Silicon Valley entrepreneurs look for investment in China

51 on the eve of the venture capital (VC) Company-Yong Wei investment manager He Yongli received an international long-distance call from Chicago, United States. The other is a Chinese and a graduate of the University of Chicago who found Wynn investment through the University of Chicago alumni. "They have a start-up team that specializes in chip design and wants to find investment in China," he said.　　He Yongli said it was also the second overseas start-up team he had received in a week to find an investment in the country. Coincidentally, Mr Alex, managing director of the Jinsha Venture, has recently encountered a number of similar situations. It is not only the Chinese in Silicon Valley in the United States, but also the High-tech entrepreneurial teams from Israel, and even French entrepreneurs. "Recently contacted a pioneering team from France, their core business is the development of game software, and for the global market promotion." Alex told reporters, "Of course, these people are simply looking for investment, there are those who want to find investment at the same time, the operation and management transfer to the domestic, or at the outset to consider starting a domestic business." As with the Jinsha River venture capital investment, more and more VC companies are facing inquiries from overseas entrepreneurs. In the context of the global financial crisis, China's leading economic recovery and huge market potential, the past is China's High-tech entrepreneurs, especially internet entrepreneurs to seek investment abroad, and now also gradually overseas entrepreneurial team to the Chinese market to find investment.　　From overseas students to start and refinance, to overseas students first venture abroad, then return to change, and then transfer operations and management departments to the domestic, or simply to seek venture capital, the entrepreneurial mentality of these entrepreneurs and the path of capital operation is changing.　　French team China financing the United States financial crisis, the whole world economic depression, so that the overseas financing environment continues to deteriorate, those who previously in the United States to start, the main international market enterprises, previously financed in the United States, and now they are increasingly looking to China's capital market. Starting from the second half of last year, as a typical venture investor focused on early-stage High-tech venture capital, Alex, managing director of Jinsha, and his team began to come into contact with "special" foreign entrepreneurial teams, Chinese from Silicon Valley, High-tech companies from Israel, and entrepreneurial teams from France. The companies they set up are overseas, and the major markets they face are overseas, but they want to be able to finance them in China's capital markets. Alex in an interview with our correspondent said: "In more than half a year, we have seen dozens of similar overseas entrepreneurial team." "Similarly, to private equity investment (PE), but also to take into account the advantages of some venture capital also encountered the same situation."　　According to Wukezhong, managing director of the dominant capital, they have contacted about 80 start-ups from the beginning of last year, most of whom are Chinese from Silicon Valley. And another venture, Yong Wei Investment Limited, is investing in greater China and the United StatesBusiness, and manages nearly 1 billion dollars in capital, so there is more access to different areas of financiers. "I've seen a lot of these projects before, and they didn't start a business in China, but they found us looking for financial cooperation because of all the opportunities," said one person who invested in the Beijing branch. This has been more so since the onset of the US financial crisis. "In the United States and other Western countries entrepreneurial enterprises, operations and management, and other aspects of the high cost, the need for continuous cash flow support, once the money problems, the survival of enterprises will be threatened." Alex explained to reporters that the main reason for the phenomenon, "from the perspective of venture capital, the Chinese market is much better than the United States, China's status in the international situation is changing, at the same time, the potential of the Chinese market gradually attracted attention, this trend is increasingly obvious."　　"Shifting the focus of business to China of course, most investors are not particularly interested in those overseas entrepreneurs who want to raise money in the Chinese market, except for those venture capitalists who are facing global markets." "Today, when the market is becoming more and more internationalized, those companies that have started their business overseas have been operating overseas." If they are just going to China to look for investment, and the business is still overseas, venture capitalists like us won't be able to give them more help. "Alex's explanation is very representative, and for venture capitalists who specialize in the Chinese market, it is not realistic to help entrepreneurs who are operating locally, because their strength is not there." "Then our value will not be reflected." For entrepreneurs, in addition to providing money, venture capitalists are the key to providing the enterprise with the resources and support they need to grow. We should grow together with the enterprise in every stage of enterprise development. "In the eyes of Wukezhong, managing director of the dominant capital, investors in the office in China are faced with many problems, such as doing due diligence overseas, managing the cost of overseas projects too high, and so on." He said: "If the Chinese entrepreneurial team can return to the business, but only the research and development department in the United States, will be more attractive to investors." Alex also acknowledged the shift in market focus to China. "When the supply of funds is scarce, companies will consider changing the way they do things." "In the bad market, entrepreneurs will consider restructuring, through the industrial chain integration, the cost down." Alex said. And the transfer of product development, business operations to China, may be a practical way. "In fact, a growing number of overseas start-ups with Chinese participation have thought well at the outset and are going to develop in China." Some enterprises, taking into account the investment and the overall market operation, began to slowly shift the focus of business to the Chinese market. Yong-Wei investment in the United States in 2007, a company known as the Cnano, the professional research and development of nano-materials companies in the Chinese market and cost control considerations, last year will be aBranch Operation department moved back to China, settled in Beijing also Zhuang.　　