Shong: I am the reporter "three silly" to make Chinese venture investment world

China venture pioneer Beijing, Jian Guo Men wai Cofco Mansion, adjacent to Changan Street, west of the Jinrongjie. From the 6 floor overlooking the window, the road is busy, IDG China headquarters office is located here. More than 10 years ago, it was far from the hustle and bustle of today. In 1991, Shong returned home for the first time in 5 years and came to Shenzhen first, when the SAR was full of entrepreneurial passion. Here, he met a lot of students from Hunan University, "a lot of people want to start a business," shong by their enthusiasm for entrepreneurship infection, "I said you should go to find VC." But to his surprise, no one had ever heard of VC. Shong immediately reported to the headquarters, in China to develop venture investment business, his ideas have been the founder of IDG, chairman McGovern's strong support, McGovern also believes that the Chinese economy will have greater development opportunities. At that time, not only IDG, who smelled China's opportunities. 1991, some foreign big-name VC also came to China to inspect, but with shong optimism is different, they look very bleak. "China doesn't even have an MBA to hire," says one international VC, "and there is no VC environment in the Chinese market." "It is this erroneous judgment that makes many international big-name VC lost the earliest opportunity to lay China." Shong, however, has different views, since 1988 in the United States with the "electronic leader" (Electronic Business) as a journalist active in the Silicon Valley, interviewed a large number of entrepreneurs and VCs, so he has a better understanding of the mode of operation of the venture. He believes that with the development of China's economy, successful wind-investment models in the United States must be replicated successfully in China. Thus, in Shong's push, IDG began to seek a layout in China. In 1992, Shong began a 20-year investment trip in the country. Everything is difficult at the beginning. In the 1992, no one in China knows about VCs and no one understands venture capital. Shong to a business to talk about investment, because we do not know what is venture capital, explain it is quite a waste of breath. "At that time I was very young, but also a doll face, said half a day people do not believe that we are like a leather company." "There is a company in charge of Shong said," Little brother, I see you neither smoke nor drink, there seems to be no bad habit, I believe you are not a liar. However, you have to give me so much money, wait for me to do the business, you have to quit, you are not stupid? This made Shong acutely aware of the need for more people to understand venture capital, so he decided to hold a venture capital forum in Shenzhen. However, the advertisement also did, the news also sends out, the registration person is few, shong in the heart cold half. Just then the computer is very hot, Shong decided to rush "fashionable", the forum renamed IT Investment Forum, "The result came a lot of people." Shong spent a lot of time preparing for this forum. Not only invited a lot of foreign venture capitalists, but also invited IDG founder McGovern, and more importantly, he also invited the time to powerSub-Ministry of Industry director of computer. "So many foreign IT companies, many of the early days are done by the wind." "This is the biggest shock that the forum has brought to the audience. And the arrival of the electronics department leadership, but to Shong brought unexpected surprises. After the forum, Shong received the telephone from the Ministry of Electronics industry, inviting him to make an introduction to venture capital for the Ministry of Electronics Department. Shong recalls, "There was no PPT, only projectors." So he carefully prepared the slides himself. "I have introduced the development of the venture capital market in the U.S., and put forward personal suggestions for the development of venture capital in China market." To his surprise, Qili, the minister of electronic industry, attended the lecture. Later the Ministry of the leadership of the venture capital model to give a high affirmation. In future work, the support from the competent departments to let Shong's career gradually into the fast lane, this support for the development of IDG in China is very important. And Shong not only familiar with the domestic rules of the game, but also the international perspective, the news of journalists from his origins, but also understand how to deal with various relations, especially how to establish good relations with the government, which will greatly help the development of IDG. After 2000, IDG's fund scale expands rapidly. November 2005, IDG and Accel Partners jointly launched the Idg-accel China Growth Fund I was established, initially set a scale of 250 million U.S. dollars, and the actual total amount of fund-raising reached 310 million U.S. dollars. From the beginning of the financing, IDG Capital changed only a limited partner (LP) of IDG Group in the previous 10 years, but introduced a lot of famous LP outside. This is only the beginning of IDG capital expansion. After that 510 million dollars, 600 million dollars ... A number of funds to raise capital. 2011, the whole venture capital industry encountered the "exit difficult" dilemma, IDG is no exception. In 2011, foreign institutions shorted the Chinese concept stocks, and the VC/PE agency, which had an important exit from overseas IPOs, suffered a cold spell. Since 2011, many Chinese concept stocks listed in the US have been in a difficult position. Short institutions frequently attack, listed companies financial statements are repeatedly questioned, many companies have retreated to the city or the brink of the brink of retreat. More seriously, the negative effect seems to have blocked the subsequent company's way to the U.S. listing in the short term. "No one can predict the stock market. Shong said there were two main reasons why China shares were shorting overseas, "one is a congenital flaw in the ' Agreement control ' (VIE), and some problems with corporate governance." In his view, this is also a good thing to promote the company's internal governance and legal system more complete. Shong that the international capital market is now not confident about the Chinese concept stocks, the future of Chinese concept companies overseas listing of the threshold requirements will be higher. ' There is a consensus in Silicon Valley that it is equally successful to sell the company at high prices, ' he said. ”