Rich investment: industrial background to stick to entrepreneurship and angels

A sunny afternoon in mid-May. Standing at 19th Zhongguancun Avenue, New Zhong Guan Building, a 12 floor window, overlooking the open window, Fu Hui Investment Management Limited (hereinafter called Fortis Investment) Chairman, senior partner of the former army was very good mood.　　Because, the national Development and Reform Commission high-tech division in the form of equity funding of the first High-tech Angel Fund has just been set up in Fortis investment. Although Fortis Investment has been established for only two years, it has become more famous in the industry. Not only because of its partners mainly from the entrepreneurs turned around, and many colleagues envy the harmonious corporate culture, but also because of its unique fund-raising model to make the industry look askance-that is, first with their own money to do phase I investment, with the results, and then manage other people's money.　　Even so, its partners in phase II funds will also account for more than 30%, which in the general Management (GP) only 1% of the international practice, it is particularly dazzling. In August 2008, the fund was subscribed to 110 million yuan by shareholders and partners of the management team and no external subscription was made. Now, the Phase I Fund has completed 83.9% of the investment, invested 5 enterprises, such as the Patriot Storage, Tai Holdings, Siviohanson and so on.　　At the same time, its Phase II fund on the basis of more than 300 million has also begun the formal external recruitment.　　The establishment of two years has been apparent in the industry to mention the rich investment, its strong industrialist team background, enviable. "We can certainly make a score." Two years came, I am more and more confident! Zeng Jun spoke in a very firm tone.　　The fund has already demonstrated the management ability and good investment strategy of Fortis Investment. Fortis Investment was established in April 2008, is a professional management company of RMB Equity investment fund, the current investment management team consists of nearly 30 highly efficient and professional enterprise executives and investment managers.　　Fortis Investment is also the Beijing Equity Investment Fund Association launched and executive director of the Unit, Haidian District venture capital and Equity Investment Fund Association vice president of the unit.　　Over the past 2 years, the FTSE I fund has invested in a number of potential enterprises and has provided valuable value-added services, and some investment projects will enter the "Harvest" phase in half a year, while the second phase of the Fund is currently being raised in an orderly manner.　　With the first phase of investment and the brand of industrialist background, Fortis won more trust from LP (Fund investors), Zeng Jun revealed that phase II funds are expected to be collected within 3 months, with the target of 800 million. According to Zeng Jun, the fund will focus on investment in industrial potential, policy support, and economic restructuring related industries, including new energy, energy conservation and environmental protection, health care, consumption, it and the Internet, modern services and many other fields; more than 80% of the fund's funds are invested in long-term and IPO enterprises, and another 20% Funds through the National Development and Reform Commission to guide the Fund's cooperation, will focus on investment in high-tech areas of early-middle enterprise.　　This shows that the fund covers the chain of enterprise growth in all aspects, comprehensive and targeted. At present, the investment of Phase I FundProject has been the beginning of the results, Zeng Jun Introduction, Phase I investment enterprises are now well developed, in addition to an angel project, the remaining four projects are in the market, one of which will be in the year to achieve overseas listing exit. The Angel Project is now planning a new round of financing, and this time the premium is several times higher than that of the Fortis investment. "The entrepreneurial team in this business is strong and its future earnings will be very satisfying," he said.　　Zeng Jun said it would continue to hold.　　More recently, the rich people are pleased that Fortis investment ushered in an important moment-the national Development and Reform Commission high Technology Division in the form of equity-funded the first High-tech Angel Fund has been set up in Fortis investment. It is reported that the total size of the Angel Fund of 250 million yuan, of which the national Development and Reform Commission 50 million yuan, the Beijing municipal Government capital contribution of 50 million yuan, Fu Hui Phase II capital contribution 150 million yuan.　　The amount of capital invested in the start-up period is not less than 70% of the total size of the fund, the amount of capital invested in Beijing is not less than 70% of the total size of the fund, and the focus is on High-tech service areas (including design, creative industries, etc.). For Fortis Investment to obtain the first National development and Reform Commission to invest in the form of Angel funds, Fortis Investment Vice Chairman, senior partner Lin Hai-Yin is also very happy, "the government screening is completely open and fair tender." Rich investment can stand out from many competitors, the National Development and Reform Commission and the Beijing Development and Reform Commission finally be able to select us to promote the early High-tech enterprises of technological innovation and enterprise management, mainly believe that our team of entrepreneurial ability and strength, of course, we have the norms, professional management recognition and future development of the optimistic.　　"[Page] project escort tips in the fierce competition in the equity investment industry, Fortis Investment and what kind of" secrets "to stand out? The 110 million yuan of the Fund is from the partners of the management company, and 30% of the estimated 800 million yuan of the Phase II fund will also come from internal management partners. "Such a high proportion of contributions, indicating that the fund managers are willing to their own interests and funds of other investors and the interests of government funds bundled together, that is, the interests of everyone to achieve a high degree of integration, we have a total retreat, so that not participate in the management of other investors LP will be assured.　　The army said with certainty.　　