I. Analysis Report on Huachuang Capital Investment
Huachuang Capital is the top early-stage investment institution in China, providing venture capital for early-stage entrepreneurs, focusing on the China market and taking into account the Silicon Valley in the United States. Since its establishment in 2006, Huachuang Capital has been focusing on the early investment in new finance, new industries and new consumption fields, and has helped the invested enterprises to carry out strategic planning, business development and team formation with profound resources and experience. Optimistic about corporate services and betting on SaaS products for SMEs. Around 20 14 years ago, before venture capital entered the SAAS products of small and medium-sized enterprises, Huachuang Capital had invested in a number of enterprises serving small and medium-sized enterprises, covering catering, beauty industry, hotels, supply chain and other sub-industries. Huachuang Capital summarizes the logic of investing in SaaS enterprises into four points: First, it covers the needs of small and medium-sized enterprises, not large and medium-sized enterprises; Second, it covers a large vertical industry, or a certain demand of customers in many industries; Third, the product is a real SaaS, not a transitional solution; Fourth, the team understands the pain points of the industry and has advanced software product technical capabilities.
2. How does Huachuang Capital get a return on its initial investment within three years?
Huachuang announced the completion of all the exits of a financial technology company. By this time, the cumulative distribution amount of Huachuang Fund in this period/investor's principal has exceeded 130%, that is to say, assuming that the investor has invested/kloc-0 10000000, at this time, the cash exceeding130000000 has been recovered. Prior to this, in 20 15 years, when Huachuang's fund was established only one and a half years ago, it had already realized the complete withdrawal of an enterprise service company. At the end of 20 16 and August this year, the above-mentioned financial technology companies partially and completely withdrew. In three years, the distribution of these exits to investors has created a return of 130%.
At present, all the funds used by Huachuang for angel investment come from Huachuang -IDG Angel Fund jointly funded by Huachuang Capital and IDG Capital. Tang's explanation is that a very important reason is to optimize the cash flow of investors. While ensuring the return, it represents the long-term commitment of investors.