To view China's stock-raising from the perspective of evolution

this May.

With the Jobs Act in the United States landing, the industry ushered in unprecedented vitality. Starups, the Silicon Valley incubator, seedinvest a new round of $100 million trillion in fundraising through a stake-raising platform. Fundrise, a property-funded website, harvested 31 million of dollars in the first round of funding this May, when the weekly fundraising was over $1 million trillion. And the domestic side, from last year to now has a number of consecutive stock-raising platform set up, from the angel sinks, to the original will, to everyone cast, to our 36 krypton Plus.

As a network of financial member institutions, the original will be the domestic stock market last year, the first major players, the annual 150 million share of the total amount of the original will be exclusive 120 million (data from the Qing branch). I have always had a lot of confusion about the issue of the landing of equity in China. Luckily, a few moments ago I had a conversation with the original founder, Tao Ye, that made these confusing parts possible. The following is the collation of our exchange content, some of the text has been adjusted:

As an example of the Internet venture, China's problem is that there are too few good projects and too much money. A good project online is not too short of money, there is no need for public financing. And not so good projects, through the online and easy to become a "pit"--is the stock raising in the domestic is false proposition?

Tao Ye that this should depend on our view of equity. In reality, too few good projects are a problem, but from an evolutionary perspective, this is also a process that needs to be nurtured by the market. China's entrepreneurial soil is improving, both entrepreneurs and investors are maturing, and more and more returnees from the mature venture capital market are returning to their businesses. At the same time, many projects are not bad, but previously due to channel restrictions, financing can not fully reflect their own value. Let good projects get a more reasonable valuation, which is also the meaning of equity public financing.

Finally, how do you define a project as good or bad? In Tao Ye's view, it is very narrow to define the criteria of simply listing and obtaining excess economic returns. Investors need a variety of investment needs, it is not necessarily necessary to have the potential of the listed companies to vote. In the form of return, many platforms have also designed the "consumption right + income right" structure (reward the combination of the public and the stock of equity). Some focus on the TMT sector of the stock, can provide the form of return may be less, but the original will do is a pan-platform, consumer sector enterprises can provide a much richer form of return.

Second, the early investment is a very strong professional work, attached to the money is the professional ability and resources of investors, ordinary people simply to invest in Money, the enterprise is valuable? and is it appropriate for ordinary people to take on the risk of not matching their abilities?

Tao Ye said that the problem is mainly based on investor access, project screening, "Lead + with investment" triple mechanism to control.

The original intention of the stock-raising is to give small and medium investors equal access to the early projects and will not normally be open to the general public. Currently active in the original meeting platform is mainly three types of people: 1, professional institutions and individuals 2, ultra-high net worth of people, including entrepreneurs or entrepreneurs 3, a large number of small micro-angel (including middle and high net worth people)-these three groups from the risk-resistant ability, income and investment capacity, basically meet the requirements of early investment.

In the project selection, the platform will provide professional investment team for project Audit, but do not make substantive judgments, mainly in the form, compliance review. and "lead and vote + with" The mechanism of design, so that the investment ability of professional investors and small micro-angel financial capacity.

The participants at the original meeting are typically professional investment institutions and prominent investors who perform due diligence, assessment and post management work from a professional perspective. Usually, the participants will participate in corporate governance. While with the cast although not actively involved in enterprise management, but as a shareholder to exercise the right to vote, similar to listed enterprises Board + shareholder meeting system.

Three, in essence, everyone is betting on the cause of the public equity is what?

Tao Ye stressed two: first, the traditional offline investment Market has significant information asymmetry and loss of efficiency, many investors can not find the project, and many projects do not melt the money, the second is from the point of view of capital, but also the urgent need for such a share circulation market.

Efficiency is needless to reiterate. On the demand side of capital, the greatest significance of the stock-raising may not be as a level market. Its biggest allure to capital is that it opens a more flexible exit channel for private equity investment. We can expect that China will form a multi-level equity circulation market from Angel, VC, PE to IPO, covering the whole growth cycle of the enterprise. At present we already have the motherboard, the Gem and the new Sanbanxi, the stock raising will serve as small micro gem role. This is conducive to the withdrawal and reinvestment of venture capital, which makes the ability of professional investors to find projects and cultivate projects quickly rolling up.