Chapter 663 VC, PE and IPO

and "How to break through the barriers of technology, cost and other obstacles. Solar street lights can be used in cities all over the country. This has become a problem that the urban road lighting industry must solve. The low photoelectric conversion efficiency of solar panels has always been an international technical problem. If the photoelectric conversion efficiency of solar street lights can be increased from the current 15% to 50%, it means that solar street lights will have incomparable technical advantages." Professor Wu said to Fan Wubing.

After listening, Fan Wubing asked, "Isn't this a small problem easy to solve?"

"Of course it's not easy to solve, but we are working hard. Now the results in the laboratory are still optimistic. Our most urgent requirement is to find cheap alternative materials that can reduce manufacturing costs while increasing conversion rates." Professor Wu replied.

As for how to find alternative materials and how to increase conversion rates, they are commercial secrets. Naturally, they will not be discussed publicly at this time, but Professor Wu still hopes to talk to Fan Wubing about this matter. After all, without large amounts of financial support, his own research will be difficult to continue.

Projects like theirs can naturally apply for project R&D funds from the state, but if they want to apply for project R&D funds, the approval procedures they need to go through are too cumbersome, and whether they can get the support funds in the end is also ambiguous. Professor Wu naturally cannot pin all his hopes on this.

At this time, the enthusiasm for transforming knowledge into productivity in university campuses is still constant, especially high-tech incubators have always been a hot topic. Venture capital continues to enter mainland universities, and then develops many strange things and pushes them to the market. Although some of them are gimmicks created by commercial operations, some more valuable projects have indeed been produced.

Professor Wu also hopes to introduce venture capital, but projects like his require a large investment amount, and there is no possibility of return for the time being, so it is difficult to find a suitable venture capital company to support him for a while.

Speaking of venture capital, we have to talk about Bei, Bi and Ru.

Bei is the commonly said venture capital, in fact, this word should be translated as venture capital to be more accurate. Especially when talking about abbreviations, the meaning of "venture capital" is a bit confusing, but for industry insiders, "venture capital" is obviously more acceptable. Of course, it is quite appropriate to say that one day "venture capital" loses its rationality and becomes "crazy investment".

The willingness of "bet" refers to private capital, which is generally extended to private equity investment, which means that it is not a loan or other method, but an investment method that obtains returns by holding shares. Obviously, "bet" belongs to a special type of high-risk and high-return investment.

It has only been a decade or two since the professional "bet" was separated from "bet". The concept of "bet" has only been fully implemented in China in the past two years.

Generally speaking, the biggest difficulty in starting a business is usually the problem of funds. In the early stage of a startup or in the first few years, it is also the time when various types of funds such as credit funds are most reluctant to invest, because startups are full of risks, and these risks are often unquantifiable.

However, this high risk has been proven to often contain very high and unusually high returns. Therefore, "bet" came into being. Professional "bet" generally does not invest in this startup for a long time. Instead, it chooses to exit when the risk of the enterprise is reduced and credit funds are willing to intervene.

The main means of exiting "bet" are mergers and acquisitions. Among them, the initial public offering (IPO) is the most successful and profitable exit method, so it naturally becomes the first choice for investors.

IPO is the initial public offering of shares, or IPO. At the right time after the start-up company or IPO,

selling the shares held can often obtain several times, hundreds of times or even hundreds of times the initial investment. This is the special difference between professional investors and ordinary investors.

There are two main sources of venture capital funds in the United States, institutions and very wealthy individuals. In order to reassure investors, venture capital companies will also invest some money together.

Venture capital funds are generally initiated by venture capital companies, inviting no more than 499 investors and investment legal persons, including themselves, to form a limited liability company. In order to avoid taxes, funds raised in the United States are generally registered in Delaware, and funds raised in other parts of the world are registered in countries and regions without corporate taxes such as the Cayman Islands or the Bahamas. If you suddenly encounter an American fund registered in California or New York when starting a business, you must have encountered a scammer.

As for why the number of shareholders cannot exceed 499, it is because according to US law, once a company has more than 500 shareholders, it must disclose its financial and operating conditions like a listed company. Venture capital companies do not want the outside world to know where their investments are, how their funds are operated, and details such as the shares they hold in the invested companies. They generally choose not to disclose their financial and operating conditions, so the number of shareholders cannot exceed 500.

But there is also a problem now, that is, there is no relevant GEM in the domestic stock market. In other words, there is no market mechanism to encourage small and medium-sized enterprises to go public for financing.

This creates a problem. High-tech enterprises are generally relatively small in scale. In the early stage of starting a business, it simply cannot meet the domestic listing standards, so it is impossible to obtain financing from this channel for development. After venture capital funds enter China, they must support some projects, but if they want to develop in Siyang in China, No, so the only development direction is to go public on Nasdaq.

It is precisely because of this that many movies at this time are filled with bloody plots of a young man starting his own business, then gaining the favor of angel investors, and finally going public on the Nasdaq and becoming a rich man. This is true, but Nasdaq is not that easy to get to. It still needs a complete set of operating mechanisms to support it, so it is for domestic small and medium-sized enterprises that are not familiar with the operating mechanism of the U.S. stock market to raise funds. Venture capital funds that are good at handling this set of matters are indeed the best choice.

