Capital History Of A Venture Capital And Financing Institution And 500 Small And Medium Sized Enterprises

Since June 1st, companies that have landed on SME boards have begun to make their debut.

And behind the Shenzhen company, which is or will be on the market, people can always see the shadow of a venture capital institution.

In the case of difficult financing for small and medium-sized enterprises and the difficulty of withdrawal of venture capital, it has been active in the high risk industry of high and new technology investment guarantee. In the past 10 years, there have been more than 1500 capital relations with more than 500 small and medium enterprises.

It has created brilliance. It has created a record of 11.5 times the value added of venture capital in China in the past 5 years through the first batch of large family laser that landed on the SME board, and it has also tasted risks. Not long ago, because of the bankruptcy of von lay company, it is very likely to repay 45 million yuan of secured loans.

Every innovation in its business is redefining the threshold of capital relations between small and medium-sized enterprises, and every move and change of small and medium-sized enterprises has become the source of its survival and development risks.

To read its 10 year capital story with 500 small and medium-sized enterprises is like reading a history of financing for SMEs in China: Investing and financing institutions can see the law of risk from their success or failure, and SMEs can also understand the art of financing.

This is the most "close" interview of the company's reporters. The Shenzhen hi tech investment Company limited by guarantee () is in the same office as editorial department of the company magazine.

From the high tech conference room to the East, it is less than 500 meters, which is the green glass building of the Shenzhen stock exchange.

A few days later, these small and medium-sized enterprises and brokerages were excited about the SME board listing here.

The big family laser, supported by high tech investment and still holding 5% stake before the issue, has become one of the first 8 listed companies.

Before long, MINDRAY electronics, another company that it supports and has passed through the SFC, will also be listed here.

The small and medium-sized enterprise board has finally arrived, and the small and medium-sized enterprises have been excited. Many small companies that have only been established for one or two years can not wait to squeeze the train, asking if we can find a way to package them on the market. Many brokerages also call us to recommend the enterprises with better potential.

Interview with Wang Xinsheng, assistant manager and manager of investment department, when the SME Board of the Shenzhen Stock Exchange was launched, our conversation was interrupted by telephone.

"These days I receive more than 10 such calls every day," Wang's voice was hoarse.

3 years ago, the list of 60 furniture enterprises with good development potential recommended by Shenzhen for gem was 34, accounting for 56%.

In addition, in 2002, in Shenzhen, 10 of the small and giant enterprises in the industrial and commercial field and 100 of the top 100 small and medium enterprises, 6 enterprises and more than 30 enterprises were supported by high-tech enterprises.

"There are few people in Shenzhen's high-tech enterprises who don't know the high tech investment. It has set up such an image that if you are a high-tech company in the start-up and growth stage, you can't solve the problem of capital through self financing and internal growth, and banks are unwilling to lend money. The general venture capital institutions are not interested. Listing is even more impossible. Then you can try high tech investment."

The chief executive of a small and medium-sized enterprise described this to the company reporter.

In the list of high tech clients, reporters found ZTE, HUAWEI, HYT, Tongzhou, BYD, Dazu, Kexing, Madit, Kingdee and other well-known enterprises.

(unfinished), the "capital driver" of the big family laser, who did not care about the gains and losses of the control, made the great family laser win the precious development opportunity and eventually became the leader of the industry and the first landing of the SME board.

In June 11th 2004, Gao Yunfeng successfully sold the company again: his big family laser became a member of the first 8 companies that landed on the SME board in Shenzhen, and publicly issued 27 million shares of A shares. The last time he sold himself was in 1999, in the face of huge financial pressure, he sold a 51% stake in a company that had been struggling for two years to a venture capital institution, thereby bringing in a valuable 4 million 380 thousand yuan investment and more financing channels, so that the company survived.

It is expected that it will bring 238 million 478 thousand and 600 yuan in real estate collection fund to the big family laser.

Analysts believe that the price on the first day of listing will be between $17~21 and $25 per share, at a price of 9.20 yuan per share. The closing price may be around 20 yuan.

In post listing companies, Gao Yunfeng has direct and indirect ownership of 43.36% of the big family laser, so that his personal fortune is likely to reach 1 billion yuan.

Shenzhen venture capital, a venture capital institution holding a 51% stake in the stock market in 1999, once again enjoyed the thrill of rapid appreciation of assets. Its retained 5% stake was 14 million yuan in net assets. In early 1999, it received 430 thousand yuan in the 5% equity interest and more than 32 times in the 5 years.

