VC Institutions Invest Heavily In Hard Technology Investment, Focus On Global Technology Innovation And Clarify Terminal Applications.

In June 8th, a financing information was particularly attracting attention. By the founder of BOE and the founder of Wang Dongsheng, the founder of China's liquid crystal display, Yi Si Wei has completed a new round of financing with a total value of more than 2 billion yuan.

This is Wang Dongsheng's departure in the semiconductor field after he left office as chairman of BOE in 2019, and is also a continuous bet by IDG capital on the hard technology project. It is understood that in 2019, IDG capital invested in the A round of financing. The new round of financing is also led by IDG capital and Jun Lian capital.

"We attach great importance to investment in hard and technological fields, especially advanced manufacturing, AI and so on. We are very concerned about this aspect, and are thinking with the entrepreneurs how to do it. A big change is that in the field of hard technology investment, entrepreneurs with technological resources may have more opportunities. In May 15th, Xiong Xiaoge, founding chairman of IDG capital company, mentioned in public activities.

In fact, it is not only IDG capital. In twenty-first Century, the economic news reporter noted that due to the gradual decline of the dividend of mobile Internet and the support of science innovation board and other policies to the underlying technological innovation, hard technology investment has become a key area of mainstream VC institution investment allocation in the past two years. Some institutions that focus on hard and technological fields are also growing. In 2019, when the whole renminbi was raised in the cold winter and the epidemic spread in 2020, the trend was still expanding.

Hard technology projects are usually low in early valuation but poor in definition. Map Vision China

Hard technology investment ushered in the best era

"Nowadays, the biggest wave of information, intelligence upgrading and transformation has emerged in the world in the past ten years. At the same time, the Chinese market imports $about 300000000000 of the underlying technology every year, with independent control and import substitution opportunities. The two effects are superimposed. We believe that the next twenty years will be the best time to invest in technology and technology in the past. In May 15th, Bai Zongyi, founder partner of Yao capital, talked about it in an online sharing.

Bai Zongyi said that when the team set the strategic direction of the fund in 2016, it thought that if it had to invest in the Internet, consumption and entertainment, it would have been drowned. We must have a very strong strategic position if we want to give full play to our advantages and make our own characteristics.

As a result, Yao's capital decision must focus first, focusing on information technology and intellectualization, and only investing in the new generation of new technologies at the bottom. Second, we must have a very strong international perspective. Third, we must create a strong industrial ecosystem. Fourth, relying on professionalism and industrial ecology, more accurately layout early in the middle, as far as possible to improve the probability of success.

Under such a strategic positioning of differentiation, Yao Tao capital has invested in a series of hard and technological enterprises such as Hui Xin Guang, Ju You intelligent, Fu Da, and Yi Wei in recent years. Its most recent launch was in May 6th. Yao road capital and Rong billion capital jointly invested nearly 100 million A round financing of 5G RF front-end chip company to Sheng micro electronics.

The brilliant performance of the portfolio has made Yao Tao capital continue to win the favor of LP. In May 19th, it formally announced the new fund-raising of RMB fund and US dollar fund. Related funds have been funded by Gao Rong capital, Xing Xing venture capital, light speed China and other investment institutions, such as Jin Qiyuan, Kefei assets and other parent funds, Shanghai Kechuang, Xiangcheng gold control and many other institutional investors, and more than ten information technology listed companies and industrial leaders.

In addition to Yao road capital, another investment institution specializing in hard and technological fields has recently completed fundraising. In May 6th, Hai Song capital announced the completion of the first round of closing of the $400 million fund for the two phase, which was $200 million for the first time. It is understood that the sea pine capital was founded in late 2016, is a hard investment in science and technology of the cutting-edge PE institutions. It has invested in more than 20 Sino US hard technology projects, such as horizon, Flint technology and so on.

