A mother fund is direct investment: 5 IPOs this year are coming

"Now everyone raises funds to run for the triangle."

Not long ago, the person in charge of the fundraising of a well -known venture capital institution in Shenzhen teased that many of my colleagues who couldn't make an appointment in Shenzhen met in the Yangtze River Delta.

Seeing this scene, Sun Yan, a national capital management partner, was deeply touched. In the summer of 5 years ago, Shanghai International Group led, and cooperated with important cornerstone investors such as Shagang Group and Shanghai Airport jointly launched the first market -oriented parent fund in the Shanghai state -owned assets system -national capital.

In the past 5 years, the Yangtze River Delta is now full of flowers, and hard technology investment such as semiconductors is even more like. During the period, national capital is one of the most active venture capital power, and in the circle of parent funds, national capital is another atypical equity investment sample -starting from the parent fund, and establishing an industry depth with resource advantages. With the "mother fund+direct investment" integrated industrial investment methodology, a vast Yangtze River Delta hard technology ecosystem was established-

As of now, the scale of national capital has reached 18.2 billion yuan in management funds. In addition to managing the flagship fund, the Yangtze River Delta collaborative advantageous industrial fund and the national parent fund, it has also become the manager of the direct investment fund of Huahonghong core industry chain. Multiple project funds. Through the multi -level product matrix, the national capital has completed the layout of 52 sub -funds and 42 direct investment enterprises. The total number of underlying projects exceeds 900, of which 75 have been on the IPO of the capital market such as science and technology boards.

At present, the Chinese venture capital industry is staged a brutal shuffling. Sun Yan also emphasized internally more than once: "The crisis is also the time. Even in the face of the dark moment, we roll up in the first line of mud, and will finally keep the clouds and see the moon." Now, he is leading the leadership. A strong combat team prepares the raising of the second phase of the Yangtze River Delta Fund, with a target scale of 10 billion yuan.

National Capital Management Partner Sun Yan

Gather the national capital LP, national capital transcript:

In the first half of the year, 5 direct investment companies sprint ipo

National capital has witnessed the rise of the Yangtze River Delta, and it is also a sample of an atypical equity investment institution.

In the summer of 2017, the national capital was led by Shanghai International Group, and the establishment of important cornerstone investors such as Shagang Group and Shanghai Airport was jointly established. The original intention of focusing on the long triangle and hard technology investment, became the first in the Shanghai state -owned assets system at that time. The market -oriented parent fund was officially listed on July 11 that year.

At the beginning of the following year, the internal thinking of the national capital was repeatedly thinking: equity investment is the future, so what is the biggest trend in the future? The team comes to a consensus -the development of science and technology in the Yangtze River Delta must be a future investment trend. To this end, national capital decides to further take root in the Yangtze River Delta region, focus on hard technology investment in the three major areas of semiconductor, digital intelligence, and biomedicine, and start planning a Yangtze River Delta flagship fund -the Yangtze River Delta collaborative industrial fund (referred to as long Triangle Industry Fund Phase I).

This is a very forward -looking move. On November 5th of this year, the integrated development of the Yangtze River Delta region was rising to the national strategy. At the main leaders of the Yangtze River Delta region of the year, the leaders of the National Development and Reform Commission, the secretary of the three provinces, one city, and the province (city) and the provincial (cities) commander co -co -co -operating together Witnessed the signing of the first phase of the Yangtze River Delta Industry Fund.

As the only equity investment fund to invest in the technology industry at the summit, the first phase of the National Capital Yangtze River Delta Industry Fund has been supported by the national asset LP of Jiangsu, Zhejiang, Shanghai and Anhui. In addition to Shanghai's state -owned assets, the Yangtze Sinstind Investment in Anhui Province, the Yangtze Investment Investment in Jiangsu, and the Shaoxing Urban Investment on behalf of Zhejiang, all actively participated in the funding. In the first phase of the first round of closure in March 2019, the subscription amount was 7.2 billion yuan.