However, venture capital managers are not easy to deal with. For example, now, the first question that venture capital companies ask entrepreneurs of software companies is "Is it possible for Microsoft to do what you want to do?" This is an impossible question. Answer the question. If answer"

Financial P Chapter Table of Contents Chapter 663, PE and Ratio Then the general partner of the venture capital fund will then say, "Since Microsoft is a Microsoft company, we don't have to do it." If the answer is "no", then the general partner People will also say, "Since Microsoft doesn't do it, it seems there is no need to do it, so why are you doing it?"

Another question is about the rate of return. Generally speaking, venture capital funds require a rate of return of more than fifty times. Those that are lower than this expectation are not willing to consider it at all. This is naturally related to risk. The risks involved in investment are indeed relatively high, and it is necessary to ensure the success rate of the project as much as possible.

Ordinary venture capital funds would not dare to touch solar energy utilization projects like the one mentioned by Professor Wu because the investment is too large and the risk is too great. The rate of return may be very small. What is this kind of project used for?

When engaging in venture capital, you also need to pay attention to horizontal expansion capabilities. This means that once a product is made, it must be easy to copy at low cost and expand to related fields. For example, Microsoft's technology is very scalable horizontally. You can copy as many copies of a piece of software as you want. The solar photoelectric conversion silicon wafer developed by Professor Wu cannot be expanded horizontally because it requires equipment for manufacturing semiconductor chips, which is very costly, and it is impossible to expand the scale without limit because the remaining capacity of semiconductor manufacturing in the world is limited.

Since the profit from using silicon wafers to make computer chips is very high and there is no risk, why should I engage in solar power generation? If it is for the sake of world peace and green environmental protection, it is estimated that few people will do it seriously. After all, as a capitalist, how to rapidly expand one's capital is the first priority, basically. When capital expansion leads to conflicts with social responsibilities, social responsibilities can choose to avoid them on their own.

After Fan Wubing had a serious talk with Professor Wu. Professor Wu felt that the prospects of his project were really bleak. It was obviously difficult to expect government investment, and it seemed that there was little hope of using the power of venture capital. Just thinking about the years of hard work he had worked on, he was very disappointed. You may feel extremely sad because your funds cannot make ends meet and everything goes down the drain.

"Does it mean that there is no future?" Professor Wu sighed.

Seeing that the old man was in a depressed mood, Fan Wubing said with a smile, "Actually, there is still some market for Taixun to be used, but the situation at this time is a bit inappropriate. Professor Wu, you don't have to be discouraged. , perseverance is victory.”

Although he comforted the old man, Fan Wubing did not promise anything. Although he was more interested in the solar energy utilization market, he also knew that he was too enthusiastic and might not be able to take the initiative. Some things still require some strategies. There are good ones.

The two chatted for a while and then broke up. As expected, Fan Heng was pulled over to show his face.

Boss Zhu found someone to call Fan Wubing over. He wanted to ask why it was so popular today and what he thought of enterprises with this model of Top Company.

Fan Heng was also present, and there were only a few people there, all of whom were high-ranking figures.

Fan Wubing didn't have any psychological burden. After thinking about it for a while, he said, "It's not a glorious thing to make money in the name of high technology. If this company is really that kind of high technology, then forget it. The problem is that this is nothing more than selling dog meat on a sheep’s head.”

"The new economy in the United States is booming, and some high-tech industries have emerged in China. Isn't it an exaggeration?" Some people still expressed different views.

The current Internet economy represented by Nasdaq has really attracted the attention of the Chinese people. Whether they are from the central government or local governments, they all have an understanding that this thing brings money, but everyone has not considered the prosperity of the stock market. It does not necessarily rely on real performance. In most cases, it is a bubble.

Fan Wubing said to everyone, "If it were normal, based on the current situation of Nasdaq, it would have entered a high-risk area. But until now, everyone thinks it is worth the money, and their enthusiasm has not diminished. , what’s the reason?”

After hearing Fan Wubing's words, several people looked deep in thought, obviously they were not completely ignorant about it.

"The reason is very simple." Fan Wubing explained simply and reassuringly, "Practice has proved that before every financial crisis or stock market bubble bursts, it is the time when the market is at its craziest. There is an old saying in China, which is called prosperity and decline. This is the truth. But in the most prosperous moment, there are only a few people who believe that bad luck will come. The reason is that some people are constantly creating public opinion for the bubbles that everyone blows up. "

Boss Zhu nodded repeatedly after hearing this, feeling that Fan Wubing's words seemed to make sense.

"Before every economic crisis, or before the stock market bubble bursts, there will be some public opinion positions advocating, and this time is naturally no exception. It is just that the new economy is different from the past, and the information industry has broken the traditional economic laws." Fan Wubing One sentence revealed the mystery. "However, everyone must pay attention to one thing. That is, a big drama needs to end at the end. This is an objective law and cannot be violated. The people who are singing this big drama now. Those who want to make this big drama come to an end. It lasts longer so that they can become more popular and make more money, so they need to create some public opinion to show that the high-end of this scene has not yet come, and the good things are yet to come. But the energy of the actors is limited, and they will go on strike. In this way, when everyone is most happy to watch, the small pillars will quit. The final scene will inevitably be a scene of heated discussions and yelling. If there’s a winner here, it’s the people behind the scenes.”

After listening to Fan Wubing's words, everyone felt quite uneasy, but they also admitted that what Fan Wubing said was indeed very reasonable. This drama will eventually come to an end, but it is not clear when and where it will end. Just land?

Considering that the current domestic stock market is also following the trend of the Internet economy, and the speculation is in a mess, I feel that I have to listen carefully to Fan Wubing's words.

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