Chapter 15 This stop of Wenzhou Capital is Venture Capital

For Wenzhou capital, after 2007, investment seems to have entered a cold winter: the stock market continued to slump, the property market policy tightened, coal investment capital was deeply trapped in Shanxi, Northwest oil well investment was unfavorable, and the severe drought in Southwest China in 2010 directly affected the income of hydropower stations... …Although there are occasional good news, such as gold investment and non-ferrous metal investment have made profits, and the property market is still making money in general, it is undeniable that the "golden seven years (2001-2007)" belonging to Wenzhou Capital has passed .An urgent question before us is: Where will the next stop of investment be for such a huge Wenzhou capital?What have Wenzhou people been busy with in recent years?

According to the statistical results of Guangzhou Wenzhou Chamber of Commerce, Zhejiang Federation of Industry and Commerce and other organizations, most Wenzhou merchants have returned to their old businesses and started industries. The rest of Wenzhou merchants are mainly engaged in commercial real estate, restaurants and hotels, financial operations and equity. investment and other four areas.As far as finance is concerned, Wenzhou people are mainly busy doing venture capital. As early as 2009, there was a clear trend of venture capital in Wenzhou Capital.As of September 2010, about 150 billion Wenzhou capital has entered the venture capital industry.

Taking 2009 as an example, every day I received several venture capital funds who came to seek financing, and various PE training courses in Wenzhou emerged in an endless stream.Many Wenzhou bosses simply sold their factories, withdrew the funds from the original field, and invested all in a certain PE, hoping that the funds could double several times a year.Not only those rich and big bosses engage in venture capital, but even ordinary small retail investors, as long as they have tens of thousands or hundreds of thousands of dollars on hand, have joined forces to set up venture capital funds.

Just as people from Wenzhou flocked into the real estate market for a certain period of time, Wenzhou capital also began to flock into the field of venture capital.Therefore, people use this sentence to describe the enthusiasm of Wenzhou people for the field of venture capital: not in the venture capital company, but in the venture capital study class.This shows the enthusiasm and enthusiasm of Wenzhou bosses for investing in this field. In fact, as early as 2008, shrewd Wenzhou people had already smelled the high-profit characteristics of venture capital.After the Spring Festival, many Wenzhou bosses began to transfer their factories. Newspapers were full of sublease information. Those bosses who have been engaged in traditional labor-intensive enterprises such as clothing, footwear, light industry, and electronics all year round are no longer thinking about themselves. In his career, he turned to the field of venture capital.

So, how did they discover the fat of venture capital? Not to mention the downturn in the stock market and real estate market, the characteristics of today's society and economy make it difficult for those bosses who are used to traditional industries. A Wenzhou boss surnamed Zhang said: "Many people say that the bosses in Wenzhou are now impetuous and can't stand the hard work of the industry, so they use the money to speculate all over the country, making everyone uneasy. This is not the case, we Wenzhou people We have never been afraid of suffering. As long as we have good investment projects, we can still work as hard as migrant workers. The crux of the problem is that the profit of doing business is too thin now: the factory buildings are getting more and more expensive, and the wages of workers are getting higher and higher. The price of non-ferrous metals and other raw materials required by the manufacturing industry is also rising, coupled with the difficulty of exporting due to the promotion of the renminbi, and fierce domestic and international competition, these make our traditional industries, such as shoes, clothing, Electric appliances, etc., the profit has been greatly reduced, and it is far less prosperous than in the 1990s. If you still stay in the traditional manufacturing industry, you will not be able to earn much money for a year. You might as well choose a better investment project! "

Boss Zhang's meaning can actually be expressed in one word: Survival through change.The harsh investment situation forced Wenzhou capital to find a better way out.Venture capital is forced out in this form. The first Wenzhou boss to do venture capital was Lin Ashin, the vice president of Shanghai Wenzhou Chamber of Commerce. Chairman of Ashin Technology Development Co., Ltd. and many other companies. His long-term experience in business warfare has enabled him to master a wealth of experience in industrial operations and capital operations, and he appreciates the successful practices of some international investment banks and foreign VCs.Based on these experiences, in 2006, he held a venture capital summit forum in Shanghai, where he first introduced the concept of "venture capital" to Wenzhou fellow villagers.