The number and scale of funds are at a low level despite the enthusiasm of entrepreneurs, the number and scale of funds raised by venture capitalists, both international and domestic, are in line with the global downturn, and are now at a relatively low level in the industry. Under the influence of the global economic crisis, venture capital institutions at home and abroad adopt prudent investment strategies in raising capital and investment. In the first quarter of 2009, China's VC market and investment both fell sharply, a total of 9 Chinese and foreign venture capital raised 10 funds, of which the new investment in mainland China, the amount of money is only 889 million U.S. dollars,　　Compared with the previous quarter, the number of new raise money reduced by 19, the new capital reduced by 36.9%. At present, the number of VC in the United States is about 3-4 times that of China, about three thousand or four thousand, and Linchi, founder and president of the China fund, has predicted that "by the global financial crisis, this figure will be reduced by more than half in the next 5 years." In such a large environment, China's VC also difficult to be immune.　　"But there are still winners in the depressed markets, and VCs who are focused on early investment in technology are more favored. SoftBank China raised its third-year fund in the third quarter, close to $300 million trillion. Soft Silver China President Sirun told our correspondent, "Not long ago, there are investors want to add in, because it is very good investors, so we opened a hole, increased the amount of less than 10%." "So far, the fund is 315 million U.S. dollars, the investment is still for the broad sense of it, clean energy, medical, new materials, FMCG and other fields, investment stage, including early, growth and later." Sirun said: "For the entire venture capital, now is indeed a difficult period, fund-raising is not so easy." SoftBank China has been able to raise money to show the recognition of investors and the market. "The Jinsha Venture investment fund has just completed the third phase of the Fund in January this year, totaling 383 million dollars." After the first investment online enterprise Love Lemon Network Technology Co., Ltd., will continue to focus on the Internet, green energy and other high growth areas. Alex that the company's focus-early, technological, technological innovation, and the pace of investment control-has won the recognition of investors.　　In the past 4 years, the venture capital, which focused on early investment, has invested in two-year funds, totalling 280 million dollars. Lan also recently ended its fourth-year fundraising, which amounts to $250 million trillion.　　According to Chen Wei, a Chinese partner in Lan, the fourth fund will be used mainly for investment in China and the US, with the goal of early investment in science and technology, such as the Internet, media, semiconductors, etc. The imagination of the Chinese market is bigger because of the decrease of the number of listed companies, the exit of venture capital is becoming more and more difficult. Most of China's VC and PE have slowed down their investment, including Sequoia Capital, the former star enterprise of the capital. Data show that the first quarter of this year compared with the last quarter, the number of enterprises dropped by 79, the amount of investment reduced by 61.0%.　　For most VCs, 2009 is neither a good year to raise money nor a good year to retire, but it may be a good year to look for and invest in, because the company's prices are relatively low. After the Spring Festival, many venture capitalists are starting to get busy again.　　Especially for those who are focused on early tech VCs. "There is not much change in the number of entrepreneurs in the country, and more and more come back from abroad," the Gobi Capital's Ken told reporters: "Originally we did not fast, now still maintain the original speed, each investor will receive more than 100 business plan, can see about 20-30." The final company invests 6-8 projects a year.　　"At the same time, Gobi Ken that this year to see the project will be longer, will be more concerned about the company's own things." The Jinsha River Venture Alex also thinks should now look more, slow to do. "This year to maintain the same pace as last year, a total of more than 1000 enterprises, the final investment 7 to 8 projects." A project takes at least 3-6 months, which is already very fast. "He admitted that he had been confused for a while, so we all slowed down and made a strategic adjustment," because we are not quite sure how much the impact of the crisis has on the business and how it affects the fund itself. But in the next two or three quarters, we will see VC, PE investment will be more and more active. "Previous investment strategies have not changed much, and the areas of concern have remained unchanged," he said. "The impact of the Internet on people's lives is just beginning, and the opportunities for investment are still very much, such as wireless internet, E-commerce, 3G communications and other fields," Alex said. Especially those with innovative technology and business models. "Similarly, SoftBank China's president, Sirun, still has confidence in the domestic market," while the Chinese market is more imaginative and more likely to have more stories than overseas markets. ”