Entrepreneurs don't necessarily all need technology

"Emerging markets, including India, will certainly be in the direction of Granite Global VENTURES,GGV's future consideration," he said. "But for the foreseeable future, GGV's investment strategy will not change, and China and the US remain our dominant market," said Scott Bonham, one of GGV's co-founder Scott Bongham. "

GGV is famous for investing in Jack Ma's Alibaba and earning 7 times times earnings after it has been set up, after which GGV became an investor in Baidu, and it was GGV's GP in China (General Partner) Fu Yishun, who contributed to these transactions. In an interview with reporters, he said that as China's capital market function gradually improved, more and more VC has been considering the possibility of domestic fund-raising and exit.

GGV is also considering exiting the territory .

"China Business newspaper": In the mainland market is more active are foreign VC. Some people think that, as foreign VC funds to raise and exit mainly in the overseas, so the investment by foreign VC enterprises can only be regarded as "adopted children." Will the situation change in the near future?

Fu Yishun: Whether VC or invested enterprise, all want to complete the financing and exit process in the territory, because this cost is minimal. Now the domestic capital market has solved the whole circulation problem, as more suitable for the small and medium-sized innovation Enterprise's capital market, the SME board even plans the gem financing function also gradually obtains the recognition, therefore, seeks the domestic exit already is the venture capital Circle recent Hot topic. GGV Of course also have consideration.

GGV is also considering making renminbi funds, but I am sorry that there is no specific plan to disclose. In order to make RMB funds, we must perfect the foreign currency exchange, provide protection and exit mechanism for the investors in the law and system. Another issue that has to be considered is that when a fund management company operates more than two foreign currency funds, it must consider the distribution of benefits among them. For example, in the investment of a project, the local currency, how much to vote.

the automobile field will become the investment hot spot

"China Business Daily": After December 2006 investment "One tea sit", GGV is currently doing what project? GGV can be said to be the first in the mainland to invest in the traditional field of VC, the future of what areas?

Fu Yishun: Earlier this year, GGV has just completed a medical outsourcing project, as well as an investment in auto parts companies, which provides heat exchangers for auto companies including Shanghai GM and Chery.

We are optimistic about the four areas, one is the internet and the media, the other is the service, software outsourcing; third, non-high-tech manufacturing industry, such as wind, light and other new energy industry and the automotive industry, four is the mass retail, catering, channels, such as direct Sales model innovation and so on.

We believe that investment in the automotive sector will become the next stage of investment hotspots. China's car consumption capacity has soared in recent years, which means that demand for cars, cars, insurance, repairs, car grooming and even steel and other raw materials will rise. We will look for the investment opportunities hidden in the industry chain. Previously, GGV has invested in China's car network, because it can serve car consumers online and connect manufacturing companies, retail stores and logistics.

We are planning to expand our team in China because of the growing scope of investment, and we want them to be experts in the manufacturing and FMCG industries, and not rule out that they are professionals from local financial institutions.

favor "old tree shoots"

"China Business newspaper": These two years, foreign funds poured into China private equity (private Equity, hereinafter referred to as PE) market, in addition to VC, including large PE institutional investors and even hedge funds (hedge Fund), some foreign funds therefore judged China's venture capital market "overheating", Turn to India to fall to the ground. What does GGV think about this?

Fu Yishun: If you really want to say "crazy", the Chinese market is not the only one, including India, the global VC is crazy. The United States currently has more than 800 VC, active in China VC has almost 110, plus PE institutional investors, hedge funds and policy funds, the number of Chinese investment institutions will not exceed 200.

Traditional VC focus on the TMT (digital multimedia) industry in China is still very hot, and, VC now difficult to find an unpopular, good investment opportunities, because as long as the discovery of one, immediately there will be a lot of peer rapid follow-up. But that does not mean China has no investment opportunities. China's business opportunities have not been brought on by the Internet revolution, as in the United States, but by the renewal of clothing, food, housing, and other fields after the rise of the economy. Therefore, not all entrepreneurs must have new technology and applications, in the traditional industry to introduce sophisticated technology to carry out business or sales model innovation, that is, the so-called "old trees sprout", may be more favored by VC.

From this point of view, both in terms of geographical and investment areas, China's existing private equity investment institutions are not fully covered. There is no competition between hedge funds, large institutional investors and VC agencies, but competition does not necessarily mean a life-and-death. The funds under control are different and the investment areas are different. For example, PE institutions may be more interested in more than 30 million dollars of projects, and such as GGV focus on the long-term VC agencies, the investment projects will not be very large, the investment generally between 5 million to 20 million dollars.