* source: Beijing news

This spring has been a little chilly for venture capital firms.

Small and medium-sized enterprises are facing soaring operating costs and tight income, for them to hold the cash flow, is to hold the lifeline of the enterprise. For startups, cash flow is now a dead end. As long as the people who follow the news of venture capital, will find that wang ran, zhu xiaohu, wu shichun and other investors in the recent public statements, also all about strict control of costs, dead cash.

The outbreak has changed the way cash flow is calculated. During the Spring Festival, wu fei, the CEO of smart, and his team had little rest, except shuttling between storeroom and seller to allocate inventory. In his opinion, ".

He judged that the income would definitely be halved during the outbreak, "he told reporters. If the outbreak unfortunately continues into April, he said, he would consider a pay cut for all employees, since human costs now account for the bulk of the company's operating costs.

Similarly, the founder of ansheng technology, an active noise reduction solution provider with chips and modules as its main products, said, "fortunately, we stocked a batch of goods before the holiday, otherwise the product delivery would be delayed." "Conservatively speaking, at least," reckons guo ruyi, managing partner of taihe capital. 'in theory, the low performance in the first quarter of each year is relatively good for many companies, but this year is different,' Mr. Guo explained. Taking the Spring Festival home appliance sales and sales volume as an example, the consumption of various categories has decreased by more than 70% compared with last year's Spring Festival. With such a big drop in year-on-year data, there is a lot of pressure to pull the falling volume back.

"The battle of life and death 200,000 yuan stockpiled a large number of fresh products, after the outbreak also had to be forced to close the store. Three months to "stay well," guo suggested.

Break the game: financing, loans need to step up the war, convertible bonds is a new opportunity

For many enterprises, if they do not rely on financing, even the most conservative 91 financial chairman xu zewei is exceptionally busy throughout the Spring Festival. Xu said.

Five million, normally the restaurant doesn't need a loan to stay afloat, but because of the outbreak, they make a judgment that the business may lose money for three months and need to maintain cash flow, "he said. The same is true of other companies, many of which anticipated future shocks early in the outbreak and took out loans to protect their cash flow.

At present, the entity enterprises mainly rely on loans for financing, and some technology enterprises which used to mainly rely on equity financing also start to try the way of debt financing. Wu fei said that in addition to some countries of targeted subsidies, relief, loan financing is priority over equity financing consideration. "He said.

As far as liu yifan is concerned, the funds on the books of some high-tech enterprises have only reached three or four months. In high-tech enterprises, the annual turnover before big data and C round was very small.

"Mr Liu said. Liu Yifan AnSheng technology had planned in March to start a financing, if because of the outbreak in May "through online meetings, matching live workshop" field to listen to a lot of noise reduction effect need to be in, a lot of voice cannot through communication equipment, also won't be able to demonstrate the value of the company "we have seen so many entrepreneurs strategic investors do not want to be control. But many strategic investors are now more for ecological layout, and do not necessarily have to control the enterprise. Especially in the current market environment, the strategy of maintaining the original investment pace and relatively active degree, the majority of industrial investors "for investors," wang ran of yi kai capital noted in his open letter. In a sense, he says, it's now a win-win deal for both Uber and LP with ubiquity all over China.

Change: cut down on cash-burning businesses and seize online opportunities

Panda capital founding partner li lun posted a picture of the video conference on WeChat moments, and said she opened AR glasses' telemedicine rounds and telemedicine emergency services three days after returning to work. For 30 minutes, the general hospital is in the main part of the hospital and the patient is in the ambulance, "he explained. Wu said the new business has now served more than 20 hospitals, to a certain extent to alleviate the shortage of hospital protective clothing, masks.

Similarly, lifei dance center is a chain of dance teaching centers in Beijing. The previous teaching method was offline dance studios. After returning to work, the company changed the teaching method to live online teaching, with dance teachers directing from a distance.

In Guo Ruyi opinion, online education industry, games, and content in areas such as possible because of the outbreak, a large number of users using habit of migration, such as "if your business is one or two a month burn millions or tens of millions of, suggest to consider whether to stop it at once, even if it may bring you a huge income in the future. What if the main business is very expensive? Maybe you need to rethink whether there is a problem with the business model design and whether it is possible to improve the cash flow of the main business by adjusting the model. "Every sme, every entrepreneur, in addition to raising awareness of the epidemic and the industry, needs to have a very strong effort. Be prepared mentally to stabilize the army. Change the mentality of each crisis, as a training, ready to change at any time. If the entrepreneurs can win this test, the market will be a huge reward. Wu said.