This is the first national fund theme fund that realizes the state -owned assets across administrative regions in the Yangtze River Delta region in the country, which truly achieves the capital level of the capital level. After that, the national capital has stabilized the heel in the Yangtze River Delta region. With the strategy of parallel investment in the parent fund and the direct investment, it has built a diversified and multi -level fund product matrix around the sub -fund and leading enterprise in the pilot industry - - The first phase of the Flagship Fund's Yangtze River Delta Industry Fund, the National Mother Fund, the Direct Investment Fund of the Huanghong Hongxin Semiconductor Industry Chain, and multiple project -shaped funds.

The Hongxin Fund is a milestone for the deep development of national capital to the industry. In the past five years, the national capital, which started with the parent fund, has been unwilling to the breadth of the layout, and has also opened up the complete upstream and downstream resources of the hard technology industry chain, and through the cooperation of multiple industrial funds, the leader in the industry chain Enterprises have accumulated a solid mutual trust foundation and deep synergy effect. For example, in the semiconductor industry, the national capital and head semiconductor wafer manufacturing enterprise "Huahong Group" jointly launched the establishment of a direct investment fund -Huahonghong core industry chain fund, which will focus on the upstream and downstream of the semiconductor industry chain for layout. The first phase will be The raised scale of 1 billion yuan has been completed.

This is a very significant five -year, and national capital has completed the first stage of increasingly thrive, and also handed over a answer sheet.

The investment community learned from the official website of the Fund Industry Association that national capital is currently controlling 9 fund products, and the size of the fund has reached 18.2 billion yuan. 52 investment funds have been invested, 42 direct investment companies, and the total number of underlying projects exceeds 900, of which a total of 75 companies have been listed or passed. The IPO application of 28 companies is accepted. Essence In the first half of 2022, five of the direct investment projects were accepted, and they are currently under review. Looking back all the way all the way, Sun Yan couldn't help feeling: "Looking back on the day and night of fighting side by side, the visit of the industry and projects again and again, the inspiration of market prospects and risks in a field, we are dedicated to science and technology. As for verification, we stepped into the fastest line of mud, the road was blue, and the thorns were cut. "

Exercise industry depth: direct investment creates over 60 % income

Start 10 billion Yangtze River Delta Fund Phase II

The five years of national capital are also a refraction of the Chinese parent fund group.

Sun Yan's summary: Focusing on investment in scientific and technological investment, the establishment of a three -wheeled iteration in 5 years in the establishment of the state capital has been condensed into a full -industry chain of the entire industry chain of the flywheel closed loop: a parent fund, direct investment, and leading enterprise industry fund:

At the 1.0 stage, start with the parent fund, and quickly accumulate underlying assets through the radar effect of the parent fund, and converge the investment risk of investment in large numbers;

In the 2.0 stage, through the parent fund plus projects and direct investment, tap the high -quality track leading enterprises to create income, and at the same time realize a closer connection with the industry;

In the 3.0 stage, the parent fund plus the direct investment of the fund was carried out, and the industry depth of the industry was created to create a flywheel development architecture around the flagship fund.

In the words of Sun Yan, in the Chinese technology investment industry, the role of national capital is to do bridges and bonds between industry and finance, so as to establish market breadth and industry depth in the process.

In the past five years, national capital has formed a unique play of the integration of "parent funds+direct investment" industry. It is a powerful tool for higher stickiness between it and LP. Essence In the previous funds, the national capital outlined a wide range of high -tech industries of the Yangtze River Delta hard technology industry with 70%of GP and 30%of direct investment strategies.

First of all, in the parent fund business, national capital has chosen a differentiated path. "We are more inclined to invest in dark horse GPs that have issued multiple -phase funds and IRR over 30%, so as to rolling the development of the industry's ecological resources, and using medium and early projects to bring a certain rapid growth of the fund for the fund."

For direct investment, national capital has become more and more handy, and from 2021, almost all the projects they invested in have won the position of the led investment. In this regard, Sun Yan explained: "If a project does not make a led, it is just a financial investor. It is difficult to form a deep connection with enterprises and entrepreneurs, which also means that the understanding of the industry is not deep enough. The core of the country's leading investment is that I hope to establish a vitality circle of friends and industrial ecosystems with the industry. "

The direct investment business has gradually become the benefits of national capital. For example, in the first phase of the Yangtze River Delta Industry Fund, the direct investment project has created an IRR income of over 60 %. At present, the direct investment combination has invested in well -known enterprises including Huada Zhicheng, Huizhiwei, Kyligence, Shichuang Energy, Zhenge Biology, Chase Technology, Shenghe Jingwei, Huihe Medical, Rui Pai Medical, and Shang Tang Technology, minimally invasive robots, Weitai Medical and other IPOs.

