MTL - Investment Life-Chapter 169
In just 3 or 4 months, Netscape went public and Yahoo went public, and Microsoft's latest generation operating system, windows95, also entered the world's eyes with a hot attitude. In this superimposed boost, the Internet, a huge and brand new vein, naturally began to appear in the gaze of Shashan Road and Wall Street.
With attention, there is naturally competition. Before the upsurge of the Internet, Dianshi was regarded as a diamond dropped in the wilderness. When Shashan Road really started to exert its strength, the pressure it faced began to soar instantly, and the funding issue naturally became a very critical link.
According to the practice of venture capital, venture capital is generally divided into several stages from seed companies to formal listing. The initial angel investment, followed by the first round of investment (also known as seed investment), and the subsequent rounds a, b, and c of investment until it goes public. Among all the investment links, angel investment has the highest rate of return, but also has a high degree of risk and low actual returns.
The reason is also very simple. Even if there is a 10-fold return, the amount of angel investment is often only 100,000 to 500,000 US dollars. Turning it 10-fold is not a lot of money. At the same time, it is unknown whether the companies that have been invested can really grow. Of the hundreds of seed companies that appear every year, it is likely that they will survive less than one tenth of a year later. Of this one tenth, the ones that can go public are even more Very few.
Therefore, those mature large-scale venture capital companies often join the investment ranks after the A round and even the B round, betting on those companies that have already taken shape and have great potential, and it is not crazy, but very stable returns. . However, when an investment field starts to become hot, the boundary between this kind of venture capital and angel investment will instantly blur, and large companies will gradually penetrate into the first round of investment, which will inevitably have a certain impact on small and medium-sized investment companies.
As a small venture capital company, Dianjinshi also faces similar problems. Although it occupies a lot of early advantages and has made some famous names for itself, it is still difficult to compare with large companies in terms of scale, human resources and even financial resources. At the same time, if you want to hold more shares in the seed company and control your own share capital not to be easily diluted, you must also strive to join the first round, or even a round of investment links, and this link requires extraordinary funds.
The investment made by Dianjinshi in the past two years can be said to be considerable. More than 58 seed companies have been involved, and more than 10 have entered the first round of investment. If it is not relying on some seed companies to be acquired by large groups Earnings, as well as capital investment from futures, have long been unsustainable.
Therefore, the Yahoo deal not only made Dianshi famous, but also successfully resolved the current dilemma of cash shortage, giving Dianshi the potential to further challenge the Internet wave. This practice of focusing on arbitrage rather than getting involved in the company's management has also led many large venture capital companies to relax their vigilance at Dianshi and start to engage with it, starting with some seed companies and entering the next investment link. In this respect, the answer sheet submitted by Dian Jinshi was quite excellent, which greatly satisfied the subsequent venture capital companies.
And those seed companies that will really become dark horses, such as Netscape, nvidia, realworks, Amazon, and even eBay, which has just made angel investments, have entered the Yuanyang investment category early, and they will make a round and even subsequent investments, and further Take ownership of these future stars.
This internal digestion has not yet attracted much attention. First, these seed companies are really over trendy. Even the veterans of Silicon Valley venture capital are a bit confusing. It is better to wait for them to develop and participate in the B round and even pre-IPO investment. It is because Yuanyang's business scope is mainly stocks and futures, not VCs. There is not a strong relationship between them and there is no need to over-react.
Such an investment environment is naturally unique to Yuanyang, but more and more capital expenditures have caused a short-term capital chain tension within the fund.
After gaining in the futures, stock market, and Mexican exchange rate in 1994 and 1995, Chen Yuanming has now received up to 1.7 billion US dollars, but this kind of income is not a net income on paper. As heavy shackles. In the United States, there is a big stick called "capital income tax". From 1993, short-term capital income of no more than one year has to pay up to 39% tax, and long-term capital income of more than one year will also face 10% -28% tax rate. This yield will be adjusted in the next few years, but it is still very painful.
Due to the urgent need for cash in the early stage and the lack of reasonable tax avoidance measures, Chen Yuanming gave out a blood. After Yuanyang Fund registered an offshore company in the Cayman Islands, this high tax burden was eased slightly. But money must be used to make money, and various investments are still the focus of Yuanyang.
