VC 2.0: solo venture investors, from the earlier project

recently for a year or two, VC world wind is shifting, more and more mature VC investors are from the original institutions set up a new fund. Last September, the original gobi venture partners TongWei buttonwood capital leaves bright, almost at the same time the original IDG partners from IDG, chang, in the form of ficus altissima capital. Investment today’s headlines, sing, beauty, says, a sister of the original redwood, vice President of China already established this year source of capital, invested UV and mass, in ali and CDH venture QuTian worked for establishment of bat capital, investment “knife tower legend” IDG founded the autobots capital investment managers Zheng Lan, the original DE – chi shing capital investment Deng Haitao was founded.

this agitation is called the VC 2.0 times.

why VC 2.0 era

a group of investors flocking from the old VC exit alone behind the creation of a new fund, which can reflect the change of the business environment.

as Chinese TMT industry fashion, and since 2013, the Chinese Internet ushered us listings huge window period. A large number of listed companies means that venture investors, entrepreneurs and even a large number of staff members won handsomely, also means that a large number of liquidity flooding the market. When investors choose to fly alone, they can easily raised quite abundant funds in the market. In addition, the original only large VC institutions to invest, more dependent on listed out, but now, mergers and acquisitions more and replace listed as investment out of the mainstream way investment exit more relaxed, small investment institutions were also more likely to survive.

this is easy to understand why the investment community is facing the change: in order to make their ability to play a better investment and obtain a higher return on investment, VC began to come out of some famous investment institutions set up a new fund, with the new logic to select and investment.

on the other hand, the innovation is accelerating, big companies by new technology and market barriers are subversive, established investment institutions interest distribution pattern and the decision of backbone force some forks; Change, on the other hand, the Internet industry to promote the emergence of new ecological opportunities provided by the market more and more: entrepreneurs to increase, more investment opportunities. Ming founding partner of potential capital ming-ming huang believes that China’s entrepreneurial opportunities of a new wave of entrepreneurs more than in the past ten years, there are more new VC is also a trend.

these new VC in the old club has accumulated many years of experience and resources, for they will be successful solo to lay the foundation. Deng Haitao had to tencent technology, for example, under the condition of the resources and conditions allow, want their own independent investment do long to do it.

new VC source of capital also proves this point. Besides can finished in a short period of time to raise the $100 million the first fund, its internal also established close sharing mechanism and organization “code”, leading members of Mr Wang, yi-ming zhang and other high-growth enterprises ceos will regularly and to be cast one-to-one communication, help them to solve practical problems in entrepreneurial process, bring them into the core of a new Internet connections.

VC2.0 features can be seen: they had pushed the entrepreneurship program mining and high for the star company, the existing achievement good startup experience, “they do investment and investment experience, one before,” said TongWei bright. In addition, they resigned from the original investment company has established a new capital to raise money, the LP (venture capital investor) behind the bonuses for listed companies, the Internet is the cause of most executives, the executives of experience can also help to start-ups.

“BAT BAT executives is to use the money, the investment capital BAT business staff, support startups to become the next BAT.” QuTian said.

future VC industry early, differentiation

as more and more VC investment agency, the trend of the VC industry will present characteristics and differentiation of early.

look at the establishment of new fund recently, it is not difficult to find the characteristics of several convergence, a new fund focused on early project angel round or even earlier, the second is the fund size is not very big. Such as the source of capital has completed the first $100 million fund raising.

QuTian to tencent technology introduction, “the bat capital” entrepreneurial teams, focus on seed has been done to raise renminbi funds 100 million yuan first phase. Chi shing capital is also established by the Deng Haitao early stage investing institutions, its single investment scale between 100-10 million.

in addition, as the Internet information transparency, all entrepreneurs can see what are the VC investment circles, the same VC can see all projects, that is, the dividend is loss of original big institutions. Today, VC spell is more of a vision, judgment and the ability to provide service for entrepreneurs.

in this case, the entrepreneurs prefer to look for more understand the industry of VC, such as high mountains huaxing originally has a background in electrical business entrepreneurship and social entrepreneurship, therefore focus throws a lot of electricity and social start-ups.

cao to tencent said science and technology, the Internet finance, O2O and social is a source of capital investment focus, he thinks that each investment will be more subdivision, such as the specific application scenarios and specific people is financial consumer products can grow quickly, O2O may be subdivided into all areas of food and clothing live line and continue to segment each field.

with entrepreneurial background and as more and more people come out to set up a new fund, the future is likely to see specifically for tourism, education, medical treatment of VC.

the increase of investment institutions will inevitably cause fierce competition between the angels. “Experience and resources are virtual, in addition to give money, investment institutions there was nothing really.” Investors have such feeling.

“out venture funds, or to find a balance, angel investment institutions will not much more special, like YC will have some good institutions, small and medium-sized institutions survival rate is not very big, the survival of the individual angel investors will be more big chance.” TongWei bright said.

TongWei bright to tencent technology to say, in the new investment agencies have superior bad discard, one of the larger agencies will go further. “Angel investment institutions more returns from the project carry out, but since the return cycle is long, and not very big, the management fee is relatively small, so the larger institutions would survive.”

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