China Fund News Jiang You
The logic of high dividends is not only sought after by the second-level, but also the two investment bigwigs in the primary market have also been "discussed", which has attracted attention in the circle.
Zhu Xiaohu, the managing partner of GSR Ventures, recently said that the second level is high dividends, and now the first level of investment also looks at dividends, and early VC (venture capital) requires dividends, and said that the principal will be returned in five years by dividends; Zhang Ying, the founding managing partner of Matrix Partners Partners, has a different view.
Zhang Ying said bluntly in the circle of friends: "Brother Zhu Xiaohu has distributed the scale of the fund through dividends in the past 5 years, and I don't agree with it at all. And said: "A real US dollar LP will not accept or believe in the idea that a fund will return its capital through dividends within 5 years." ”
Zhang Ying said that she also sent her views directly to Zhu Xiaohu, and she is very familiar with him, so it doesn't matter what you say.
Zhu Xiaohu of GSR Ventures VS Zhang Ying of Jingwei Ventures: There are different views on dividends
Zhu Xiaohu's recent interview about dividends has attracted the attention of the venture capital circle.
Zhu Xiaohu said that now no one is grabbing investment projects, the market is in this state, back to the way he was when he first started to do VC 20 years ago, it takes 3 to 6 months to investigate, and the company can achieve expectations and plans every month, and investors will really make money.
Screenshot of GSR Ventures' interview with Zhu Xiaohu
Zhu Xiaohu said, "It's the same with quitting. Today, everyone relies on profits and dividends. This year, the second level only looks at high dividends, and the first level also looks at dividends. My assumption is '5 years to get back the principal by dividends', and now the exit is not clear at all, so I can only rely on this assumption. ”
Regarding Zhu Xiaohu's statement that "I will get back the principal by dividends in 5 years", Zhang Ying of Matrix Partners directly expressed "complete disagreement" in the circle of friends.
Matrix Partners official website Zhang Ying photo
Zhang Ying said that she completely disagreed with Zhu Xiaohu's view that the fund size will be distributed through dividends in 5 years. Zhang Ying said that she wrote about the underlying thinking, and also sent the same question to Zhu Xiaohu, they are very familiar, and what they say will not affect the relationship.
Zhang Ying listed several logics, 1. Unless the fund is very, very small, and can invest in high-quality companies with income and profitability in the middle and late stages, and people can still sign dividend clauses; 2. If it is a fund of normal size, such as 300 million US dollars to 400 million US dollars, it is difficult to achieve.
Zhang Ying also said that a truly high-ranking US dollar LP will not accept or believe in the idea that a fund will return its capital through dividends within 5 years.
Regarding the different views of Zhu Xiaohu and Zhang Ying, some venture capital insiders said that there is not necessarily who is right and who is wrong, and it may all make sense, which is related to the capital attributes of the fundraising side. If the fundraising is a policy-oriented fund that cannot be lost, it may be more concerned about dividends and cash flow, while market-oriented funds with more long-term attributes may pursue more growth space and opportunities.
The two bigwig institutions have invested in many well-known companies: including Didi, Ele.me, Xiaopeng Motors, and Li Auto
According to GSR Ventures' official website, Zhu Xiaohu is the managing partner of GSR Ventures, mainly responsible for the company's early-stage investments in the Internet, wireless and new media industries.
Prior to joining GSR Ventures, Xiaohu co-founded eBaoTech Network Technology Co., Ltd., a leading provider of back-end systems with a focus on the insurance business. In addition, Zhu Xiaohu worked at McKinsey & Company Greater China, where he accumulated rich consulting and implementation experience. Zhu holds a Master of Arts degree in International Economics from Fudan University and a Bachelor of Science degree in Telecommunications Engineering from Shanghai Jiao Tong University.
Founded in 2004, GSR Ventures has become one of the world's most successful early-stage venture capital firms, managing both USD and RMB funds with more than $3 billion in capital under management, according to the official website. The company focuses on early-stage investments and actively identifies investment opportunities in the U.S., China and other parts of Asia, with a focus on AI-enabled enterprise services, consumer internet and medical technology.
GSR Ventures said it has invested in more than 100 start-ups in the fields of enterprise services, consumer internet and healthcare since 2004, including Didi Chuxing, Ele.me, Qunar, Xiaohongshu and Baihe.com.
Prior to founding Matrix Partners in 2008, Ying worked at WI Harper Group. Ying joined WI Harper in 2001 as an investment manager in the San Francisco office and returned to China in 2003 to continue her career at WI Harper in the United States. Eventually, Ying Zhang became the Managing Director of WI Harper's Beijing office, where she was responsible for all aspects of WI Harper's investments in China and invested in a number of companies, including Focus Media.
Founded in 2008 with a management scale of more than RMB 70 billion, the company is a long-term venture capital institution in the industry focusing on early-stage and early-growth investment, focusing on investment in new technologies, hard technology, industrial digitalization, medical care, cutting-edge technology, new consumption and other fields.
According to reports, Matrix Partners has invested in more than 800 companies, including Xiaopeng Motors, Li Auto, Haichen Energy Storage, Chehaoduo Group, Eleme, Youzan, Rongbai Technology, XGIMI Technology, Momo, PingCap, Peijia Medical, Beisen, Chuanzhi Education, Kangxi Communication, Muxi Integration, Jane Eyre, Xinchi Technology, Maga Robot, Xin Yaohui, Xin Huazhang, Sai Meite, etc.
According to the information on the official website, since its establishment more than ten years ago, Matrix Partners has established an investment team of more than 40 people, continuing to focus on China and focusing on the middle and early stages. At the same time, we firmly believe that entrepreneurs come first, and have established a strong post-investment service system, with a post-investment team of 80 people in 10 different functions empowering the invested companies from all aspects such as strategy, operation, and talent.
Editor: Xiao Mo
Review: Muyu