Based on this magnificent and rich hard technology industry cluster, industrial funds have surfaced one by one, and national capital has crossed the market -oriented parent fund 3.0. In addition to the above -mentioned focus on semiconductor direct investment, Huahonghong core industry chain fund, in the field of digital intelligence, national capital also cooperates with head enterprises in the field of fintech services to launch digital technology industry funds, as well as in the biopharmaceutical industry Two biomedical industry funds cooperated with China Clinical CRO leading enterprise Tiger Medicine.

With the performance of the first phase of the Yangtze River Delta Industry Fund and the project "Weapon" as the cornerstone, this active parent fund has started the second phase of the Yangtze River Delta. Under the principles of direct investment projects), and industrial network empowerment (post -investment development) ", we will continue to focus on the advantages of semiconductor, digital intelligence, and biomedicine. In the second phase of funds, the national capital also increased the proportion of direct investment -the allocation of the industrial chain project that was not higher than 40%in the selected industry chain project, and not less than 60%of the industrial chain funds with resource support.

In terms of sub -fund investment, the National Yangtze River Delta Phase II Fund will continue to invest in industrial chain funds with industrial resource chain effects, such as wafer foundry, packaging, storage and other segments. Participate in industrial chain funds participating in emerging application markets such as photovoltaics and new energy.

In terms of direct investment in the project, the new phase of the fund will be committed to relying on the advantages of the industrial chain fund and the foundation of the industrial ecological side of the industrial ecology to continue to invest in high -quality targets dominated by platform -based companies in the industry. Three generations of semiconductors such as the third -generation semiconductor, such as integrated circuit node companies with platform effects, etc., track the life cycle of the target company, and target the most steeper inflection point to invest in its Developed into a new leader.

VC/PE tie the long triangle vote hard technology

The Yangtze River Delta is becoming one of the hottest destinations of Chinese venture capital institutions.

After the integration of the Yangtze River Delta to the national strategy and the help of the science and technology board, the Yangtze River Delta "hard technology" ushered in huge development opportunities. Recalling that the year of the establishment of national capital, Sun Yan is still impressed. At that time, the science and innovation board and the registered system had not yet landed. The investment activity in the Yangtze River Delta was far from being so lively today.

But this time is different, VC/PE and entrepreneurs are crowded. According to the latest data from the Qingke Research Center, the new fundraising fund was mainly concentrated in Zhejiang, Shandong, Jiangsu, and Guangdong in May this year. three.

In the investment side, the number of investment in Jiangsu, Zhejiang and Shanghai ranks TOP 5 in the country, of which 59 investment incidents occurred in Jiangsu area, accounting for 18.3%of the total investment cases, ranking first; Living third. From the perspective of industry distribution, their investment amount has invested in the three major industries: IT, semiconductor and electronic equipment, biotechnology/medical and health.

"The hot soil of the Yangtze River Delta is one of the most cultivated market areas in the future, especially the '100 -kilometer friends' circle' connected by Shanghai, Nanjing, Hangzhou, Hefei and other regions." Sun Yan said.

When more and more people and money came in, Sun Yan, who led the team steadily in the Yangtze River Delta, also saw this foam floating in the rivers and lakes, especially the semiconductor track.

He vaguely remembered that on the roadshow of the first parent fund that raised the first parent fund, everyone was unfamiliar and hesitant to the keywords of "hard technology". Different from the mobile Internet projects such as consumption and entertainment in the Chinese wind investment industry at the time, "early, hard, and investment technology" had not yet formed consensus, and semiconductor was once regarded as the "sunset industry". Between ice and fire, the national capital still chose a relatively deserted road, and firmly set off towards the future of hard technology.