Although most of the Wenzhou bosses present at the time did not know much about this industry, they had already expressed great interest in this emerging investment, and some Wenzhou businessmen even made a decision at that time to express their willingness to participate. After this incident, Lin Ashin cooperated with 30 Wenzhou bosses to establish the first venture capital company VC in China. Since then, it has become a Wenzhou-style venture capital, leading Wenzhou capital to enter the field of venture capital.As of February 2011, the assets under management of Zhejiang venture capital had reached nearly 6 billion yuan. During the two sessions, the country also regarded the venture capital model as an important measure to revitalize China's economy.At this time, Wenshang has been working hard in this field for 4 years!

Venture capital, both English Venture Capital Investment, translated, the full name is "venture investment".In layman's terms, in this field, rich bosses provide financing for high-tech-based start-up companies (or other industries), and they are regarded as investors. However, what is different from pure investors is that investors can provide financing activities for the companies they invest in based on their years of experience, information they have mastered, contacts they have, and management experience they know. Investors can invest in several companies. A well-known figure in this industry, Korean-Japanese Sun Zhengyi, has worked for Hong Kong Yitong International Business Co., Ltd., Shanda Network, Alibaba, Yahoo, Sina, NetEase, 8848, Dangdang Online Bookstore, UT Starcom, and Ctrip.com , 263 Group, and Renren.com have all invested in enterprises, so they are known as "the standard bearer on the Internet".

The first Internet company he invested in had no profit at the time. When he invested $360 million in it, many people thought he was crazy.But a few months later, people admired his foresight. After the stock price of this Internet company went public, the stock price went up and down. Sun Zhengyi only sold a small part of the stock in his hand, and got 450 million US dollars. Talking about Sun Zhengyi, the industry predecessor, Xiong Huorong, executive director of the Shanghai Wenzhou Chamber of Commerce, explained the true meaning of venture capital: "Different from industrial management, venture capital is actually a business model based on other companies. This investment method is more Selectivity. In business, if the industry is not well chosen, there is a risk of annihilation. However, venture capital is different. Sun Zhengyi has invested in many projects, and not all of them may be successful. However, Alibaba, which he invested in, has succeeded. The profits given to him are more than enough to make up for the losses of several failed investments."

It is precisely because of the high profits in the field of venture capital that Xiong Huorong simply hired professional managers to run his own company. He himself is busy studying economics and management to recharge his venture capital career and prepare for a better future. Prepare to enter this field smoothly. The examples of Sun Zhengyi and Xiong Huorong are given here to let everyone understand the charm of venture capital.In fact, even without the case publicity of these two celebrities, if you think about it for a while, the "trickiness" in it is very clear: on the one hand, Wenzhou's private capital of hundreds of billions is always looking for a way out; on the other hand, many industries and enterprises at home and abroad All need funds to operate, "one is willing to fight, one is willing to suffer", the investor and the invested company hit it off, how can there be no broad market?

What's more, the fields involved in venture capital investment are basically industries that make money relatively quickly.Such as fast-growing high-tech enterprises, traditional industries with broad market prospects, retail industries with new business models or some special consumer goods industries, etc.Sometimes invest in other industries as well.These industries have one thing in common: they can generally provide high value-added technologies, products or services, and can obtain long-term and guaranteed profits. Venture capital can even make money by investing in loss-making businesses. Beijing Northland Biotechnology Co., Ltd. has been a biotechnology company among many small start-up companies in Zhongguancun Science and Technology Park.Before this company was invested, it did not have stable sales revenue, and its performance was also in a state of loss. For example, in the first half of 2009, it realized a net profit of -1.1168 million yuan, and an earnings per share of -0.12 yuan per share.But in 2011, as the concept of venture capital became known to the domestic people, this loss-making company turned out to be a "fragrant bun" for investors to earn money. Some investment bosses were even willing to invest 80 million yuan in this company. This made Nie Li, deputy general manager of Northland, unexpected. There are still many such investment cases in the field of venture capital. Although these enterprises may be temporarily sluggish, as long as they can introduce funds and introduce more advanced management and technology, they can turn around and turn losses into profits.How could rich bosses in Wenzhou who are good at mining huge profits not like such a good investment project? In short, I think that after Wenzhou's private capital has experienced investment setbacks in recent years, it will become a general trend for venture capital to attract Wenzhou capital to enter this industry with its unique advantages.Although most Wenzhou bosses like to invest in tangible industries and are unwilling to hand over their hard-earned money to the invested companies, but before there is no better investment project, Wenzhou people are Money will not be left lying in the bank in obscurity, and the meaning of its existence is only the continuous appreciation of capital through operation.Venture capital provides a way out for private capital in Wenzhou, and venture capital is a new direction for Wenzhou people to invest.