Investors said that | Xiong Wei, founding partner of Qiancheng Capital: There is still 10-20 years of investment space for the industrial Internet

"Science and Technology Innovation Board Daily" (reporter Chen Mei) news, Qiancheng Capital recently completed the fundraising of 1.3 billion new funds.

Xiong Wei, as the helmsman, said frankly: This is the recognition of investors for the past performance of Qiancheng. In the second phase of the fund, the old LP re-investment rate is nearly 50%, and such a high re-investment rate shows the professionalism and investment return rate of Thousand Multiplication Capital.

In Xiong Wei's view, there will be more and more venture capital companies in the future, but boutique funds are relatively limited. To achieve a boutique fund, investors need to use a professional eye to prejudge the industry, and this forward-looking judgment determines the differentiated advantages of GPs. Because homogeneous investment represents a low return on investment. Only when you achieve a differentiated competitive advantage, it is possible for resources such as LPs to continue to converge on you.

Therefore, in Xiong Wei's cognition, the establishment of Qianyue Capital is not only a kind of courage to start a new business, but also a vision of wanting to be a high-return boutique fund.

Recently, the venture capital daily reporter and The founding partner of Qiancheng Capital Xiong Wei launched an in-depth dialogue, as the founding partner of Xiong Wei, not only has a professional investment method, but also a firm investment belief. For the future, Xiong Wei said that the industrial Internet still has 10-20 years of investment space, including landing applications, order support from lighthouse customers, and companies that continue to innovate micro-innovation, which are the target objects that Qianyue should find and patiently accompany.

<h3>Xiong Wei</h3>

Talk about entrepreneurship: the mood is worried, but the business is familiar

For Xiong Wei, entrepreneurship is not a new attempt, even if he is doing something familiar.

Since entering Huawei in 1998, Xiong Wei has done sales, starting from the account manager, and the reason why Xiong Wei can set up Qiancheng Capital and lock in the track of industrial technology today stems from his past experience.

Before the establishment of Qianye, Xiong Wei had a business start-up. In 2003, Xiong Wei started a business within Huawei, co-founded Shenzhen Kehao with several Huawei executives, and entered the IT software industry, this experience allowed Xiong Wei to deeply understand the psychological journey of entrepreneurs, know what entrepreneurs need and what they don't need. This bitter but challenging experience laid a good foundation for entering Dachen as an investor.

The change of identity from entrepreneur to investor is a "butterfly change" on Xiong Wei's life path. In the 7 years of Dachen, Xiong Wei recalled that full communication and communication with enterprises is an essential quality for a good investment manager. In the years of being an investment manager, Xiong Wei has at least 150 face-to-face communication projects with entrepreneurs every year, and each of them is a door-to-door visit. In the past 7 years, Xiong Wei has invested in many very good projects, some of which have been IPO, and some are still on the road to IPO, which has brought huge returns to the company and investors.

Time passes, Xiong Wei's entrepreneurial dream remains unchanged. It gave up the 10 million prize of Dachen Venture Capital and established Qianyue Capital in 2016. As Xiong Wei's second venture, Qiancheng Capital said that the unknown road is like "crossing the river by feeling the stones", and there will be moments of anxiety, but compared with before, the overall mentality has tended to be stable.

In the interview, Xiong Wei said that the first phase of the Thousand Multiplier Fund raised 500 million yuan in one and a half months, which was not easy compared to the financing environment at that time. However, based on the ease of business and the integration of investment models, Xiong Wei quickly found the investment direction and ideas, and determined the goal of making a high-return boutique fund.

At present, the 1000-by-1 fund has entered the exit period, and among the more than 30 investment projects, 3 projects have been issued IPO, and 2 projects have applied for the IPO of the Science and Technology Innovation Board. In the next 2 years, more than 10 projects are expected to apply for IPOs.

In the face of such rich achievements, Xiong Wei believes that Qiansheng Capital has integrated the playing style of the US dollar fund at the beginning of its establishment, which is completely different from the RMB fund. Not only the way to exit, but also the participating players are different. Regarding the fruitful results of the first phase of the Thousand Multiplier Capital Fund, Xiong Wei believes that in the process of learning from the US dollar fund, it will no longer be scarce for a single project to recover the entire fund money.

Talk about investment: optimistic about the industrial science and technology track

With rich investment experience and professional investment thinking, Xiong Wei identified the industrial technology track when Qiansheng Capital was established.

In the specific investment, Qiancheng Capital put forward the core logic of "data reconstruction industry". To put it simply, in industrial technology, the first step is to build infrastructure, which is like 5G new infrastructure, and the opportunity is certain.

For example, in the early days, Qiancheng Capital invested in data intelligence company digital policy software, container cloud manufacturer Light Yuan Technology, industrial control security manufacturer Tiandi Hexing, digital marketing cloud system service provider Marketin... These enterprises have common characteristics, that is, there are landing applications, core customers, and micro-innovation technology advantages. Xiong Wei believes that a good target will definitely have a deep understanding of the industry, can solve specific problems for customers, and has product iteration, so that technology can become a dividend in the cost performance of the product, so that it can eventually develop into a head company.

