Chen successfully explored and supported many outstanding enterprises in China, including BenQ, Ports Fashion (listed on the main board of Hong Kong), 372 1 (acquired by Yahoo), China Wireless (listed on the main board of Hong Kong), China Telecom (listed on GRRF), Canadian Solar (listed on CSIQ), LDK (listed in new york) and Xicheng Media (acquired by Focus Media). Prior to this, Chen worked in the Asian Investment Banking Department of Standard Chartered Bank for three years. In the past three years, Chen has invested 17 projects in this market against the trend among many international venture capitalists who are bearish on China's venture capital industry.
While many overseas VCs are still talking about how bad it is to do venture capital in China, Jifu VC has begun to increase its investment in this market. Chen, the company's Asian director and executive vice president, said in an interview with this reporter: "It is when many people pay attention to risks and don't enter, this market will have the most opportunities. Once overseas VC enters in a big way, the competition in this market will become more and more fierce. " He gave an example: for example, the VC market in the United States can be said to be a transparent and open market. Although the income multiple of investing in high-tech projects is considerable, the competition of VC is extremely fierce, and the cost is unmatched by other markets.
In 2004, the dawn of China's venture capital industry appeared, and domestic and foreign venture capitalists gathered quickly again and spared no expense. For Jifu VC, it has been dormant for three years, and the accumulated 17 projects will enter the capital harvest period one after another, and the successful overseas listing of 372 1 company has begun this prelude.
3 years 17 projects
During 1998, the senior management of Jifu Japan Group found Chen through an international headhunting company and warmly invited him to be responsible for the investment of Jifu VC Asia Technology Fund in North Asia.
Before joining Gifford VC, Chen served as a director of Suez Asia Investment Co., Ltd. for four years, and Suez Asia managed a fund of 400 million US dollars. Chen is in charge of investment in North Asia and has experience in managing large funds. During my tenure at Jianli Investment Management (Hong Kong) Co., Ltd., I began to manage a fund of 63 million US dollars.
However, he believes that these experiences are not enough for Gifford Asia VC to rapidly undergo chemical fission. "Investment banks are not venture capitalists. The investment of venture capital is completely different from the loan from banks to enterprises. When banks lend money to enterprises, they can reap profits, and the income from venture capital investment is more closely related to the growth of the invested enterprises. " But it is this difference that makes Chen see the development strategy of Jifu VC in North Asia: the follow-up means of investment is to push the invested company to the global market, so as to realize the development of the enterprise quickly.
After a large-scale personnel reorganization, Jifu Asia VC went through a one-year dormant period: Chen led his team to study the development and trend of VC industry in Asian countries and constantly looked for opportunities, but there was no investment this year.
In 2002, Jifu VC began to land in China. Although, during this year, most global venture capitalists generally looked down on the venture capital industry in China. But in this year, Jifu VC has invested in six project companies. Subsequently, Jifu VC's trip to China made rapid progress. In 2003, it invested in five project companies. From 2004 to the beginning of 1 1, five project companies have been invested, and the other three projects are very promising and will soon enter the investment stage.
Up to now, Jifu Asia has invested in 16 companies, including 372 1 company, Beijing Aide, Shanghai Schindler Information, Shanghai Xinjin Semiconductor, American Optical Bridge Network, Erlang Technology, Asahi Technology, Yulong Communication, Cotton Network, Youchuang Technology and Dalian Haihui Technology. These companies are mainly concentrated in five major industries, namely communications and Dalian Haihui Technology.
Investing in 372 1 Hong Kong Company is the first business done by Chen Laijifu VC. In 2002, Jifu VC began to increase its investment in China market. At that time, Jifu VC invested nearly $5 million to hold a 20% stake in 372 1 Company. In March, 2004, because Yahoo (Hong Kong) Company reached an acquisition agreement with 372 1 Company, 372 1 Company was acquired by Yahoo for1.200 million USD (the upper limit). Jifu Asia VC, as the second largest shareholder of 372 1 Company, completely withdrew from 372650 after selling its equity. During the whole negotiation process, IDGVC and Gifu Asia VC each held about 20% of the shares of 372 1 Hong Kong Company, and they cooperated very well. In addition, IDG and Jifu, the two venture capitalists of 372 1 Hong Kong stock company, all cashed in and made a profit of five times. The investment income of Jifu VC on this list is at least 22 million dollars. This is also the earliest project that Jifu VC withdrew from in China. During the market downturn after the Internet bubble, Chen, as the head of Jifu Asia North Asia, led the team to dig out a series of companies that have created good performance for Jifu Asia in China, including 372 1, China Telecom, Feibochuang and other projects.
