Yan: Don't think you are a genius to start a business is a hard thing

From December 2, 2014 to December 4, the annual meeting of the investment community organized by the Qing Ke Group was held at Park Hyatt, Beijing. On December 3, at the 14th annual China Equity Investment Forum, Yan, a founding managing partner of the Asia Investment Fund, said his views on the current investment market bubble as well as on the new venture in the influence dialogue: "--next big". The details are as follows: I and Shong are 50, which year of secrecy. 94, this year is just 20, I do more of the industry case, like Grand, 58 with the city. The most impressive is CNOOC, one-time cast 28 million dollars, at that time the market is very bad, in fact, the impact is very large. In a broad sense, life is always anxious, and never anxious, you will only live a lifetime. This problem becomes your anxiety, worry, there must be some. What are some of the anxieties and worries about what is happening now? It is true, for example, that the valuations of our markets, which are often in the April, have no revenue and are valued at more than $100 million trillion, which is upsetting all our traditional models of financial valuations. At the earliest, it is known that corporate valuations are one of the most financially challenging theories, so far there is no universally accepted way of valuing corporate valuations, so let's assume that the only model we have in the world is that we do a lot of assumptions about this model, and this assumes that with your business development, And your business model is not the same. If we look back on the history of China's reform over the past 20 years, especially in 15, we are similar to the development of the Qing Branch, and the VC/PE market has experienced a lot in the past 15 years. 10-12 years of national PE, is now a national entrepreneurship, in fact, to say honest words entrepreneurial only suitable for the few people, if we from a probability point of view, entrepreneurial success is probably 1% less than 99% of the people are not suitable. So I sometimes see some special enthusiasm in school to start a business, I told them, you'd better read the book, this is the first. Can not read, a night to venture success, most of them are geniuses, in my life is really gifted, I have invested 20 years experience encountered genius is very few, silly B mostly. It is important that you first ask yourself, everyone's life choice is not the same, you do not everyone to the parents earned 30 years of money to spoil, entrepreneurship is not suitable for all people, nor is it a great leap forward of things, more is the rational choice, to adhere to, young people entrepreneurial passion, but adhere to particularly difficult. If as a historical review, India, such a developing country, PE and VC early, most of it is not a subdivision, so that the economic development in the country has so far not so much subdivision, unlike the United States a market segmentation has been done very refined, In this case your fund can get more than the market average level, you have to do the industry leader. In developing countries such as China and India, a fund has noOn the early days or in the Angels, to the middle, to the subsequent listing, there will be more opportunities, we more than 10 years I and Shong in China to do, that time is basically a leather company, carrying a purse to go, in Beijing and Shanghai to turn down, China's 80% entrepreneurs have all seen, we fund the early encounter what to vote for what, There are early and late, and there are opportunities such as CNOOC. But slowly the fund division of Labor is also with the economic development phase and not the same, slowly will have differentiation, there will be division of labor. In general, China's VC investment stage and the United States is still so thin, you analyze your return will be below the market average level. A very interesting statistic phenomenon, China's first echelon in China over the past ten years, far more than the United States and Europe level. But to see the bottom of these two, if the hundred divided into four echelon, you will be China below these two echelon, will be worse than the United States and Europe. So this is the characteristic of a developing economy. In this industry more than 20 years of people, we do VC in China, we are very lucky, because this market is big enough, in the past we do in Thailand, in the Philippines to do, including in Korea, a market into a bottleneck, you will be difficult to develop, and finally I cut all the investment in Korea, the family of the lifeblood of the economy is very large, This phenomenon is rare in China. Every two years in China every fund has its own praise, a few years will come out one, this market is big enough, competition on two kinds, a kind of competition but, a competition, do market competition is very normal, special what special place, the world is like this. In fact, you want to invest in this industry, unlike many other industries, we are in the Internet search engine, in the middle of the Baidu, the rest of the dead, VC and other industries are not the same, there may be all people alive, some people live better, some people live almost, but the market capacity is huge. Today this special session talks a lot about who stays in the market for the longest time, the oldest, no matter what, today's valuation is good, the advent of the Internet era, or, in fact, I believe that no matter what, ça, a business to do well, and your business model, and your entrepreneurial character and character, is the most relevant, Nothing else matters. We all talk about how, in fact, from the statistical point of view, when we were a child reading read Lu Xun said, the generation will be the same. But it must be the process of accumulation of experience, not a problem of knowledge, you see statistics, basically investment is a statistical thing, statistics, have experience, age to 30 years old, even to 40 years old, 30-40 years old is the Golden age of entrepreneurship. I believe that human beings are about the same, I spent many years in the United States, and the Chinese people are the same emotions, behind, unchanged or to see business, or to see people.