Shen Chong Investment President Li Wanshou: The growth of the gem is necessary to reduce restrictions

Kuanzhiyong 10 ago, Li Wanshou from the government's administrative position to participate in the founding of Shenzhen Innovation Investment Co., Ltd., it is this time the Shenzhen start-up board calls the most supercharged.　　10, the launch of the gem was dragged and dragged, always let people in the hope of a sudden halt; 10 years later, he and all venture capitalists eagerly look forward to the gem is finally coming to "labor."　　CBN: Gem Listing rules stipulate that in the first six months before the listing of enterprises to increase the share of shares, in the second year after the listing to lock 50%, some people think too harsh, what is your opinion? Li Wanshou: The establishment of deep venture investment is not directly running to the gem, mainly for the development of High-tech economic strategy services.　　For us, GEM launched is of course one of the most important exit channels; this market has been waiting for 10 years, the state has been waiting for, the implementation of innovative strategies, small and medium-sized enterprises, social employment and economic recovery, are eager to call for the birth of the gem, the rules can be gradually perfected in practice. For those shares in the first half of the market to increase the locking limit, it should be. Investors can not have too much speculative mentality, everyone rob in the restructuring before entering, only the investment enterprises as arbitrage opportunities, may let the enterprise, the whole society's mentality are unhealthy, for this part of the stock right to set up a certain reduction restrictions is necessary.　　Rules and regulations should encourage and promote social investors and venture investment institutions to cultivate enterprises from the early stage. CBN: As the largest venture capital enterprise in China, what is the selection criteria for investment projects by Deep venture?　　Are project requirements different for each development period? Li Wanshou: Deep Venture investment 10 years to engage in tens of thousands of projects, has invested 218 projects, involving it, new materials, biomedical and other fields, the cumulative investment amount of more than 4 billion yuan. The selection criteria for the project are mainly four: the first is that people, business executives and management teams usually spend two or three months on "people", and the second is the business model, how to quickly turn products into market share, cash flow is important, and third is technology, whether it is the drafters and makers of industry standards, We select enterprises also value the technology brought about by the price elasticity, mainly to investigate whether the product has a higher gross profit margin, we must for the future large-scale production of potential price reserve space;　　For the start-up period of the enterprise, good team and business model is the most important, as well as the market capacity of the enterprise must be large enough, for the long-term enterprise, more is to inspect its industry status. Cbn:10 years, deep venture investment projects have been a lot of successful listing, which do you think is the most successful project of Deep venture?　　What are some of the items that impressed you? Li Wanshou: At present, the deep venture investment project already has 39 to become the listed company, has dabbled in the domestic and foreign 14 capital markets. Prior to 2005, the company's only venture-capital Enterprise was a gold card (600446.SH), with a return of only 40% per cent. The most successful project we did 2005 years ago wasInvestment in Weichai power, more than 1 yuan into more than 20 yuan, value-added 20 times, but this is a mature project. 2005 years later, the company is no longer limited to investment in High-tech projects, will invest in the field of vision, the scope of investment more widely, advanced manufacturing, modern services, chain business and so on into the scope of investment, good projects are more and more. At the beginning of 2006 investment in the Net Dragon (08288.HK) is still a loss, after six months to start making money, a year after the blowout, the peak of 400 million yuan profit. Guangdong Zhongshan Mingyang Project, just investment, its wind turbine is still testing, a year later still in the loss.　　This year the company began to make money, estimated to be 200 million or 300 million yuan profit, the project is expected to be 10 times times the return on investment. CBN: Venture capital industry is a high-risk industry, so deep investment in the number of unsuccessful projects accounted for a higher proportion of the total?　　What are the unforgettable experiences and lessons of the 10 years ' investment experience that you can share with us? Li Wanshou: We are one of the first institutions to speak of failure cases. Overall, deep venture investment enterprises total failure of the proportion accounted for about 1/10, so far ten or twenty investment enterprises have died, and some people can not find. To say the lesson, that is, do not understand the industry perspective of enterprises, the emerging industries, we have many regrets. When we first invested in projects, many projects were not allowed to let good projects slip away. Typical cases include Tencent, when three founders many times to find a deep venture, to our computer installed QQ number, they will be Tencent priced 50 million yuan, and we are only accustomed to the traditional net asset pricing, the result has not been discussed. In addition, and deep venture investment missed opportunities also include Baidu, Sina, Shanda, Suntech. Suntech we missed two times and the most regrettable items are grand. At that time, Chen flyover as long as 5 million yuan can account for 20% of the shares, but our team do not understand the project. We have been looking for a Hong Kong IT company chairman to consult, the result is that people say "not worth to vote, still inferior to throw ADSL". There are two main lessons to be invested in the project: one is the lack of understanding of the industry trend, the other is the failure to find a suitable pricing method; The third is not formed a very good team, the surrounding has not formed a good team of expert consultants.　　Of course, now has formed a good talent system. In corporate governance, deep venture has also been a detour, 2002-2004 years in the entrusted Financial management has a lesson.　　Previously ambitious, want to engage in securities companies, fund companies, want to engage in financial consortia; now the heart is very small, just want to concentrate on the venture and derivative business.　　CBN: Deep venture capital Management funds, including government-led funds, strategic cooperation funds, Sino-foreign cooperation funds, entrusted management funds, trust and equity funds, and so on, plus the company's own funds, if found a good project, a number of funds want, the company how to do? Li Wanshou: First of all, this situation is very small, each fund has its own investment characteristics and investment scope; In case of such a situation, it should be prorated. There will be government-directed funds, strategic cooperation funds,Sino-Foreign Cooperation Fund, entrusted Management Fund, trust Equity fund and other funds are the historical products of the fund management mode of deep venture investment. Some cooperation funds, the capital market when the money will be handed to you, the market is not good, money will not be. At present, the company's strategy is basically determined, the future of the Government to guide the fund as the basic skeleton, the company headquarters to set up one or two parent funds, the parent fund is dedicated to the Government to guide the fund investment projects to follow. Those cooperative funds and trustee funds will cease to function when they expire. Investors who are willing to follow us will be part of the local-led fund shareholders, and the large investors will be the parent fund's investors. In the second half of this year, deep-venture investment plans to raise 5 billion yuan in the size of the new fund, as to whether the form of the Fund is a company or a partnership system has not yet finalized.