The "pain" of the folk venture

July 3, 2009, Hangzhou surplus Open Investment Management Co., Ltd. Xiang Jianbu and Hangzhou Economic and technological Development Zone venture capital Guidance Fund (referred to as the development Zone Ventures) contracted, launched the establishment of a period of up to 100 million yuan in Hangzhou surplus to open the investment fund. This is his personal transition from "grassroots investors" to the career investment managers of a milestone event.　　In a sense, it is also the epitome of the standardization and professionalization of Zhejiang Folk venture in the trial and error. At the end of the signing ceremony, Xiang Jianbu suspended Heart finally steadfast stability, spit out a mixed feelings sigh: "The past 2 months as 20!" "2 months ago May 4, there are" Big Brother "," private VCs first "said the Red Tripod Venture Capital Co., Ltd. founder Liu Xiaoshen, due to the inability to repay up to 200 million yuan of private fund-raising funds, to Zhejiang Deqing County Public Security Bureau by the Investigation Brigade surrendered.　　and Liu Xiaoshen, it is Xiang Jianbu once boss, he turned to make fund investment guide. Due to the historical relationship with Liu Xiaoshen, after the incident in Liu Xiaoshen, Xiang Jianbu very naturally became the focus of public opinion, and in this concern, more is the attention of doubt.　　Xiang Jianbu felt the heavy pressure. Insiders estimate that the actual amount of Liu Xiaoshen private fund-raising may be as high as $800 million. The instant caving of "Liu Xiaoshen myth" has produced great psychological impact in Zhejiang's folk venture investment industry. To some extent, over the past few years Liu Xiaoshen outstanding Self brand management and media regardless of the ability to follow the hype, has made him a symbol of Zhejiang folk to create the iconic figure. The combination of his kind of martial arts and rhetoric, let the public once thought that the private venture is what he described. Now, the "Liu Xiaoshen case" burst, this is an isolated case, or is only a deep hidden in Zhejiang private venture to expose the tip of the iceberg?　　Does it trigger a series of domino effects? The whole of Zhejiang's private capital for this cast a shadow, everyone a little panicked. "Venture investment in this industry can do?" How can we guarantee the safety of capital?　　"Similar doubts are entrenched in the minds of many investors and even investment managers," he said. In fact, although the private venture in Zhejiang is active, but because born out of folk lending, there are always some mas: from the way of financing, it always walk in the illegal fund-raising and private equity red line edge; From the mentality, we have more speculation and one-night wealth of mentality; from management, managers seem to never resist shareholder will.　　This led to the private venture in Zhejiang a little bit of gray mixed. Perhaps, the gray nature of Zhejiang folk venture, doomed "Liu Xiaoshen event" will happen sooner or later, not he will have others.　　This is the inevitable event that Zhejiang Folk Venture investment can not be crossed from the grass roots to the profession and the standard process, and it is inevitable that the private capital will experience hardships, but the financial crisis sweeping the whole world has brought forward the time of this event. In this sense, the crisis is not necessarily bad for Zhejiang's private venture-it encourages investors to take a more sober and rational look at venture investment,Panic, we began to pay attention to the original very disagree with the risk factors, gray area also began to face up to everyone, consciously embarked on the road of norms and professionalism. At the same time, the early exposure of the "Liu Xiaoshen incident" also avoids the bigger loss of private capital.　　has prevented more private capital from getting involved in the grey institutions that are not forming. Especially at the beginning of the economic recovery, the domestic a-share market to restart the IPO, the gem is about to launch, irrational speculation and the big background, "Liu Xiaoshen incident" to China's private venture investment industry, is a timely sobering.　　[Page]　　"Angel" fission red tripod of the two pioneering partners, the investment industry's different understanding and way of doing things, and ultimately created two different fate.　　Since Liu Xiaoshen surrendered, he has been held in the Deqing County Public Security bureau in Zhejiang province, in addition to judicial investigators, no one can see him. Only half a year ago, the reporter saw Liu Xiaoshen also complacent. That day, just returned from Shanghai to Hangzhou Liu Xiaoshen, leaning on the sofa in the Excelle Hotel on the West Lake, looking tired, but with the light in the dim background of the lobby, with a little showing off, "the afternoon just completed a merger agreement, and several investment agencies jointly acquired a Shanghai company, signed a full 36 documents, It took two to sign the light.　　"He had just come back from Stanford and Silicon Valley," he said. When the mood came, Liu Xiaoshen began to chat with him personally holding 90% of tea chain brand Tea easy shop, although the tea shop has just set up soon, but has opened in Hangzhou 9 chain, claiming to open 1000 stores nationwide, "the company will be derived from 3 listed companies, a responsible brand, A specialized standardized operation chain, there is also a production of tea. "Here, Liu Xiaoshen began to get excited," tea is Chinese tradition, why do foreigners do better than us? Tea Easy Shop is to challenge Unilever! Words said there was some feeling of blood boiling.　　