Gan Jianping, managing director of Qiming Venture: Entrepreneurs can't just look at the rewards

In recent years, the stock market is crazy, many private equity funds (PE) keen on the pre-IPO project (IPO), qiming venture to focus on investment in the early projects in the industry.　　The venture company, which was founded in 2006, has so far invested more than 20 early-stage companies and raised two funds in the first half of the year. Gan Jianping joined Qiming in September 2006 as managing director, prior to his tenure as chief financial officer of the Air network.　　In the face of reporters, he did not hesitate to invest in the risks of early-stage enterprises, and said that in the Enlightenment has invested in projects or will be invested in the future will inevitably be "eliminated." Lobbying US agencies "first financial daily": In the first half you and Shing (qiming VC Managing Director Shiping) went to the United States to swim said that some LP (limited partner) institutions to become qiming partners.　　What are the main investors at Qiming? Gan Jianping: Our biggest investor is the Princeton University Foundation, as well as charitable funds and funds (FOF).　　We should be responsible for investors, on the one hand, to make money, on the other hand to governance transparent, often to these investors report operations, financial situation.　　The world is becoming more and more globalized, we will also help us to invest in the United States to do publicity, seek investment partners, to help these enterprises to carry out follow-up financing, business development, market development and so on.　　First Financial daily: How do you persuade foreign investment institutions to invest in the Chinese market? Gan Jianping: I started investing in Carlyle in 2000, when the world began to pay attention to China. And now China's capital market has undergone great changes, the world's eyes are very concerned about China. We wrote the investment Report in 2000, and the 30-page investment Report will use 10 pages to explain China's investment environment and why to invest in China, why invest in the industry. But these explanations are not needed now.　　But the crux of the matter is how to let these LP institutions give you the money to manage, why to give to qiming, not other VC.　　The first financial daily: So how do you get these LP institutions to hand over the money to the qiming management? Gan Jianping: First of all, our experience. Everyone in our team has experience in investing and operating, and we are doing too much in the enterprise. We can read the financial statements, understand the capital market, at the same time we have done in the enterprise market, personnel management work. Second, we have experience in investing in China, and we have invested in China for many years.　　Third, we are very good faith. There are a lot of blanks can be filled in the "First financial daily": The industry data that the current in China, to create investment in the name of 95% of funds are invested in the maturity of the business (often known as PE), and really do venture investment business is less than 5%. Qiming has been insisting on early investment (VC).　　How does qiming think of itself as a VC in the early stages of an investment venture? Gan Jianping: Yes, most of the projects are early projects. PE is a very broad concept that all investments in unlisted companies are handedEasy can be called PE, has the initial investment, early, into the long-term, the final investment mergers, acquisitions and so on.　　And China's value chain is not mature, we have just begun, many concepts have been confused, that PE is to do late, VC is to do early. In addition, the first two years of capital market is too good, you just invest in a profitable, profit-making company, whether in China's a-share or in the United States, or the motherboard, gem or even, basically can be quickly listed. China has nurtured a large number of good private and state-owned enterprises in the past 10 years or so. They all have good earnings and profits, but they are not listed yet, because the capital markets of previous years have not been as good as they are now. Now that everyone has entered and invested in these companies, they will soon be rewarded.　　Especially now funds raise more and more funds, a fund to raise too much money, it is impossible to cast a 1 million Yuan project. But this is a short-term situation. If the market matures, people will become more and more focused.　　Everyone will also become more and more clear about what they want to do, the whole industry chain will be more mature. We've been doing early projects. I think VC in China is a better portfolio.　　China is an emerging market, there are many opportunities in it, consumer goods, health care and other areas, there are many gaps can be filled. Entrepreneurs can not just look at the return of the first financial daily: many funds think that there are few projects now, or good projects are very few, we all take the money do not know where to vote? Has qiming ever encountered the same problem?　　Do you think there are fewer projects in China now? Gan Jianping: I think the project is not difficult to find, the Chinese market has many opportunities, whether young or mature enterprises, all walks of life have a lot of good projects. The so-called "hard to find" may be more competitive, looking for more people, the project seems to be difficult. It's similar to the balance of supply and demand in equities. More money, the price of the project naturally went up, it formed the so-called "difficult to find" situation.　　Especially in the two-tier market especially good environment, the entrepreneur's request is higher. This situation is a bit difficult for us to do. Although we call it "venture capital", our job is to try every means to avoid risk.　　We must take some risks under the precondition that the return can be guaranteed.　　"First Financial daily": So the stock market has fallen so sharply this year, are you happy?　　Gan Jianping: I can't say I'm happy, but I want entrepreneurs to think more about their own risks than just return. "First Financial daily": Qiming has invested more than 20 projects, are early enterprises, may not have taken into account the exit. Industry often said that VC and PE have a different place is VC cast 10 projects as long as there is a success to make money. So Qiming has invested in more than 20 projects, now there are some projects have been worth worrying about, its growth has been lessWatch？ Gan Jianping: Not at the moment, but I'm sure there will be some future. This is inevitable. Investment in a business has a lot of uncertainties, we through a variety of due diligence to avoid some of the risks, to help enterprises develop better, but eventually there will be enterprises not suitable for the operation of the market and be eliminated.