other companies in the same industry outside the body.。
3.sell old shares：Original shareholders sell their company shares to investors，Money goes to old shareholders，Not in the company。two、What is round A and round B? Everyone should know the meaning of the angel wheel.。Investment stage of Series A、Round B、C round is more of a common name，There is no clear definition and concept。It can be understood from two dimensions：1.rounds。It is the number of external financing，The first round is the A round，The second round is round B。2.stages of business development。
It may be more accurate to understand it from this perspective：(1) Angel wheel：very early，maybe just an idea，nothing，The company hasn't even been registered yet。Investors who invest at this time，Call an angel investor。If you don’t take angel investment money，The business has been operating for some time，The product is out，But the company is still relatively weak，The investment you get at this time is still called an angel round.。
(2) Round A：The product prototype has begun to take shape，Still relatively weak，Maybe it’s not profitable yet and it hasn’t formed its own hematopoietic function yet.。
At this time, the risk for the enterprise is still relatively high.，Investors who invest are generally called venture capitalists(VC) Some entertainment companies started with the founders using their own money.，No angel investment or external financing，When he raised funds, he had already made tens of millions or even tens of millions.，I think the first financing at this time was also Series A.，At this time, round A means more rounds.。(3) Round B：The company is relatively mature and the model is relatively clear.，More funding is needed to replicate。
Investors at this time will either continue to be venture capitalists，Either PE funds start coming in。The meaning of PE funds will not be elaborated，directly understood as，PE funds are funds that invest in more mature companies.。
The difference between PE funds and venture capital is：Venture capital invests in earlier stages，Valuations were even lower then，Willing to take greater risks to gain greater returns；PE fund investment late stage，Valuations tend to be higher，They would rather invest more expensively in more mature companies to reduce investment risks.。(4) Round C：The company model is very mature，At this time, the company often already has large-scale profits。The investment funds at this time are mainly PE funds.。
three、How do investors make money? Of course, investing is to make money.，Making money depends on the increase in equity value brought about by the growth of the company.。among investors，We won’t talk much about purely self-owned funds.，Mainstream institutions raise funds from external sources。Funds raising funds externally，Mainly make two money，One is the management fee (about 2% per year)，One is carry，Normally 20%，That is, the fund withdraws the principal and returns it to investors.，20% of profits must be given to the fund manager。No need to underestimate management fees。
10100 million fund，That’s 20 million every year。Some fund investors rely on luck to invest in one or two good projects.，Just keep issuing funds to expand the scale，Let’s earn the management fees first。To earn the carry from behind，Just really quit，Just stay safe。
Therefore, investment institutions attach great importance to exit channels.，Generally, there are several exit channels like this：1.IPO：It is listed on the Shenzhen Stock Exchange.(Listing on the New OTC Market is not called an IPO)，IPO is the best。2.Merger and sale：Investment companies cash out with old shareholders and founders。This M&A direction can be to sell to a listed company，Can also be sold to other companies。
3.sell old shares：Sell shares to other investment institutions，Other institutions are also pursuing IPO or mergers and acquisitions.。4.strategic investment：this is an exception，Some large industrial enterprises，Will invest in order to form deeper relationships with companies in core sectors，This kind of investment has less strong demand for exit.。
This is the impact of yesterday’s China Securities Regulatory Commission policy，If M&A and sales are halted，There is one less exit channel for entertainment investment institutions.，IPO review may also be more stringent，This will make them more cautious in investing in entertainment companies, especially in early-stage projects.。Four、What investors value 1. Track。The track is the segmented field and business model that the enterprise is engaged in.，This should be the first decisive one。
Special emphasis，Don't believe anything. I just like you to invest first.，To say so is to mislead the company.。The track is not good，No matter how good a person is, there is no chance。The gap between people will not be too big，The same goes for founders。Don't think that you are so unique，Don't fool yourself。Think more about changes in the industry and opportunities for segmentation。2.team。People are the biggest variable，So the most important thing。
first，Which track to choose is the trend?，promising，Then we'll see who can escape.。Founder Response Agency，The most important thing is sincerity，No need to cater。For example, the other party talks about his feelings every day，You go and have feelings for others，That scene might be awkward，Maybe you really need it for a speech。There are many things to look at when looking at people and teams.，Past experience，current combination，way of thinking，The way of doing things，This is a system project，You can say how many days and nights。
