The key to investment institutions is human effectiveness. This is a people-oriented business, depending on how much everyone can do.
Editor’s note: This article is from WeChat public account “Blue Hole Business” (ID: value_creation), author Guo Chaofei, reviewing Chen Qiulin.
Fu Jixun likes Marvel movies. Because he is too busy, he usually watches them on an airplane. But even more busy, even this time was squeezed out.
As a management partner of GGV Jiyuan Capital, Fu Jixun has an investment career of more than 20 years. He has invested in star projects such as Baidu and Qunar and participated in many mergers, such as Youku Tudou, Qunar Ctrip, Didi Kuaidi. , Full trucks, Grab and Uber, etc., have also been labeled “M & A matchmaker” label.
The cold winter of capital is the basic argument of the current investment circle. Old rivers and lakes like Fu Jixun have to admit, “In 2019, not stepping on the air, and not hitting a particularly large mine, is actually an achievement.” For the fund industry, he Judging that 2020 may be a watershed, good funds stand out, and bad ones may be eliminated and shuffled.
The general impression of GGV to the industry is that it is robust. Perhaps because of this, Fu Jixun is lucky in 2019.
In 2019, GGV realized a cash withdrawal of more than 300 million U.S. dollars, and three invested companies were listed in the United States and China. Especially, the old company of Jinshan Office WPS moved Fu Jixun. He commented that Kingsoft Office WPS is also a very rare company. Founded 31 years ago, it is considered an old man in the Internet industry. Such an established company has finally gone public after many years of ups and downs, and its performance on the first day of listing was particularly good. The stock price has increased by 200%.
How long will the capital winter continue? No one can give an accurate answer.
Fu Jixun believes that the present may be the best time to invest in the future. Often when the market is bad, it is the best time to invest. At this moment, reverse thinking is even more necessary.
Here is a summary of the recent dialogue between Blue Hole Business and Fu Jixun:
Watershed
Q: They are all talking about the cold winter of capital. What is your feeling?
Fu Jixun: The market is particularly uncertain in 2019, going from high to low. Everyone is paying attention to the various effects brought about by the Sino-US issue. This is a big environment.
We are also judging the direction of the overall economic situation in the future. In the next two to three years, there will be a lot of uncertainty in the global macro economy. It has entered a new stage, and it was previously globalized.The globalization of talents and supply chains has created high market liquidity. But in the past year, “globalization has been blocked”, this is a very obvious difference.
Q: What impact and changes will this have on the Chinese market?
Fu Jixun: In the process of hindering globalization, it means that many industrial chains and supply chains are repurchased. China may develop more import substitution industries. This import substitution is diversified, including government, state-owned enterprises, and state-owned enterprises. consuming behavior. Another example is the restructuring of the mobile phone supply chain, which may require better domestic technology and products. There are new changes in it.
New opportunities take time and cannot happen overnight. Newly selected cultures require cycles and processes, which may be at least two or three years. How do entrepreneurs make choices and choices during this period? It is a question worth thinking about.
China has also entered a new stage. Starting from 2018, the employment population has grown negatively. At the same time, with the aging, China requires higher efficiency per capita capacity or efficiency. This is why we previously advocated EvolvingEnterprise. In the past 20 years, China has been a large To C market. The opportunities brought by the Internet of To C will be the Internet of enterprises in the next 20 years.
So, in the past year, our entire team has spent more time watching the corporate Internet. The enterprise Internet I am talking about is a more comprehensive enterprise Internet, not only SaaS, but also a series of opportunities such as B2B platform, intelligent terminal IOT, robots and so on. So China will definitely have a chance in the future.
Q: Under the market uncertainty, GGV seems to have been expanding in terms of market and personnel in the past year.
Fu Jixun: Since 2010, our number has been increasing. Now the entire global team has less than 100 people. The asset management scale (AUM) is US $ 6.2 billion. Our human efficiency is very high. As an investment organization, the key is actually human efficiency. This is a people-oriented business, and it depends on how much everyone can do.
In a relatively long period of time, our number has been steadily increasing, and the scope of investment has also been expanding, but it has not been an explosion, not from dozens of people to hundreds. Of course, our investment logic and methods are also very different. Instead of relying on people and tactics to cover the market, we rely more on small investment teams to quickly identify and quickly select, and then use our mid-stage capabilities to empower investee companies. This model allows us to be more effective.
Everyone is talking about the cold winter of capital. The market will be more uncertain in the next two years, but this time may be the best time to invest in the future. Often when the market is bad, it is the best time to invest. At this moment, reverse thinking is even more necessary. In the cold winter, valuations are more rational, and less money makes capital gains more efficient for companies that get the money. Of course, the next two years are not necessarily good for withdrawalTime, but look back five or ten years later, it may be better to return on several projects invested in 2019 and 2020. This may need to be proven in the next five to ten years.
