Venture capital is one of the high-risk trades, the Government fund is the world's most stable funds, whether there will be intersection? What kind of spark will happen after the collision?
Perhaps unthinkable elsewhere, but in the innovation of the Chengdu High-tech zone, dare to do the government officials to take out nearly 100 million yuan as an angel investment, small micro-technology enterprises in the start-up of equity investment.
From June to September this year, Chengdu High-tech zone has issued a series of "Chengdu Hi-tech Zone venture Angel investment fund Management measures", "Chengdu Hi-Tech Zone Committee on speeding up the development of mobile internet industry," and "Chengdu High-tech zone to accelerate the development of mobile Internet," a number of policies to promote financial and strategic emerging industries blend Grasp the next round of innovation and development opportunities.
"Policy" stipulates that "the establishment of a total of 80 million Yuan Angel investment Fund for the High-tech zone in Chengdu, the growth potential of start-up enterprises to provide venture capital."
The groundbreaking decision gave the government fund the first intimate contact with venture capital. has written too many monographs of investment and financing experts, Chengdu High-tech Zone spokesperson Dr. Tang Jichang said, this is the Chengdu High-Tech Zone Management Committee in the financial field of another bold innovation, this attempt will make High-tech zone entrepreneurs benefit, but also broke through the government funds difficult to intervene in the risk areas of the rules.
Tang Jichang Introduction, Chengdu High-tech zone leaders in the General Assembly said that the 80 million VCs will be divided into two years, must spend, spend not go out is the vision and courage is not enough.
Why should Chengdu high-tech zone try this? This has to start with the source of venture capital.
Venture capital, high risk and high return coexist
Heng Map Technology is a core image processing technology, a High-tech enterprise, its development of a mobile application software, has been in the Apple App Store download total ranking ranked 11th, only the first two months, the income of 1 million U.S. dollars. Their technology attracted tens of millions of of dollars in investment, which was done jointly by Lenovo Star Angel, Lenovo and Lenovo.
Chengdu High-tech zone Tianfu Software Park, to get domestic and foreign investment companies abound. Xun travel technology, fruit technology, Heng Map technology, etc. focused on it internet companies often get the favor of venture capital.
Chengdu High-tech zone economic and Trade Development Bureau director Li Wei introduced, as of 2011, the High-tech zone has been basically set up to cover Angel investment, venture capital, private equity investment and industrial investment, such as multi-level equity investment service system, accumulated to help more than 100 small and medium-sized science and technology SMEs to obtain various types of venture capital More than 20 mergers and acquisitions. In 2011, more than 20 SMEs were helped to obtain venture capital of more than 1 billion yuan, in the first half of 2012, SMEs in Chengdu High-tech zone gained more than 500 million.
Very high risk, once successful and have a great harvest. This extremely stimulating investment is "venture capital".
Since the birth of venture capital in the 560 's, venture capital has become a powerful driver for entrepreneurs, supporting the world's most creative, and at the same time the most risky company in the future. A string of well-known companies, such as Microsoft, Apple, Yahoo, Google, Facebook, and so on, are associated with risky ventures (blogs, microblogs).
The risky nature of venture capital makes the industry which the venture capital prefers must be the industry with more potential and more growth, and the return on investment often requires dozens of times times. In fact, there are many thousand-fold cases of venture capital benefits.
From 1994 to 1997, Cerent, a leading US venture capital company, invested 4 million dollars and 8 million dollars in the Serent of Netscape and (optical equipment manufacturer), earning 250 times times the return on capital. and 1999 to 0.5 U.S. dollars per share of Google's 12.5 million U.S. dollars, more than Kai Peng Hua Ying brought nearly thousand-fold return.
There is no doubt that venture capital is the hero behind the tech giants, and a string of victories is a confirmation of the rewards that these companies ' explosive growth can bring to venture capital.
The intrinsic driving force of venture capital is the continuous development of science and technology. The new industry has been replacing the old industry and becoming the new engine of the world economy. Venture capital, which specializes in emerging industries and technologies, returns higher than the general investment and is higher than the stock market.
Although the risk is very large, in terms of overall income, venture capital and private equity is the best way to date, the return on venture capital is over 15%.