In his description, he created the Red Tripod Fund will also become an international fund, there are RMB also has the United States dollar, and red Tripod as one of Zhejiang's first fund investment institutions, will become China's investment sector Whampoa Military Academy, will be peaches and plums all over the sky, even the staff children will not hesitate to sacrifice red tripod, inherit the red tripod spirit. Today, this is all jokes, known as "Promises" red Tripod fund, now seems to be just playing the guise of a venture to engage in illegal fund-raising.　　As the truth of the red tripod is reduced a little bit, we find that the end of Liu Xiaoshen is doomed from the very beginning. Red Tripod past July 13, 2006, Liu Xiaoshen United Several friends a total of 5 natural persons, set up a red Tripod Venture Capital Co., Ltd., the registration of 30 million yuan, the investment direction is mainly to do some start-up projects Angel investment.　　This is one of the first nongovernmental investment organizations formed by the Fund in Zhejiang province, and its establishment has opened the prelude of the recent round of Zhejiang folk investment upsurge. Earlier this morning a wave of private equityThe wave of right investment funds and venture capital funds can be traced back to the 2000 and 2001 of the turn of the century, belonging to the exploratory nature, most of which have state-owned background, or similar to the top-level private enterprise background in the province such as Wanxiang Group, which is basically introduced by the Government and belongs to the　　These funds have now almost experienced a whole round of investment cycle, there are successful exit cases, but also the current Zhejiang various funds of the Whampoa Military Academy. Liu Xiaoshen not from these "military academies". The ancestral home of Zhejiang Chang, born in Deqing County town of Liu Xiaoshen, the first bucket of gold by reselling Bloodstone started. Then began to do tea, root and other business.　　Like most people in Zhejiang, with a little extra money on hand, they began lending to their friends to run a factory, or an IOU or a stake, which was said to have benefited more than his main business. This may be his intention to set up a red tripod, and other people to figure out how much share return to you, talk to each other about the price.　　To this end, in the red tripod set up 5 people, in addition to 3 are Liu Xiaoshen relatives or fellow countrymen, Liu Xiaoshen also specially courted Xiang Jianbu as professional manager's identity to join.　　But in Liu Xiaoshen's subconscious, the fund is between usury and equity between the product, but with an imported name, which directly led to his later in the financing of the ambiguous, the personal brand and the fund brand equate to the financing side promised fixed return, crossed the red line. Compared to school education only read the first two Liu Xiaoshen, Xiang Jianbu received formal higher education, graduated from Hangzhou Normal University, did the teacher, and then went into business, he to the rules and regulations of the attention and Liu Xiaoshen completely different.　　But they were both keen on reading, which was why they had come together. Red Tripod just started, Liu Xiaoshen and Xiang Jianbu do not know how to do the fund, only know that foreign funds in China is developing in full swing, and the People's Congress gathered in Beijing. Moreover, Beijing's entrepreneurial circle is also the most active. So they both run Beijing every week, sometimes even two times a week. But the capital of the big, the circle of many let them find it difficult to adapt, coupled with the Beijing investment Circle has been that the traditional industry in Zhejiang is not weaker than the emerging TMT industry, there is no need to give up Zhejiang.　　So less than six months time, two people died down, back to Hangzhou. But this experience has made both of them. Liu Xiaoshen back, began to "investment is to see people" hanging on the mouth. This sentence in fact fused his own years of investment and lending experience, investment logic and other investment industry peers rationally to examine the project declaration of the background, knowledge structure, operational capacity, and so completely different, he is entirely intuitive to pay attention to human quality, morale and perseverance.　　He also has a series of "quotes", such as "not to vote for entrepreneurs over 36 years old", "I see the team basically do not look at other people's projects, I think the human factor to account for 90%, all other plus management but accounted for 10%" and so on. Therefore, after Beijing came back, Liu Xiaoshen according to his original way, continue to mix network, make friends. No matter on what occasion to change the business card, Liu Xiaoshen afterwards always want toGive each other a call and say hello.　　