My Age of Investment

  Chapter 985 Old Horse Child's Full Moon Wine

  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. Liu Xiaoduo suddenly knocked on the door and walked in.

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

Xia Jingxing was stunned on the spot, his eyes were almost staring, and his mouth was like a machine gun. He kept asking: "Full moon wine? The old horse is a father again? When did it happen? This old horse hides it deeply enough. Yeah!"

   Fu Jixun smiled and said, "Mr. Ma is quite forty. This is a good old man! To be reasonable, it is time to do something special!"

Rao Lei showed a smile that every man understands, he hehe he laughed: "You have money, well maintained, you see that the gambling king is still in his 70s and he is still a father! Mr. Ma's family business needs to be inherited and have a child. Three births and four births are also acceptable."

  Xia Jingxing was really taken aback, did he remember that Lao Ma had only one son? Did he have a second child?

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

   Thinking of this, Xia Jingxing seemed to have discovered some great secret, and the heart of gossip was burning.

  I thought that Lao Ma just loves to have a yellow accent on his lips, but he did not expect that his private life would be so turbulent.

  This banquet must be attended, and I will tease Lao Ma by the way.

  If you have a daughter, get married... forget it, your daughter will look like your dad!

  Liu Xiaoduo smiled a little embarrassed: "Um... Mr. Xia, Mr. Fu, Mr. Rao, you have misunderstood it, Mr. Ma decided to hold a banquet in Lin'an and invite shareholders to celebrate together.

  Xia Jingxing was drinking tea. Hearing this, a sip of tea almost came out in his mouth. Fu Jixun was so scared that Fu Jixun, who was on the opposite side, hid, but fortunately he was held back, but finally he didn't vomit.

Xia Jingxing’s cheeks hurt a little, he put down the teacup again, and forgot to criticize Liu Xiaoduo, who left half of his speech, because at the moment his attention is all on another matter, and his face is full of questions: "Listed Full Moon Wine ?"

  Liu Xiaoduo didn't know what to say, so she nodded slightly.

   "Fuck, what's so special..."

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

  The two shook their heads together, "Unheard of! I've learned a lot!"

  Xia Jingxing pinched her eyebrows, this old horse, there are so many tricks!

   "Okay, I see, decline for me..."

When the words came to his lips, Xia Jingxing suddenly remembered something, so he changed his words: "Forget it, you can arrange it, let's go to meet the world, and I haven't drunk the full moon wine of the listed company."

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

   "This horse is really interesting. Will he celebrate his company's birthday every year in the future?"

  Xia Jingxing glanced at Fu Jixun who was talking, and said, "Hey, the upstart mentality, love to show off."

   Rao Lei put forward a different view: “Maybe more than show off, invite friends from all over the world, and by the way, establish Ari’s status as the leading Internet player in China.”

  After thinking for a moment, Xia Jingxing nodded slightly: "It makes sense. Although the old Ma is acting and speaking absurdly, every step he takes has profound meaning.

  In his early years, he invited all the leading figures of the Chinese Internet to Lin'an to "West Lake Lunjian", which attracted the attention of the national media, and suddenly allowed Ari to get countless free publicity and exposure resources? "

   Liu Xiaoduo nodded secretly from the side. She originally thought it was a show and face-saving project, but she didn't expect to have such a deep meaning that she couldn't underestimate any self-made boss.

   "Why are you still not leaving?"

  Seeing the boss speak, Liu Xiaoduo, who wanted to stay and study for one or two, hurried off.

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

"At present, Jingzhe Fund’s investment portfolio includes: Ganji 58 Group, Tudou, Dianping, AutoNavi, Qihoo 360, Kangsheng Creative, Kugou, Thunder, Countryside, Auto Home, Qunar Net, UC Youshi, Xueersi, Zhonggong Education, Noah Fortune, Ikang 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 $200 million Jingzhe Fund has basically bottomed out. A new fund must be established as soon as possible, otherwise there will be no more money."