It is to see the great charm of venture capital, many people and institutions began to put money into venture capital funds. It is estimated that the entire U.S. venture capital fund size has reached 20 billion or 30 billion U.S. dollars. It also includes a number of highly risk-averse funds, such as Stanford University's investment in a part of its retirement fund.
Some say venture capital is dealing with the smartest people in the world, and venture capitalists are smarter people.
The key of venture capital is to understand a technology correctly and to see the trend of technology development.
In order to improve the knowledge of technology and grasp the trend of science and technology, many venture capital companies put a lot of technical elites under their command, while employing the industry's most cattle experts as technical advisers.
Venture Capital Partners will give entrepreneurs a lot of experience and networking help, because venture capital is consistent with the goals of the entrepreneur, and trying to be big will make investors more profitable.
Investors and entrepreneurs to cooperate with the tacit understanding, the company will be speeding development. Founder in front of the play, the wind cast behind the scenes as heroes. Google, although very early to become famous, but it began to be recognized, Sequoia Capital and the company's investment in the ROC is also a very important factor.
Mobile Internet: A staging place for venture capital
As an unconventional way of investment, venture capital does not need to be mortgaged or repaid. If the investment succeeds, venture capitalists will gain excess profits, and if they fail, venture capitalists will get nothing.
For young people, the use of venture capital ventures, even if they fail, will not be backed by the banks. This encouragement to try and tolerate the failure of the investment way greatly stimulated the young people's entrepreneurial desire, but also created the myth of investors.
In the 80, venture capital was introduced into China, and the real stage was the rise of China's internet.
When Charles Zhang, by virtue of his obsession with the analysis of foreign internet companies, a hundred thousand of of dollars, returned to China to start Internet companies, people understand the business plan can be exchanged for the simple truth of venture capital.
It is conceivable that China's internet industry without these investments is decidedly not today. Even today, there are venture capitalists behind almost all of China's big business websites.
The combination of science and technology and finance, from the date of birth, venture capital is doomed to the Internet with the IT bond.
In the face of the rapid changes in the Internet, in the latest round of technology turnover, mobile Internet undoubtedly has the most broad prospects for development, and this piece of "oasis" has naturally become a venture capital in the eyes of the new continent and staging.
The Chengdu Tin Man is a company that develops comic books for children's market. In the mobile Internet tide, the Tin Man began to make animated books for readers to download on tablets and mobile phones, and in a domestic entrepreneurship project selection stand out, won the favor of many investment institutions.
In April 2012, Lenovo Star and Qing branch venture capital invested millions of yuan in the company, which is also the Tin Man's first investment money.
In Chengdu High-tech zone, every day there are many famous venture company employees wandering in the door of various enterprises, once a good company can follow up the investment immediately.
By the end of 2011, Chengdu High-tech zone has successfully introduced 64 domestic and foreign well-known equity investment institutions, registered capital of 15 billion yuan, management funds scale of more than 33 billion yuan.
It is precisely because of the success of venture capital, the impact of a lot of people on the investment fund bias, more and more people are willing to accept venture capital, but also willing to put money in venture capital to preserve and increase the value of the government's funds into the inside also let its natural.
Venture capital of government fund test water
In helping SMEs financing, Chengdu High-tech zone has its own set of methods. Since 2007, Chengdu High-tech zone has begun to build a "trapezoid financing model" for different types of financing tools, and has constructed a "profit and innovation Power" technology financial service platform which combines market operation and public welfare goal effectively. It has formed the investment and financing service pattern which relies on the wholly-owned state company to guide the private capital to participate actively, and has more than 1000 scientific and technological enterprises benefit from it.
2012, in order to cultivate, incubate the growth potential of high-quality entrepreneurial projects, to encourage and promote high-level personnel to settle in Chengdu High-tech zone innovation and entrepreneurship, Chengdu High-tech zone in the integration of government, enterprises, institutions and other advantages of the resources on the basis of innovation launched the "Tianfu Star" SME breeding program, the selected program of SMEs in policy , incubation, financial services and so on to give priority to support, and actively create a good environment for innovative entrepreneurial development.
It is reported that the selected "Tianfu Star" program Enterprises, according to the development stage and operating conditions of different, enjoy different degrees of office space Rental relief, angel investment support, loan discount, guarantee rate concessions.
Tang Jichang is an expert on financing of small and medium-sized enterprises, he has a "China Science and technology SME financing policy Research", "SME ladder financing Model practice operation and case analysis" and so on.