If I had to sum it up in one sentence，That is to let investors see，You are a person who has the ability to make money but will not cheat investors。3.product。It’s what you make，what is the product。any creativity，Any industry resources must ultimately be implemented into products，Verify with product。4.business model。From a business model perspective，Investment institutions’ response to platform type、Technology-based companies will have higher preferences than pure content-based companies。It is important to find your own position。
five、How is the valuation determined? Generally, the price-to-earnings ratio is used to value mature companies.，That is PE，This PE is not the same as the PE fund above.，The company’s valuation is equal to corporate net profit * PE multiple。for example，A company's annual profit is 150 million，10Times PE equals a valuation of 1.5 billion。but，The profit growth of entertainment companies is not as easy to predict as the manufacturing industry.，Therefore, using the price-to-earnings ratio is not necessarily accurate.。
From my understanding，On the valuation of entertainment companies，Investors generally have a mentality，Rather buy expensive ones，Only buy the right one，Especially I would rather buy the leading company at a high price，Don’t invest in companies at the waist and tail at low prices either.。This is determined by the characteristics of the entertainment industry，It is difficult to predict which small and medium-sized enterprises will succeed，Then it would be better to invest in something that has already escaped.。They are close enough to IPO，Then it’s close enough to quit and make money。
but，These high-priced leading companies，Can this trend continue in the future? Hard to say。In the end, it was A-share investors who really paid for the investment bubble.。If the A-share channel is severely blocked,，Companies with particularly high valuations may be the first to kneel down。In actual combat，The most commonly used valuation method for entertainment companies is benchmarking.，Just look at the comparison of aspect ratio and aspect ratio in various dimensions.，See how much others value it，Ultimately converted into a series of factors，Get valuation results。
but，Ultimately it’s a question of supply and demand。Here is a special reminder，When SME founders talk about equity financing，Come up here and stop the lion from opening your mouth，Thought it was a bargain；For investors，Too many mid- and early-stage projects，Not missing this one，No problem of bargaining，On the contrary, they may think you are unreliable.。six、Is the New Third Board valuable?
The entertainment industry naturally needs capitalization，Because the risks are very concentrated and the uncertainty is huge，Therefore, entertainment companies need to diversify risks through capitalization.。If IPOs and M&A are affected now，The New Third Board will be a good choice。About the ins and outs of New OTC Market，Not too much explanation，Tell the conclusion directly：1.The New OTC Market is a national open market，And it is already a mainstream market；2.The advantage of the New Third Board is that it is public，transparent，There is supervision。
Standards for entertainment companies，Brands in the capital market are very helpful；3.The New Third Board has two trading systems: agreement and market making.，It is recommended to reach an agreement first and then be very cautious about whether to make a market! To sum it up in one sentence:，The New OTC Market is worth boarding，Be cautious when making markets。seven、How to choose investors besides money，Also want to see something。1.brand。Branded investors can bring brand premiums，他都投你了，Then you must be good。
In this way, there will be positive interactions between various resources。2.people。Let’s see who it is specifically，Especially who is the big BOSS?，How is the communication with you? Do you really understand your industry? Do you like it?。Personally think，This is the most important。When looking for investors, look for them with the same mentality as looking for partners.。It’s not interesting to just have a brand that’s awesome all day long。3.resource。
It’s how many resources there are in the industry，In the early and mid-stage, companies are still fighting for survival and development.，Need to find money that can help you grow further。However, you must have a clear understanding of the so-called resources，Don't expect too much。Even if an investor invests in many companies with resources in the industry,，He is also a small shareholder。Can I introduce you to him?，Count on him to help you get it done，unrealistic。eight、Seizing the opportunity is rarely talked about.，but very important。
When to ask for what money and how much is a science。You can take a look at the capital operation process of the new studio，perfect。special attention，Don’t spend too much time and energy on capital.，Business is the core，You can't just improvise，Don’t look for it until you need money right away。This balance is very important。As a business owner or manager、have you ever thought about：Why can those business leaders lead the market?
What unique methods of operation and management do those companies have? As a business owner or manager、How do you assess the situation?、Use your wisdom to break through the bottlenecks of enterprise development and make it go further、Longer? The only thing you can do is study、To successful business leaders、Learn from industry experts、To stand out in today's increasingly competitive market、You must learn advanced management concepts、Master the advanced business model! Because you have to understand something!
The best investment object is yourself、The best way to invest is to learn! Learning ability is competitiveness、No learning ability、There is no competitiveness!
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