Huaxing Capital: China's Internet golden Finger encourages the development of internal entrepreneurship

"At that time both the industry's suspicion, but also from the competitors of ridicule." Duyonbo, managing director of Huaxing Capital, still remembers that two years ago, the company had just won a brokerage licence to start an IPO business.

But in just two years, the new investment bank has contracted most IT companies in China to the U.S. IPO deal. In 2014, Jingdong Mall to finance the 1.5 billion-dollar IPO, Huaxing became the only Chinese investment bank to participate in underwriting, it also became this year's listing of the United States excellent products, cattle, le Habitat of the joint main underwriter. So far this year, Huaxing Capital has ranked 2nd on the list of underwriters for Chinese IPOs in the US, after UBS, surpassing Credit Suisse and BofA Merrill Lynch, according to Dealogic, the UK market research firm.

And in the field of Internet investment in full swing, you can think of most of the financing, mergers and acquisitions, from Tencent shares in Beijing east, Ali shares of the Bai-Cheng Travel network to net e round 200 million U.S. dollars financing ... Behind all flashed the figure of huaxing capital. So far this year, Huaxing Capital has completed more than 40 private equity financing and mergers and acquisitions, trading at more than 5 billion U.S. dollars, 5 IPOs and 2 convertible bonds in overseas markets, with a transaction amount exceeding 6 billion US dollars.

"There are mountains outside the mountains, heavens. "Duyonbo in the first financial daily interview in this response," from the turnover point of view, huaxing is indeed very close to the front, but objectively speaking, whether from the global sales network, or brand, personnel size, financial strength, Hua Xing Morgan, Goldman Sachs still have gaps. ”

"Especially from Chinese companies listed in overseas markets, huaxing's position can not be ranked on the left, but the second, third place." I hope we can assume a more important role in the future. "Duyonbo said.

First friend after business

In the eyes of Baofan, founder of Huaxing Capital, the rise of each type of investment bank is related to its most core customers, just as "the European royal Family propped up the Rohilde, Rockefeller propped up Morgan, the Jews propped up Goldman Sachs, the Hong Kong family prop up the peregrine." ”

and prop up Huaxing capital, is with the Chinese local Internet company established deep relationship. In Duyonbo's words, "many international investment banks may be in the first 12 months before the launch, but a few years ago, we have been mixed with entrepreneurs, providing customers with more than one round of financing services, we have become brothers, buddies." ”

"For example, easy to use the car in a round when the other people's term, but to sign term Sheet (investment letter of intent) stage, investors suddenly change, and turn to ask huaxing intervention to help it do financing." Remember once, easy to use car received an investment intention, time to catch up, I catch a business trip, after the end of the hotel has more than 11, began to sit in front of the computer to modify the investment letter of intent, changed to one o'clock in the morning more to the other side of the past, which let the other side is very moved, this has become a good beginning of cooperation. ”

There are also a few challenges when it comes to using car B rounds for financing. Between A and B, because of the easy to use the car business model is still groping, a wheel model envisaged some of the ideas did not achieve too good results, easy to use the car account on the funds have become tight.

In this situation, huaxing in the financing, on the one hand, and the team to spend time and energy to discuss, the other side and investors to communicate, with easy to use the car in the business adjustment after the achievement of growth, successfully completed the financing.

to the B + round, Ctrip actively into the Bureau, Huaxing at the time of analysis is that any strategic investment is both pros and cons: Ctrip into the dividend side is to the easy to use the car to bring business resources, but the disadvantage is that the interests of strategic investors are not completely consistent, will give the company the future strategic choice to bring constraints. "Finally, we help the company to analyze, at this stage or to see business development, and easy to and ctrip business matching, while in business negotiations to strive for a good balance, not to the company's future development options to bring restrictions." ”

The net, which recently received 200 million dollars in e-round financing, began working with Huaxing Capital 4 years before the second round of financing.

"In particular, the recent round of financing, before we have seen more specific things, investors will have doubts, in 58 with the city has been listed under the premise of the industry will be the winner take all?" If the future of the industry as the second listing of how many discount? Duyonbo told reporters, and this one on the one hand to see the management team for the future development strategy, whether to achieve "corner overtaking", on the other hand, market itself business indicators grow very quickly, which also let the market in the financing process received a lot of offer, and finally chose the Tiger Fund and Carlyle Capital.

Three Tips

Duyonbo, who has been in the capital markets for years, says the biggest achievement of the investment bank is to help them gain the capital support they need to grow in a few critical moments of growth, and he has revealed the "secret" to the success of Huaxing's capital.

"One is deep industry." "Duyonbo concludes. Huaxing has been in the investment field for ten years, but only focus on the Internet, consumption, health and other new industries, the field of these things do deep, do through.