In his opinion, each other's label can be a clue whether or not to trust each other: whether his mobile phone is often changed, he has a circle of activities, he was 10 years ago to open a Santana or now only to open BMW, and so on. Since the red Tripod is one of the first nongovernmental investment organizations formed by the Fund form in Zhejiang, Liu Xiaoshen began to receive extensive attention from the media until it was sought after as "Brother Angel". As his reputation grew louder, he began to appear more frequently at various government events and conferences, and he often talked about his ideal at a private club near the West Lake. "Some projects don't look good to others, but I still invest, even though I don't know what the project will be in any particular year." "Red Tripod just set up when Liu Xiaoshen to this newspaper reporter this expression."　　His investment logic has never been clearer. And as a professional manager of the project before doing is biased traditional industries, in 1996 in Hangzhou F1 motorboat World Championships. At the beginning, he was also envious of those who intuitively judged whether a project had an investment value, and later found that this simple envy was too ideal. "Investment must first be based on analysis, understanding of the industry, understanding of the investment process, and an established process for investment decisions, which many mature investment companies operate." At first I thought they were too troublesome, and later discovered that it was inherently justified. "So after running around Beijing, he tried to put the IDG standard management mechanism to the red tripod: for example, the project hand will have a screening, research, review process, the company's personnel title and reporting process is fully reference to IDG, from the investment manager, VP, Senior vice president to the general manager, and finally the shareholder meeting. Then, when looking at each project to try to embed the project into the process of observation, even if the first feel that the project will not be able to go through the process, to explore the value of it, "only in this way, good projects, you can seize it." "These practices may be a bit parody, not necessarily a standardized process, but at least Xiang Jianbu is consciously moving toward a standardized, standardized process."　　Xiang Jianbu also attaches great importance to mixed connections, but outside the network, he also spent a lot of time to self-study, attend the Zhejiang Investment class, the teacher asked the formal VC what kind of model. Later, Liu Two people once discussed angel investment is not like them such institutional investors should engage in business, as a hobby is occasionally possible. Xiang Jianbu analysis that, "Red tripod should be a focus on the start-up period and into long-term investment VC, different from the domestic private capital gathered PE investment, and they form a dislocation competition." At the same time, the use of local advantages and foreign VC formation linkage. "But the registered capital of the red tripod only 30 million yuan, as the big shareholder's Liu Xiaoshen also sold the home antique only then pooled out the capital to come," the Angel "is Liu Xiaoshen to oneself's seal number. Even have his friends around revealed that Liu Xiaoshen investment is 50,000 yuan, 100,000 yuan to vote, he himself very few big project castFunding。 Dating website Ant network, online retail bags Love is still the net is Xiang Jianbu in red Tripod when the project, but also according to the sample went down the process. But soon, the will of the big shareholder goes beyond the will of the Investment Decision Committee, and since everyone is in the groping stage, the Xiang Jianbu is not working very well. Coupled with the 2007 Chinese stock market boom, into the investment era, the process for large shareholders means time cost and opportunity delay. Especially to the later stage, with the reputation of Liu Xiaoshen more and more, he also more and more impatient of the so-called process, often as a big shareholder directly to the identity of the decision. Once he had a fancy for a project, the other shareholders of the red Tripod venture were all negative.　　But eventually Liu Xiaoshen investment, but money is also diverted from the Red Tripod venture. This is totally unthinkable under a standardized fund. "This is where the professional team is ultimately forced to obey the shareholder rights framework, and the professional system is ultimately weakened by the elimination process."　　"Now think of it, Xiang Jianbu still some indignation." At the end of 2007, Xiang Jianbu and Liu Xiaoshen because of "the idea is not" and break up, the two parted from each other. To leave the red tripod, and set up a dynamic Investment Management Co., Ltd., continue to explore the professional road of private venture. [Page] triple and development zone of the signing ceremony on July 3, starting 9:30, from the development zone to invest 25 million yuan, Zhejiang Gao Venture Capital Partnership (limited Partnership, referred to as high profit and investment) capital contribution of 75 million yuan, comprising a period of 100 million yuan of Hangzhou surplus to create investment fund,　　Commissioned Hangzhou Surplus Investment Management Co., Ltd. (hereinafter referred to as surplus investment) management. The signing ceremony ended in half an hour. As a legal representative of the surplus investment, Hangzhou surplus to create the general partner of the Fund (partner, referred to as GP), Xiang Jianbu has not appeared on the stage, and even the signing ceremony was by Gao VC Executive Partner Fang Chao Rong on behalf of the present, the on-site distribution of text materials,　　The main partner also hid his name. "Now it's better to keep a low profile.　　