If the market price is calculated at 20 yuan per share, the market value of these shares will exceed 30 million yuan, and the appreciation will be nearly 70 times.

And 3 years ago, the high tech investment company pferred 46% of the shares at a price of 24 million 700 thousand yuan, creating a record of 5 times the value added of venture capital two years.

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Like most hi-tech enterprises, the founding of the big family is the first to master some technologies, then use the ready made parts of the market to save the technology into products, so that the funds are gradually rolled up.

Gao Yunfeng, the founder of the great family, attacked the laser marking machine at the University, which is a printer that can be engraved on belt buckles, clothes, watches, computers and integrated circuits.

At that time, laser marking machine mainly depended on imports, the price was over 100 thousand dollars, and the market demand was very large.

Some Hong Kong businessmen found him and asked him to make several units. Gao Yunfeng found that this product was very market, and founded the great family industry in Shenzhen.

In the first two years, the large family only experienced two small-scale pawnshop financing.

Gao Yunfeng took his van two times, once for 90 thousand yuan, and once for 30 thousand yuan.

In the first half of 1998, the big family industry already had 2 million yuan assets.

But at that time, the big family is still in the state of small workshop production, and it is difficult to scale up without financial support. It is a typical enterprise that can not die or die. If suddenly encountered large orders or produce a few bad debts, the operation of the company will be seriously affected.

More importantly, this state is likely to have a negative effect on morale.

At this time, China's venture capital has just started, and the growth enterprise market is far from being able to go.

For the struggling families, financing became the biggest problem at that time.

(unfinished) the "century man": I have prepared the excitement for the capital, the "century man" who had passed away with the "death". With its openness, pparency, technological leadership and team vitality, he has been able to save himself from danger and return to life.

"Shenzhen high tech investment favor us, mainly because we have something to excite them."

Without their financing guarantee, we would have gone bankrupt 5 years ago. "

Yuan Dan, general manager of Shenzhen century communication company, told reporters of the company.

In October 1998, Yuan Dan and other 3 main business partners raised 2 million 260 thousand yuan of venture capital and prepared to produce optical fiber wiring. This is a segmentation market for optical fiber communication.

They never thought that after the development, production and marketing of products, the funds had been exhausted.

By April 1999, the company had basically stopped paying wages except for front-line workers.

"Fortunately, the entrepreneurs of the century have at least three or four years of experience in this industry. It is easier to make products, and some market relationship networks have been established. Soon, we have orders."

With these orders, Yuan Dan moved 2 million yuan from his friends and the company was alive again.

The experience of Yuan Dan has summed up the experience that cash flow must be the first place in both venture capital and later project investment.

"You must be clear about when the project will generate cash flow, how much money you need to invest, how much money you can get into it, and how well you must match each other. Failure is not always due to bad projects, but rather, you choose an item that cannot be achieved by force.

The high risk of the start-up period makes banks and other major suppliers of funds often get away from it, and everything depends on themselves.

Yuan Dan has been adhering to this principle in the course of the development of people in the later century.

In the 2001, the income of the century people was as high as 240 million yuan.

There are two relatively good projects in front of Yuan Dan. If they can be implemented, it is likely to have a good effect on the follow-up development of the people in the 21st century.

However, Yuan Dan chose only one of them, and only tentatively invested 5 million yuan (about 15 million yuan for the whole project).

His reason is that although there has been a big increase in revenue, there is also a great demand for liquidity. At the same time, the global economy has begun to decline, and the communications industry has been greatly affected.

In 2002, the profits of China's telecommunications industry slumped, and the sales revenue of people in the century dropped to 160 million.

Yuan Dan made a prompt decision to stop the additional investment in the already launched projects and pfer some of the shares.

"Although this has reduced our growth rate to a certain extent, it has saved us from bankruptcy."

The way of financing is not smooth. Yuan Dan and his business partners know that the development of a company is far from enough. It is necessary to get through the main financing channels such as banks.

"The bank can not give us loans, we have no collateral, two no credit accumulation, three no business cash flow as a guarantee."

Finally, they thought of the guarantee.

The Shenzhen municipal government attaches great importance to the industrialization of high and new technology. It has a special three fund loans for high-tech enterprises, and has directly or indirectly funded several securities or Vc firm to support the establishment and development of high-tech enterprises. As long as your technology and products really have prospects, it is possible to get loans through these institutions.