In the methodology, Xiong Wei also believes that technology should be used as the carrier to promote digital transformation and upgrading. Among them, the 3C and lithium battery industries are typical.

Taking new energy vehicles as an example, Xiong Wei said that the entire investment process has allowed the team to go through a round of testing. When investing in 2016 and 2017, Qianye predicted that new energy vehicles would have a trough trend in 2018 and 2019, but it was very optimistic about the industry for a long time. From the perspective of industrial development path, the judgment of thousand multiplication is very accurate. Although the investment logic of Thousand Multiplication was challenged when the industry entered a slump, and some LPs also had internal arguments, Thousand Multiplication calmed down and finally obtained the expected considerable return. This reinforces the investment logic and methodology of thousand multipliers.

Then there is the field of semiconductors, and Chiyana has also keenly seized the opportunity.

Before Huawei was cut off from supplying new chips, the foreign semiconductor industry was very mature, and the development of domestic semiconductors was very fragmented. However, after independent innovation, Qiancheng realized that this is a huge industrial iteration opportunity, and the investment logic is very clear: after Huawei and other large enterprises cannot get goods abroad, they will definitely find manufacturers in China in the future. In this process, Qianyue led the investment in Nanocore Micro.

The Venture Capital Daily reporter noted that the tens of millions of yuan of A-round financing that occurred in 2019 was led by Thousand Multiplier Capital. Up to now, Naxin Micro has been delisted from the New Third Board and rushed to the Science and Technology Innovation Board for IPO.

Xiong Wei believes that the reason why Qiancheng Capital can lead the investment in the A round of financing of Nanocore Micro, in addition to a clear understanding of the track, is that Qiancheng Capital can bring value-added services to Nanocore Micro Investment. In the early days, GPs had different perceptions of the semiconductor field: that is, the difference cognition in 2019 was large, and in 2020, this difference cognition became homogeneous, and the investment ideas gradually converged in 2021.

But the problem is that homogeneous cognition means that the return on investment is low, and back to what was said at the beginning, adhering to high-quality boutique funds must have forward-looking predictions and dare to sell when opportunities come. Of course, in the field of semiconductors, Thousand Multiplication Capital is not a comprehensive shot.

"The entire semiconductor industry is very big, including design, production, packaging and so on." Xiong Wei pointed out that the semiconductor industry has a long track and a particularly large market segment, so it is necessary to follow the trend, according to the market "changes with the times", and adhere to the investment strategy of 'doing something, not doing anything'. In the end, according to its own advantages, Qiancheng Capital locked in the track of analog chips and invested 4-5 in a targeted manner. It can be said that the overall investment is very sharp and self-contained.

Up to now, Qiancheng Capital has successfully invested in semiconductor companies such as Haimuxing (688559), Hongwei Technology (688711), Nanochip Micro, and Silingjie.

Talking about the future: The second phase of the fund continues to take the road of specialization

It is precisely because of The Thousand Multiplication's judgment of the industrial science and technology track, and successfully predicted in a certain field, seizing the opportunity. The second phase of the fund raised 1.3 billion yuan, which is 1 times higher than the financing of the first phase of the fund of 650 million yuan.

In Xiong Wei's view, it is Qian multiplication Capital that speaks with professionalism and finally obtains the recognition of the LP.

For the second phase of the fund, Xiong Wei said that he will continue to focus on industrial technology. As a subset of the industry, industry has become the first stop for commercialization after the maturity of technology because of the simple scene and the ease of landing of new technologies. Thousand Multiplication Capital will continue to find quality companies in the field of industrial technology. In the future, Thousand Multiplication will not only look at the technology, but also look at the team. Because the team is the leader of the enterprise and the creator of technological innovation. Only a good team can create a good enterprise.

Subjectively, Xiong Wei believes that a good team must have two basic judgments, one is to have a deep understanding of the industry; the other is to have a clear understanding of solving the bottleneck problem in the industry.

Objectively, Thousand Multipliers will use downstream customers to further verify whether the invested company is a good company. That is, customer quality, large-scale order volume, customer demand for this technology, etc.

In short, Xiong Wei believes that under the premise of the unchanged large track, investment will be made according to the different segmentation points of each stage. In the future, the homogeneous investment opportunities will be less and less, on the one hand, Qiansheng relies on the top fund of funds to invest, has rich ecosystem resources, and can find good projects and excellent enterprises earlier; on the other hand, the professional research ability allows Qiansheng Capital to "understand" the project and dare to "re-bet" in the face of good projects. The investment logic and runway selection of the 1000-phase fund is the infrastructure of industrial science and technology, and the second phase will continue to focus on the industrial science and technology track, and will also focus more on the "technology dividend" brought about by the iteration and renewal of technology.