"Xiang Jianbu said, but he is clearly still hard to restrain his excitement, the profit-creating investment is entirely in accordance with the Partnership Act, established, that is, in the form of law, to ensure that this is a formal, to ensure the interests of investors, but also fully controlled by him as a professional investment managers of the fund.　　In fact, at the end of 2007 when the start of the surplus, Xiang Jianbu mode of operation is still a bit nor: as the Investment management company itself does not invest, but the project resources to the surrounding friends, see who may be interested in investment or investment, that is, loosely-type cooperation. Most of Zhejiang's grassroots capital is now working in this form, and the most important career investment managers in traditional ventures are mostly working on project references, plus industry analysis. Because now with the money want to transform to do investment, more is already successful first generation of entrepreneurs, their obsession with money and their superstitionIs almost anybody's unshakeable, "I've made an billion, you?"　　This questioning often makes the fledgling professional capital managers speechless.　　The advantage of the loose mode of cooperation is that it does not deal with the project investment, only charge the project introduction fee, so there is no direct contradiction with the shareholders, nor take risks. During this period, Xiang Jianbu personally invested two projects, one is Hui da technology, located in the hotel room information experts, has now completed two rounds of financing, the other is learning easy network, positioning education and training.　　Is his personal contribution, and has very limited influence. In some ways, the financial tsunami that swept the world last year helped Xiang Jianbu and his peers.　　At this time, many high tide investment projects collapsed because of the financial crisis, the original profit of the hundreds of millions of-dollar companies may also be at any time, those who were very strong before the investors began to seek career venture companies to win. Although this phenomenon is not common, entrepreneurs with money are no longer afraid to underestimate them. "After all, they have to manage our capital to collect management fees, they are general partners and have unlimited responsibility for investment," he said. Their performance and reputation are crucial to their next round of financing. Fangchao Rong, chairman of Zhejiang Pentax Industrial Co., Ltd. said he was also an executive partner of Gao Venture. Compared to the professionals in the prestigious international Fund, may not be professional enough, but in Zhejiang Investment Circle, his experience is rare, and the investment industry, the investment circle of familiarity can help shareholders solve a lot of problems, "we have our own business to take care of, especially at this time."　　"Fang Chao Rong said that the Zhejiang Pentax Industrial is a YIWU enterprise, the main high-grade knitted underwear and various grades of lace research and development, production and sales." Interestingly, in the 20 days before the end of the full contract, that is, the Liu Xiaoshen incident just exposed, Fangchao is also very sensitive to the fund, on the one hand, because it is the government's strong support of the industry, the partnership does not pay income tax, the tax is low, the investment fund is attractive; The question of how the structure is safe is very confusing and worrying.　　Last year he used to go to Stanford with Liu Xiaoshen to learn how to do VC, a look so confident, said the people suddenly fell, let him particularly fear. In fact, some of the investors involved in this fund, several of them are Liu Xiaoshen classmate, last summer they went to Stanford to study, to Silicon Valley to investigate the local venture investment ecology, there are several University of Zhejiang, Tsinghua Emba class students, there are Xiang Jianbu my classmates.　　Some of them almost every day to listen to his Tang Seng-like nagging investment, the way he has been very understanding and trust. But the structure of this campaign was set up entirely in accordance with the provisions of the law: set up a limited partnership fund company high Profit and fund management company surplus investment, the development zone and Gao invested all the money into the Hangzhou surplus to create investment, to the ICBC by the expenditure of the trusteeship, and then commissioned surplus to open Investment management. All investmentsThe decision is made by the investment manager, vice president and partner of Trahk Investment, and the final decision of the Investment Committee will be adopted after the partners have passed. In the setting of the voting committee, 2 of the 7 persons are mobile candidates, according to the industry decision to invest, 1 is Taibon VC General Manager, Taibon is the Hangzhou Municipal Bureau of Finance under the Government Guidance fund management agencies, on behalf of the Government to participate in the supervision of decision-making, Fangchao Rong because it is the general partner of Gao Venture, to assume unlimited responsibility for the fund,　　Therefore, we are also attending the investment committee, and 3 of them are partners in Trahk. "The Development Zone Government also expressly stipulates that 50% of the guiding funds must be invested in the development zone, and the investment of a single project shall not exceed 20% of the total paid-in capital invested by the enterprise at the time of its establishment." "Fang Chao Rong one by one detailed contract laws and regulations." "This is a model that is entirely in accordance with the law, and if there is a problem, it is not our problem."　　