600 Billion Private Capital To Create A New "Wenzhou Model"?

Wenzhou private capital once again showed its reasonable profit seeking nature.

They smell the high-yield flavor of venture capital, and are gradually entering this field.

"After the Spring Festival this year, there were more and more information about the pfer and rental of factory buildings in Wenzhou newspapers, most of which were traditional labor intensive enterprises such as clothing, footwear, light industry, electronics and so on."

Zhou Dewen, President of Wenzhou chamber of Commerce for small and medium enterprises, described the present situation of Wenzhou's manufacturing industry.

Faced with the situation of credit crunch and export decline, Wenzhou's manufacturing industry, which had "unlimited scenery", had to reconsider its living environment.

"20% of small and medium enterprises may be in stoppage or semi shutdown."

Zhou Dewen said.

Private capital began to search for better exports.

A venture capital summit held in Shanghai not long ago was held by many businessmen in Wenzhou.

As a matter of fact, since 2006, there have been several batches of Wen merchants breaking into venture capital industry.

Despite the "ocean water" of venture capital, Wenzhou people are still somewhat choking when they first drink, but they still show such concentration.

Today, more investment unions are formed spontaneously.

"Although the outside trend of Wenzhou's capital is often referred to as" speculation "hat, but this venture capital investment is investment, not speculation.

Zhou Dewen said.

The first 30 shareholders of the venture are Wenshang. "For Wenzhou people, venture capital is still a relatively new investment mode, and they need time to adapt."

Axin, head of the head of venture capital, said.

Lin Axin, a businessman who had developed in Shanghai earlier, has seen the successful practices of some international investment banks and foreign VC in Shanghai.

3 years ago, Lin turned his sights on venture capital and started testing water a year later.

At the moment, he is convinced that the time has come to maturity. A collection scheme known as an alliance fund has come clean.

In early June, Lin Axin held a venture Summit Forum in Shanghai to brainwash a group of warm businessmen who are still obsessed with industrial operation. They expect to arouse the enthusiasm and enthusiasm of Wenzhou entrepreneurs for capital operation in the collision of voices.

The deep meaning of the organizers is self-evident: can the "alliance type" fund scheme be accepted by his fellow townsmen in Wenzhou?

Through the forum, Lin Axin confirms his original view.

Although Wenzhou businessmen do not know much about venture capital, at least some people are starting to care about venture capital, and some of them have officially entered.

In fact, despite the fact that most of Wenzhou's enterprises are still on the sidelines outside the venture capital industry, the grim reality has forced them to seek new breakthroughs.

Wenzhou manufacturing industry, once thriving in industrial operation, is facing unprecedented difficulties: the cost of operation has risen straightaway, the cost of factory buildings and the cost of labor have gone up. Meanwhile, non-ferrous metals have risen substantially, and the prices of individual raw materials have even doubled. In addition, the appreciation of RMB has led to the export adversity.

In the field of capital investment, Wenzhou people were not very good at it before, and they didn't even pay much attention to it. But I am confident that they will be interested.

Once they find profits, they will join together. "

Axin said.

Bayashi Anobu's self-confidence stems from his understanding of his fellow countrymen's temperament.

In March 2006, the first China venture capital was listed in Shanghai, and Lin became chairman of the board.

This is the first VC set up by private capital in Wenzhou, and its 30 shareholders are all Wenzhou businessmen.

After the test of water investment, Wenzhou people once again "Tuo Tuan" first China venture capital, in August last year, Wenzhou also first appeared in the mainland Vc firms -- Wenzhou venture joint venture Donghai venture capital was established in Yueqing.

In 2008, Wenzhou CHINT group, which is actively preparing for listing, also set up a Private Equity Investment Firm specially, and invited Hu Yungeng, who has many years of experience in international investment banks, to work in person.

As more and more Wenzhou enterprises are involved in venture capital industry, Wenzhou enterprises, who know the capital operation and wake up, seem to be ready to go ahead.

"At the end of last year, I started to go to Shanghai to prepare for the establishment of the Vc firms."

Xiong Huorong, chairman of Wenzhou Jinke Optical Co., Ltd., told reporters that Vc firms headquarters is located in Xujiahui, Shanghai, and is currently being recruited.

"Unlike industrial management, venture capital is actually a business model based on others, which is more selective.

To do business, once the industry is not well chosen, it is the risk of annihilated troops, but venture capital is not the same. Sun Zhengyi has invested many projects, not necessarily every household is successful, but his investment Alibaba has been successful, bringing him profits to make up for the losses of several failed investments.

