My Age of Investment

  Chapter 763 Education Capitalization

  Rao Lei smiled and nodded towards Xia Jingxing, cleared his throat and said: “The company’s current main investment targets are concentrated on the Internet, such as Qihoo, Tudou, Autohome, Kugou Music...

  Currently, these companies have achieved impressive results in their respective fields.

  If nothing else, if these companies continue to develop, they should be able to land in the capital market one after another in the next few years, and the company can also usher in a wave of harvest.

  I think that at this stage, in addition to the post-investment management of these companies, the most important thing is to open up new areas of investment, not limited to the Internet. "

  Xia Jingxing nodded, and cast an affirmative look at Rao Lei.

If you regard the three major portals as the first generation of Internet companies in China, he was still in middle school at that time, and he couldn't keep up with the investment bonus period. Later, he played a wave of high-sell and low-sold in the secondary capital market. At present, all the use value is basically squeezed out. NS.

  Except for NetEase, the other two companies don’t need to pay attention anymore.

  The second-generation Internet companies, namely BAT, also have their own layouts.

  The batch of Web2.0 companies established after 2004 have basically been settled.

  It can be said that before the mobile Internet broke out, he basically scanned the valuable Internet companies in China.

   Indeed, the domestic Internet wool is almost bald by him.

  Receiving Xia Jingxing’s affirmative look, Rao Lei continued: “I have discovered a new industry that is worth opening up the investment battlefield.”

   "Oh, let's talk about it."

  Xia Jingxing looked at Rao Lei with a smile, his brother joined Envision Capital for nearly a year, and he has not done any outstanding performance.

  He is not in a hurry. After all, Rao Lei is not a venture capitalist, and it takes a certain period of time to adapt. It is impossible to get results as soon as he comes up.

  However, he knows that Rao Lei is a person with high demands on himself and will not always be inactive.

  He also looks forward to Rao Lei's outstanding investment results and achievements in the venture capital field.

  At this moment, he hopes that Rao Lei can put forward some novel ideas, and then he can help them.

  Otherwise, he won't be able to take it, after all, he still relies on his ability to feed his business.

  Others also turned their attention to Rao Lei, wanting to hear his opinions.

   Glancing at the people present, Rao Lei smiled and said, "I wonder if you have paid attention to a piece of news from the capital market a few days ago?

  An education company called "New Oriental" went public on the New York Stock Exchange, issued 7.5 million ADS shares and raised 112.5 million US dollars.

  This is the first education and training company in mainland China to be listed overseas. It is a milestone and a beacon for the entire education and training industry. "

Colleagues around    nodded one after another, indicating that they had heard the news.

  Xia Jingxing smiled. On the day New Oriental went public, he was in New York. He did not go to greet the three Chinese partners, but arranged for Liu Hai to buy some shares to show his support.

  In addition, during the New Oriental roadshow stage, the listed underwriter Goldman Sachs also allocated part of the subscription shares to Envision Capital, that is, purchased at the issue price, which is equivalent to selling new shares.

  At this time, China concept stocks are very popular in the U.S. stock market, and there will hardly be any listing breaks, and there is a lot of room for arbitrage.

  As long as it is not a poorly-founded Chinese concept stock, Envision Capital will go to the Wall Street investment bank to get some internal benefits.

  So, Xia Jingxing is quite familiar with this company.

   Rao Lei continued: “Calculated by the issue price, the market value of New Oriental is less than 600 million U.S. dollars, but the valuation of the Tiger Fund, a Series A investor, was only a little more than 200 million U.S. dollars when it became a shareholder.

  Investment for more than a year, earning nearly twice the income, a pretty good deal.

  Moreover, the Tiger Fund has invested more than 40 million US dollars in Series A, and the absolute value of the investment return is very large, close to 100 million US dollars.

  Such a short time, such a big return!

  I judge that not only domestic VC institutions will pay attention to the education and training industry, but even some foreign funds will also set their sights on this emerging market.

  Because everyone knows what an emerging market means, a gold mine that has not been mined. "

  Everyone showed their thoughts, and they were all seriously thinking about the new ideas raised by Rao Lei.

  Xia Jingxing can directly conclude that Rao Lei’s analysis is correct and quite farsighted.