With such tax restrictions, long-term investment must necessarily replace short-term investment as the main business of Yuanyang. Therefore, in addition to Chinese investment, venture capital, and a small amount of futures and mergers and acquisitions, long-term holding of stocks is the most critical point. In this regard, Chen Yuanming still believes very much in the words that Buffett said.
"You can't hold ten years of stock, don't consider holding ten minutes."
Of course, not many people have heard this sentence today, but any financial practitioner will not be unfamiliar with the idea behind this sentence. If you can buy stocks at a low point and confirm that the company's long-term performance is good, then holding it for a long time is the way to maximize profits.
But for many people, how to choose such a "long-term performance" company will be a big problem. Everyone understands buying low and selling high, but no one knows whether the current position is the high point of the stock or the upward adjustment continues to fall. Therefore, investment like Buffett will always be a minority.
But for Chen Yuanming, "Which company will keep rising" is no longer a secret.
Large groups such as American Express, Coca-Cola, Wal-Mart, Procter & Gamble, Johnson & Johnson, etc., will rapidly expand as the Chinese economy takes off and the rapid expansion of multinational businesses. Or expand, the stock price will rise as the company grows. Today, each of these stocks is at a relatively low point, which can not be better for long-term use.
Therefore, while investing in those potential stocks on NASDAQ, the NYSE is also an unmissable presence.
With such an investment direction, Yuanyang's funds are naturally divided into several large pieces. The mainland and Hong Kong investment spent nearly 120 million US dollars, and the venture capital cooperation with Dianshi spent 150 million US dollars. In order to integrate the Eagle Nest alliance, it also spent about 70 million. Nasdaq and NYSE Those more than a dozen potential stocks have steadily put in 300 million or 400 million funds, and the remaining money has to participate in next year's copper war and mining acquisitions ... even if these money can generate hundreds of thousands of profits in the next ten years, Far water can't quench near thirst.
The key point is that several industrial companies in North America need to expand their capital again.
Although the domestic vcd industry is developing rapidly and the international dvd industry has begun to exert its strength, Feiyan is still in the huge profit stage as a whole, but the change in research and development direction means huge investment. Without actually entering the era of magnetic storage, mp3 and similar Today, the products are not on the market, and their profits are not enough to make people sit empty. At zero time, the company can only rely on patents and chip profits, and Eagle Nest has begun to increase the acquisition of game studios. Everything needs to be spent, but where does this money come from?
The front line suddenly turned from Feiyan to Feiyan. Now in the management team of Feiyan in North America, foreigners have occupied the vast majority. After all, Chinese Americans still do not have an advantage in the senior management group in the United States. Talents can provide very effective help for the company's advancement.
auzw.com However, on the issue of lack of money, the views of China and the United States have diverged. In the United States, the unified opinion of senior executives, including Yan Qiaosen, is public offering, that is, listing and financing. Chinese researchers like Meng Lisheng are extremely vigilant about the stock market and even Wall Street.
In this regard, Chen Yuanming's mind is actually quite a bit swayed. After all, the Internet bubble will reach its peak in five years. By then, Nasdaq will plummet, and all stocks related to the computer industry will fall madly. Countless technology companies in this catastrophe Exited sadly. If they do not go public, their ability to resist risks will be enhanced several times. If they go public, whether it is Eagle Nest or Zero Time, the impact will be difficult to predict at that time. At the same time after listing, it means dancing under the baton of Wall Street. If the profit cannot meet the satisfaction of those bloodthirsty giants, the evaluation of Wall Street will drop, the stock price will drop immediately, and the company's development will be curbed.
But not listing, and relying on loans or other methods of financing is obviously a violation of the US market. After these three companies formally established the DVD standard, their reputation today is quite good. Many investment banks have also contacted Feiyan to become their listed underwriters.
Both front and back choices are in front of him. After several days of high-level meetings and communication with News Corps, Chen Yuanming finally made a decision. It's not smart to always avoid that tiger. Now that you know there is a huge trap on the road, you should use this pit to gain greater benefits for yourself.
Ultimately, listing is still the only way for these companies. Just choosing how and where to list is the most critical issue. In the end, the underwriting company selected by Chen Yuanming was not the second echelon such as Merrill Lynch and UBS, but now and the only king of the US investment industry in the future: Goldman Sachs.
(End of this chapter)
The author has something to say: Emma, today this chapter wrote dead nest qaq
If you have any questions, don't poke me (hold your head), try your best ...
I mean, yesterday ’s response was a lot, thank you for your support> _
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