"One of the benefits of a deep industry is that you really understand trends, and you know which business models, which markets and teams are most likely to succeed, not the uninitiated, the ones that look good, and the investment opportunities that seem to be a lot of pitfalls." "Duyonbo said.

The second is the high pursuit of customer quality and service level. "In the investment industry, it is sometimes difficult to articulate investment and speculation. Especially as a financial advisor, there may be a case where you think you can do it and make even good money, but if the quality goes wrong, maybe two or three years later, it will hurt from the investor's point of view, and in turn, challenge the quality of our customers. ”

Especially since last year, the A-share market's investment and merger cases dazzled. Duyonbo told reporters, in Huaxing also has a lot of internal discussions, some people can not restrain, or feel that there is a chance to do it completely, but if the final feel the quality of the enterprise is not confident, decisive choice to give up.

"Look at the quality may also be mistaken." Duyonbo said, but from the general direction, one is to see whether the team staff is reliable, whether there is dedication, the second look at what he did the scale can do, how high the ceiling, the third look at the business model, whether there are unique barriers to competition, "only we convince ourselves, believe that this story can be made, or will give up." ”

He also mentioned that there are still some bad financial advisers in the market, sometimes in order to win customers, deliberately give customers unrealistic expectations. "Before Huaxing came across a case, according to our judgment on the current market, the valuation is about 200 million dollars, and our competitors say it is worth 500 million dollars, the entrepreneur and Huaxing's competitor signed, but after two months to find us, because all the investors have not followed up after the meeting. "Duyonbo said.

And the 3rd is to pay attention to the training of talent echelon. He told reporters that at present Huaxing capital after the highest level of colleagues, many of them have graduated from college into Huaxing, and now has become a general independently. "It also sustains huaxing from several people to hundreds of people, from two or three projects to dozens of projects in parallel, while Huaxing's services remain the same standard," he said. ”

These seemingly simple "secrets" has become huaxing can be in the two-tier market quickly open up the important basis of the situation.

"Huaxing customers have been dealing for a long time, and how to tell stories about their future listings is better known than the big investment banks that have been involved late." Moreover, the international investment banks are global organizations, many cases around the world, such as the market is good this year, people are nervous, some customers will complain at all do not attend to or drag back and so on, and huaxing is only to serve the domestic screened customers, wholeheartedly cast up to do things, This is also a big reason many customers are willing to let us help them. Duyonbo told reporters.

How to invest in the future

Behind the scenes, the business has been repeatedly innovative high investment bank has its own anxiety.

When the internet giant alliances more and more frequent, BAT "arms race" more and more intense, the market is also getting better, for Huaxing Capital, Duyonbo said, the absorption and development of outstanding talent is vital.

Huaxing Capital Chief talent officer 邹涓 told reporters, the current Huaxing Capital employs more than 100 people, because the development of business, the total number of employees than in early 2014 increased by 30%, and according to the plan, the next year will expand the 30%~50% of the staff size.

In this year, Huaxing dug out from outside the former managing director of JPMorgan Chase (China) investment Bank, Shangyan, the former deputy chief executive of China Franklin Asset Management Co., Ltd. and other talents.

It is worth mentioning that Huaxing capital is about to enter the post of a "90" after the staff--17startup co-founder Sun Jo. The 24-Year-old is fully committed to innovating and transforming the IT platform for the investment banking process, with Baofan saying that it is hoped that the new technology will improve and even subvert the investment bank's mode of operation and improve overall efficiency.

In the interior, Huaxing encourages the development of "internal entrepreneurs", currently huaxing is in the preparatory phase of the Alpha project team is the development of a platform for internal entrepreneurs.

Duyonbo told reporters that the team from the internal redeployment of a number of backbone, including experienced soldiers strong, as well as the young 85 after the staff, focus on those for the 85, after the user group design of entrepreneurial projects.

Among them, the Alpha project decision-making power lies in the small team itself, not the Huaxing decision-making committee.

Duyonbo to the reporter frankly, "Now 85, after the products we play is not particularly understand." They feel good about making decisions quickly, and Huaxing also provides a fast-growing channel for young people to take on more pillars in their operations and management. ”

And in the investment business, in addition to the current private equity financing products, overseas market products, Duyonbo told reporters that the future huaxing would like to take root in the Chinese market to do more things in a shares, in addition, O2O and Internet finance will become the focus of investment.

"China's entire financial system has historically been underdeveloped, with an objective breadth of territory, but services are not in place, and the Internet has provided a revolutionary means, and if policies become more market-oriented, there will be very large market space." "Duyonbo said.