In his book, he creatively puts forward the "trapezoid financing mode" of "endogenous financing + Government supporting Fund + venture capital + Creditor's rights financing + equity financing + reform listing". He believes that local governments to actively participate in financial innovation easier to solve problems in the theoretical and practical fields have been praised and concerned.
While studying in the United States, he went into Silicon Valley to understand SME financing, and after returning to the high tech zone in Chengdu, he also learned that small and medium-sized enterprises, especially the science and technology SMEs adhere to and difficulties.
"There are all kinds of industrial development in Chengdu High-tech zone, science and technology innovation policy and research to pave the ground, further policy breakthroughs are logical." "he said.
In September 2012, Chengdu High-tech Zone officially released a number of policies for speeding up the development of mobile internet in Chengdu Hi-tech Zone, and the seventh article stipulates: "Encourage financial institutions to carry out industrial investment and financing services". The policy clearly stated:
(a) The establishment of mobile internet small micro-Enterprise guarantee Fund for the Chengdu High-tech zone has orders, has a market, speak good faith mobile Internet small micro enterprises to provide financing guarantee services. The bank loan interest subsidy and the guarantee fee subsidy of the enterprise are implemented according to the relevant policies.
(b) The establishment of a total of 80 million Yuan Angel investment Fund, Chengdu High-tech zone with growth potential of the start-up companies to provide venture capital.
(iii) The enterprise which successfully listed in the share transfer quotation system is given a subsidy of up to 1 million yuan per household in stages, and the enterprise that completes the motherboard, the SME board, the Gem, and the overseas listing (upper cabinet) gives each household a maximum of 3 million yuan subsidy.
(iv) Investment institutions of Chengdu High-tech zone venture capital investment of more than 5 million yuan, according to the investment amount of 5% of the invested enterprises to support the project, a single enterprise to obtain project support funds limit of 1 million yuan; investment institutions to attract their investment in the mobile Internet enterprises in Chengdu High-tech zone, according to the enterprise in Chengdu High-tech zone investment quota of 5 % of the investment institutions to award, the ceiling of not more than 500,000 yuan.
In fact, the use of financial security and equity transfer subsidies to enterprises to support in other High-tech zones already have. The biggest bright spot of the policy is the 80 million Angel investment fund that the government created. This makes Chengdu high-tech zone High-tech Small and medium-sized Enterprises feel the professionalization of government services: "Chengdu is the Wind investment rally, but the establishment of government venture capital more embodies the government's determination to encourage innovation, and its role in the market model is also more obvious."
How to ensure the effective use of 80 million funds
The VC, the government as an investment subject, also attracted some questions: "The government's money to spend efficiency?" Who controls such risky investments? The majority of venture capital failure cases, these 80 million will not be wasted? ”
"This money is for Chinese entrepreneurs, not foreigners. Tang Jichang firmly believes that the money that serves the development of innovation is the efficient money.
In addition to the boldness of decision makers, it is equally important to establish a mechanism that money value. To this end, "Chengdu Hi-tech Zone venture Angel investment fund Management measures" clearly stipulated that, commissioned by the Chengdu High Investment Venture Capital Co., Ltd. (hereinafter referred to as high investment start-up companies) to carry out direct equity investment, is responsible for hatching screening, investment project, due diligence, investment decision-making, investment implementation, investment management, investment and exit all aspects of investment management.
High-investment start-up company is a wholly-owned subsidiary of Chengdu Hi-tech Investments Group, established in 2004, the registered capital of a billion, mainly for science and technology-oriented SMEs, engaged in investment and financing, strategic development, equity management business. The company's capital is wholly state-owned, but it is a venture capitalist company.
In the past few years, high investment start-up companies have invested in many of the park's Internet projects, the entire investment rate of 10% or so, through the overseas listing or mergers and acquisitions, high-investment start-up companies to withdraw profits from the field. Up to now, the company has accumulated investment seed period, the start-up period of more than 20 projects, involving an investment amount of more than 60 million yuan, effectively promoting the rapid growth of SMEs in the region.
Huang is general manager of the high investment start-up company and is responsible for the use of 80 million government angel investment funds. His task is to meet the needs of the government, with a professional and market-based means of development in the region, to aid regional industries and companies bigger and stronger.
