My Age of Investment

In the office on the 36th floor of China Merchants Building, Xia Jingxing was sitting on the sofa, talking and laughing with Fu Jixun and Rao Lei about setting up a new fund, when Liu Xiaoduo suddenly knocked on the door and walked in.

"Mr. Xia, Mr. Ma invites you to Lin'an for full moon wine."

Xia Jingxing was stunned on the spot, his eyes almost popped out of his head, and his mouth was like a machine gun and he kept asking: "Full Moon Wine? Is Lao Ma becoming a father again? When did it happen? This Lao Ma is hiding it really well." Yes!"

Fu Jixun on the side said with a smile: "Mr. Ma must be in his late forties, this is a son of old age! To be honest, we should do something big and special!"

Rao Lei showed a smile that every man knows, and said with a smile: "You are rich, and you take good care of yourself. Look, the gambling king is still a father in his seventies! Mr. Ma needs to inherit a family business as big as Mr. Ma's. It’s also appropriate to have three or four babies.”

Xia Jingxing was really shocked. Didn't he remember that Lao Ma only had one son? Did she have a second child?

I never heard of it in my previous life! Could it be an outer room?

Thinking of this, Xia Jingxing seemed to have discovered some great secret, and his heart burned with gossip.

I thought that Lao Ma just liked to talk dirty, but I didn't expect that he could be so promiscuous in private.

I have to attend this banquet, and I’ll tease Lao Ma a little bit by the way.

If the child is a daughter, let’s forget about getting married. The daughter will look like her father!

Liu Xiaoduo smiled a little awkwardly: "Um...Mr. Xia, Mr. Fu, Mr. Rao, you have misunderstood. It is the full moon of Ali's listing, and Mr. Ma decided to throw a banquet in Lin'an and invite shareholders to celebrate together."

Xia Jingxing was drinking tea. When he heard this, he almost spat out a mouthful of tea. Fu Jixun across from him was so frightened that he ducked aside. Fortunately, he held it in and did not spit it out in the end.

Xia Jingxing's cheeks ached from holding it back. He put down the teacup hard, forgetting to criticize Liu Xiaoduo who was half-sentence, because at the moment his attention was completely focused on another thing, and his face was full of questions: "Full Moon Wine is on the market. ?”

Liu Xiaoduo didn't know what to say, so he could only nod lightly.

"Fuck, what the hell..."

Xia Jingxing turned to look at Fu Jixun and Rao Lei and asked, "Have you heard of it?"

They both shook their heads, "Unheard of! I've learned a lot!"

Xia Jingxing pinched his eyebrows, this old horse has so many tricks!

"Okay, I understand, please decline for me..."

As he spoke, Xia Jingxing suddenly remembered something, so he changed his mind and said, "Forget it, you can make arrangements. Let's go see the world. We haven't had the full moon wine of a listed company yet."

Hearing this, Fu Jixun and Rao Lei couldn't help laughing.

"Mr. Ma is really interesting. Will he celebrate the company's birthday every year in the future?"

Xia Jingxing glanced at Fu Jixun who was speaking, and said, "Hey, you have the mentality of a nouveau riche, and you like to show off."

Rao Lei put forward a different view: "It may not only be a show off, but invite friends from all over the world, and at the same time establish Ali's position as China's Internet leader."

After thinking for a moment, Xia Jingxing nodded slightly: "It makes sense, although Lao Ma behaves and speaks absurdly, every step he takes has deep meaning.

In his early years, he invited all the leading figures on the Chinese Internet to Lin'an for a "West Lake Sword Discuss". Didn't he attract the attention of the national media and suddenly give Ahli countless free publicity and exposure resources? "

Liu Xiaoduo nodded secretly at the side. She originally thought it was just a show and a face-saving project, but she didn't expect it to have such a deeper meaning. She should not underestimate any self-made boss.

"Why don't you leave?"

Seeing the boss speaking, Liu Xiaoduo, who wanted to stay and learn something, quickly ran away.

After a brief interlude, the three people in the room continued to talk about setting up a new fund.

“The current investment portfolio of Jingzhe Fund includes: Ganji Wuba Group, Tudou, Dianping, AutoNavi, Qihoo 360, Kangsheng Chuangxiang, Kugou, Xunlei, Village Foundation, Autohome, Qunar Net, UC Youshi, Xueersi, China Public Education, Noah Fortune, Aikang Guobin, Seven Days Hotel, Aier Ophthalmology... a total of more than 30 companies."