Q: How to judge the trend of the investment industry?
Fuji Jixun: I think that in the next one or two years, it will be easier for brands with well-performing funds to get money. The so-called brand fund or brand oligopoly will gradually take shape in China in the next three to five years.
2020 may be a watershed year. Good funds stand out, and bad ones may be eliminated or shuffled. This phenomenon can already be seen in 2019, and the process of survival of the fittest will continue in the next one or two years. In my opinion, this is a good thing. Letting a high-quality team, a high-quality enterprise, or a high-quality organization stay, everyone’s investment will be more precise, and the value of the invested company will be enhanced.
Achievement without stepping on the pit
Q: Use a few keywords to describe your 2019.
Fu Jixun: Relatively stable, especially in an environment where 2019 may face more challenges than in previous years.
Q: What is the biggest gain of GGV in 2019?
Fu Jixun: The biggest gain is that we went out of China and the United States to further realize the layout and dream of globalization. This year, we opened our Singapore office, invested in two Indian projects, a Vietnamese company, and there will soon be two Indonesian companies. Of course, it is not as simple as opening an office, and investment teams in Southeast Asia and India have also been established.
Under the bad market environment, we realized a cash withdrawal of more than 300 million US dollars, which means that the cash we returned to LP exceeded 300 million US dollars, this amount does not include the flow generated by the listing. Sexual value. This year, three GGV-invested companies went public in the United States and China, namely Slack, Peloton, and Kingsoft Office WPS.
This year, GGV has strengthened its capabilities in post-investment services, including talent operations, market brands, and government public relations. It has helped the investees to do many key things, which makes me feel good. “Investment management and retreat”, investment institutions in the “management” of the extra effort, often can greatly help invested companies.
Q: Are there any shortages or mistakes?
Fuji Jixun: If you miss, Sino-US relations, trade and technological frictions, geopolitical issues, etc. in the entire macro environment have brought a lot of pressure, and some of our portfolio pressures have increased a lot. This year has not been easy, and the entire market faces many challenges in all aspects. Especially in the past year, China ’s overall policyTight, many portfolio strategies and even personnel are facing adjustments. If you don’t step on the pit in 2019, it can be considered a very fulfilling thing.
Q: Have you summarized your personal gains and losses?
Fu Jixun: From a personal decision point of view, from the opening of the Singapore office to the layout of Southeast Asia and India, right or wrong is actually difficult to say now, only time can tell.
Q: Is there anything that makes you feel particularly fulfilled?
Fuji Jixun: Not stepping on the air this year and not stepping on a particularly large pit is actually an achievement. Overall, we have been relatively stable over the past year, which also reflects that the GGV as a whole is still relatively stable.
Q: What is your most desired wish or the most accomplished thing in 2020?
Fuji Jixun: GGV will turn 20 in 2020, and we are also veterans of the investment world. I personally invested in Baidu, GGV invested in Ali, and also invested in a series of more than 60 outstanding unicorn companies and other well-developed startups. It is not modest to say that the performance can be seen by everyone. In 2020, some of our invested companies have reached the listed volume, and there will also be exits from the listing. In terms of investment, I hope to continue to expand in the directions of localization and Internetization of enterprises.
From a team perspective, we will continue to grow. Although the market is not good, we completed the fundraising in 2018, which is a big money. We are also working as a RMB fund, which is relatively smooth compared with the market.
Q: What do you want to say to GGV colleagues in the new year?
Fu Jixun: In 2020, in fact, it is more important to do yourself well and to strengthen your business to a greater extent. The previous market environment made everyone relatively impetuous. Many times they were making comparisons. Fear and crisis came from competition. Many entrepreneurs were afraid of losing their opportunities and wanted to get more money, because they had to race to the ground and win the market. In my opinion, rapid growth, especially boosting seedlings, is not necessarily a good thing in the next year or two. As long as you do yourself well and your business is solid, the market space in the future will continue to increase with your own products and strength. Business needs time to release energy.
The answer is not the most important
Q: When investing, how do you judge whether a person has developed a replicable methodology?
Fu Jixun: I have been investing for twenty years and I will find that there may be some contrasts from investing in one person to understanding one. The feeling of investing in people is honed. It is difficult to say that there is an absolute template.An entrepreneur is not good, it certainly isn’t. For example, the founders of many technical backgrounds are engineering males, relatively introverted, but in the process of investment, you will find that people will change during the growth process.
So seeing people can only be said as a feeling. After investing for a long time, I have cooperated with the entrepreneur a lot, and I will go back to the review to see if there is any gap between this person’s judgment and my current understanding. The review process will gradually form a certain standard This is a subconscious standard and it is difficult to list.
Q: If there are two people, one is a elite graduate of a prestigious school, the other is very comprehensive. There is no obvious shortcoming. Which one would you choose to vote for?