As for venture capital, Xiong Rong Rong obviously has great enthusiasm and hope.

In order to be able to adapt to the market faster, the bear even drew up a strained learning plan, including economics, management and so on.

He drew a pattern for the company's long-term development: the existing optical companies employ professional managers to manage, and they focus their energies on managing venture capital business.

"Since last year, China's economy has entered a period of pformation. I must speed up my pace to adapt."

For more than half a year, Xiong Huorong said he had been "fighting alone" and was preparing for the Vc firms.

The participation in the "Venture Capital Summit Forum" found that there were still many villagers eager to enter this field, which made him feel more at heart.

Zhou Dewen, the Wenzhou's most busy spokesperson for Wenzhou's small and medium-sized enterprises, took more than 50 entrepreneurs from Wenzhou to Shanghai to participate in Venture Capital Forum, most of which were over 100 million.

"Wenzhou's highly concentrated private capital has reached 600 billion yuan, and foreign capital investment is an inevitable choice for these free capital."

Zhou Dewen believes that venture capital is attracting the attention of Wenzhou's private capital.

On the one hand, there are plenty of private capital looking for a way out, and the other side is the venture capital industry, which most needs financial support. Many entrepreneurs in Wenzhou regard venture capital as an endless new blue ocean.

Speaking of the advantages of Wenzhou people, Zhou Dewen enumerated at least three points: first of all, the superiority of the Legion, and the superiority of the "ant economy", which is unique in Wenzhou, and by virtue of good credit system, the effect of "small capital and large agglomeration" can be played.

Secondly, Wenzhou has rich experience in private investment. As early as the early stage of reform and opening up, Wenzhou has produced a similar trust mode of "live remittance", which is called the embryonic form of venture capital.

In addition, the brand of Wen Shang has been heard at home and abroad. Brand advantage will also help Wenzhou enterprises enter venture capital.

"I also think that the mode of" joint investment "is better.

Although the preparatory work is still in progress, we can see that Axin's idea of "alliance type" coincides with the idea of Wenzhou's private capital.

He said that really good projects often have a large demand for funds, and instead of making their own decisions, it is better than a number of enterprises "joint venture" to make Vc firms more capital.

However, on the "alliance type" fund mode, Chen Jinqiang, chairman of Wenzhou stationery Market Development Co., Ltd., which is still on the inspection stage of venture capital industry, has its own worries: "Wenzhou people's personality, likes their own funds to make their own decisions, and is reluctant to hand over money to other people, unless there is a very attractive enterprise."

But another typical temper of Wenzhou people has another worry for Chen Jinqiang: the general venture capital project needs careful investigation, then the feasibility report is issued, and finally the shareholders discuss and vote.

But in Wenzhou, whether they invest in real estate or coal mines, they often rely on the so-called "business intuition".

For the enthusiasm of Wenzhou's private capital to participate in venture capital, Xiang Jianbiao, President of Hong Ding venture capital, who invested in VC for many years, believes that Wenzhou's private capital is very important in how to enter the venture capital field. "If Wenzhou's private capital takes the role of LP (limited partner), it will be good to hand over its money to professional GP (general partner). After all, domestic professional Vc firms, including Sequoia and Ding Hui, are also looking for funds."

In addition to a large amount of capital investment, the high threshold of the venture capital industry lies in the level of managers.

This undoubtedly hit the soft spot of Wenzhou entrepreneurs.

Whether it is a prototype of PE (private equity), Wenzhou Zhong Rui conglomerate and China chi group, which was a flash in the air after that year's blockbuster, or the East China Sea Venture in the beginning of this year and Beijing Jess Han Nen Asset Management Co., Ltd., are worth watching later.

But Hu Xucang, the main sponsor of Donghai venture capital, is still very keen on the domestic venture capital market. This typical businessman, who is used to holding control power firmly in his own hands, firmly believes that Wenzhou people can also find their way.

After splitting up with Jess hon, Hu Xucang led a group of Wenshang businessmen from the East China Sea to reinvent the Asia Pacific venture capital and invested in many projects.

In May 16th, its investment and shares were successfully listed on Shenzhen Stock Exchange.

"The final investment in venture capital will always be traditional enterprises, and the Wenzhou entrepreneurs who are originally from the manufacturers will have more advantages than GE."

Hu Xucang said.

Will the Wenzhou people, who are in battle in the tide of manufacturing industry, create the next "Wenzhou model" after turning around the capital service providers?