How To Do "Virtual Work" In Enterprise Investment

　　 Entrepreneurship The wealth created by investment has been "mythical". At present, PE and VC in China are in an unbalanced state. Excess capital is driving the industry to increase. In the United States silicon valley It takes 20-30 years for a fund to grow from $30 million to a scale of 500 million -10 billion dollars. At present, the growth of PE and VC market in China seems to be effortless. Obviously, the capital market is "virtual", the enterprise is "real", and the capital market must rely on the entity of the enterprise to get a return, so as to start business. Investment Healthy development.

It is known that "venture capital" in English is "venture capital", which is also translated into " risk Investment "is a kind of investment way to equity investment in start-up enterprises, in order to invest capital start-ups mature or relatively mature, and obtain capital gains through transfer of shares. Among them, the "start-up enterprise" includes growth enterprises in the process of creation, such as seed stage, start-up stage, expansion stage and transition period before maturity, but the growth enterprises in the process of reconstruction.

I remember that in the past few years, venture capital in China has been booming for a while. But because of the lack of policies and regulations, the domestic venture capital industry has been in a low ebb, and many people have left the industry one after another. In March 1, 2006, China implemented the Interim Measures for the management of venture capital enterprises, which is a normative document for venture capital enterprises in China. The ten special ministries and commissions of the national development and Reform Commission issued a special fund management method, which is the first time in the country. This is not only for loans to banks, investment funds can not exceed 50% of its own funds...... These constraints restrict the development of venture capital industry in China. At the same time, venture capital should be stripped of the deified aura and restore its original purpose. Under the influence of unfavorable factors such as the continuous appreciation of RMB, the increasingly severe form of foreign trade, the rising price of raw materials, the increase of labor costs and the further tightening of credit, enterprises are facing an unprecedented test. With the increasing operating costs and the increasing profit margins, the export oriented private entrepreneurs are seeking to change and break through. Venture capital investment seems to be an option.

In the second quarter of 2008, the Research Report on China's venture capital and private equity investment shows that in the two quarter, 159 companies were funded by venture capital institutions, and the amount has been disclosed to US $1 billion 204 million, an increase of 31.4% and 73.5% respectively over the same period last year. In addition, in the two quarter, a total of 37 enterprises in mainland China were invested in private equity funds, and the number of private equity institutions participating in the investment was over 30, with an investment of $2 billion 559 million.

On the one hand, start-ups and growing businesses are in urgent need of capital, while the other is venture capital seeking opportunities for capital appreciation. It is reported that some places, such as Hangzhou, are setting up the venture capital compensation method and the exit mechanism of venture capital guidance fund. They will strive to take the form of state sponsored and private placement. The first phase will raise 5 billion yuan to promote enterprises to become bigger and stronger. In this regard, the author thinks that the practice of Wenzhou can be used for reference. Faced with the situation of credit crunch and export decline, Wenzhou's manufacturing industry, which had "unlimited scenery", had to reconsider its living environment. Perhaps 20% of SMEs are in a state of shutdown or semi shutdown. Private capital is looking for better exports.