In the second half of 2008, Chen once again staged "Taking Chestnuts from Fire". When investors were all short of cash, they jointly invested with Changzhou Minsheng Investment (6.30, 0.57, 9.95%)*** and invested1000000 USD in Shanghai Yingshuo Polymer Materials Co., Ltd. (hereinafter referred to as "Yingshuo").
In 2007, after working in Gifford Asia for seven years, Chen resolutely left his job and established Tian Quan Capital in cooperation with John Zwaanstra, an Asian stock investor and founder of Penta Fund. "Investing in this thing is still a very personal behavior." Chen believes that the economic crisis has not affected Yingshuo's investment.
Yingshuo is an enterprise specializing in the research, development, production and sales of functional polymer materials in Shanghai. There are mainly three series of products: building insulation, waterproof and coating.
In February and March, 2008, Yingshuo decided to introduce venture capital, and successively contacted domestic and foreign investment institutions, including Fosun and Chen Da.
Among the investment institutions contacted by Yingshuo, Tian Quan is an early one.
Chen Zhenhong knew Xin Chunhua, the founder and chairman of Yingshuo, very early. But "I won't vote for her because I know her," Chen stressed. "I'd better vote for one person."
In 2003, Xin Chunhua found that the real estate in China developed rapidly, which should be a good opportunity to enter the building materials market, so she founded Yingshuo.
So how high is the threshold for entering the building materials field? According to insiders of Shanghai Beicai Waterproof Material Co., Ltd. and Shanghai Dadong Building Waterproof Material Co., Ltd., the technical threshold and capital threshold of the industry are not high. Someone joked: "A contractor can build a machine."
But Xin Chunhua doesn't think so.
"The entry threshold of this industry doesn't look very high, but the brand still has a role. Rising to a certain brand really depends on strength. "
At the beginning of the company's establishment, Xin Chunhua took "technology-based, innovation first, industrial development and capital operation go hand in hand" as the development strategy, and the annual R&D expenditure accounted for more than 65,438+00% of the company's sales revenue.
Xin Chunhua has made great efforts in the team building of the company.
Wu served as the chief engineer of Yingshuo in 2003, and now he is an expert with outstanding contributions to the country, enjoying special government allowance from the State Council. Yingshuo's activation modification technology of activated silicon is his original, and has obtained the national invention patent. Relying on this technology, the external thermal insulation and energy-saving system of building exterior wall has also become the fist product of Yingshuo.
More than 80% of the employees of Yingshuo have bachelor degree or above. Xin himself is also a doctor of management from Wuhan University, an MBA from Fudan University and a postdoctoral fellow in business administration from Renmin University of China. He is also the director of Shanghai Young and Middle-aged Science and Technology Management Talents Capacity Building Promotion Association, and also serves as the director of several high-tech companies.
Compared with the uneven entrepreneurial team of building materials enterprises, Xin Chunhua's team quality adds a lot to Yingshuo's investment in Tian Quan.
However, in Chen's position, Yingshuo's team increased stability. In 2003, the three vice presidents, chief engineers and financial managers who founded Yingshuo with Xin Chunhua were all on the job.
This is what Xin Chunhua is proud of in front of investors. "Our six partners have worked together for more than 60 years."
The integrity of investors is also very important.
Some investors interpret the "opportunity" of the economic crisis as that the investment price is cheaper: it is good to take a company with 10 times PE when it is good, and it is good to take four or five times the price in the economic crisis.
In the second half of 2008, when the impact of the economic crisis became increasingly apparent, it was decided to invest in Chen.
Yingshuo started out as a waterproof and crack-proof product. However, it soon found that the market for waterproof materials was not very large, and the investment and energy did not return to the expected performance.
In 2005, as the country began to pay more and more attention to building energy efficiency, it has passed laws and regulations to force building energy efficiency.
As early as 2005, Xin Chunhua felt that there was an opportunity in the energy-saving market in the future, and he gradually formed his own set of heat preservation material formula.
External wall thermal insulation and energy-saving materials have accounted for more than 90% of Yingshuo's sales. Yingshuo has 6 holding subsidiaries and 15 offices, and has developed more than 60 agents.
According to Mr. Zhang, the new wall and building energy-saving materials branch of Shanghai Building Materials Industry Association, there was a big building energy-saving market in 2005, and there were many enterprises making building energy-saving materials, among which there were many in Shanghai alone, and the competition was fierce.
Fierce competition is a problem that Chen thinks, but he thinks that "this industry still has opportunities."
After the investment, Chen's idea is to help Yingshuo do some industry mergers and acquisitions, use his popularity to help Yingshuo refinance, and follow suit.