However, the Fund's own high proportion is not the magic weapon of success, rich investment management team of many partners of the entrepreneur background is its biggest advantage. 8 partners have nearly 20 years of entrepreneurial background and business management experience, or even corporate listing experience. The company has a deep experience in the law of entrepreneurship and growth, and has the ability to deal with the crisis in different stages of growth. At the same time, team members are familiar with the key links of Enterprise listing, merger and integration, and have strong ability to reorganize and manage enterprises.　　Moreover, the successful experience of the team members in the past Cross-industry operation will also inspire and draw lessons from the investment enterprises. "Our partners have a wealth of corporate management experience, can bring to the investment enterprise in addition to the funds in the marketing and management of a lot of help, which is also a lot ofLong-term businesses, especially start-ups, are most needed. Zeng Jun said calmly, "because we have done business before, to be invested enterprises may see more thorough, enterprise development encounter what problems, we can more effectively to help them."　　Lin-Yin also said that Fortis Investment and the business community more familiar, and with many enterprises are closely related, so its involvement in the enterprise relatively fast, and business communication is relatively smooth, because we all know the development of enterprises and needs, provide help is often more specific and effective.　　To this end, the investment also set up a value-added services sector, for the investment enterprises in the improvement of corporate governance, the determination of competitive strategy, the provision of capital and financial services, marketing and brand management and other operational management to provide a variety of value-added services. "The investment enterprise especially the start-up enterprise generally has some flaw, our value-added department must communicate with the investment enterprise unceasingly, discovers that they have the difficult place, and helps to solve." In addition, they have to provide management, marketing advice and services, including to help them apply for government subsidies, in these areas rich sinks are more meticulous.　　"Zeng Jun said. "We have any problems, we can directly to the office to ask the total or other relevant partners, and will be timely reply, some need to meet to solve, will immediately organize meetings and discussions, the organization is very efficient operation." "At the same time, Fortis also requires a value-added services program in the Project Investment Report, which includes what are the problems of the enterprise?" What is the solution? How to make the enterprise win in the competition? ...... The report has to be described in detail.　　Only when these problems are explained clearly, can we enter the final investment decision-making link. But can excavate to good project, has been the investment organization biggest "worry". For Fortis Investment, on the one hand, many of the partners in the past 20 years of the background of businessmen to the industry has accumulated a wider network of contacts, the situation in the sector is more understanding, so many good projects can also be obtained at the first time.　　On the other hand, Fortis has set up its own five types of project channels and project reserves, and dynamically updated and screened in a timely manner.　　With the above conditions, Fortis investment in the investment sector has a strong competitive advantage, but to make themselves invincible, and strive to minimize the risk of investment projects, risk control is also very important.　　Zeng Jun himself is a thoughtful, meticulous person, he believes that the company's leader to have a strong ability to learn and decision, do things must be able to see the overall situation and trends, set up and adjust the strategy in a timely manner, and to be able to steadily advance the strategy or major initiatives, small steps to move quickly, not only to achieve balance and stability, but also The final investment of a project is determined by the Investment Decision Committee of the Fund, and the composition of the board members is of paramount importance. Over the past year, the entire team of Fortis Investment has increased by nearly ten, but the members of the Board have been reduced from seven to five, each of which has increased the rights and responsibilities of each of the members of the Board, each of whom has a veto on investment projects and a projectThe opposite inquiry mechanism and the expert inquiry mechanism, the project audit and the risk control are stricter, but the overall decision-making efficiency and the quality has been improved. "Every member of our investment committee has to visit, understand and question, identify problems and make suggestions or solutions to companies that are interested in investing," he said. Project team members will work with industry experts to complete the project Investment feasibility Demonstration report. "If the members of the Zeng Jun have not been to the scene and have not fully listened to the expert opinions of all sides, the decision made by him lacks a solid foundation and there is a good chance of deviation," he said. "Fortis has also set up a specially-targeted department, the Wind-control department, which is currently merging with value-added services." The wind control department to the project advance intervention, the function is to see the project has the finance, the law, the policy aspect question, specifically has what question, whether the risk is controllable?　　Wind Control department personnel also to the project to raise other aspects of the negative questions, investment department personnel must give detailed answers and explanations, ultimately by the board members to make independent judgments. In order for each member of the project investment team to be held accountable, the investment group is required to have at least 1% per-vote and first compensation system.　　If there is a loss in the project, the group has to pay priority to compensate for LP's losses.　　[Page] stick to entrepreneurship and angel investment The financial crisis did not overshadow the landscape, but instead, the big adjustment in asset prices gave VC/PE more investment opportunities, and China's angel investment remained an undercurrent at sea level.　　