Zhejiang Venture Paradise Silicon Valley: Only one egg in each basket

At the end of April Hangzhou, the Jade Emperor Mountain at the foot of the chinars to explore the fine fruit, a gust of wind blowing, the sky of the Indus flocculation rain. Zhejiang Venture Investment "lead eldest brother" Paradise Silicon Valley, is located in the sorrows of the Jade Emperor Mountain foot.　　Starting from 2000, Paradise Silicon Valley in the local private equity investment in the battlefield of Xinjiang, and in 9 years to get a lot of help at present, the total capital of Paradise Silicon Valley is about 1 billion yuan, the investment of more than 30 enterprises have 7 listed, steady sitting in Zhejiang Province, the head of the venture investment industry. Paradise Silicon Valley is low-key, but its creation of the Xin rich pharmaceutical wealth Myth in the industry are known.　　2007, Paradise Silicon Valley to buy 2 million yuan Xin Fu pharmaceutical 6.4766 million shares, is holding Xin Fu pharmaceutical 3.39%, according to the May 5 closing price of 11.68 yuan calculation, the paradise of Silicon Valley is currently gaining equity investment income of nearly 75.67 million yuan, return more than 37 times times. Transition Private equity fund management reporter along the foot of the Jade Emperor Hill lay out the cobblestone path, into a double-decker European house.　　Paradise Silicon Valley Vice President Jiu's office is on the second floor of the house, two sides of light, four corners of potted plants, the genial sunlight through the landing glass, will Jiu on the desk of a stone reflected in the glittering.　　Jiu that in 2007, Xin Fu listed in the market in an irrational state, up to 300 million yuan market value is the bubble accumulation, the return and Jiu schooled value investment.　　More importantly, the Valley of Paradise is undergoing a transformation from venture capital to private equity fund management. "When it comes to VC, the Valley of Heaven is invested with its own capital," he said. But the company is also doing the fund, which creates a problem, if a project, capital investment, the fund cast, the big shareholders may doubt whether this is a good project.　　Jiu to the financial weekly reporter explained.　　In the face of doubts about the fairness of the fund's shareholders ' investment, Heaven's Silicon Valley is finally determined to transform from investing in projects to investing in funds through a transformation from venture capital to private equity funds, in a word, "a professional private equity management company". In addition, VC is using its own capital in the project, limited funds, IPOs or mergers and acquisitions is the only way to recover capital.　　The form of the Fund is not limited to the company's own funds, so that the full excavation of Jiangsu and Zhejiang active Private capital, and the broad source of capital and stability to ensure that the long-term value of the investment philosophy of Silicon Valley practice. IPO triumphant high-play Diamond Glass Sprint gem The current Paradise Silicon Valley has a total of 9 funds, mainly in the IPO and asset acquisition phase of enterprises, the largest two funds in the first instalment 175 million, 185 million, in addition, there is a VC　　Industry issued 40 million yuan seed fund. Whether Xin Fu pharmaceutical or the high Science, IPO project success will be the paradise of Silicon Valley into the top of Zhejiang venture. and Paradise Silicon Valley last year's triumph--Diamond Glass, is also preparing for the listing of materials, most likely in May this year sprint gem. Recalling the diamond Glass, Jiu lit a cigarette, "this project is very interesting." "The smoke circle in the sunlight," the wind cast has seen hundreds, we went to the day, there are two of VCs with us into the factory. "King Kong Glass is mainly made of fire-proof glass, glass subdivision industry."　　After the study of the Paradise Silicon Valley, Diamond Glass has the core technology property rights, product performance is excellent, but at that time almost all private equity are deterred from the King Kong, this is why? At that time, everyone thought that King Kong had two big problems. First, the asset curing rate is too high, and the second is that a tens of millions of of the money will expire. Jiu explained, "King Kong's boss is a very willing to delve into the people, a new equipment, he went to get to study new technology, so the diamond glass of fixed assets ratio is very high." And just, if now cast in tens of millions of, immediately be used as arrears, talk about the development of enterprises? "[Page] despite not getting the ideal PE, Paradise Silicon Valley in the diamond Glass body cast 60 million." Jiu did not disclose the details and figures of the equity deal, but according to the investment principles of the Paradise Silicon Valley, IPO companies have a ratio of multiples of 15 times to five, while energy, biomedicine, environmental protection and high growth can be appropriately higher.　　