GGV Capital Partner Jenny: to follow the investment

Focus on the research industry, continuous tracking of enterprises, making the source of capital from many institutions stand out "today to do venture capital, has not been able to sit there waiting for things to happen, you must create their own opportunities." "Two companies were listed last year, and it's good to have two or three at home this year." "Sitting at the 35 floor office in Shanghai Lujiazui National Gold Center, Jenny looks out of the window, but does not feel optimistic. As a partner of Jamie's capital, Jenny knows that if the downstream IPO market is not optimistic, the upstream venture capital industry will not be well. Not long ago, she attended an investor conference in Beijing, the GP (General partner) and LP (limited partner), which is also the best place for GP to find LP financing. What she saw was a very serious polarization: for some star GP,LP chasing after the money, and some of the newly established venture capital GP,LP not even talk about the interest. As Buffett said, when the sea is low, we know who is swimming naked. Jenny, a former Singapore Air Force fighter system engineer who was the chairman of the company, Jenny a gathering of two companies in the U.S. IPO last year, Nasdaq:yy. In addition to YY, Jenny also cast Lei voted for another two companies UC gifted and 7k7k, she is very agree with Lei eyesight, more importantly, she has in-depth research in these two areas. In the 2005, Jenny brought GGV capital to China. Although in recent years the source of capital has been the investment of the tentacles extended to the consumer, new energy and other fields, but TMT (technology, media and communications) has always been their main battlefield, but also the main battlefield of Jenny. In China, the TMT team of GGV Capital has invested in Alibaba, Beauty said, Hisoft, where to go, Tudou, UC excellent view, Century interconnection, gathering time and other star projects, have been praised by the industry. However, the Chinese TMT team of GGV Capital is very small, there are only 5 people, including Jenny and Jixun two partners plus 3 investment managers, and many venture capital companies in this area of the team more than 20 people. Therefore, the investment strategy of GGV Capital is focus, concentration and persistence. Starting in 2002, Jenny, a Rich Asia, began to focus on China's service outsourcing industry. She spent two years in the field of nearly 3,000 Chinese companies, and finally found a corner of the Dalian Sea-FAI. "At that time Hisoft only 320 people, the revenue is only 10 million dollars." has been tracking to 2004 years, she felt hisoft to the need to introduce professional managers, and then invited Hewlett-Packard China Vice President Lu Jie as the CEO, but was Lu Jie refused, the latter think the hisoft was too small. After the 2006 Dalian Sea-Fai and the Beijing Haihongye, Hong Kong Cosenza merger and reorganization Chenghaihui Group, Jenny's invitation to enter into force. Since then, the introduction of professional managers, to the European and American market Hisoft achieved rapid development, and in 2010 year June successfully landed on Nasdaq. And when the 2012-year service outsourcing industry encountered difficulties, but also she and Lu Jie to represent the Hisoft Board of Directors, in the Oriental Grand Hyatt and Evans Innovation chairman Chen Shuning talk about 5 hours, and finally reached two companies of the reciprocal merger. Now, after the reorganization of the Evans Hisoft has become a 20,000 employees, the revenue of 600 million U.S. dollars in China's service outsourcing leading enterprises. "To venture capital today, you can't sit there and wait for things to happen, you have to create your own opportunities." "In the past few years, China's TMT industry several major mergers such as Hisoft and Evans merger, Baidu Acquisition to where the net, Youku mergers and acquisitions Tudou, as investors of the source of capital have been deeply involved in the whole process of the merger negotiations." It is precisely because of the continued tracking and support of the invested enterprises, GGV capital investment project failure rate is relatively low, Jenny revealed that, if the amount of investment to calculate, GGV capital failure rate of less than 14%. Generally speaking, the average level of failure rate of venture capital industry is 30%. The investment gathering era is also the result of in-depth study of the industry. As early as 2005, GGV Capital invested in an online gaming instant messaging company Xfire in the United States. After 9 months Xfire was acquired by the media giant Viacom, GGV Capital received an astonishing 4 times-fold return. From that point on, Jenny noticed that gamers needed an instant messaging tool that spanned a variety of gaming platforms. She also noted the Super stickiness of the game crowd: the highest number of Xfire at the time of the acquisition was 500,000, and no one was running the product, but it still had more than 300,000 online. Lee Colling out to create more play nets, Jenny also did research, she thinks more play net as a game media is a limit, this ceiling is China's advertising market. She likes Lee Colling's team very much, but, yy can grow up to 1 billion dollar company of market value above? At that time, the market did not pay attention to research institutions, Jenny thought a stupid way to do market research. She launched the company's assistants, put them all sent to the Internet café to do a questionnaire survey, let them ask the Internet Café players: you know yy? Do you know any other games for instant messaging? Where do you usually go? Why use it? Finally recycled hundreds of questionnaires, unified out YY really ranked first, so decisive investment. It is precisely because the industry analysis of the invested enterprise is very thorough, GGV Capital will dare to invest. After August 2008, the U.S. subprime crisis broke out, the financial market is bleak, and GGV capital is in the sad wind and rain in the next two years to invest in the gathering time, to where, UC excellent view, Century interconnection and other companies, thus getting very good returns. Jenny has a lot of investment in the hottest Internet area, but she feels the opportunities are narrowing. For the new company, in the pure Internet field has been very difficult to find bat (Baidu, Alibaba, Tencent) the three giants have not been involved in the field. So she would also help to be castThe question of how to think about how to do business. For example, the beauty of GGV capital investment finally introduced Tencent as a strategic investor. As a shopping guide site, beautiful said the upstream flow more from Tencent, downstream will be through Taobao to reach a deal and become cash. Is it upstream or downstream? They think that with upstream traffic can convert it into their own users, export to the time is actually can choose a different electric quotient, and the electrical business is impossible to send to the customers refused. In addition, from the perspective of corporate culture, Beauty said and Tencent is also more similar, so decisively chose Tencent. For the future of China's Internet, she thinks that in the bat will hatch like micro-letter such a successful project, and some internet start-ups must be far away from bat, select some Internet and traditional industries, to do the division of the boss. Also in the near future, GGV Capital has cast a heavy bet on online short-term websites that combine real estate, tourism and Internet rentals. "If we don't have a 1 billion dollar business in the future, we're not going to look at it." "Jenny a maximum of five or six projects a year, and she hopes that when GGV Capital enters, the invested enterprise will be valued at about 50 million to 100 million dollars." Such long-term follow down, will be able to get more than 10 times times the return. This time is often also the investment enterprise B round of financing. As a result, more than half of the GGV capital projects are invested in either the B or C rounds. "B" or "C" is not necessarily the return will be low, because you are often invested in the take-off phase of the enterprise. A or angelic stages may be more rewarding, but you may not really be able to keep up. "Ji Yuan capital will leave sufficient reserve funds for each project, so that when these enterprises do the next round of financing, can continue to follow." Jenny, a Singaporean who has lived in Shanghai for 8 years, intends to continue to work in China. As a former Singapore Air Force fighter System engineer, she would spend 5 years upgrading a fighter's system and watching it fly to the blue sky with contentment. "This is a rhythm of my own, I think I can not do the entrepreneur, so I have to accompany a good entrepreneur to walk through every road." However, I can go with many different entrepreneurs. ”