Xia Jingxing nodded slightly. He only invested in more than 30 projects in two years. The shots are already considered slow, but this does not have a long relationship with the establishment of the fund. Both the team and the investment system need time to build, and it will be faster later. Now, the shots will be more frequent.

According to the standard practice of the venture capital industry, a VC fund will not burn out all the bullets in a few months after the completion of the fundraising. It usually takes one to two years to complete the investment, and then the old fund will enter the post-investment management and At the exit stage, at the same time, the fundraising work for a new phase of fund will be started.

   "How did Aier Ophthalmology get 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 did not meet his expectations.

Rao Lei, who worked on the project, smiled bitterly: “This chain of ophthalmology hospitals has matured business and is expected to be listed next year. They are not short of money, and Dachen Ventures is also competing for it, so they are more inclined to take it. Dachen’s money."

Worrying that Xia Jingxing did not understand the network behind Dachen, Rao Lei deliberately explained: "Dachen’s shareholders and LP are Dianguang Media, Dianguang Media is a subsidiary of Hunan Broadcasting Group, and Aier Ophthalmology is It started in Hunan Province."

  Xia Jingxing smiled: "Mango Terrace is really a big business, and the venture capital field is also very popular."

Fu Jixun interjected: "Fortune Venture Capital is a local RMB VC. Last year, Unizhou Electronics, which they co-invested with Shenzhen Venture Capital, was listed on the A-share market and was hailed as the first Chinese local venture capital company to withdraw from the domestic capital market. The successful case is of milestone significance, which greatly boosted the morale of local venture capital institutions and made Fortune Venture Capital gain a reputation in the industry."

  Xia Jingxing nodded slightly. Since Vision Capital is a USD fund and registered in the Cayman Islands, in terms of form, they are not regarded as local VCs, but foreign-funded institutions.

Rao Lei continued: “Because of this kind of origin, Aier Ophthalmology was not good at rejecting Dachen Venture Capital. In the end, after some communication with us, we and Dachen invested 8 million yuan in Aier Ophthalmology. 3% of the company’s shares."

   "The valuation is only more than 200 million yuan. Even if it goes public next year, the market value will not be much higher. You can transfer the equity to the Mang seed fund, and they will manage the A-share listed assets in a unified way."

  Rao Lei smiled and said "good", stock trading is indeed not what their department is good at, it is better to hand over to a fund that specializes in A-share securities investment and management.

Speaking of listing, Rao Lei mentioned the other three targets in the phase: "Mindray Medical and WuXi AppTec are 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 Medicine, which is also a good company, 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 make can’t be wasted. Send a copy to the New York and Magic Capital office, and I will let them follow up.”

  Rao Lei nodded and said, “We recently talked to the people from Hikvision, and they said that people from the Renaissance Industry Fund are also contacting them.”

   "Crashed?"

  Xia Jingxing smiled, "That's just right, the two companies invest together!"

Rao Lei shook his head lightly, "It's not that simple. Hikvision is a state-owned enterprise. The founder does not own shares. An angel investor named Gong Hongjia owns 49% of the shares. The other 51% shares are in the hands of China Electronics Technology Group. .

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

  Can this be listed, the founders always have some shares, right? Here comes the question..."

  Through Rao Lei’s introduction, Xia Jingxing learned that Hikvision was founded in 2001 and was affected by the 911 incident. The state began to attach importance to the field of security monitoring and encouraged state-owned enterprises to invest in setting up factories.

  In this context, the 52nd Research Institute of China Electronics Technology Co., Ltd. relied on the digital video compression board technology that was researched in the early stage, and detached 28 engineers to form Hikvision.

  Hikvision’s current general manager Hu Yangzhong and chairman Chen Zongnian are among the 28 persons in charge.

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

  There is such a classmate relationship, so Gong Hongjia invested 2.45 million yuan in Hikvision, accounting for 49% of the shares, and the project was valued at 5 million yuan.

  Fu Jixun laughed and said: “State-owned enterprise holdings and the founders don’t have any shares at all. They dare to invest in projects. He is really brave!”

