We are standing on the edge of the global financial crisis, standing at the crossroads of history.
Editor’s note: This article comes from WeChat public account “FOFweekly” (ID: FOF_weekly) , author Kong Xiaolong, founding partner of the Fund Weekly.
In 1868, the Jiangnan Manufacturing Administration successfully assembled a self-made hull and steam boiler with a refurbished foreign steam engine-the first robotic ship “Tianji” built by the Chinese to launch a sea trial.
A British man made a visit to the arsenal and was surprised to see the return from these venture investments: “Several artillery-laden transport ships and gunboats have been launched. Although operated by the Chinese, nothing has happened. Accident. “
Unfortunately, the “Asian First Fleet” Beiyang Marine Division was later embezzled by the large LP “Lafayette” to repair the garden, which was destroyed in the Sino-Japanese War. More than a century has passed, the valuation of this super real estate in the Summer Palace has been astronomical, but the Qing LP did not survive the day when the investment exited, which facilitated the declaration of bankruptcy in early 1912.
Liquidity anxiety
From the Westernization Movement to reform and opening up, China’s venture capital has always been inseparable from the national policy. The “double innovation” tide has brought a long-lost spring. The new asset management regulations at the end of 2017, although intended to deleverage trillions of financial assets, also indirectly hurt nearly 10 trillion risky investments.
The unexpected outbreak has more direct damage to the investment industry. Yuan He Chenkun did a survey after the resumption of work in February, including the head partners of 64 invested GPs and 40 other market-oriented GPs: 33% of GPs hope that regulatory authorities can properly open new rules on asset management to increase market Supply on the capital side; 22% of GPs propose to reduce the tax burden on the industry and attract more private capital to participate in equity investment. It is expected that the new policy will increase liquidity.
The first barrier that affects the rapid flow of funds of investment institutions is, first of all, the filing of funds.
In August 2018, the city of Guangzhou temporarily suspended the industrial and commercial registration of private equity fund institutions. Following the cessation of registration of asset management companies in active areas such as Zhuhai, Hangzhou, and Ningbo, the last one of the five private equity gathering areas in Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou can NoteThe “pure land” of the private equity firm also failed.
When Hu Boyu left Blue Lake Capital to start XVC, he encountered the anxiety that the fund filing was almost impossible. This means that the fund’s bank account cannot be opened, which means that the LP’s money cannot come in, and it also means that management fees cannot be received, but all kinds of expenses are like running water. The rent, decoration, lawyers’ fees, and travel expenses are not small numbers. . With the investment team in place one by one, the monthly salary and welfare expenditures have gradually increased.
In September last year, Dongfang Fuhai published a spit out, “Why are VCs who have invested in the science and technology board still living in poverty? “One of the conversations is very classic:
People who eat melon: Congratulations on your investment in the Science and Technology Innovation Board, and you can cash out some money!
Aggrieved me: Wait a minute, haven’t you heard of the lockup period?
People who eat melon: Then wait a year. Do n’t drop the stock price too much within a year to get huge returns.
Aggrieved me: Wait a minute, do you know that you can’t sell everything immediately after the lock-up period?
The people who eat melon: That’s okay, let’s reduce it slowly, so what’s the rush?
Aggrieved me: buddy, I can’t wait, the LP behind me can’t wait …
It’s like having to spend all your life from the upper account when you were born, working on a loan to buy a house, and not letting it sell until the house price has risen. Finally, the policy has come to hurt you by mistake, and I want to break your loan …
This lingering anxiety runs through the history of China ’s venture capital. At that time, Beiyang Marine ’s military expenditure investment was diverted without money to update equipment. Deng Shichang faced the Yoshino rapid-fire gun at sea, anxious?
Someone has to welcome spring
The full implementation of the registration system in the new version of the Securities Law will gradually bring A-shares into full line with international standards, and the suspension of IPOs will become a history; new refinancing regulations will be implemented to streamline the issuance of fixed increases; China Foundation will issue a notice to facilitate registration of private equity funds The speed-and-convenience of the “division system” was tried on the trial, and the selected institutions were approved on the day of filing. Such speed and convenience were unimaginable in the past.
Liu Xiaoying, the founder of Eagle Fund, has participated in several VC investment policy consultation meetings held by the China Securities Regulatory Commission and the China Foundation, and each time he puts forward suggestions on liquidity: “When entrepreneurs have nothing, we invest Most of them are not on the day of listing. It is difficult to wait until the listing. Generally, the sale is banned for one year, and the shareholding ratio is locked for three years. Often, the funds are due to be liquidated, but the shares have not been lifted. . “
At 8 pm on March 6, the lights of Block A of Fukai Building, 19 Financial Street, Xicheng District, Beijing were still bright. Guidance on the transfer of the New Third Board and the reduction of new investment funds by venture capital funds have been launched.
The full implementation of the registration system in the new version of the Securities Law will gradually bring A-shares into full line with international standards, and the suspension of IPOs will become a history; new refinancing regulations will be implemented to streamline the issuance of fixed increases; China Foundation will issue a notice to facilitate registration of private equity funds The speed-and-convenience of the “division system” was tried on the trial, and the selected institutions were approved on the day of filing. Such speed and convenience were unimaginable in the past.
Liu Xiaoying, the founder of Eagle Fund, has participated in several VC investment policy consultation meetings held by the China Securities Regulatory Commission and the China Foundation, and each time he puts forward suggestions on liquidity: “When entrepreneurs have nothing, we invest Most of them are not on the day of listing. It is difficult to wait until the listing. Generally, the sale is banned for one year, and the shareholding ratio is locked for three years. Often, the funds are due to be liquidated, but the shares have not been lifted. . “
At 8 pm on March 6, the lights of Block A of Fukai Building, 19 Financial Street, Xicheng District, Beijing were still bright. Guidance on the transfer of the New Third Board and the reduction of new investment funds by venture capital funds have been launched.