Start-up Relay fund: Layout New Sanbanxi, investment exit returns over 5 times times

At present, the A-share IPO market, more than 600 enterprises lined up long line to stop, the high threshold, narrow road, making the former rely on the IPO to quit the main PE are miserable, so, more and more enterprises and investment institutions will look to undertake a variety of positive and in the large expansion of the new Sanbanxi

In particular, recently, the new Sanbanxi two good, first of all, the SFC will support the new Sanbanxi listing a year of corporate transfer board of the New Deal issued, the newly sanbanxi springboard function again strengthened. Plus the end of this month's market-maker trading system will be officially online, which means a new era of Sanbanxi trading flows is coming.

Qing Branch Group Private-sector data show that since the new Sanbanxi expansion policy announced, the number of listed enterprises soared, as of the end of June 2014 has reached 813, half a year listed enterprises have more than 2010-2013 three years of the total number. A large number of private equity institutions lurk among them. Whether it is the future of the Board of the expected, or "big enterprise mergers and acquisitions of the pool", the new Sanbanxi no doubt for private equity institutions brought about the withdrawal of more space for imagination.

Some of the early sanbanxi of the new venture capital institutions, now starting to usher in the harvest season, the creation of the relay fund is one of them. In a recent interview with the investment community, Xu Yiliu, a partner in the Venture relay fund, revealed that the fund's investment projects had been partially withdrawn through the new Sanbanxi and that the rewards were considerable.

As a foothold in Shanghai venture capital institutions, entrepreneurial Relay Fund is the first batch of Shanghai enterprises to promote the listing of new Sanbanxi VC. As early as September 2012, the new Sanbanxi from the village of the pilot expansion to the whole country, the venture relay fund to invest in medical digital equipment and solutions provider New Vision on occasion completed the new Sanbanxi listing, when the first batch of pilot nationwide only 8, Shanghai 2, of which 1 is a new vision.

Following the new vision, January 24 this year, the start-up relay fund to invest in low-emission combustion systems, the state also in the new Sanbanxi national expansion when the first batch of enterprises listed.

New Sanbanxi exit returns 5 times times more

As VC, the main investment direction of the Venture relay fund is scientific and technological innovation-oriented companies. Innovative technology-driven products, from research and development to input volume production, generally have to go through a small trial period, the pilot period, and finally to large-scale industrial production. The main choice of the Venture relay fund is in the late stage of the pilot period, or in the early stage of large-scale production investment, identity is generally a round or pre-a round institutional investors. Therefore, many enterprises in the completion of the first equity financing volume is still very small, most of the revenue in the following tens of millions of dollars, some only hundreds of thousands of, with a a-share IPO standards still some distance, but these enterprises growth rate is very fast.

The new vision was the case, "just investment, the new vision of the income scale is also in millions other, but a short period of two years, the new vision of 2013 net profit has reached more than 14 million, the first half of 2014 net profit has been tens of millions, is expected to the end of this year should have been basically in line with the requirements of gem listing. Xu Yiliu told the investment community. The Securities and Futures Commission in the new 10 clear priority to support the new Sanbanxi listed over the year's internet and High-tech companies to board the GEM, this will undoubtedly give a lot of impetus to venture capital and start-up Enterprises, "on the one hand, the new Sanbanxi is a good exit platform for the VC institution, on the other hand, There is also the possibility of the transfer board after the enterprise is listed new Sanbanxi. ”

Usually, in the enterprise's B-round or C-round follow-up financing process, the start-up relay Foundation selected part of the exit. Xu Yi Law found that the investment enterprises listed new Sanbanxi, do B-round and C-round financing more efficient, such as New Vision, last 4 quarter completed a directional additional. Because the new Sanbanxi Enterprise Information disclosure is more sound, so the increase also done very smoothly. The Venture relay fund has also transferred some of its stakes through the new Sanbanxi, gaining 5 times times more returns.

The company's new Sanbanxi has also found a benefit – more likely to attract the attention of the takeover Department of listed companies. In recent years, the demand of listed companies for outstanding mergers and acquisitions is still very strong. PE/VC selected investment enterprises usually have high margin, high growth of the obvious characteristics, once the growth to a certain scale will have a great deal of attraction to the listed companies. "We are now also communicating with a number of listed companies the possibility of future cooperation." Xu Yiliu said, now through the new Sanbanxi mergers and acquisitions, has become the start-up relay Fund is considered as one of the important exit methods.

