Chen Wei, chairman of Dongfang Fuhai: How can I break the situation in the field of venture capital and serious differentiation?

Chen Wei, chairman and founding partner of Dongfang Fuhai, believes that investment in venture capital institutions is becoming more and more difficult, because money is becoming more and more difficult to raise, but the project is full and more. project.

Author: Cai Yuekun

Figure: Tuwa Creative

"How to introduce long -term capital and how to survive small funds is a big problem at the current venture capital industry."

Chen Wei, chairman and founding partner of Dongfang Fuhai, said at the 16th China Investment Annual Conference hosted by the Investment Information and Investment Network that the investment in venture capital institutions is becoming more and more difficult, because money is becoming more and more difficult The project is full and more on the street.

Difficulty in fundraising, serious differentiation

According to the data of the Qingke Research Center, the venture capital investment in the venture capital market in 2021 is over 2.2 trillion yuan, and the total amount of fundraising will break the historical record. However, since the first half of 2022, the entire venture capital market raised only 772.455 billion yuan, a year -on -year decrease of 10.3%; 2701 new funds, a year -on -year decrease of 7.2%.

Behind the difficulty of fundraising, Chen Wei said that the entire venture capital industry was greatly affected by macro -environment emotions, mainly affected by the epidemic, the Russian and Ukraine War, and the critical three waves of China and the United States. Therefore, the amount of fundraising and investment in the venture capital market has generally declined significantly. Compared with the United States, it has declined stronger, and fundraising has become increasingly difficult. In fact, it has become more difficult since Chuang Investment and fundraising since 2018. Since some banks lead to equity investment after the new asset management regulations, the investment channels to PE are limited, so many funds can not raise money now. Fewer money raised.

Chen Wei bluntly stated that this round of difficulty in fundraising has led to survival problems most of GP. Data show that in the first half of 2022, nearly 60 % of the fund raised was less than 100 million yuan, and the fund raising scale of more than 90 % was less than 1 billion yuan. There were only 24 RMB funds raised by more than 5 billion yuan.

At the same time as fundraising is difficult, the trend of differentiation of venture capital agencies has intensified.

Chen Wei said that there are many GP management agencies at present, and the differentiation is getting worse. The head institutions will get more and more money and invest more and more projects. From the data point of view, the market follows the laws of the 28th law and even the laws of 19. Good GP is increasingly easy to raise funds, and it is increasingly easier to raise large funds. Small GP and special new GP do not have GP that has not been baptized by the industry cycle, and the possibility of getting money is getting smaller and less.

Chen Wei said that the venture capital industry is currently being shuffled, and each crisis is a pressure test, but this pressure test is also a good company and a good GP opportunity to become bigger and stronger.

Long -term investment mechanism is lacking

Chen Wei also said that the venture capital field is currently facing the problem of less long -term funds. Data show that in the first half of 2022, 84 insurance funds contributed, accounting for only 4.8%. It can be seen that the proportion of long -term funds into venture capital funds is too low, and they are all digits.

Chen Wei said that China can be used to invest in the venture capital market, but because the money is mainly concentrated in financial institutions such as banks, and the new capital management regulations in 2018 will be greatly limited Essence At present, the main money raised by the Investment Investment Agency is the money of the enterprise and the government's money. The source of these funds requires that the investment period is relatively short, and they all have non -market -oriented needs. The Chinese venture capital market has developed for more than 20 years. Compared with the United States, we have not yet established a market -oriented long -term fund formation mechanism. Therefore, if long -term funds such as insurance institutions, venture capital, and banks do not enter the field of venture capital, the difficulty of fundraising may continue.

"I believe that more and more long -term capital may be more and more in three or five years. Special insurance institutions will flow into the field of venture capital. Therefore Investment, "Chen Wei said.

"Breaking through the normalization"

In addition, when talking about the registration system, in Chen Wei's view, the registration system means that the IPO is indeed strong, but it does not mean that the IPO listing is easy. Although the IPO is rigorous at the moment, as long as it is not suspended, the venture capital field will have the opportunity.

Chen Wei pointed out that in June 2022, the A -share IPO rate rate was 83.33%, a slight decrease from 85.71%in May, a new low this year. In addition, the situation of enterprises' initiative to "withdraw orders" this year has increased. As of July 4, a total of 127 companies intending IPO have withdrawn from the launching application. One day on June 29th, eight companies terminated IPOs, of which 6 IPOs were withdrawn, one was terminated, and one of them was canceled on the eve of the meeting.

In addition, Chen Wei said that the current corporate IPO has become a new normal. In 2022, the listing companies accounted for 57%. It turned out that as long as the IPO of the investment in the venture capital, the average return rate is as much as 10 times, or even twenty or thirty times. At present, earning 10 times has become the goal that everyone is pursuing.

Chen Wei said that the IPO's breaking means that the maturity of the venture capital industry is getting higher and higher. It is not to say that it can make money if it is listed casually. It must have good projects and money -making projects to have the opportunity.

Therefore, for investing in the venture capital field, he suggested that first, the country needs, what the country needs, and what to invest, this is the opportunity to invest in the market, and the market needs to have the opportunity; there is only the need for the people to invest in the people.There is a chance; the second is to invest early, small, and investment innovation. If you want to be cost -effective, you must invest early. Innovation is the future. Third, people are the most important. For venture capital institutions, it is necessary: Innovation+growth "; Fourth, the previous investment was" seeing mountains is mountains, seeing water is water ".But now it is "seeing the mountains is not a mountain, seeing water is not water."At present, the investment of venture capital institutions requires investment and services at the height of the industrial chain, and from the perspective of the development of the country's entire industrial chain to do investment and services.Scripture headline | Daily "losing streak": The inconspicuous accounts, Yao Yang, who made the money that can not make money: It is recommended to issue 1.4 trillion special Treasury bonds.Walking between the hospital and the patient is not an ox or a god

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