"added the standard." Coincidentally, Xiang Jianbu into the Zhejiang investment Circle in this three years, from the initial Angel investments, to later and investors loose-type cooperation, and then to just set up, fully in accordance with the "Partnership law" set up the fund, is the Zhejiang venture to start the three years.　　The three types of organization that he has been experiencing are the models that have been or are being experienced by nearly all VC companies in Zhejiang Province, from the least standard to the gradual specification. If Zhejiang folk venture is different according to its maturity, divided into a pyramid of words, that the last layer of the provincial venture, Paradise Silicon Valley, communications ventures, such as the early years of the beginning of the century even in the 90 's, has been established, experienced from the investment to exit a complete cycle of venture capital enterprises. And the reason for the Liu Xiaoshen event is still in the uproar, in one months to complete the first phase of financing, capital in place, which may be the capital of Zhejiang to grassroots, the formal investment culture began to rise in a sign. [Page] July 3, 2009, Hangzhou surplus Open Investment Management Co., Ltd. Xiang Jianbu and Hangzhou Economic and technological Development Zone venture capital Guidance Fund (referred to as the development Zone Ventures) contracted, launched the establishment of a period of up to 100 million yuan in Hangzhou surplus to open the investment fund. This is his personal transition from "grassroots investors" to the career investment managers of a milestone event.　　In a sense, it is also the epitome of the standardization and professionalization of Zhejiang Folk venture in the trial and error. At the end of the signing ceremony, Xiang Jianbu suspended Heart finally steadfast stability, spit out a mixed feelings sigh: "The past 2 months as 20!" "2 months ago May 4, there are" Big Brother "," private VCs first "said the Red Tripod Venture Capital Co., Ltd. founder Liu Xiaoshen, due to the inability to repay up to 200 million yuan of private fund-raising funds, to Zhejiang Deqing County Public Security Bureau by the Investigation Brigade surrendered.　　and Liu Xiaoshen, it is Xiang Jianbu once boss, he turned to make fund investment guide. Due to the historical relationship with Liu Xiaoshen, after the Liu Xiaoshen incident, Xiang Jianbu naturally became the focus of public opinion, and in this concern, more is the eye of doubtLight。　　Xiang Jianbu felt the heavy pressure. Insiders estimate that the actual amount of Liu Xiaoshen private fund-raising may be as high as $800 million. The instant caving of "Liu Xiaoshen myth" has produced great psychological impact in Zhejiang's folk venture investment industry. To some extent, over the past few years Liu Xiaoshen outstanding Self brand management and media regardless of the ability to follow the hype, has made him a symbol of Zhejiang folk to create the iconic figure. The combination of his kind of martial arts and rhetoric, let the public once thought that the private venture is what he described. Now, the "Liu Xiaoshen case" burst, this is an isolated case, or is only a deep hidden in Zhejiang private venture to expose the tip of the iceberg?　　Does it trigger a series of domino effects? The whole of Zhejiang's private capital for this cast a shadow, everyone a little panicked. "Venture investment in this industry can do?" How can we guarantee the safety of capital?　　"Similar doubts are entrenched in the minds of many investors and even investment managers," he said. In fact, although the private venture in Zhejiang is active, but because born out of folk lending, there are always some mas: from the way of financing, it always walk in the illegal fund-raising and private equity red line edge; From the mentality, we have more speculation and one-night wealth of mentality; from management, managers seem to never resist shareholder will.　　This led to the private venture in Zhejiang a little bit of gray mixed. Perhaps, the gray nature of Zhejiang folk venture, doomed "Liu Xiaoshen event" will happen sooner or later, not he will have others.　　This is the inevitable event that Zhejiang Folk Venture investment can not be crossed from the grass roots to the profession and the standard process, and it is inevitable that the private capital will experience hardships, but the financial crisis sweeping the whole world has brought forward the time of this event. In this sense, the crisis is not necessarily bad for Zhejiang's private investment-it encourages investors to more calmly and rationally examine the venture, panic, we began to pay attention to the original very negative risk factors, gray area began to face up to the people, consciously embarked on the road of norms and professionalism. At the same time, the early exposure of the "Liu Xiaoshen incident" also avoids the bigger loss of private capital.　　has prevented more private capital from getting involved in the grey institutions that are not forming. Especially at the beginning of the economic recovery, the domestic a-share market to restart the IPO, the gem is about to launch, irrational speculation and the big background, "Liu Xiaoshen incident" to China's private venture investment industry, is a timely sobering.