"We certainly don't rule out the possibility of IPOs," he said. However, there are some suitable enterprises can be listed first new Sanbanxi, and then in the new Sanbanxi to seek the board, or in the new Sanbanxi to achieve the transfer of shares to withdraw. "Obviously, the new Sanbanxi has become a new preferred platform for the venture to exit."

Post-Investment Management of booster Fund

Xu Yiliu told the investment community, when the Venture relay fund to promote its investment in enterprises listed in the new Sanbanxi process is one of the benefits is very conducive to standardize the operation and management of the company. As we all know, VC investment early enterprises, to spend a lot of effort to do after management, and the key to post management is to help enterprises strengthen the management of all aspects of the normative.

The listing needs to invite experienced securities firms, accounting firms, law firms to carry out financial, legal carding, which in some way put a lot of the management of the work borrowed. Moreover, at present, enterprises in the new Sanbanxi can also enjoy the listing of a certain amount of government-listed costs subsidies and support.

In fact, the value that new Sanbanxi brings to companies and investment institutions is not just that. Xu Yiliu that, at least in the corporate brand image, expand financing channels, team incentive Construction has played a positive role.

The first is the promotion of corporate brand. Xu Yi Law to the state of China as an example, their downstream customers and partners are mostly large state-owned enterprises or private enterprises, the state of China in the new Sanbanxi after the listing, and these big enterprises to talk about cooperation when the feeling of a high degree of attention. The listing of new Sanbanxi to a certain extent means that in the capital market has been recognized, which also helps enterprises as a key enterprise more access to the various local government support policies.

Although the listing of new Sanbanxi is different from the motherboard gem listing, but the enterprise financing channels or widened a lot. On the one hand, through the new Sanbanxi directional additional financing, and investors communication efficiency is much higher. On the other hand, on the new Sanbanxi is equivalent to enter the bank's SME credit "green channel." For example, the new vision in the new Sanbanxi before, only a few bank credit lines, but after the listing, there are several banks gave tens other credit.

Finally, the staff motivation, team stability also has a great help. "A big problem for small-business bosses is the unstable team. Can be listed new Sanbanxi is a manifestation of the strength of the company, can increase the recognition of their own enterprises. Listing the equity incentive plan also makes employees feel that their options are worth the money. ' said Xu Yiliu.

More premium space can be expected

The liquidity of the new Sanbanxi has been a contentious issue in the industry. However, according to Xu Yi Law, the new Sanbanxi already has a certain relative fluidity. "Companies with excellent performance performance, there will be someone interested in you, view the National stock Transfer system on the website transactions and quotes, you will find that there are many excellent companies in fact already have a lot of deal sheets and quotations are there." ”

Many people are looking forward to the end of August, after the implementation of market-making system, the new Sanbanxi liquidity is activated, many new Sanbanxi listed companies are actively preparing for the market. Xu Yiliu told the "investment Sector", at present, the new vision has been in the communication with the securities companies to promote the relevant matters, do not only need to be listed in the market to participate in the organizers, but also to find a second brokerage, at least two brokerages to participate in the market.

After the liquidity is activated, the new sanbanxi will bring more premium space to corporate finance. The new Sanbanxi pricing function, unlike IPOs, will produce a pricing, the current new Sanbanxi in two cases may produce a price, one is to increase, the other is the transfer of shares. Xu Yiliu said, "This price, certainly not like the two-tier market, but the new Sanbanxi indeed there is a certain amount of liquidity, which for listed companies, whether to do the increase or the transfer of shares has brought a certain premium space." ”

The new vision and the state of China are both in the new Sanbanxi before the listing of 1-2 years ago, the venture relay fund into the investment. "In fact, many of the early startups we invest in are very suitable for the new Sanbanxi," he said. "Xu Yiliu said.

At present, the Venture relay fund manages 3 early venture capital fund, the fund scale nearly 500 million, the investment enterprise nearly 40, besides already listed new vision and the China State, also has 5 to 6 is preparing the landing new Sanbanxi.

Note：

1, September 7, 2012, as a medical digital equipment and solutions provider, Tongji Science and Technology Park Enterprise Shanghai New Vision Medical Equipment Co., Ltd. successfully listed new Sanbanxi (shares code: 430140)

2, January 24, 2014, Shanghai Hua Bang Technology Co., Ltd. (shares code: 430421) in the National Equity Trading system (new Sanbanxi) officially listed. The enterprise is a High-tech enterprise which provides clean burning, energy saving and emission reduction technologies and solutions for the consumption market of petrochemical energy (coal, petroleum, natural gas and its derivatives) and industrial by-products.