Why Early-Stage Investment in Projects Was Discouraged

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According to Li Xiaolai's own sharing, don't focus only on his successful projects. His failed projects number more than ten times his successes. So in reality, it's not just about how much a single project costs or how much you invest. You need to prepare—at least tenfold, if not a hundredfold.

Early-stage investing isn't something everyone can do. Setting aside the necessary connections, even the capital structure itself is often wrong. Early investment carries extremely high risk, and the vast majority of projects will fail. Therefore, you must have the capacity to fund 100 projects at 500,000 yuan each. That means if you invest 500,000 yuan in one project, you need to have 50 million yuan ready. Even if you're confident your judgment is more than twice as good as others', you'd still need 20 million yuan to attempt 500,000-yuan projects.

Amateurs clearly don't meet these conditions. They lack the qualifications yet jump in recklessly, which multiplies the risk infinitely. Investing in early-stage projects is absolutely not something amateurs should be doing. You must accumulate sufficient resources first before touching opportunities in this area. Otherwise, you'll get cut repeatedly. That modest amount of capital simply can't withstand repeated losses.