IDG Shong: China is an entrepreneurial paradise not an investment paradise

February 2, 2007, IDG Global senior Vice president and Asia President Shong a visit to Sohu "first Interview", reviewed IDG in China 26 years course, and the 2007 investment, entrepreneurial market forecasts.　　Shong that China's investment in 2005 and 2006 was too overheated to be a paradise for entrepreneurs to get money easily, but not necessarily paradise for investors, who need more time and energy to judge and study the projects they focus on. 　　Moreover, Shong also thinks, because a large amount of funds to market quickly, may lead to risk fund investment stamina insufficient, "lean". Here's the Shong: Shong: For now, China is a paradise, an entrepreneur's paradise, not necessarily an investor's paradise.　　Because you have more time to learn, more opportunities, and more time to judge and choose opportunities. Shong: The way out of the market, does not mean that the money can immediately be rewarded, the stock after the listing has a lock-up period.　　In terms of venture capital, it's only when you really quit that you know how much money this project has made. Shong: From the investment concept, these years (IDG China) has not changed much.　　Those market space is big, the product has the originality or to say has the advancement, the management team is good, we cast.　　Shong: The domestic A-share market, as well as SME board market may become another venture capital exit market. Shong: In 2006, the market is relatively fast and more rapid, the oncoming is more turbulent. Probably should have been three years of money spent, less than a year to spend the light. This will bring a problem, if you want to follow up?　　This can lead to lean.　　IDG Harvest Year Host: Everyone good friends, welcome to Sohu Guest Chat room. Today's guest "first Interview" is IDG Senior Vice president and Asia President Shong, IDG is China and even the world's leading VC funds and media groups. Today we ask the bear to talk about IDG's 06 and 07 years, and the venture capital industry in 06 and 07.　　Bears have always said that 2006 is the year of IDG Harvest, then in the past year, what are the harvest? Shong: For venture capital, the so-called harvest is how many exit, how many companies listed, how many investment companies return income, which is called Harvest. Last year we had two major exits, one is far-optical software listed in the domestic market, the second is such as home on the Nasdaq listing; In addition, we have part of the exit, such as SouFun, the Australian Telecom bought our SouFun 51% of the shares, but also including investment in the Tong, is now listed in Hong Kong.　　In these investments, we all get high returns. The second meaning of the harvest is that you (the investment Fund) melts new money. In 2006, in addition to IDG also investment fund itself also continued to cast, and the United States, one of the most successful venture capital aCcel Fund jointly engaged in a IDG Accel China Growth Fund, from professional investment institutions to melt 290 million U.S. dollars, coupled with some very influential personal funds, a total of 312 million dollars of money. Our investment funds are also diversified, now IDG Accel in addition to IDG, Accel outside there are more than 40 investment institutions in the inside, and the fund's name is called "Growth fund."　　In other words, we invest in a larger scale than the original, this is the second harvest.　　Third, we invest in the field compared to the original has a great breakthrough, in the past we are mainly to invest in TMT (technology, communications and new media) industry, such as home is the traditional industry fast economic chain hotel. The fourth harvest, is the increase in the number of exit channels. In the past, if we wanted to quit, we would either transfer the shares or go overseas.　　We invest in the far-light software is listed in the domestic SME version.　　Moderator: There seems to be a medium-pass service, listed in Hong Kong.　　Shong: That was listed at the end of 06, so there was too much harvest last year.　　Moderator: How much money does each project make? Shong: This exit earns a lot of money. But the way out of the listing, does not mean that the money can immediately get a return, listed after the stock has a lock period, now can not say how much money to get back in the end. However, by selling some of the old shares may be brought back a part of the money, search the house to get a lot of money. We have sold more than 10% of our shares, and now we have a lot.　　Therefore, it is difficult to immediately measure the amount of money earned, for the venture capital, only to the real exit, to know how much money you earn this project.　　Moderator: Is there any risk after listing? Shong: Of course there is risk, but the risk is relatively small, at present, there is no risk. First of all, these companies are very strong, after the listing of the performance is very bright. such as home, far-light software, in the tong clothing are particularly good, although the search house sold a part of the equity, but I understand that his business is getting better, the last quarter benefit particularly good.