Investment Nuggets: Nuggets Look For Projects And Start Targeting Rural Areas

This is a market with a population of 900 million, even more than 700 million of the permanent population. This is a market that occupies more than half of the country's territory. It is also a market enjoying national investment policy tilt and financial support; this is China's rural market.

It is wrong for any investor to ignore the rural market.

But at the same time, the per capita disposable income of China's rural market is only 1/3 of that of cities and towns, and agricultural production in most parts of China is still at a low level, though grain production has increased year after year.

In addition,

The development of investment environment is far behind the city. Any investor who blindly enters the market may encounter risks.

"Facing the rural market, venture capital industry has formed two opposite trends."

"A trend is idealistic, hoping to change agriculture and rural areas, which can sacrifice investment returns for this change.

Another trend is wait-and-see and a little pessimistic. Although the state and the government encourage rural and agricultural investment, these investors remain unmoved. In their view, investment projects involving agriculture are not attractive, "the investment and investment expert added.

Only from

From the perspective of revenue, the investment income of investing in rural projects and agricultural projects is lower than that of industrial projects and urban projects. This conclusion can also be reflected from the financing of investment and financing projects.

Although agricultural investment has been heated up in recent two years, the number of agriculture related financing projects has increased significantly. Agriculture, forestry, animal husbandry and fishery financing accounts for 12% of the financing projects of the investment and financing sector. It is only next to the IT Internet financing project. However, the investment in agriculture, forestry, animal husbandry and fishery accounts for only 4% of the investment and investment funds contributed by the investment and financial sector.

Low income has become a major obstacle to Financing Agriculture related projects.

The overall situation sometimes can not cover up the partial sparkle and light.

Although the venture capital industry has many hot investors and few actors, there are some agricultural projects that have developed rapidly after the intervention of wind investment.

The investment and financing sector has made some judgments on typical agriculture related projects below, hoping to find the secret of success in agriculture related projects.

Those successful agriculture related projects

Ling'an mountain

Ling'an is located in the north of Zhejiang Province. It is the hometown of Pecan in China. The pecan area of Ling'an occupies over 60% of the whole country.

But for a long time, the output of hickory is not large, and the sales range is mainly in Zhejiang area.

But when the online shopping was developed, many Hangzhou e-commerce companies invested in Ling'an pecan. With the help of the electronic business platform, Ling'an hickory sold to all parts of the country.

This season is the season for hickory marketing. Many of the companies that sell pecans in Ling'an are e-commerce companies.

Rural industrial belt: this year, the mainstream B2B platform also appeared at the same time a new section, called the "industrial belt".

The so-called industrial belt is a product concentrated production area, such as Zhuzhou's crane parts industry belt, Shandong Liangshan's Trailer industrial belt and so on.

Investment and financial sector survey found that many industrial belts are located in rural areas, and some projects have also been invested in venture capital.

Rural Tourism: in the second half of 8 months, the investment and financing sector helped a Sichuan tourism project successfully raise 150 million yuan, which is the second financing of the project in the investment and financial circles, and is used for the two phase development of the project.

According to the information provided by the investment and financial circles, the site of the project is also located in the more remote rural areas, but the first phase of construction has made investors taste the sweetness of the project.

Entry point for investing in agriculture related projects

By listing several successful projects involving agriculture, we can sum up several successful experiences in agriculture related projects.

The so-called experience is actually the starting point of choosing agriculture related projects.

First, take agriculture as the breakthrough point.

Agriculture is farming, but what to plant and how to grow?

If venture capital wants to succeed in investing in agricultural projects, it has to try to answer this question - what kind and how?

If venture capital funds are chosen for planting agricultural projects, priority should be given to the selection of characteristic agriculture.

The so-called characteristic agriculture is "the only part".

For example, many Hangzhou capital investment in Ling'an pecan is an example, the whole country's walnut is basically produced in Ling'an, I have no, this is the characteristic agriculture.

There are many such special agricultural projects, such as featured fruit, tea, pollution-free food, green food, wild food, green animal husbandry and so on.

Another problem is how to plant it? Is it a modern agricultural planting mode or a traditional planting mode? Is it a green pollution-free mode or an organic farming mode? This is how to breed.

Generally speaking, modern agriculture can maximize agricultural output, green agriculture and organic agriculture, which are welcomed by the urban population. Investors should give priority to these agricultural production modes.

Second, take the countryside as the breakthrough point.

What advantages do rural areas have compared with cities? Apart from land resources, the rest are farmers.

Compared with the urban population, the cost of labor is much lower than that of the urban population, including the urban population, which has the advantage of labor cost.

Therefore, some of the factories with low technical content demand go to the countryside in succession. The industrial belt of the electricity supplier is formed under this logic.

Not only small businesses are complying with this trend, including giants such as Foxconn, but also in rural areas, such as Foxconn Zhengzhou factory and Jining factory.

Therefore, investors can pay close attention to projects that hope to make use of rural low cost labor force. After all, such projects can produce products at a lower cost than peers in the next five years.

Third, take the local government as the breakthrough point.

According to the experience of the investment and financial circles, many local governments have a strong impulse to invest in the countryside, especially in the central and western regions where the rural economy is underdeveloped. This is because the development of the rural areas is an important assessment factor for their achievements.

However, these underdeveloped rural areas often have limited financial capacity and are in urgent need of social capital, especially the involvement of venture capital. However, most agriculture related projects have limited returns. At this point, local governments may choose a number of high-quality agricultural projects to attract foreign investment in order to attract funds.

Wind investment funds and institutions can pay close attention to this kind of government investment projects, which may include one or two high-yield agriculture related projects, such as a tourism project promoted by the investment and financial sector in Sichuan.

In addition, venture capital investment in such projects can often get a series of advantages such as preferential policies and preferential tax policies.

The investment and financial sector finally reminded the VC that the biggest resource in rural areas is the impulse of development of land, farmers and local governments. Venture capital's choice of agriculture related projects must also take the three elements as the core and breakthrough.