Thor on the trend of domestic VC: VC/PE Grab chair game has started

Last month, Forbes unveiled "the Best in the world", and many of the people on the list have been rewarded handsomely for investing in Chinese companies. So, what are the trends that affect China's venture capital industry? Highland Thor, managing director of Shanghai Plateau Capital, recently talked about the subject at a meeting of the Shanghai Foreign Correspondents ' Club, Chuan Thor. Thor has 19 years of experience in the venture capital investment industry, leading the early investment of Highland capital on the online security software company Qihoo (Qihoo 360). Highland Capital, which manages 3.4 billion of billions of dollars of assets, owns stakes in more than 230 companies around the world. In Thor's view, one of the trends in the venture capital industry in China is a sharp contrast to the situation in previous years, when a group of China's best companies, with its market capitalisation, can rival global international companies, with the emergence of a number of the country's finest firms. At the time, the market capitalisation of Chinese companies would be quite successful if they reached billions of dollars. And 2011 years later in the United States listed a group of Chinese companies, Qihoo Company's market value of more than 10 billion U.S. dollars, created Shine rich: Zhou and Xiangdong. The online retailer, Vipshop, has a market capitalisation of $7 billion trillion, creating Shine billionaires. The recent IPO with a market capitalisation of more than $1 billion is also the auto (Autohome) of the Auto information website, the social networking site of the billionaire Lei investment, the time yy, the online information classification and advertising website 58 with the city (58.com), the travel website where to go (Qunar), Data center service provider Century Internet (21Vianet), social networking site Renren (Renren) and sports lottery website 500 Lottery Network (500.com). Many successful venture capital funds and companies have invested in China for almost 10 years, their investment performance has become increasingly prominent, with other companies, the industry is likely to shuffle, those who can not produce successful companies will be eliminated from venture capital companies. "The game of snatching chairs has begun. "Thor said. As more and more risk investors go to China to seek better deals, Thor said, the industry pattern has also begun to change. The scale is tilting toward venture capitalists who can use deep industry knowledge to benefit entrepreneurs who do not just pursue cash. In addition, Chinese entrepreneurs are more mature in their approach to financing than ever before, and they have their own ideas about the company's market capitalisation. This insight and intelligence is equally evident in the businesses that entrepreneurs are trying to create today, Thor said. 10 years ago, many young entrepreneurs were keen to imitate plagiarism, such as creating "China's Facebook," and now more and more entrepreneurs are starting to think about how to innovate. Qihoo's business model does not exist in the United States, and Tencent's micro-letter also differs significantly from WhatsApp's. What is unlikely to change in the industry is the recent, media and telecommunications), as well as VCs ' preference for consumer companies. TMT's appeal to VCs is that the industry is relatively open to external investors in China, unlike the energy sector controlled by state-owned companies. Consumer companies are popular because they tend to produce duplicate sales. In addition to TMT, the health care and clean technology industry will have a bright future, Thor said. Although the rate of return of these two industries to date is not enough to reach the TMT industry level. At least for now, Thor has not seen venture capitalists invest in companies founded by foreigners, who face difficulties in driving the Chinese legal and business culture. On the other hand, Thor has good news for overseas investors seeking to choose more Chinese companies to invest in. He said the trend of international venture capital companies to finance and invest in renminbi has slowed in recent years. The reason is that China's IPO approval process is difficult to predict, so when a successful investment enterprise is ready to go public, venture capital funds are struggling to sell their holdings. As a result, more venture capital funds use the financing structure associated with the dollar and want to gain returns on international exchanges such as the New York Stock Exchange or the stock exchange of Hong Kong.