After introducing the detailed investment list, Fu Jixun looked at Xia Jingxing with a smile: "The US$200 million Jingzhe Fund has basically bottomed out. We need to establish a new fund as soon as possible, otherwise there will be no rice left."

Xia Jingxing nodded lightly. He had only invested in more than thirty projects in two years. It was already slow. However, this was also related to the fact that the fund had not been established for a long time. Both the team and the investment system needed time to build, and it would be faster in the future. , the shots will be more frequent.

According to the standard approach of the venture capital industry, a VC fund will not use up all its bullets in a few months after the fundraising is completed. It usually takes one to two years to complete the investment, and then the old fund will enter post-investment management and During the exit stage, the fundraising for a new phase of the fund will begin at the same time.

"How come Aier Ophthalmology only got 3 points of shares? I invested 8 million yuan, can't I invest more?"

The medical investment group has been established for some time, but Xia Jingxing found that the investment actions were still conservative, which was not in line with his expectations.

Rao Lei, who is handling the project, said with a wry smile: "The business of this eye hospital chain is already very mature, and it is expected to be listed on the market next year. They are not short of money, and Dachen Venture Capital is also competing for it, so they are more inclined to take it. Dachen’s money.”

Worried that Xia Jingxing didn’t understand the network behind Dachen, Rao Lei went out of his way to explain: “Dachen’s shareholder and LP is Dianguang Media, Dianguang Media is a subsidiary of Hunan Radio and Television Group, and Aier Ophthalmology is He started from Hunan Province.”

Xia Jingxing smiled: "Mango TV is really a big business, and the venture capital field is also booming."

Fu Jixun interjected: "Dachen Venture Capital is a local RMB VC. Last year, Tongzhou Electronics, which they jointly invested with Shenzhen Venture Capital, was listed on the A-share market. It is known as the first Chinese local venture capital company to exit the domestic capital market. The successful case is of milestone significance, which greatly boosts the morale of local venture capital institutions and makes Dachen Venture Capital famous in the industry."

Xia Jingxing nodded lightly. Since Vision Capital is a US dollar fund and registered in the Cayman Islands, formally speaking, they are not considered a local VC but a foreign-funded institution.

Rao Lei continued to introduce: "Because of such a connection, Aier Ophthalmology could not refuse Dachen Venture Capital. In the end, after some communication between us, we and Dachen each invested RMB 8 million in Aier Ophthalmology, and each of us had a share of the investment." 3% of the company’s shares.”

"The valuation is only over 200 million yuan. Even if it is successfully listed next year, the market value will not be much higher. The equity can be transferred to Mang Zhong Fund, and they will uniformly manage the A-share listed assets."

Rao Lei smiled and said "Okay". Stock trading was indeed not what their department was good at. It would be more appropriate to leave it to a fund like Mangzhong that specializes in securities investment and management in A-shares.

Speaking of listing, Rao Lei talked about the other three targets: "Mindray Medical and Wuxi AppTec are two very good companies, but they have been listed on the New York Stock Exchange. Unfortunately, they have exceeded the investment of our fund. scope.

There is also Hengrui Pharmaceutical. This company is also good, but it was listed on the A-share market a few years ago. "

Xia Jingxing frowned slightly, "The industry research report that you have worked so hard to produce cannot be wasted. Send a copy to the New York and Shanghai offices, and I will ask them to follow up."

Rao Lei nodded and said, "We recently talked with people from Hikvision, and they said that people from Fuxing Industrial Fund are also contacting them."

"Crashed the car?"

Xia Jingxing smiled and said, "That's just right. The two companies can invest together!"

Rao Lei shook his head slightly, "It's not that simple. Hikvision is a state-owned enterprise. The founder does not hold shares. An angel investor named Gong Hongjia holds 49% of the shares, and the other 51% is held by China Electronics Technology Group. .

They do not plan to accept venture capital and want to go public directly.

But if this goes public, the founders must have some shares, right? Here comes the problem..."

Through Rao Lei's introduction, Xia Jingxing learned that Hikvision was founded in 2001 and was affected by the September 11th incident. The country began to pay attention to the field of security monitoring and encouraged state-owned enterprises to invest in and set up factories.

Against this background, the 52nd Institute of CETC laid off 28 engineers and established Hikvision based on its early research on digital video compression board technology.

Hikvision’s current general manager Hu Yangzhong and chairman Chen Zongnian are the leaders of these 28 people.

Angel investor Gong Hongjia was a classmate of the two when they were studying at Huazhong University of Science and Technology.

With such a classmate connection, Gong Hongjia invested 2.45 million yuan in Hikvision, accounting for 49% of the shares, and the project valuation was 5 million yuan.