From this, the reporter calculates the Heaven Silicon Valley and the King Kong agreed PE should be between 12-15 times. Of course, this is not a bet, "King Kong's high growth will offset the high PE at the time of the stake." In addition, the asset curing rate is the focus of the core technology innovation Kong's performance. "Jiu," and we will help it to improve the corporate structure and broaden the channels for development. "Sure enough, the Valley of Heaven pulls South Glass A.　　Prior to this, the glass industry's mobile phone did not even know the existence of diamond glass, but now CSG will designate King Kong as one of its suppliers. In the past 4 years, the annual net profit growth rate of diamond glass is over 30%. According to Jiu, this high growth gradually offset the initial investment of high PE.　　Currently, in addition to the new Project photovoltaic glass, diamond glass is nervously preparing for the listing of materials.　　In each industry basket put an egg different Yu Dinghui, Shenzhen Innovation Investment and other domestic bosses, but also different from Morgan Stanley and other international predators, Paradise Silicon Valley has its own set of unique investment logic.　　For one thing, the Valley of Heaven does not make joint investments with other VCs. "3, 5 of the wind to invest in, in the end who will help enterprises do value-added services?" Everybody's doing it means nobody does it. "Jiu that the value of value-added services is an important criterion for judging a VC institution." "If we judge that this is a good project, we are not going to be able to make the most of our fund shareholders."　　As for the "Gambling Treaty" commonly adopted by overseas VCs, this is a means of venture capital to reduce risk, Jiu said that paradise Silicon Valley will not be adopted, "True and so on the gambling clause is effective, will only be a double lose situation". The second, Paradise Silicon Valley in every industry basketPut an egg on the son. "Foreign VCs tend to invest in TMT, IT industry, in one industry to cast 2-3 enterprises, sometimes these companies even compete with each other."　　"Therefore, this practice is not conducive to the growth of a business, while it will lead to excessive investment direction." Jiu said: "Paradise Silicon Valley does not repeat investment in an industry, reducing industry risk, while Paradise Silicon Valley open platform, each enterprise can cooperate rather than compete." "Delegation of authority to reduce systemic risk" every morning when I turn on my computer, I get a lot of emails, and every email wants me to invest in his project. "Paradise Silicon Valley annually examines the number of projects in the 500-600, the annual investment case in 6-7, the investment cycle in 3-7 years."　　So how did paradise Silicon Valley sift through these projects? "It's not me who decides these projects. Jiu smiled and said, "I classify these emails and send them to various industry groups, and the team members feel interested to follow up and the surviving projects will go to the department and continue to be reviewed." "This unique project selection method is called" Jiu ". He told reporters: "Through the panel, the department's review, the project will accept the law, accounting and other intermediary agencies to review."　　"However, because of the high cost of inviting intermediaries, more than 50% of the projects have been eliminated before this step." Finally, the decision committee voted on the project. Now the company has Silicon Valley Paradise and Paradise Silicon Valley two sets of committees, the former consists of 9 people, the latter consists of 5 people. Jiu points out, "such a process to go down, the fastest project to 2-3 months, the slowest is 1 years." "Paradise Silicon Valley is a subsidiary of Silicon Valley Paradise. 2000, Paradise Silicon Valley was led by the Zhejiang provincial government, with more than 10 state-owned enterprises jointly funded by the "national team." 2005, the Paradise Silicon Valley reform, the introduction of management equity Incentive system. Three years later, Silicon Valley Paradise, a company controlled by the Valley of Heaven's management, has leapt to the top shareholder in Paradise's Silicon Valley by MBO, and the actual holding ratio of the former boss Qianjiang water has fallen sharply from 87.24% to 27.9%.