Fu Jixun: From an investment point of view, depending on what he does, people and things must match. From the perspective of cultivating people, I hope that a person is more comprehensive. In the end, there will definitely be long boards and short boards, but the short boards are not very short, and the long boards can be as long as possible. Back to investing, it depends on what he does, which determines what is required of this person.
Q: How do you invest in people you know or acquaintances?
Fuji Jixun: I have a friend who has known for a long time is currently starting a business, and the general background is also in line with the trend of Chinese entrepreneurs going abroad. But I have been thinking or judging whether his comprehensive ability can control a large enterprise? We have known each other for so many years, and I know his character and comprehensive ability. He has the technical ability, but I can’t manage a big company well, I’m not quite sure. Therefore, although I am a friend for many years, based on this uncertainty, I may not choose this project for investment.
When investing, sometimes people who are close to you may know better, but it ’s easy to use emotion to make choices, so I will try to objectively judge whether an individual is suitable for this project or this company.
Q: So your work largely looks at people from all angles?
Fuji Jixun: You will always wonder what this entrepreneur is. When we communicate and communicate with entrepreneurs, we will ask a variety of questions, but to a large extent the answers are not the most important. His thinking, analysis, and expression, and the response when thinking about problems, as well as his personality, Thinking and so on are more important. I will use these things to deduce whether the entrepreneur is suitable to do this.
We will also understand from the side how entrepreneurs communicate with other investors, how to communicate with the team, and how the team evaluates him. Therefore, there are many comprehensive factors in it. I want to match what he does with him. The more consistent and more consistent the probability of success should be.
Q: Use a few keywords to describe your 2019.
Fu Jixun: Relatively stable, especially in an environment where 2019 may face more challenges than in previous years.
Q: What is the biggest gain of GGV in 2019?
Fu Jixun: The biggest gain is that we went out of China and the United States to further realize the layout and dream of globalization. This year, we opened our Singapore office, invested in two Indian projects, a Vietnamese company, and there will soon be two Indonesian companies. Of course, it is not as simple as opening an office, and investment teams in Southeast Asia and India have also been established.
Under the bad market environment, we realized a cash withdrawal of more than 300 million US dollars, which means that the cash we returned to LP exceeded 300 million US dollars, this amount does not include the flow generated by the listing. Sexual value. This year, three GGV-invested companies went public in the United States and China, namely Slack, Peloton, and Kingsoft Office WPS.
This year, GGV has strengthened its capabilities in post-investment services, including talent operations, market brands, and government public relations. It has helped the investees to do many key things, which makes me feel good. “Investment management and retreat”, investment institutions in the “management” of the extra effort, often can greatly help invested companies.
Q: Are there any shortages or mistakes?
Fuji Jixun: If you miss, Sino-US relations, trade and technological frictions, geopolitical issues, etc. in the entire macro environment have brought a lot of pressure, and some of our portfolio pressures have increased a lot. This year has not been easy, and the entire market faces many challenges in all aspects. Especially in the past year, China ’s overall policyTight, many portfolio strategies and even personnel are facing adjustments. If you don’t step on the pit in 2019, it can be considered a very fulfilling thing.
Q: Have you summarized your personal gains and losses?
Fu Jixun: From a personal decision point of view, from the opening of the Singapore office to the layout of Southeast Asia and India, right or wrong is actually difficult to say now, only time can tell.
Q: Is there anything that makes you feel particularly fulfilled?
Fuji Jixun: Not stepping on the air this year and not stepping on a particularly large pit is actually an achievement. Overall, we have been relatively stable over the past year, which also reflects that the GGV as a whole is still relatively stable.
Q: What is your most desired wish or the most accomplished thing in 2020?
Fuji Jixun: GGV will turn 20 in 2020, and we are also veterans of the investment world. I personally invested in Baidu, GGV invested in Ali, and also invested in a series of more than 60 outstanding unicorn companies and other well-developed startups. It is not modest to say that the performance can be seen by everyone. In 2020, some of our invested companies have reached the listed volume, and there will also be exits from the listing. In terms of investment, I hope to continue to expand in the directions of localization and Internetization of enterprises.
From a team perspective, we will continue to grow. Although the market is not good, we completed the fundraising in 2018, which is a big money. We are also working as a RMB fund, which is relatively smooth compared with the market.
Q: What do you want to say to GGV colleagues in the new year?
Fu Jixun: In 2020, in fact, it is more important to do yourself well and to strengthen your business to a greater extent. The previous market environment made everyone relatively impetuous. Many times they were making comparisons. Fear and crisis came from competition. Many entrepreneurs were afraid of losing their opportunities and wanted to get more money, because they had to race to the ground and win the market. In my opinion, rapid growth, especially boosting seedlings, is not necessarily a good thing in the next year or two. As long as you do yourself well and your business is solid, the market space in the future will continue to increase with your own products and strength. Business needs time to release energy.