Unlike other preferential policies, "we are investing in equity and we need real returns." The money also needs to be protected and valued. "Huang said.
He introduced the Chengdu High-tech zone to the 80 million Yuan venture Angel fund requirements have three: first, to invest in High-tech enterprises in Chengdu. Second, each project does not exceed 2 million yuan, which means that the money will be at least 40 projects. Third, the Angel Fund is to be finished by the end of 2013.
In each entrepreneurial direction, the mobile Internet field is the most concern of high investment start-up companies. Huang told the author that in just a few months, they have voted 4 mobile internet companies, respectively, engaged in community sharing, mobile TV and other applications development enterprises. Among them, focus on cloud storage of Chengdu Listening Technology Co., Ltd. gradually exposed the edge. In November 20, "2012 China Innovation and Entrepreneurship Competition" Chengdu Division Competition, the company finalists 12, and will participate in the national highest specifications of scientific and technological Innovation tournament finals. Among the 5 Chengdu Enterprises that have been shortlisted for the national finals, three are engaged in mobile internet business.
It is not easy for high investment start-ups to tap and nurture these future stars.
In addition to the management team, the high investment start-up company has only 10 people, the average person responsible for seven or eight projects. Investment team every day in the High-tech Incubator Park, Tianfu Software Park and other entrepreneurial park, at any time to follow up the company's development.
High-investment start-up companies have long been stationed in High-tech zones, close to entrepreneurs, and master a lot of resources, once a good clue will be able to keep up with, in-depth excavation and found a lot of good projects.
However, from last year to now, the Chinese Internet circle to get the financing of the company few, a large number of group buying and electric dealers down, many famous venture losses, investors have to cash. In the capital of the winter, this 80 million will not cast down?
"Good investments are counter-cyclical. "Huang that in the economic downturn when quietly sowing, low cost, such as economic recovery, you can reap."
The market operation of financial funds
For a long time, the low efficiency of government funds has been criticized by the outside world, one of the reasons is that the exercise of the hands of the reward and punishment is not enough, do not reward, lose money also do not have their own pockets.
"On the ground is the investment circle of money, wages alone can not allow many cattle to join the team, and the High-tech Zone has established a set of incentive mechanism." Huang said, "The investment managers who do the project can talk to the project, the return is very impressive, and this will also allow the investment manager and the project closer integration, once the project is successful, he will receive more revenue." ”
According to the previous agreement, the Government will give the investment income of 20% to the High investment group. Huang 80% of them to reward the investment team, "this is groundbreaking in a state-funded fund."
Part of the investment manager's salary as a risk margin, monthly deduction, such as the successful end of the project return. In the event of a major investment failure, this portion of the money will be confiscated as a punishment.
Tying the interests of the investment manager to the project is the experience of a high investment start-up company. Yi Yu, deputy general manager of high investment start-up company, a small investment decision-making committee, including investment director Plus combat industry experts, and then add the management side of the park, the decision committee can be followed by the vote. This encourages the park management and experts recommend good projects, equal to send a nanny in the park, at any time to the old project supervision help and timely discovery of new good projects.
Compared with other government financial funds, the Chengdu model has two "unique" Characteristics: first, the management team (high investment start-up) in accordance with the rules of the VC industry to charge a 3% management fee; Secondly, in the field of expertise, the policy-making committee does not absorb any local officials.
The company stressed that although the government funds, but in full accordance with market-oriented operation. There are 2 to 3 small teams in the research project, when the Investment decision Committee is set up to hire industry experts as a think-tank, and government officials will not participate in the Committee, thus ensuring that the investment is operated exclusively on the basis of specialized operational means.
This model can be born in Chengdu High-tech zone, not only needs the leadership of High-tech areas and foresight, but also depends on the recent years in Chengdu High-tech development and financial integration of the exploration and experience, including has gathered a higher maturity, the direction of a more clear industry and related personnel.
In recent years, Chengdu High-tech zone relies on its practice of "trapezoidal financing model", in the SME debt financing, equity financing and restructuring of the listing has been thousands of successful cases. How to tap the quality of entrepreneurial projects? High-investment start-up companies have also explored a number of unique investment methods.
"To hold a number of targeted salon and technical training, as long as the person or company to have the potential, the project is reliable, can be finalized on the spot to sign a cheque." Huang said, the company also organized a pioneering competition in Chengdu University, the potential of college students dug out. He is also particularly bullish on business opportunities that focus on a particular niche, and can explore innovative projects.