  The significance of New Oriental's listing is very far-reaching. It not only inspires entrepreneurs in the education and training industry, but also makes capital notice this virgin land.

   Then, the capitalization of education kicked off.

Concepts such as   K12, English one-on-one tutoring, and online school have been put forward. Anxiety in the education field is rampant, and parents have embarked on the "chicken baby road".

  This has greatly increased the cost of education and has become one of the three mountains in the new era. The slowdown in population growth has a major bearing on it.

  Looking at it further, this is the reason planted by the expansion of college enrollment in 1999. It is forced down one by one. In order to have a good future for their children, parents emptied their pockets to send money to education and training institutions.

  The Chinese have always attached great importance to education, and they believe that learning can change destiny and the booming business of education and training institutions is not difficult to explain.

  Developed to the back, Internet giants with traffic in hand are all eyeing this piece of fat.

   "So, the education and training industry will usher in a golden period of development?" Fu Jixun asked Rao Lei, looking at him.

  Rao Lei nodded, "Yes, to which industry capital invests resources, which industry will usher in great development."

   "Manager Xia, what do you think?" Fu Jixun looked at Xia Jingxing again.

   "How can you look at it, hurry to get off the court and grab the bid!"

  Xia Jingxing doesn’t know if the country will hit the education and training industry hard in the future, but certainly not at this time, and he can’t reverse this trend, so he can only rush in to make some money to support the development of hard-core technology in the future.

  This is better than being earned by foreign capital, and the funds flow to foreign sovereign wealth funds, pension funds, and university funds.

  The money that the Chinese desperately raised their children has all been used to support foreigners’ national treasury, foreigners’ retirement, and foreigners’ university construction.

   "I have found the subject."

  Rao Lei smiled and said, “Just in the Zhongguancun Science Park, there is a small company founded by two students from Peking University. The name is very good. It is called "Learning and Thinking", learning and thinking, easy to understand."

  Xia Jingxing was a little surprised, this shot was more ruthless than him, and he immediately caught a big one.

   "Reliable? Have you investigated in detail?"

  Rao Lei nodded towards Xia Jingxing, "It's very reliable. This is the best education and training institution I have found in Beijing.

  First of all, the two founders are both masters of Peking University, with very good academic qualifications.

Secondly, the founder worked as a tutor when he was in graduate school. He taught a primary school student whose mathematics score was above average to 100 points every time. Then the parents kept introducing him to the children of his friends. In the end, he had no choice but to do it alive. Become a training class...

  In this way, after the two founders got a master's degree, they pooled together 100,000 yuan to start the company in 2003, and officially started corporate operations.

  They are quite Internet-minded, and they made their own website at that time, called Aosu.com.

  In fact, they only wanted to teach mathematics at that time. Last year they changed their name to Xueersi and began to engage in extracurricular tutoring in primary and secondary schools.

  Finally, I think they are quite principled. They did not use the traditional method of hiring teachers according to the number of students who signed up. Instead, they recruited as many students as there were teachers, never more.

  In the past two years, because management and service could not keep up, they also decisively closed two teaching sites.

  In this business, word-of-mouth is very important. The two founders have a long-term vision, do not seek short-term profit, and do not do anything to kill chickens and eggs.

  I think their quality should be able to make a more influential education brand, which is worth our investment. "

  Xia Jingxing asked: "What are the names of the two entrepreneurs? Have you ever contacted them? What are their attitudes towards capital?"

  "Zhang Bangjin and Cao Yundong are both young, one is 26 years old and the other is 27 years old.

   Both are very honest young people. I met them and talked about investment.

  The two of them, for capital..."

  Rao Lei paused and said: "There is a little resistance, they want to be a small and beautiful training organization.

  Moreover, the profit model of training institutions is very clear. They don't have any financial pressure and don't need financing. "

   "Isn't New Oriental listed? You can talk to them about this matter." Xia Jingxing said lightly.

  Rao Lei nodded, "Okay, then I will talk to them again tomorrow."

  After finishing, he did not forget to add, "So many venture capital institutions are about to enter the market, we have to make plans early!"

  Xia Jingxing said with a smile: "Okay, I see, you will take the lead and set up an investment group for the education and training industry within the company."

  Rao Lei was overjoyed and nodded hurriedly.

  (End of this chapter)