   "Isn't it! IDG Zhang Suyang and Ushi.com founder Li Zhu have seen Hikvision, but they were afraid to start."

  Speaking of this, Rao Lei heartily praised: “This Gong Hongjia is really courageous, and the founder of Hikvision is also really indifferent to fame and fortune, and he works so hard without holding a share.

  But fame and fortune are not even more indifferent. Looking at the old classmates and the old club of the China Electric Power Department because of the listing, they can only receive a small salary, and it is impossible to be indifferent to all this.

  This company was created by them alone. In the early days, CEC had 28 people, and even the financing was an old classmate they looked for. The next R&D and market are all they took a little bit of people to gnaw down.

  If the listing has nothing to do with them, and they cannot get even the slightest profit pie, if it is anyone, it will give rise to complaints and disappointments.

  If this thorny issue is not handled well, Hikvision’s founding management team may fall apart, and it may be possible before the listing. Even if the listing is successful according to the original plan, it is not easy to say what it will develop in the future. "

  Xia Jingxing nodded slightly, “The founders of a company built with one hand, only they know how to develop, and catch up with the threshold of going public. One carelessness is indeed likely to cause violent turmoil to the company.

  It’s easy to solve this problem. Will China Electric Technology Co., Ltd. be willing to give them some equity incentives? "

   "That's the problem!"

  Rao Lei shook his head and said: “CLP is a state-owned enterprise. A little carelessness will easily lead to the loss of state-owned assets.”

  Fu Jixun frowned and said, "I took 28 people to make a quasi-listed company, and it’s okay to award a few shares a bit?

  As far as I know, in the past few years of the share reform, 35% of the company’s shares were allocated to employees, right? "

  Xia Jingxing laughed and said, "That's a special case. The average person is as strong in financial skills as wood ambition?"

Fu Jixun nodded: "This is because Mu Zhixin built a monolithic piece internally. The executives are all vested interests. I heard that Academician Li was not expelled because of the line dispute, but to report Mu Zhixin. The company’s special loan is lent to Hong Kong businessmen of unknown origin to buy shares in Hong Kong Conscience Company?

  Later, Hong Kong Conscience Company suffered a lot of losses and fell into a penny stock.

Under this circumstance, Mu Zhixin did not divest the junk assets, but instead injected the capital conscience company with good performance and independent listing ability into the Hong Kong listed company. The stock price soared, and the wave of Hong Kong businessmen successfully solved the arbitrage, and the profit could be as high as tens of billions of Hong Kong dollars. ! "

  Xia Jingxing smiled lightly, "How about he is superb financial skills? Okay, let's not talk about this kind of person, let's continue to talk about Hikvision."

Rao Leihui reported: "When the major shareholder was unable to smoothly offer equity incentives, I heard that the second shareholder, Gong Hongjia, planned to implement equity incentives on behalf of the major shareholder and transferred 15% of the equity to Hu Yangzhong and Chen Zongnian at an initial capital investment price of 750,000 yuan. Waiting for management and core technical personnel.

  Oh, I was wrong. Chen Zongnian didn’t want shares. He chose to stay in the system and became the representative of CLP Group in Hikvision. "

  Fu Jixun took a sigh of relief and said, "Second shareholders act on behalf of the majority shareholder to carry out equity incentives?"

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

  You can think about it carefully and find that the situation is really big. Even if you transfer these shares at a low price, Gong Hongjia still has more than 30% of the shares.

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

   A company with a market capitalization of 10 billion, holding 34% of the shares.

  It’s you, which one to choose? "

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

  A quasi-listed company, it is almost predictable to make money. At this time, to give up the immediate interests and pursue the long-term interests, this Gong Hongjia is a personal thing! "

  Rao Lei smiled and said, “I admire him anyway. I have invested in state-owned holdings and startups with zero shares held by the founder. I know how to score cakes near the listing. He has the courage, wisdom, and decisiveness. He is a man who can do things.”