This is another forward -looking strategic movement of national capital. Soon in 2019, Chinese semiconductor and even hard technology investment ushered in an unprecedented lively scene -no one did not invest in semiconductors, and the scene of the valuation of valuations became an unforgettable memory of many investors. However, in 2022, this picture was drawn up. As the VC/PE shot slowed down, the valuation of semiconductors began to relax quietly.

The national capital team also witnessed such a process. They believe that the reshuffle of the semiconductor track has begun. "This does not mean that there is no chance. The high -end semiconductor products still have room for development, but this also means that investors are for investors The requirements of entrepreneurs are even higher. "

Sun Yan also pointed out that in the past two years, semiconductors are hot, and all companies are thinking about future independent IPOs, but this industry is also a field with a two -eight effect. In the end Players will embark on the road of merging and integration.

The national capital has been deployed step by step. Sun Yan revealed that "Many semiconductor companies we see this year are the core leading companies preparing to give us industrial resource nodes in the ecosystem in the future. Object."

When the mother fund is deepened by the industry to do direct investment

China VC/PE Winter: The remaining is king

When in -depth industrial investment has become a new proposition for contemporary investment circles, direct investment has gradually become the standard for the parent fund.

Judging from the actual situation, the phenomenon of direct investment in LP is common, and the industry is iterating and development in the direction of refined, diversified, industrialized, and professional. The investment community also learned from the National Capital Department that its direct investment strategy in the Yangtze River Delta second phase of the Yangtze River Delta also mentioned 40%from 30%.

Behind this is the current status of the brutal shuffling of China's equity investment industry. "China's equity investment industry has entered the era of stock, and large waves of sand will be eliminated by the market. Therefore, GP must have their own foundation and pay attention to their customers (LP) needs." Sun Yan mentioned Only 20%are making money, and more than 80%of the fund is "not very profitable."

When most GP cannot create sufficient returns for LP, the continuous survival of the parent fund has begun to appear, and the fundraising of the industry's market -oriented parent fund is even more difficult than GP. It's right.

Talking about this, Sun Yan feels the same: "We have been thinking when we are developing, what is the establishment of national capital? Connection to build a better ecosystem. "As we see, a single label can no longer completely define today's national capital. With their own rich industrial resources, they have been walking in the depths of the industrial chain for many years. Investment has contributed to an increasingly vast hard technology leading industry cluster.

The reason is not complicated -LP requires good returns, good DPIs, and at the same time there must be an empowerment and investment opportunity for the entire ecosystem. As one of the important forces of the equity investment market, the LP with the background of the state -owned assets has the industrial resources that there is no GP and difficult to have, and it has a strong complementarity itself. It is the key to how to play these advantages. This is also the national capital. The ecosystem to establish an industry depth.

Looking at the entire venture capital circle, from the parent fund LP, to the VC/PE investment institution, to the entrepreneur group, they are all experiencing a severe situation to varying degrees. In the cold winter, in order to optimize the DPI (investment capital dividend rate), the S fund broke out in the parent fund circle, but in Sun Ying's view, combined with the active degree of PE and VC secondary markets in recent years, the S fund market has demand for demand But it has not erupted. He analyzed that there are too few professional buyers who can pick up on the market at present, coupled with poor asset quality, and supporting facilities such as valuations and intermediaries.

"S is a matter of applauding or not. It is unwise to set up a S fund on the basis of no ecology." Taking national capital as an example, national capital has not set up a special S special S S. Fund, instead of using it as a part of the entire parent fund product. For example, the first phase of the country's long triangle will be newly invested in some sub -funds, but some of the following years will focus on the S fund level. Based on the huge underlying assets and GP resources, the country has the ability to identify asset pricing, the ability to transaction, and the support of industrial resources. These will be expected to transform into the unique advantage of S trading.

Since the beginning of this year, the emotions of anxiety have been spreading in the venture capital circle. "China's equity investment market is also evolving, and the industry is gradually returning to rationality. The crisis is also the time. "Only by surviving or left can we cross the cycle and continue to iterate and accelerate the flywheel in their ecology."

To survive, the remaining is king. This may also be the true portrayal of most VC/PE practitioners in 2022.

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