The sixth annual Chengdu Youth Pioneering competition champion project meets this kind of request. The entrepreneurial team focuses on the sound design of video ads, striving to create unique brand value through original, distinctive sounds.
But, like many VCs, high-pitched startups are still tough and even demanding to choose entrepreneurs.
Government wind backed up the incubation system of high-tech zone
Good investors and entrepreneurs can promote the common prosperity of small and medium-sized enterprises, good VCs are not but the provider of funds, but also social relations, management experience, high-end talent provider.
This pure government investment Angel Investment fund Management team, has the government service attribute, advocates to provide "The Nanny type" service for the start-up company, but also has the typical marketability attribute, insists the financial fund the marketization operation. and its greater advantage is that Chengdu High-tech zone is implementing the "big Incubation strategy" and "large incubation system."
2010, Chengdu High-tech zone proposed from the past "High-tech district office incubator" into "High-tech zone into an incubator", and based on talent innovation and entrepreneurial needs, and vigorously gather incubator, talent, enterprise, public technology platform, investment and financing institutions, research institutes, innovative entrepreneurial culture and other scientific and technological innovation incubator Resources, Focus on the construction of innovative enterprises to introduce and nurture the ecological system, to create the best development environment for enterprises.
Chengdu High-Tech zone has successively promulgated "large incubation special funds management measures", "interim measures for the management of special awards for senior talents", "The work plan of speeding up the development of equity investment industry", "encouraging high level talents to enter the area of innovative entrepreneurship implementation measures" and other supporting documents, from start-up support, office housing subsidies, investment and financing services, tax concessions, To the Senior Talent award, housing subsidy, living allowance, child spouse placement, formed a set of talent introduction, nurture a complete policy system.
Mobile Internet is clearly a direct beneficiary of the entrepreneurial field. This September, Chengdu High-tech zone has designated 5 square kilometers as the mobile Internet industry development core area, located in Tianfu New District high-tech zone large source group. As its core carrier of mobile interconnection business building has been officially listed and put into use, a total area of 30,000 square meters, directed to gather mobile internet companies and teams. Less than half a year, mobile Internet entrepreneurship building enterprises reached more than 30, settled in the use of nearly half.
The development of mobile internet entrepreneurial resources has accelerated the layout of industrial carriers in Chengdu Hi-tech zone. A total area of 14,000 square meters of mobile Internet professional incubator will be built 120 hatching units, expected to be put into use in the year, can accommodate more than 100 entrepreneurial team settled in.
Chengdu High-tech zone to create the mobile Internet ecological environment has been recognized by the industry, the world's top VCs are also admiring.
November 26, headquartered in the United States Silicon Valley, the world's top venture capital, Peng Hua Ying and Chengdu High-tech zone Tianfu Software Park venture to forge a partnership, its office is located in Chengdu High-tech zone for entrepreneurs to create the theme café inspired coffee. The initiative provides a valuable opportunity for Chengdu's local entrepreneurship team to reach 0 distance from world-class investment institutions.
"Chengdu's active entrepreneurial ecosystem and the outstanding projects that have sprung up in recent years have already received great attention from investors at home and abroad." "Tianfu Software Park in charge of the introduction, in 2011, only in the incubator project in the incubation program attracted more than 10 venture capital and Angel investment more than 15 million U.S. dollars direct investment."
Recently, the publication of the 2012 "Mobile Internet Star" award list, Chengdu High-tech zone won the top ten awards in the only one Government/Park category Award "mobile Internet Regional Ecological environment star."
Data show that in the first half of this year, Chengdu High-tech zone newly introduced 50 high-level entrepreneurial enterprises, mobile Internet enterprises accounted for 50%; In the last two years, the establishment of High-tech SME sales revenue for the first time to break 10 million of 32 enterprises, mobile Internet enterprises accounted for 47%, the introduction of 222 High-tech SMEs, Mobile internet companies accounted for 54% of the 33 public technology platforms identified, mobile internet accounted for 48%. In addition, mobile Internet projects accounted for 51% of the first 66 high level talent start-ups funded, and mobile internet projects accounted for 56% of the 69 start-ups funded by the first batch of incubator funds.
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