Fu Jixun smiled and said: "He dares to invest in projects controlled by state-owned enterprises and the founders have no shares at all. He is really brave!"

"That's right! At that time, both IDG Zhang Suyang and Youshi.com founder Li Zhu had seen Hikvision, but they didn't dare to take action."

Speaking of this, Rao Lei sincerely praised: "Gong Hongjia is really courageous, and the founder of Hikvision is really indifferent to fame and fortune, and he works so hard without taking any shares.

However, no matter how indifferent to fame and fortune, it is impossible to remain indifferent to all this when we see our old classmates and old employer, China Electronics Division, making a lot of money due to the IPO, while they can only receive a small salary.

This company was built by them. China Electronics Technology had 28 people in the early stage. They even found old classmates for financing. They took over the subsequent R\u0026D and market bit by bit with their people.

If the listing has nothing to do with them and they are unable to get even a tiny bit of the profit pie, anyone would feel resentful and disappointed.

If this thorny issue is not handled well, Hikvision's founding management team may fall apart, even before it goes public. Even if the company succeeds in going public as planned, it's hard to say what it will develop into in the future. "

Xia Jingxing nodded lightly, "For a company built by its founders, only they know best how to develop it, and when it reaches the stage of listing, one mistake may indeed cause severe turbulence to the company.

It is easy to solve this problem. Is CETC willing to give them some equity incentives? "

"That's the problem!"

Rao Lei shook his head and said: "CETC is a state-owned enterprise. If you are not careful, you can easily be blamed for the loss of state-owned assets."

Fu Jixun frowned and said, "If you take 28 people to build a quasi-listed company, it's okay to reward you with a few shares, right?

As far as I know, during the shareholding reform a few years ago, 35% of the shares of conscience companies were distributed to employees, right? "

Xia Jingxing sneered and said, "That's a special case. Are ordinary people's financial skills as strong as Mu Zhixin?"

Fu Jixun nodded: "That's true. Mu Zhixin has built a monolithic internal structure, and the senior executives are all vested interests. I heard that Academician Li was not driven away because of the line dispute, but because he reported Mu Zhixin to The company's special loan was lent to Hong Kong businessmen of unknown origin to purchase shares of conscientious Hong Kong companies?

Later, Hong Kong's conscience company suffered heavy losses and fell into a penny stock.

Under such circumstances, Mu Zhixin did not divest the junk assets. Instead, he injected Beijing-based conscientious companies with good performance and independent listing capabilities into Hong Kong-listed companies. The stock prices skyrocketed. The Hong Kong businessmen successfully untied themselves, and their profits may reach tens of billions of Hong Kong dollars. ! "

Xia Jingxing smiled lightly, "How about saying that he has great financial skills? Okay, let's not talk about this kind of person anymore, let's continue talking about Hikvision."

Rao Leihui reported: "When the major shareholder was unable to successfully come up with equity incentives, I heard that Gong Hongjia, the second shareholder, planned to provide equity incentives on behalf of the major shareholder and transfer 15% of the equity to Hu Yangzhong and Chen Zongnian at an initial capital investment price of 750,000 yuan. and other management and core technical personnel.

Oh, I was wrong. Chen Zongnian did not want shares. He chose to work in the system and became the representative of China Electronics Group in Hikvision. "

Fu Jixun took a breath of cold air, "The second shareholder acted on behalf of the major shareholder to provide equity incentives?"

Rao Lei took a long breath, "When I first heard about it, I was also shocked. What kind of magic operation is this?

But if I think about it carefully, I find that the company's structure is really big. Even if these shares are transferred at a low price, Gong Hongjia still has more than 30% of the shares.

A company with a market capitalization of 1 billion holds 49% of the shares;

A company with a market value of 10 billion holds 34% of the shares.

If it were you, which one would you choose? "

Xia Jingxing chuckled, "It seems easy to say, but it's another matter to do it.

For a quasi-listed company, it is almost foreseeable to make money. At this time, Gong Hongjia is a character who gives up immediate interests and pursues long-term interests! "

Rao Lei said with a smile: "Anyway, I admire him a lot. He invests in a start-up company with state-controlled assets and the founder holds zero shares. He knows how to share the cake when it is about to go public. He is courageous, wise and decisive. He is a person who can achieve things."

Xia Jingxing smiled and said nothing. He remembered that in his previous life, the media had exposed that Gong Hongjia's return on investment in Hikvision was as high as 30,000 times, Xia Zuoquan's investment in BYD made 50,000 times, and Wang Gang's investment in Didi made 7,000 times. Angel investment cases are ranked as god-level investments and are ranked high in the history of venture capital in the world.

