Chapter 16 With the help of venture capital, Wenzhou capital will be stronger

For Wenzhou Capital, venture capital is definitely a "blessed star" investment project.This investment project not only greatly solves the problem that Wenzhou capital has nowhere to go, but more importantly, it can bring several times the economic benefits to Wenzhou capital. Take a well-known domestic investment project as an example. In December 2009, the most sensational event in the field of venture capital was the amazing news that Shenzhen Dachen Venture Capital Co., Ltd. made more than ten times the profit through venture capital. As early as 2000, when venture capital was still unknown to most people in China, Liu Zhou was entrusted by Long Qiuyun, chairman of Dianguang Industry, to invest 100 million yuan to establish Dachen Venture Capital in Shenzhen.When we first started our business, it was extremely difficult. "In 2002, we could barely survive." Shao Hongxia, the founding veteran of the company, said when recalling the early history of venture capital.

After six years of hard work, in June 2006, Tongzhou Electronics invested by Dachen Venture Capital was listed on the Shenzhen Stock Exchange SME Board and obtained the right to trade. As a result, Dachen Venture Capital obtained a return of nearly 30 times.By 2008, Tuowei Information, another Internet company invested by Dachen Venture Capital, was also successfully listed. As of December 2009, it had achieved a return of up to 40 times for Dachen Venture Capital. With these two successful experiences, Liu Zhou quickly adjusted his investment strategy and carried out large-scale financing and investment activities for more companies.As of December 2009, the three companies invested by Dachen Venture Capital, Yiwei Lithium Energy, Aier Ophthalmology, and Wangsu Technology, have all been successfully listed, bringing a floating profit of 635 million yuan to Dachen Venture Capital. The average return The rate is as high as 15 times!

With such impressive achievements, Liu Zhou not only won the title of "Golden Finger", but also made his Dianguang Media a well-deserved venture capital concept stock in the capital market, and the concept of venture capital has become more and more popular.Today, there are more than 50 company LOGOs hanging in the small conference room of Dachen Venture Capital, all of which are invested by Dachen Venture Capital.Even if only one-third of these investments are successful, Dachen Venture Capital will reap profits several times the investment cost. This is the charm of venture capital and the fundamental reason why venture capital is deeply rooted in the hearts of the people.

If Wenzhou Capital enters the field of venture capital on a large scale, its unique advantages will definitely bring a huge shock to this industry.This is because Wenzhou Capital has three unique advantages in venture capital. Advantage 1: Wenzhou capital has a unique "legionary" feature. As we all know, Wenzhou people love to "group together", and money can easily be gathered together by various Wenzhou bosses. The so-called "small capital, large agglomeration", Wenzhou people can easily form a huge capital in the form of a group.As long as there are good companies worth investing in, Wenzhou Capital will definitely be able to grab the right to invest with an absolute advantage.

In layman's terms, if a certain high-tech company urgently needs capital support, otherwise it will not be able to adopt more advanced technology to gain a competitive advantage.At this time, whoever invests in the company more timely and provides more capital will be more likely to win the trust of the company's boss.Therefore, even though the venture capital company owned by Wenzhou people may not have such a good reputation, the boss of the company will quickly give the answer to cooperation as long as he can see the capital he needs. More importantly, the reputation accumulated by Wenzhou Capital in the private sector will make it easier for it to obtain investment in a project.

Wenzhou people are based on honesty, and fellow villagers borrow money through the chamber of commerce, and there is no need to issue an IOU at all, and generally there is no need to sign any agreement. Everything depends on the support of personal reputation.Who ever said that? "To see a person's quality, you can tell with money." Wenzhou people can make money, but they don't regard money as something higher than reputation.From this point of view, it is easier for Wenzhou Capital to win the trust of the invested enterprises. In a sense, investors, venture capital institutions, and invested companies are a complex combination, and it is easy to have conflicts of interest.Only when the three parties follow the standard of honesty and integrity, and jointly make the investment projects bigger and stronger, is the basis of cooperation and the key to profitability.There is no doubt that Wenzhou people's unique "legionary" advantage is the basis for them to win investment projects more easily, and it is also the guarantee for investors to invest more funds in them.

Advantage 2: Wenzhou capital has rich experience in private investment. Venture capital, a new form of investment, first emerged in Shenzhen. The first venture capital company established by Wenzhou people, "Shouhua Venture Capital", was not established by Lin Ashin until 2006.Moreover, due to the immature legal and credit environment at that time, this venture capital company did not obtain the expected benefits. Although the industry is still in the ignorant stage of exploration, it is believed that Wenzhou people who are good at learning can quickly win the market as long as they understand how it works.Because before the concept of venture capital appeared in China, Wenzhou people already had a lot of investment experience similar to venture capital.

Wenzhou people’s chamber of commerce, as we all know, as long as anyone needs money, organize an event in the chamber of commerce, gather relatives, friends and fellow countrymen, and get investment funds. This is actually a way of financing.In other words, the source of China's venture capital can be said to be the "chamber of commerce" concept originally created by Wenzhou people. The difference is that most of the participants in the chamber of commerce are relatives, friends or fellow villagers of the fundraisers. The relationship is quite special, and everyone will not ask for any interest. Therefore, the scale is not very large, and it is impossible to become a professional venture capital company like venture capital. .Now that the purpose of venture capital companies is to make profits, I believe that Wenzhou people who have always been sensitive to investment will definitely not let go of this investment opportunity. They can use the venture capital model to re-operate their own chambers of commerce and gradually grow their capital through venture capital. .

Advantage 3: Wenzhou capital is already well-known. When it comes to Wenzhou capital, I am afraid that there is no capital in any region in China that is more influential than it.In fact, not only at home, but also because of the eclectic investment forms of Wenzhou people, they have won the support of "Chinese Jews" abroad. Sometimes even the most profitable Jews are afraid that Wenzhou people will take away their territory. .The reputation of Wenzhou people and the momentum of Wenzhou capital can be seen from this. Therefore, if the invested company needs a huge sum of money to do venture capital for itself, it is very natural to think of Wenzhou Capital, which has already formed a "brand effect".

As of October 2010, the investment of Wenzhou Capital in the field of venture capital has reached about 150 billion yuan. Many companies come here to seek financing. Every day, I receive several venture capital funds who come to Wenzhou to seek financing.When it comes to why they seek capital from Wenzhou, many people looking for financing come here directly without even thinking about it. Just as people think of "melatonin" when they mention health care products, when it comes to financing, many people's first reaction is to look for Wenzhou capital, because Wenzhou capital has become a familiar symbol like melatonin.This unique advantage of Wenzhou Capital is unmatched by any domestic capital, which determines that Wenzhou Capital will have a bright future in the field of venture capital.

Now, with the official implementation of the national "Limited Partnership Law", the legal environment required for venture capital has matured.On the other hand, more than 300,000 small and medium-sized enterprises in Wenzhou are also in urgent need of transformation and development. The time is ripe to adjust the structure of traditional industries and cultivate emerging industries. Wenzhou capital, which has been looking for a way out, finally has the best stage to exert its strength.Therefore, as I said in my speech at the 2008 China Benshi Venture Capital and Private Equity Investment Forum: "Although under the influence of the global financial turmoil and economic recession, Wenzhou's manufacturing industry has entered the winter and is facing a certain level of survival. crisis, but at the same time, I can assert that the spring of Wenzhou’s venture capital industry has come.” Because, Wenzhou Capital will definitely use its incomparable advantages to make Wenzhou Capital even bigger in the big business of venture capital, which can multiply its capital several times, and Wenzhou Capital will also be more proud of its perseverance to be strong in the world. The forest of enterprises.