Xia Jingxing smiled and said nothing. He remembered that in the past life, the media revealed that Gong Hongjia's investment in Hikvision had a return rate of 30,000 times, and Xia Zuoquan's investment in BYD earned 50,000 times, and Wang Gang's investment in Didi earned 7,000 times. The angel investment case is listed as a god-level investment and ranks high in the history of venture capital in the world.

   "Now that the issue of equity incentives is resolved, Hikvision will be listed directly next."

Rao Lei took a look at Xia Jingxing and reminded: "If you really want to invest, you must either go and talk to Gong Hongjia about the transfer of old stocks, or wait for the company to go public before investing."

  Xia Jingxing said: "Then 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 Industry? Both of us buy old stocks?"

  "They will withdraw temporarily. After the financial crisis breaks out after a while, Hikvision’s listing plan is stranded, and Fuxing Industry will restart negotiations with Hikvision.

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

  Rao Lei smiled, "So sure that Hikvision will not be on the market?"

  For his own people, Xia Jingxing does not intend to keep it anymore. He talked about the data analysis of the financial market by the New York office of Vision Capital and the serious problems reflected behind it.

  After listening, Fu Jixun was surprised: "So, wait for the lid to be unveiled now?"

"Yes, to be prepared to resist financial risks, Envision Academy may also consider organizing a training course for entrepreneurs to bring all the founders of the invested companies together, with the topic of resisting the financial crisis. How to avoid risks, reduce losses, and even develop markets against the trend."

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

  At the same time, the post-investment management system we have built can be further improved, allowing entrepreneurs to feel tangible help.

  Maybe after this battle, the fame and brand of Envision Capital can be raised a bit higher.

  When other startups are dying by the financial crisis, our invested companies still have room to grab 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 it means. Some important findings and information from the San Francisco and New York offices of Envision Capital will be shared with several offices in China. If the Chinese team finds good or bad information about listed companies in China , Can also be shared with the US team in time.

  The two offices of Vision Capital in China and the United States are the same shareholder, which is different from other institutions. This is our characteristic advantage, which must be reflected and transformed into tangible economic benefits. "

  Rao Lei emphasized his head, and he was very impressed. For example, the Mindray Medical he investigated was very good, and it was China’s first overseas listed medical equipment company.

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

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

  Xia Jingxing thought for a moment, and said: “Wait for the beginning of next year, the size of the second phase fund will be expanded to 1 billion US dollars, and the investment phase will cover the Pre-IPO phase later.”

  Fu Jixun’s eyes lit up, "Mr. Xia, do you want to send these projects of the first phase of the fund to the market?"

  Xia Jingxing nodded slightly, “It has been cultivated for several years, and it’s time to come out, but before that, those who should cover their positions still have to cover their positions to maximize the return on investment."

  Rao Lei asked: “This is the stage of growth PE fund investment. VC is still early investment, right?”

"There is no restriction on the investment stage, from the seed round to before the listing. With the development of the economy, project valuations will rise. In the future, the division of VC and growth PE funds will become more and more blurred. People are alive, and the market is also alive. Yes, there is no need to recognize this dead standard."

Rao Lei did not say a word, silently digesting Xia Jingxing's words.

  He found that the valuation of the project seems to have changed a little bit over the years.

  In the past, Goldman Sachs and other institutions invested 5 million U.S. dollars in Ari to take 40% of the shares. Now, a few million U.S. dollars in the A round can only win 12% of the start-ups.

  In the future, will it become a round of financing of tens of millions of dollars, hundreds of millions of dollars? It should be a high probability event.

  If it really develops like this, will VC funds become PE funds in substance, or the scale of PE funds will expand again, and the size of a single fund will reach tens of billions of dollars? Hundreds of billions of dollars?

  Rao Lei feels this is crazy, it seems a bit unimaginable, but careful consideration is in line with the logic of economic development.

Fu Jixun suddenly said: "Oh, yes, Mr. Xia, the entrepreneurial incubator received an application for project entry. It is very interesting. It is a small tool for the connection and management of Fuxing FX1 and the computer. Would you like to take a look? "

  (End of this chapter)