"Now that the issue of equity incentives has been resolved, Hikvision will go public directly."

Rao Lei glanced at Xia Jingxing and reminded: "If you really want to invest, you can either talk to Gong Hongjia about the transfer of old shares, or wait until the company goes public before investing."

Xia Jingxing said: "Then let's talk to Gong Hongjia. It doesn't matter if the price is high. Try to buy more old stocks."

Rao Lei asked: "What about Fuxing Industrial? Do both of us buy old shares?"

"They will withdraw temporarily. After a while, the financial crisis breaks out, Hikvision's listing plan is shelved, and Fuxing Industrial will restart negotiations with Hikvision.

Security monitoring is an indispensable part of the future strategy of revitalizing industries such as smart homes and smart cities, and there is a great need for solutions from such a cooperative enterprise. "

Rao Lei smiled and said, "Are you so sure that Hikvision will not be listed on the market?"

Xia Jingxing did not intend to keep any of his own people. He talked about the data analysis of the financial market by Vision Capital's New York office and the serious problems reflected behind it.

After listening, Fu Jixun was surprised: "So, now we're just waiting for the lid to be lifted?"

"Yes, to be prepared to resist financial risks, Vision Academy can also consider organizing an entrepreneur training class to bring together the founders of all invested companies, with the topic of resisting financial crises, to talk about the challenges of enterprises in the financial winter. How to avoid risks, reduce losses, and even develop the market against the trend.”

Fu Jixun smiled and said: "This is good. If entrepreneurs can learn something and save the company from losses or reduce losses, we, as shareholders, can also benefit.

At the same time, the post-investment management system we have built can also be further improved, so that entrepreneurs can feel real help.

Maybe after this battle, the reputation and brand of Vision Capital can be further improved.

While other startups are dying due to the financial crisis, our portfolio companies still have the energy to seize the market.

In the venture capital market, there is no better promotional material than this! This is a manifestation of soft power. "

Xia Jingxing smiled and nodded, "That's what I mean. Some important findings and information from Envision Capital's San Francisco and New York offices will be shared with several offices in China. If the Chinese team discovers good or bad information about China Concept Stock Listed Companies, , and can also be shared with the US team in a timely manner.

Envision Capital's offices in China and the United States have the same shareholder, which is different from other institutions. This is our unique advantage, which must be reflected and transformed into tangible economic benefits. "

Rao Lei nodded heavily and was convinced of this. For example, Mindray Medical, which he inspected, was very good and was China's first overseas listed medical equipment company.

But colleagues in the US office may not accurately understand the value of this company.

The three of them gathered together for a while, and then Fu Jixun asked, "What about Jingzhe No. 2 Fund?"

Xia Jingxing thought for a moment and said, "Let's wait until next year. The second phase of the fund will be expanded to US$1 billion, and the investment phase will cover the Pre-IPO phase."

Fu Jixun's eyes lit up, "Mr. Xia, do you want to list these projects from the first phase of the fund?"

Xia Jingxing nodded lightly, "It has been cultivated for several years, and it is time to come out of the cage. But before that, those who should cover their positions must still cover their positions to maximize investment returns."

Rao Lei asked: "This is a growth PE fund investment stage. VC still prefers early investment, right?"

“There are no restrictions on investment stages, from seed round to pre-IPO. With the development of the economy, project valuations are rising. In the future, the division between VC and growth PE funds will become increasingly blurred. People are alive, and so is the market. Yes, there is no need to recognize this dead standard."

Rao Lei remained silent, silently digesting Xia Jingxing's words.

He found that project valuations seemed to have changed a lot in recent years.

In the past, Goldman Sachs and other institutions invested US$5 million in Series A of Ali to acquire 40% of the equity. Now, with several million US dollars in Series A, they can only acquire 120% of the shares of the start-up.

Will it turn into tens of millions or hundreds of millions of dollars in Series A financing in the future? It should be a high probability event.

If it really develops like this, either VC funds will essentially turn into PE funds, or the scale of PE funds will expand again, with the size of a single fund reaching tens of billions of dollars? Hundreds of billions of dollars?

Rao Lei felt that this was too crazy and seemed a bit unimaginable, but upon careful consideration, it was consistent with the logic of economic development.

Fu Jixun suddenly said: "Oh, by the way, Mr. Xia, the business incubator received an application for a project. It's very interesting. It's a small tool for connecting and managing the Fuxing FX1 with the computer. Do you want to take a look? "