According to the Beijing Private Science and Technology industry Association and Zhongguancun [7.72 5.61%], a research report by the CMC has shown that in Zhongguancun, Angel investment projects even VC 1/10 are not, the reason is self-evident that the early project risk is too large, most capital unwilling to intervene.　　Nevertheless, each fund is insisting on entrepreneurship and angel investment. "Each phase of the fund we will adhere to the venture and Angels, such investment will be the total size of the fund Add."　　Zeng Jun firmly said. The office building, which invests in Fortis, has reserved nearly 600 square metres of space as an angel investment project, which is equivalent to a small incubator.　　Zeng Jun cheerfully led our reporter to visit the room decorated well, spacious and bright, for start-ups, it is not easy to have such a supporting service and a more comfortable office environment. "Our team is mostly to do industrial origin, more than 10 years ago to start their own business, so we are more familiar with entrepreneurship, entrepreneurial still have a lot of interest and passion." After we have the ability to invest in the way to help young entrepreneurs, to achieve their entrepreneurial dream, but also our dream, we are willing to become entrepreneurs behind the entrepreneurs!　　"There is still some idealism in the former army's speech. Lin also believes that in the future, there will be more and more people doing ventures and angels in the country. He said that at present there is a gap with the internationalization of a phased opportunity, such as a large number of popular PRE-ipo Project. But this opportunity is in fact a consequence of this phase, which will diminish in the next 3-5 years and will be less attractive due to excessive competition. With the development and maturity of Chinese capital [4.10 0%] Market, the opportunity fund will gradually be replaced by the ability Fund. "The real test is the comprehensive capacity of the Fund, that is, how to achieve real value investment in the enterprise, as in the current U.S. market for venture capital and consolidation, mergers and acquisitions funds." According to statistics, angel investment from input to exit generally need to go through 6-10 years, with greater investment risk. In the United States, more than 34% of the angel investment is loss, and 13% of the angel investment in the break-even state, only 23% of the angel investment profit as much as irr50% (annual compound).　　Therefore, angel investment in China has been a cold shoulder, the vast majority of investors do not want to do angel investment. In this respect, the former army's view is that the success rate of angel investment is mainly in the project's technology, business model or market demand is not judged, as well as the team's professional ability and management comprehensive ability defects. This does not seem to be an insurmountable problem for Fortis Investment. Industrialists, who have natural feelings and judgments about early-stage entrepreneurial projects, are relatively easy to give to entrepreneurs for their marketing and management support. "Of course, from the current types of investment opportunities, overall growth in the late stage of the project is more popular in the market."　　But we still adhere to the Fund's portfolio to do some entrepreneurial investment and a small amount of angel investment, is to adhere to the enterprise to bring more value, in order to achieve greater returns, and exercise our value-added services to enterprises, "Zeng Jun said. There is also a small episode.　　When the government recruited the Co-operative Fund, there are two methods of income distribution for managers: The first is the traditional method, the management institution extracts 2% (or 2.5%) of the management annual fee, the income is divided into 80/20; the second is that the management agency does not charge the annual management fee, and the project exits with a higher proportion of it. The general body will choose the first. Choosing the second option means that fund managers may have to advance millions of or tens of millions of dollars in the first few years of the fund's operation, and if the investment fails, the regulatory agency will not be able to get a share of the proceeds, and the management fee will also be lost. But the second option is the investment of Fortis.　　Later, in view of the cumbersome operation, the Government suggested that enrichment be converted into the first option, and a higher percentage was given.　　At present, our country's angel investment has not formed the scale, the vast majority of funds are still competing in the later projects, how to attract more money into the early stage, especially angel investment, but also what kind of policy support? In this respect, the former army said to the Economist, now all levels of government are increasing efforts to guide social capital into entrepreneurial investment and angel investment, but some areas need to be further improved. For example, how to avoid the double taxation problem of venture capital company, as well as the preferential problem of the LP and GP of the Limited Partnership fund, the incubation of technology enterprisesThe support of the device is not enough, there are repeated construction problems. Lin that the partnership has just begun in China, many of the tax policy is local, hope that the future countries can unify the policy. At the same time, many government functional departments have advantages in the source of the project, and how to combine it with the venture investment institution is worth discussing.　　Furthermore, we hope to establish more exit platforms and channels. At present, the state vigorously encourage entrepreneurship, the introduction of the gem is set off an entrepreneurial climax, start-up enterprises should attract angels?　　What advice do you have for entrepreneurs? "Be sure to think about your strengths first and then make it clear." Entrepreneurs must be familiar with the industry, have a very deep understanding of the industry, can provide better than other competitors, more unique products or services, and consumers can accept the price. As long as you can do this, you are not afraid to find money.　　"Zeng Jun said. Lin's view is that "there are two criteria for choosing an early venture: one is innovation and the other is team." Now some entrepreneurs always talk about lack of funds, it seems that as long as there is money, things can be done. In fact, this is a misconception. Entrepreneurship itself cannot have sufficient capital, if you start the starting point, including the choice of projects, are based on capital rather than on the industry's effective judgments and innovation, then you will certainly fail. ”