"Hard technology investment is really hot. Many agencies also claim to be watching hard technology projects. But if you understand them in detail, you will find that these institutions fall into three categories. A hard tech investor analyzed the twenty-first Century economic report. The first group is just looking at it, but because of the "capital cold winter" that has lasted for several years, there is no money to invest.

The second type of organization has capital, but it does not necessarily understand hard technology projects. They tend to do some follow up when the project determines that there is a head mechanism. On the one hand, we can reduce investment risks. On the other hand, we can also "steal teachers" when we exchange with a leading organization and make a project, so that we can learn how they judge such projects.

The third category is the institutions that are really dedicated and professional in the field of hard science and technology. Their portfolios will reflect the systematicness of the layout of the subdivision areas, and tend to lead and vote independently, so that they will have the lead in the whole project investment. Such a dedicated and systematic organization will enable more entrepreneurs and LP to trust.

Investment must have a global vision and focus on terminal applications.

Compared with the pattern innovation in the consumption Internet field, the investment in hard technology field has its own high barriers. Some institutions that focus on investment in the mobile internet field are hard to achieve transformation and perfect transition even if they see opportunities and trends.

It is understood that hard technology projects are usually low in early valuation but poor in definition. Once entering mass production, the valuation of the company is very high. For VC institutions wishing to enter early, it is necessary to predict in advance whether the industry has reached the inflection point of application, how big the industrial application value of the technology itself is, and the technology leadership of the company itself.

Bai Zongyi said that when investing in the underlying technology, we should not simply take import substitution and self regulation as investment strategies, because these are temporary. When studying a subdivision technology, we must thoroughly study the logic of industrial iteration and transformation in the stock market supply chain, which will bring more cognitive barriers.

For the investment judgment in technology field, we need a relatively strong cognitive and understanding ability. This kind of cognition involves not only the understanding of the current supply chain, but also the judgement of the future development trend. At the same time, investment institutions must have a very good global vision and pay attention to the terminal application scenarios.

Joyful capital investors also believe that investing in hard technology must have a global perspective. At the same time, investment technology itself needs extensive application scenarios. In the past, the pleasure capital was mainly invested in the consumption Internet field. The star projects included the motorcycle, the car, the eggshell apartment and the tiger.

But in fact, in the field of hard technology, pleasant capital has quietly arranged a series of projects. For example, in April of this year, joyful capital invested in the multi billion yuan B round of financing. It is understood that Kun Yu optoelectronics is an enterprise focused on the field of micro optics and optical integration. In July 2018, joyful capital, as the sole investor, invested A in semiconductor laser chip design and manufacturer lemon photons. Follow up in August 2019, lemon photons obtained the 50 million yuan A+ round financing of de link capital investment, and pleasant capital continued to invest.

In addition to the layout of these two enterprises in the field of optoelectronic chip, joyful capital is also in the fields of robotics, automatic driving, intelligent medical treatment and so on. It has invested heavily in temi robots, Meijia robot, radial vision, healthy IO and other projects.

A joyful capital investor told the twenty-first Century economic report that investment in hard technology is not about technology itself, but also about the future of technology. In the specific screening of hard science and technology projects, first of all, the project must have the characteristics of the underlying technology, not only the application layer. Second, the application of technology should be broad, broad prospects and extensive industrial applicability. Third, it is new, not simply import substitution, nor follow, but global innovation.

For example, the continuous two rounds of investment from happy capital to lemon photons, the investors explained that the photon itself has the characteristics of low energy consumption, good computing performance, and technological requirements, which are not as strict as semiconductor requirements. Consumer electronics entering consumer photons is the general trend. In addition, from the founders and team level, we need to find people who truly understand the technology and the best in the world. The founder of lemon photons is a top talent in the world.

The development of Optoelectronics is not a short-term opportunity opportunity, but an inevitable trend of technological development. Pleasant capital has carried out a long-term systematic study of technology development, and will analyze projects from the perspective of technology, scenario, application and so on, and has long-term confidence and devotion to this field. He said.

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