Nowadays, it is not the cold winter of capital, but the return to the source, “everything returns to the ocean.”
Editor’s note: Author Zhang Aoping, If he is the vice president of the Financial Research Institute, he is the managing director of Capital.
First, entrepreneurship and investment return to the era of origin: everything returns to the ocean
In 2014, the horn of “Popular Innovation, Entrepreneurship” blew on China’s 9.6 million square kilometers of land, and the entrepreneurial and investment markets were ignited in an instant. The equity investment industry has begun to accelerate its development with thousands of entrepreneurs who have embarked on a dream-seeking journey. The era of “global venture capital” has also come.
In 2015, the total investment amounted to 525.5 billion yuan. By 2017, the annual investment amount exceeded the trillion scale, reaching 121.1 billion yuan. By entering 2018, with the changes in the new regulations on asset management, the IPO review of A-shares, the violent thunder of listed companies, the break-up of overseas listings, and the changes in the market environment, the equity market has fallen from a feverish moment in the past three years. At the freezing point, the fundraising side began a sharp decline.
In the blink of an eye, more than halfway through 2019, the equity market has completely entered the era of the ice age. In the first half of 2019, the total investment in the equity market only reached 261.1 billion yuan, a sharp drop of 59% year-on-year, returning to the level of 2015. But unlike 2015, the fundraising side continued to decline. In the first half of 2019, the amount of fundraising decreased by 19.4%.
Reviewing the past five years, entrepreneurs and investors have returned to the original point. The frenzy and irrationality of capital accelerated the rapid expansion of the bubble, and accelerated the pace of the unicorn to the altar. But when the enthusiasm is no longer there, the rapid rupture of the bubble and the unicorn that has been sealed are instantly falling into the altar.
If there is no fanaticism of capital, ofo is difficult to complete 12 rounds of financing within 3 years, there is a business crisis, billions of dollars to pay for it; without the fanaticism of capital, LeTV can not raise 79.1 billion in seven years After investing 150 billion yuan to create a dreamlike world of ecological world, investors who participate in it will be “suffocated” together. If there is no enthusiasm for capital, enters the winter of capital in 2018, China’s new economic unicorns, after the primary market can no longer maintain high valuation and continued financing, it will set off a wave of bloody overseas listings. 33 companies went to the United States and went to Hong Kong to list, more than 90% of them broke, even more than half of them were broken on the day of listing.
Entrepreneurship and investment should not be irrational choices, but it is precisely because of the enthusiasm of capital in recent years and the myth of many overnight riches that have attracted more people and funds into this market. One side is more for rapid financing, lifting