Shenzhen Fang: from 0 to 1.5 billion cheats

About Fang Shenzhen Li He venture capital Co., Ltd. General manager, Tsinghua University, Master of Engineering, the Netherlands Delft Technology University, Ph. D., vice Dean, Tsinghua Institute, Shenzhen.　　Engaged in High-tech work, with a strong Tsinghua complex Fang special attention to the early project investment, and investment areas are mainly focused on High-tech areas. "The cast is guaranteed, but the investment project is the foundation." "July 7 afternoon, Shenzhen Fang Venture Capital Co., Ltd., general manager of the Shenzhen Institute of Tsinghua University to accept this reporter interview, in his view, the current venture capital market as a whole is: invest a lot, but the early and medium-term projects are very few; the industry is very hot, But there are few trained investment managers; Fang, who has focused on early projects, says that venture capital cannot become an insurance investment.　　With a strong Tsinghua complex, he called for venture investment should pay more attention to the early projects, for China's High-tech, independent innovation cause more contributions. 0 funds to do 1.5 billion "in 1999 when the venture was founded, the company has no money at all", using Fang's own words is almost "0 cost".　　0 cost, started by borrowing money, originally borrowed 2.65 million, cast 2.5 million, only 150,000 ". Fang told reporters, even if so difficult, through efforts, strength or tenacious to survive, but also live very well, by 2002, Fang joined, the company's assets are close to 100 million yuan.　　Combined with the current asset management scale of nearly 1.5 billion yuan, from zero to 100 million of the accumulation, Fang also just listen to people tell, but the company from 100 million to 1.5 billion, it soaked their own sweat. "The financial capital helped a lot in this development," he said. Fang said, by the Tsinghua brand, from the bank to melt a lot of money, up to 500 million.　　"Generally speaking, as long as the bank financing to pay 6% of annual interest, compared with the fund raising, the domestic L p at least require a year of 20% of the return, financial capital is undoubtedly the development of a combination of investment to provide a great help". Fang said. "But we are not empty gloves, white wolves," "We've been talking about performance and reward," Fang. Over the past more than 10 years, the average profit return of the venture capital is close to 30%, the company invested in the extension of the state electronic projects, input 3 million, can obtain 120 million yuan return, up to 40 times.　　"Since last year, the capital has received more than 400 million of the cash from the stock market exit, which is completely real money," he said. Because "rely on" Tsinghua, the strength of the surrounding formation of an entrepreneurial atmosphere, but also to provide high-quality project resources. "The Graduate School of Tsinghua University in Shenzhen is itself a incubator of High-tech enterprises, with hundreds of High-tech enterprises around it, creating a very good atmosphere for the development of medium and small-sized High-tech enterprises." The incubator offers a number of early-stage project resources. "Fang introduced," The first time here selected Microsoft Shenzhen Research Center Project, invested 10 million yuan, withdrew when the harvest of 20 million U.S. dollars. [Page]　　Focus on early projects to venture capital before the Zhu Fang has been engaged in technology research and management work in High-tech enterprises. 1997, transferred to a Taiwan semiconductor equipment company as general manager.　　At the beginning of 2002, in the former teacher, Shenzhen Institute of Tsinghua University Dean Feng Kuanping summoned, came to Shenzhen, began the venture investment career. "A large part of the project is focused on High-tech projects in the early days, the chairman of the Feng Kuanping founder of the goal is to promote the industrialization of High-tech achievements." Fang said that most equity investment is not willing to be carbon in the snow, just want to icing on the cake, the risk is very large is the main reason　　The focus will be on investing in early-stage High-tech projects. In Fang's view, the Tsinghua complex eventually became a "responsibility". Perhaps it is our responsibility to contribute to the development of China's High-tech enterprises.　　"Fang said. Not long ago, and the Shenzhen Institute of Tsinghua University launched the "Gem Candidate Enterprise promotion plan", ready to raise 1.2 billion yuan to set up venture capital fund.　　"We will use a portion of the funds to support students, postgraduates and aspiring entrepreneurs to innovate independently," Zhu told reporters. The core investment concept one, the project is more important than the people to create a popular phrase, "investment is cast people", seems to form a consensus. But Fang that there is a problem with this statement. "The first element of investment is to choose the project, see the project in the market there is no room for development, the enterprise has no prospects for development, the next, is to see the team, look at people, they can only be placed in the second place."　　Fang said. Specific to the project, Fang that the High-tech industry, independent innovation industry has the most development prospects. "In the long run, what's high growth must be these things, and now everyone is talking about business models, but in fact, many business models are easy to replicate behind." "Specifically to people, fang that domestic entrepreneurs lack the spirit of some investors like Silicon Valley." "Some of the domestic high-tech industry entrepreneurs aristocratic tendency is very serious, after the money, is better office, good car." "This is compared to the Silicon Valley entrepreneur, the difference is too big." Fang Sigh, "Silicon Valley entrepreneurs are many from the garage, domestic entrepreneurs, a few people do focus on the project, a year without pay, or a year to take the minimum living expenses? "[Page] two, good investment manager = money + Experience" venture capital is currently in China is very hot industry, now lack of well-trained investment managers.　　Fang pointed out that in China, investment managers generally relatively young experience is also relatively scarce, as China's entrepreneurial investment more and more hot, investment managers are more demanding specialization. Fang explains that investing in a project involves a wide range of corporate finance, business models, teams, etc., including a number of hard targets, such as net worth survey, legal issues, etc. "These can be done by professionals," Fang said, "but investing in a project requires a holistic grasp, a feeling that requires business management, project operation experience, and sometimes evenThe lesson of failure, which all requires money to ' feed ' out. "I often encourage project managers, if there is a chance, to go down to the enterprise to do for a year or two, so as to realize the ups and downs of the enterprise." In the enterprise, you will see cost control, a small part has cost control, and you can learn the arrangement of capital, the forecast of market trend, "Fang said. These experiences are essential to venture capital investment.